Egypt is evaluating the potential impact of newly imposed global tariffs on trade flows and the Suez Canal but remains confident in its investment appeal due to ongoing economic reforms, deputy central bank governor said on Monday. "We are currently assessing the implications of the recent tariffs, as they may significantly impact global trade and potentially affect the Suez Canal," Rami Aboul Naga, Deputy Governor of Egypt's central bank (CBE) said during a fireside chat at the EFG Hermes One-on-One Investor Conference in Dubai. "However, thanks to our ongoing reform efforts, we believe we will remain an attractive destination for investors." Aboul Naga said Egypt had been proactively creating buffers to "navigate potential challenges ahead" and was focused on implementing long-term policy development. "We initiated a series of reforms some time ago," he asserted. He noted that the foreign exchange market now operates freely and acts as a "shock absorber," helping reduce economic imbalances. Trade with the United States accounts for 7 per cent of Egypt's overall trade volume, with imports making up around 11 per cent. "As policymakers, we've learned the importance of diversification to mitigate risks associated with trade concentration," Aboul Naga said. "There is significant interest from global investors in Egypt, as our economy offers substantial growth potential." Net foreign reserves have risen to $47.7 billion, while net foreign assets have recovered and public debt has declined, according to Aboul Naga. He said Egypt had been transparent in identifying external vulnerabilities and implementing corrective measures. "We are actively building a compelling narrative around the revival of Egypt's economy." he stated. On the government's state share sale programme, Aboul Naga said the primary goal was to secure financing and attract private sector participation, citing the Ras El Hikma deal as a model. Egypt, he added, is pursuing to "maintain a balanced mix of financing from capital markets and direct foreign investment in projects, which creates a healthier financial environment." "We are increasingly involving the private sector in efforts to revive the economy," Aboul Naga concluded. Attribution: Amwal Al Ghad English
