Egyptian Stock Exchange Rises 29% Since Beginning of Year, Leading Top Emerging Markets Globally

Egypt's EGX 30 index achieved a remarkable rise of 29% since the beginning of 2026, topping the list of best-performing emerging markets worldwide, reflecting improved confidence in the Egyptian economy following a period of severe pressure.

The Central Bank of Egypt decided to keep interest rates at 25.5%, one of the highest rates in the world, as part of its strategy to control inflation, which remains high despite beginning to gradually decline. The stability of the Egyptian pound's exchange rate contributed to boosting confidence among foreign investors.

Foreign investment inflows returned to the Egyptian market following Cairo's agreement with the International Monetary Fund, which provided international backing for economic reforms, in addition to growing tourism revenues that helped raise foreign exchange reserves and ease pressure on the balance of payments.

Analysts believe that maintaining this momentum depends on continuing the path of economic reform, as high inflation and record interest rates remain a real challenge to growth, and any regional disruption or decline in tourism revenues could reinstate pressure on the pound and weaken these gains.

What do these terms mean?

EGX 30 Index: The main index of the Egyptian Stock Exchange that tracks the performance of the 30 largest listed companies in terms of liquidity. It is considered the primary barometer for measuring the health of the Egyptian financial market, much like the Dow Jones index serves as a reference for the US market.

Interest rate at 25.5%: The rate set by the Central Bank of Egypt for interbank lending and deposits. Raising interest rates reduces spending and attracts savers, helping to curb inflation, but it burdens borrowers and businesses at the same time.

International Monetary Fund (IMF): An international organization that lends to countries facing balance-of-payments crises in exchange for implementing economic reforms. Having an agreement with it grants the country the confidence of international investors and facilitates the flow of foreign capital.