UK backs World Bank’s $1bn funding for Egypt

Egypt has secured $1 billion in financing from the World Bank to support its private sector in strengthening the economy.

The financing includes a $200 million credit guarantee from the United Kingdom to sustain growth, the development bank said in a statement.

Although Cairo has undertaken a series of reforms that have helped it enter a stabilisation phase, the Iran conflict has added uncertainty and pressure.

Egypt is advancing an ambitious reform agenda to unlock private investment, create jobs and protect households in a challenging context, said Stéphane Guimbert, World Bank division director for Egypt, Yemen and Djibouti.

“This operation supports critical steps in that journey, helping Egypt build a more competitive, resilient and sustainable economy that can better withstand current and future shocks.”

Samar Al Ahdal, deputy minister of foreign affairs for international cooperation in Egypt, said the reforms supported under the funding plan will generate more and better jobs for Egyptians, protect its citizens in vulnerable situations, and ensure that growth is both sustainable and inclusive.

Mark Bryson-Richardson, the UK’s ambassador to Egypt, added that the funding will help unlock investment and strengthen economic stability for the benefit of all Egyptians.

The new financing will bolster the governance of state-owned enterprises and reduce barriers to private investment and growth, including by enforcing fair competition rules. It will also back the transition to a greener economy.

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The Asian Infrastructure Investment Bank is also expected to provide complementary financing, the statement said, without providing any details.

Last month finance minister Ahmed Kouchouk said Egypt was banking on higher public revenues from exports and the sale of government enterprises to slash its foreign debt by $1 billion to $2 billion in its 2026-2027 budget.

He said the 2026-2027 budget, which takes effect on July 1, targets a deficit of 4.9 percent of GDP, reducing the total debt-to-GDP ratio to 78 percent in June 2027, down from 87 percent in the previous year.