LONDON: The International Monetary Fund’s (IMF) agreement to provide $2 billion to Egypt as part of a three-year $12 billion loan agreement is a stamp of approval of economic reforms being pushed through under the terms of the deal, commentators said.
The latest payment, which remains subject to IMF executive board approval, will bring total disbursements under the agreement to $6 billion, Reuters reported.
In a statement released following a recent visit to Egypt the fund said, “Egypt’s economy continues to perform strongly, and reforms that have already been implemented are beginning to pay off in terms of macroeconomic stabilization and the return of confidence.”
“While the reform process has required sacrifices in the short term, seizing the current moment of opportunity to transform Egypt into a dynamic, modern, and fast-growing economy will improve the living standards and increase prosperity for all Egyptians.”
Last year, Egypt floated its currency and reduced energy subsidies as part of an ambitious economic reform program outlined under the terms of the loan.
Since then, the Egyptian pound has approximately halved in value and inflation has soared to record highs in what is widely acknowledged to have been a challenging adjustment period.
During a panel discussion on Egypt at the MENA Britain Trade Expo 2017 in London held Friday, Mohamed Farid Saleh, the executive chairman of the Egyptian Exchange, said resolving the fiscal deficit is “not something that can be achieved with a magic wand” but pointed to short-term gains, including easing in inflation moving forward.
Speaking to Arab News ahead of the session, he said economic performance had proved “resilient,” citing the 4.2 percent growth of the Egyptian economy in the fiscal year ending June 2017, exceeded projections of 3.5 percent.
“The reform measures took place despite difficulties on several fronts and the upcoming benefits and potential gains are evident.”
“The government of Egypt is committed to the reform plan to put Egypt on track when it comes to macro-economic settings and macro-economic balances,” he said.
Karim T. Helal, chairman of ADIB Capital, the investment banking arm of Abu Dhabi Investment Bank in Egypt, said the reforms have been difficult but necessary.
“The immediate-term effect has been very painful for the populace in terms of devaluation and the subsequent inflation,” he said.
“It’s a bitter pill to swallow but we had to do it and we are at least showing signs that things are finally heading the right way.”
He described the IMF’s announcement as a “stamp of approval” for Egypt’s progress under the terms of the agreement.
“The fact that the $2 billion has been released now will indicate to the international investment community that the plan put forward at the outset is actually going according to expectations and that Egypt has indeed delivered what it was supposed to deliver,” he said.
Rana Adawi, managing director of Acumen Asset Management, said that the decision came as no surprise in light of Egypt’s success in implementing the required reforms.
“It’s a vote of confidence from the international community that we are committed to change,” she said.
Despite the disturbance created by the currency devaluation last year, the benefits of the move are starting to be felt as businesses take the opportunity to move into the export market, Adawi said.
“The flotation of the Egyptian pound made the country become very competitive in some sectors,” she said.
“You can see the finances of small businesses in the industrial sector going from loss-making to profit-making as a result of the flotation.”
Speaking during the Egypt panel discussion, Helmy Ghazi, managing director and head of global banking at HSBC, said: “The substance of reforms in Egypt are actually quite impressive and we at HSBC are very confident in the outlook and the economic prospects for Egypt.”
IMF gives Egyptian economic reforms $2bn ‘stamp of approval’
IMF gives Egyptian economic reforms $2bn ‘stamp of approval’
Saudi Arabia leads GCC IPO market in 2025, raises $4.1bn: Markaz
RIYADH: Saudi Arabia strengthened its role in the Gulf Cooperation Council’s initial public offering market in 2025, raising $4.1 billion in proceeds, the highest in the region, according to an analysis.
In its latest report, Kuwait Financial Center, also known as Markaz, said the Kingdom accounted for 79 percent of total GCC IPO proceeds during the year, underscoring growing investor interest in the nation’s capital markets.
Saudi Exchange witnessed 13 IPOs in 2025, raising $3.7 billion, while the parallel market Nomu raised $336 million through 23 offerings.
Developing a robust capital market ecosystem is crucial for countries in the GCC region, as they continue to pursue economic diversification efforts to reduce reliance on oil.
Overall, the GCC region raised $5.1 billion through 40 offerings in 2025, representing a 61 percent decline compared to the previous year.
“Corporate IPOs raised $3.9 billion, or 76 percent of the total GCC IPO proceeds during the year, through 37 offerings. While IPOs offered by government-related entities only accounted for 24 percent, amounting to $1.2 billion through 3 offerings,” said Markaz.
In the region, the UAE came second with $544 million in proceeds through two IPOs.
The Abu Dhabi Securities Exchange raised $163 million through Alpha Data’s IPO, while Dubai Financial Market raised $381 million through Alec Holdings’ IPO.
Oman raised $333 million, or 7 percent of total GCC IPO proceeds, through the Asyad Shipping Co. IPO on the Muscat Securities Market.
Kuwait saw the IPO of Action Energy Co. during the fourth quarter of 2025. The offering raised $180 million, constituting 4 percent of total GCC IPO proceeds for the year.
Sectoral breakdown
The industrials sector raised $1.9 billion, accounting for nearly 37 percent of total proceeds in 2025, with the largest contribution coming from Saudi Arabia’s flynas, which raised $1.1 billion.
This was followed by the real estate sector with $1.2 billion, or 23 percent of total proceeds, from seven IPOs, including Umm Al Qura for Development and Construction and Dar Al Majed Real Estate Co.
The healthcare sector raised $508 million, constituting 10 percent of total proceeds, through three IPOs — SMC Hospitals on Tadawul’s Main Market and Basma Adeem and Wajd Life Trading Co. on the Nomu parallel market.
“The consumer discretionary sector saw $479 million in proceeds, constituting 9 percent of the total proceeds, through 10 IPOs, all in Saudi Arabia, while the financial services sector saw $400 million from Derayah Financial Co’s IPO on Tadawul, constituting 8 percent of the total GCC IPO proceeds during the year,” added Markaz.
The next-largest contributors were the technology and energy sectors, each accounting for 4 percent of total proceeds, followed by materials and consumer staples at 3 percent each.
Post-listing performance
Top IPO gainers in 2025 benefited from attractive offer pricing, strong post-listing liquidity and exposure to sectors with clear growth or defensive characteristics.
Markaz said listings on Tadawul, across both the Main Market and Nomu, saw performance supported by broad investor participation and sustained demand.
The largest gainer was Ratio Speciality Co., listed on Nomu in March 2025, with its share price advancing 190 percent from its offering price of SR10.
By contrast, some IPOs recorded negative performance, weighed down by overvaluation, limited liquidity and exposure to low-growth or margin-pressured sectors.
“Companies faced structural challenges and muted post-listing investor interest, which negatively impacted performance throughout the year. The weakest performer was Smoh Almadi, listed on Nomu in January 2025, with shares that dropped by 60 percent after its offering price at SR22,” added Markaz.
GCC markets’ performance
Markaz said Oman’s Muscat Securities Market emerged as the best-performing index in the GCC region in 2025, advancing 28.1 percent year on year.
Kuwait ranked second, posting gains of 25.3 percent. Dubai Financial Market rose 17.2 percent, while the Abu Dhabi Exchange gained 6.1 percent.
Bahrain Bourse and the Qatar Stock Exchange recorded increases of 4.1 percent and 1.8 percent, respectively.
However, Saudi Arabia’s Tadawul All Share Index declined 12.8 percent during the year.
Looking ahead, GCC IPO activity is expected to rise in 2026 compared with 2025, driven by stable global interest rates and ongoing divestment initiatives, according to Markaz.
“With strengthening investor confidence and evolving regulatory frameworks, the region is likely to attract a broader range of companies preparing for public offerings,” added the report.
