RIYADH: Remittances from Egyptians working abroad rose by 33.2 percent year on year during the first 10 months of fiscal year 2025/2026, reaching a record $39.2 billion, new figures showed.
Data released by the country’s central bank showed that on a monthly basis, remittance inflows climbed 44 percent annually to reach $4.3 billion in April.
The rebound in remittance flows comes as Egypt continues implementing reforms under its International Monetary Fund-backed program.
Higher inflows have strengthened one of the country’s largest sources of foreign currency, supporting its external position and foreign exchange liquidity, while reforms focused on exchange-rate flexibility, fiscal consolidation, and macroeconomic stability continue to bolster investor confidence and economic growth.
“For certain emerging economies with high remittance receipts, the ability to meet the country’s foreign external obligations become highly dependent on these flows continuing. Any disruption can lead to a significant impact on these economies,” Kapil Chadda, partner at Arthur D. Little, told Arab News.
The latest figures extend the strong upward trend in remittance inflows throughout the fiscal year. Transfers reached $34.9 billion during the first nine months of 2025/2026, up from $29.4 billion in the first eight months and $25.6 billion in the first seven months, highlighting continued momentum in one of Egypt’s key sources of foreign currency.
Amod Jain, managing director of headhunting firm Antenna International told Arab News that remittances are one of the most reliable sources of foreign currency, often proving more resilient than investment flows during periods of uncertainty.
“For countries such as Egypt, they are a key pillar of economic resilience, supporting household spending, investment and broader economic growth,” he added.
The sustained increase in remittances comes as Egypt continues to navigate external financing challenges.
According to the Central Bank of Egypt, the country recorded an overall balance of payments deficit of $2.1 billion during the first half of fiscal year 2025/2026, underscoring the importance of remittance inflows in supporting foreign exchange liquidity and the country’s external position.
Egypt’s net international reserves increased to $53.13 billion at the end of May, up from $53 billion at the end of April and continuing an upward trend over recent months.
In April, S&P Global affirmed Egypt’s sovereign credit ratings at “B/B” with a stable outlook, citing strong momentum in macroeconomic reforms and improved external buffers.
In its report, the credit rating agency stated that the affirmation reflects a balance between Egypt’s reform progress over the past two years, its external buffers, and its medium-term growth outlook, against heightened risks from prolonged regional geopolitical tensions.
Credit rating agencies are closely monitoring Egypt’s reform trajectory as it works to strengthen external buffers and restore macroeconomic stability, even as regional tensions continue to pose risks to growth and investor confidence.
