Cairo stocks top emerging markets, buoyed by Gulf investments, economic reforms

Egyptian stocks are outperforming most emerging markets as investors warm to signs of economic stabilization following months of reform and fresh capital from the Gulf.

The turnaround has been fueled in part by $35 billion in Abu Dhabi sovereign fund investment at Ras El Hekma that helped ease Egypt’s foreign-currency crunch and restore market confidence, Bloomberg reports. 

IMF support, including an expanded multibillion-dollar program tied to currency flexibility and fiscal reforms, has bolstered the recovery and drawn renewed foreign interest in Egyptian assets. 

Saudi Arabia has reinforced Egypt’s recovery through a $10 billion central bank deposit and plans by the Public Investment Fund to channel about $5 billion into Egyptian companies including eFinance and Misr Fertilizers.

Egypt’s benchmark EGX30 index is up 27% in dollar terms this year, building on a previous 50% gain in 2025. The government devalued the currency by 40% two years ago and adopted a free-floating exchange rate system, a move that helped secure the IMF bailout

“Current valuations are still cheap,” Allen Sandeep, director of equities at ACT Financial in Cairo, told the news agency. “The EGX is right now on a positive re-rating path.”