S&P Global Ratings has affirmed Egypt’s B credit rating with a stable outlook, with the reasoning that financial support from the GCC and the upcoming IMF loan will enable Egypt to meet its “large” external funding needs.

Egypt’s track record of reform and its strong growth outlook indicates that it can count on lenders to achieve its foreign financing needs, around $18 billion, for the current fiscal year, writes S&P’s report.

It also noted that Egypt could see close to $10 billion in foreign direct investment during the current fiscal year, up from $8.9 billion last year.

In regards to the IMF loan, S&P expects it to be within the range of $2-3 billion, with another possible $2-3 billion that could be raised from the international bond market.

The ratings agency believes that GCC countries will pledge further funds to support funding gaps due to Egypt’s track record, its reduced funding needs, and the importance of stability in Egypt to the region as a whole.”

UAE, Saudi Arabia, and Qatar have pledged around $22 billion to Egypt since the start of the Russia/Ukraine conflict, although $6 billion in Foreign direct investment (FDI) has not yet entered the country, explained S&P.

The economy will grow at an average of 4.0% over the next two to three years, the ratings agency says, with the construction and energy sectors driving growth, alongside structural reforms and increased reliance on investments, exports, and private sector-led growth.