Egypt recorded an overall balance of payments surplus of approximately $2.8 billion in fiscal year 2025/26, reversing a deficit of $2.1 billion in the previous fiscal year, according to the Central Bank of Egypt (CBE).

The turnaround was primarily driven by a sharp increase in net inflows into the capital and financial account, which reached $23.2 billion, compared with $10.2 billion a year earlier.

Foreign direct investment (FDI) recorded net inflows of approximately $18 billion, up from $12.2 billion in FY2024/25, while foreign portfolio investments generated net inflows of $4.2 billion, compared with $1.6 billion in the previous year.

Despite the overall surplus, Egypt’s current account deficit widened to approximately $22.5 billion from $15.4 billion, reflecting growing merchandise trade and investment income deficits. However, stronger workers’ remittances, tourism revenues, and Suez Canal receipts helped partially offset these pressures.

Remittances from Egyptians working abroad rose by 29.6% in FY2025/26, reaching approximately $47.3 billion, compared with $36.5 billion in the previous fiscal year, an increase of $10.8 billion.

Tourism revenues also grew by 10.3% to approximately $18.4 billion, up from $16.7 billion a year earlier, providing additional support to Egypt’s foreign currency earnings.

Suez Canal transit revenues increased by 21.6% to approximately $4.4 billion in FY2025/26, compared with $3.6 billion in the preceding fiscal year.

The increase was supported by a 22.4% rise in the net tonnage of vessels passing through the canal, reaching 590.8 million tons, alongside a 9.8% increase in vessel traffic to approximately 13,600 ships.

The CBE noted that Suez Canal revenues had begun recovering toward their previous levels.

Egypt’s merchandise trade deficit expanded by 27.1% in FY2025/26 to approximately $64.8 billion, as import growth continued to outpace exports.

The non-oil trade deficit widened by $9.4 billion, or 25.4%, to $46.6 billion, compared with approximately $37.1 billion in the previous fiscal year.

This was largely attributed to a 16.9% increase in non-oil merchandise imports, which climbed by $12.1 billion to $83.9 billion, up from $71.7 billion.

Intermediate goods accounted for 55.2% of the overall increase in non-oil imports. These goods are used in domestic production processes and contribute to supporting economic growth.

Meanwhile, non-oil merchandise exports increased by $2.7 billion, or 7.8%, to $37.3 billion, compared with $34.6 billion a year earlier.

Export growth was concentrated in fresh, chilled, and cooked vegetables, gold, ready-made garments, household electrical appliances, and fresh and dried fruits.

Oil trade deficit increases amid higher natural gas imports

Egypt’s oil trade deficit widened by approximately $4.4 billion, or 31.5%, to $18.3 billion in FY2025/26, compared with $13.9 billion in the previous fiscal year.

The increase was primarily driven by a 27.6% rise in petroleum imports, which reached $24.9 billion, up from $19.5 billion.

Natural gas imports increased by approximately $4.7 billion, while crude oil imports rose by $1.9 billion, reflecting higher imported volumes of both commodities.

Conversely, imports of petroleum products declined by around $1.2 billion due to lower imported quantities.

On the export side, petroleum exports increased by approximately $1 billion, or 18.1%, to $6.6 billion, compared with $5.6 billion in the corresponding period.

The increase was supported by a $1.2 billion rise in petroleum product exports and a $206 million increase in natural gas exports, both driven by higher export volumes.

However, crude oil exports declined by approximately $350.6 million due to lower exported quantities.

Egypt’s investment income deficit widened by 33.8% to approximately $21.2 billion in FY2025/26, compared with $15.8 billion in the previous fiscal year.

According to the CBE, the increase reflected a $5.2 billion rise in investment income payments, which reached $23.9 billion.

At the same time, investment income receipts declined by approximately $169.3 million to $2.7 billion.

The widening deficit contributed to the deterioration in Egypt’s current account balance despite improvements in several major foreign currency revenue sources.

Foreign direct investment climbs to $18 billion

Net foreign direct investment inflows into Egypt reached approximately $18 billion in FY2025/26, compared with $12.2 billion in the previous fiscal year.

FDI inflows into non-oil economic sectors increased to approximately $17.8 billion, up from $11.6 billion a year earlier.

Investments directed toward establishing new companies or increasing the capital of existing businesses generated net inflows of approximately $8.8 billion, compared with $5.5 billion in FY2024/25.

The increase was mainly supported by inflows recorded between October and December 2025, associated with the implementation of the $3.5 billion Alam El-Roum investment deal.

Reinvested earnings also strengthened, reaching net inflows of $6.2 billion, compared with $4.2 billion in the previous fiscal year.

Meanwhile, foreign investment in real estate purchases by non-residents generated net inflows of $2.8 billion, up from $1.9 billion.

Proceeds from the sale of companies and productive assets to non-residents recorded net inflows of $433.2 million, compared with $399.8 million a year earlier.

In contrast, loans extended by parent companies for investment purposes recorded net repayments of $480.4 million, compared with $381.1 million in the preceding fiscal year.

Transfers abroad by foreign partners to recover costs previously incurred in exploration, development, and operating activities rose to approximately $6.5 billion, up from $5.6 billion.

Foreign portfolio investment inflows reach $4.2 billion

Foreign portfolio investments in Egypt recorded net inflows of approximately $4.2 billion in FY2025/26, compared with $1.6 billion in the previous fiscal year.

Meanwhile, changes in banks’ foreign assets and the CBE’s non-reserve foreign assets resulted in net outflows of approximately $9.7 billion, compared with $5.6 billion a year earlier, reflecting an increase in foreign asset holdings.

Changes in the CBE’s liabilities generated net outflows of $695.8 million, indicating a reduction in liabilities, compared with net inflows of approximately $3.6 billion in FY2024/25.

Medium- and long-term financing records net inflows

Medium- and long-term loans and credit facilities recorded net disbursements of approximately $1.9 billion in FY2025/26, reversing net repayments of $3.5 billion in the previous fiscal year.

Total loan and credit facility disbursements reached approximately $9 billion, compared with $8.9 billion a year earlier.

Meanwhile, principal repayments declined significantly to $7.1 billion from $12.4 billion in FY2024/25.

Stronger capital inflows offset widening external imbalances

Egypt’s return to an overall balance of payments surplus in FY2025/26 highlights the impact of stronger capital and financial inflows, supported by increased foreign direct investment and portfolio investment.

Record remittances from Egyptians abroad, higher tourism revenues, and a recovery in Suez Canal receipts also strengthened the country’s foreign currency inflows.

Nevertheless, the widening current account deficit underscores persistent external pressures, particularly rising merchandise imports and investment income payments.

The figures indicate that while Egypt’s external financing position improved during the fiscal year, sustaining that improvement will depend partly on containing trade imbalances, strengthening export performance, and maintaining stable foreign investment inflows.