Egypt has recently adopted a bold and ambitious reform plan to ensure fiscal sustainability and solve macroeconomic imbalances with the objective of reducing economic risk and bolstering confidence among investors.

The reform plan aims at increasing tax base, streamlining spending on fuel and electricity subsidies, leveraging capital spending and allocating more resources to public services and social security. These reforms led to subsequent upgrades to Egypt’s sovereign credit rating by the international rating agencies as well as positive feedback from the international financial institutions.