In the recent weeks, Egyptian credit opportunities have corrected on the back of some economic concerns. With the recent sell-off, the asset class now offers an interesting opportunity for investors with a matching risk profile.
In short:
- Short-duration USD- and EUR- denominated Egyptian bonds offer valuable entry points,
- We expect that medium term, Egypt’s economic program is expected to generate capital inflows once exchanges rates stabilize from the present downward trend, and
- GCC countries are supportive for a strong recovery of Egypt’s economy; a tight fiscal policy and commitment will lead a flexible exchange rate regime in the future.