The outbreak of the US-Israeli war on Iran disrupted the Egyptian government’s plan to attract about $20 billion in direct investment from Gulf countries this year, a source familiar with the Arab investment file at the Cabinet told Al Manassa.
The source, who asked not to be named, said the regional conflict had hurt the country’s foreign-currency inflows, alongside the exit of about $6 billion in foreign investment from local debt instruments, known as “hot money.”
He said the government had been counting on direct Gulf investment to reduce reliance on external borrowing and support its economic development plans, but delays in those investments had pushed the state to look for alternative sources of funding.
The war could also affect the timing of the implementation phases of the $29.7 billion Samla and Alam Al-Roum project on the North Coast, despite a previous agreement with Qatar to carry it out, he said, adding that it had also delayed implementation of the Cairo-Doha agreement to inject $7.5 billion in direct investment.
The source also pointed to a delay by Saudi Arabia in injecting $5 billion in investment during 2026, while Kuwaiti investments worth $6.5 billion have not yet materialized, including $4 billion that had been scheduled for investment during the first quarter of the year, amid rising regional tensions.
The continuation of the war was increasing economic pressure on the state, he added, pushing it to take exceptional measures, including cutting subsidies on some services such as electricity and fuel, alongside a return to external borrowing that would increase the public debt burden.
Last week, the government raised fuel prices for all petroleum products by three Egyptian pounds (6 cents), citing the rise in global oil prices because of the US-Israeli war against Iran.
In April 2025, El-Sisi visited Kuwait as part of efforts to strengthen economic and investment cooperation between the two countries.
