Remittances, Gulf projects push pound below $48 after long wait

The Egyptian pound surged below 48 to the US dollar for the first time since July 2024 propelled by hefty Gulf investment and a sharp rise in remittances from Egyptians abroad, according to Mostafa Shafie, head of research at Arabeya Online Securities.

Shafie told Al Manassa on Tuesday that the pound’s rebound is anchored in a Gulf-backed real estate mega-deal on Egypt’s Red Sea coast, and sustained foreign currency transfers from expatriates. He also highlighted a boost in net foreign reserves, which climbed to $49.25 billion at the end of August.

Remittances from Egyptians abroad jumped 59% year-on-year to $15.8 billion between January and May 2025, up from $9.9 billion in the same period last year, according to Central Bank data.

On Sunday, the Central Bank of Egypt also announced that foreign reserves rose to $49.25 billion by the end of August, up from $49.036 billion a month earlier—a $214 million increase.

Shafie projected the pound will trade between 47 and 48 per dollar by year-end, supported by continued inflows of hard currency and improving macroeconomic indicators.

On Sunday, Emaar Misr—a subsidiary of UAE-based Emaar Properties—and Saudi Arabia’s City Stars signed a joint venture with the Egyptian government to launch the “Marassi Red Sea” project. The development spans 10 million square meters and is expected to attract over $18.5 billion in investment.