The elegant pavilion of the Egyptian airline Egyptair immediately catches the eye of visitors. Never before has the carrier from the Nile presented itself as confidently at the ongoing Dubai Airshow, which runs until November 21. Once seen as the problem child of the Middle East, Egypt is celebrating a comeback and has every reason to demonstrate its renewed strength.

Gulf States and Asia drive new upswing

Above all, the Gulf States are playing a key role. Inflows from the six countries of the Gulf Cooperation Council reached around 41 billion dollars in fiscal year 2023/24. Trade between Egypt and the GCC grew from 9 billion dollars in 2020 to almost 14 billion dollars in 2024, explains economist Dr. Nasser Saidi, president of the consulting firm Nasser Saidi & Associates, in a recent study from Dubai.

Cairo is currently negotiating with Saudi Arabia and Kuwait to double bilateral trade volumes and expand joint investments, industrial linkages, and logistical cooperation. «Moreover, Egypt’s foreign reserves recently surpassed the 50-billion-dollar mark — a historically high level, supported by Gulf capital and ongoing IMF tranches,» he adds. This optimism is also reflected on the stock exchange. The benchmark EGX30 index rose by 27.71 percent over the past six months.

This trend is strengthening demand for more business travel from the Gulf. Emirates Airline, the world’s largest international carrier, will add six extra weekly flights on the Dubai–Cairo route starting December 1, 2025.

China is also moving further into focus: more than 2,800 Chinese companies are already active in Egypt, with cumulative investments exceeding 8 billion dollars. Beijing is regarded by Cairo as a strategic partner in industry, infrastructure, and technology.

Another bright spot is the tourism sector — traditionally one of the country’s most important economic engines.  Saidi notes: «For 2026, Cairo expects a 20 percent increase in international arrivals. The tourism board is increasingly targeting high-growth markets in Asia and Latin America. By 2030/31, the country aims to attract 30 million visitors, and tourism revenues are expected to rise to 30 billion US dollars by 2028.»

Not all that glitters is gold

One barrier to greater prosperity remains: inflation. Consumer prices rose to 12.5 percent in October (September: 11.7 percent), driven by an almost 13-percent increase in fuel prices and a new law allowing landlords to raise rents. As a result, housing costs surged by 27.1 percent (September: 18.2 percent). Core inflation also climbed from 11.3 percent to 12.1 percent. Food prices increased slightly, while the transport sector remained significantly more expensive.

According to economists, inflation can also spur consumption and investment because money, like a «hot potato,» changes hands quickly in an effort to get ahead of further price increases. In fact, private investment grew by a remarkable 73 percent in the current fiscal year, according to Finance Minister Ahmed Kouchouk. Authorities are increasingly relying on digitalisation, broadening the tax base, and improving competitiveness; annual tax revenues alone are expected to grow by 35 percent.