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GCC investments aim to mitigate Egypt's foreign direct investment challenges
Egypt is poised to face a foreign direct investment (FDI) slowdown due to new U.S. tariffs, with an external financing shortfall projected between $10 billion and $12 billion for 2025-2026. However, investments from Gulf Cooperation Council (GCC) countries, including a $7.5 billion deal from Qatar and Kuwait's potential $4 billion currency conversion, are expected to mitigate this impact and enhance Egypt's financial stability. Despite a surge in FDI to $23.7 billion in the first nine months of the fiscal year, future inflows may be tempered by the tariffs and a global trade slowdown.