Egyptian remittances increased sharply by 50 percent in the
first six months of 2025, reaching $15 billion, according to reports by Ahram
Online. This growth reflects enhanced economic conditions among expatriates and
government efforts to streamline remittance channels, significantly supporting
Egypt's foreign currency reserves and domestic economy.
Sharp Increase in Remittances Reported by Ahram Online
As reported by Mohamed Abdelaziz of Ahram Online, Egyptian
remittances surged by 50 percent in the first half of 2025 compared to the
corresponding period in 2024, totaling around $15 billion. This jump
demonstrates a significant inflow of money sent by millions of Egyptians
working abroad, primarily in Gulf countries. The Central Bank of Egypt and
Ministry of Finance have welcomed this development as a positive indicator for
economic stability.
Central Bank Highlights Economic Impact
The Central Bank of Egypt stated that the rise in
remittances bolsters the nation’s foreign currency reserves, vital for
maintaining macroeconomic balance. These funds help cushion Egypt against
external shocks and support critical imports and infrastructure projects.
According to the Bank, facilitating formal transfer channels remains a priority
to sustain this growth trend.
Ministry of Finance Notes Government Measures
Minister of Finance, as cited by Ahram Online, noted that
initiatives to ease the transfer process—including partnerships with
international financial institutions and better regulatory frameworks—are
contributing to increased remittance inflows. These government measures
encourage expatriates to use official remittance channels rather than informal
ones, ensuring higher economic benefit for Egypt.
Economic Context Behind the Surge
The rise in remittances coincides with improved economic
conditions in host countries where Egyptians work, notably the UAE, Saudi Arabia, and other Gulf Cooperation Council (GCC) states. Abdelaziz further
reported that stable job markets and wage growth in these countries have
increased expatriates’ earnings capacity, enabling them to send more money
home.
Importance of Remittances to Egyptian Economy
Remittances are a vital source of income for millions of
Egyptian families and contribute significantly to domestic consumption and
investment. Their increase provides a steady flow of foreign currency crucial
for Egypt’s balance of payments and development projects. Economists emphasize
that such inflows help stabilise the Egyptian pound and reduce pressure on
foreign reserves.
Regional and Global Economic Factors
The increase also reflects shifting dynamics amid global
economic uncertainties, such as inflation and geopolitical tensions, that
affect migrant workers and their host economies. Egypt’s ability to attract and
retain expatriate workers who send substantial remittances is seen as a
resilience factor amid these challenges.
As reported comprehensively by Ahram Online, the 50 percent surge in Egyptian remittances during the first half of 2025 represents a significant economic boost for the country. With ongoing government reforms and improving conditions abroad, this trend is likely to continue, supporting Egypt’s economic recovery and strengthening financial stability.