Egypt’s economy expanded by 5.2% during the first nine months of fiscal year 2025-26, according to the country’s Planning Ministry, signaling continued momentum as Cairo seeks to strengthen its finances through international borrowing and investment.

The growth, recorded between July and March, comes as Egypt continues efforts to stabilize an economy that has faced mounting challenges in recent years, including high inflation, currency pressures and rising debt obligations. The country’s fiscal year ends on June 30.

Support for the economy has come from a combination of large-scale real estate investments and an $8 billion loan program from the International Monetary Fund (IMF). However, regional geopolitical tensions are adding new pressures, particularly through higher energy costs and inflationary risks linked to the ongoing conflict involving Iran.

At the same time, Egypt is moving forward with plans to issue its first yen-denominated sovereign bonds in three years.

Speaking to Reuters during a visit to Japan last week, Foreign Minister Badr Abdelatty said the government is in the final stages of preparations for the Samurai bond issuance, which is expected to raise approximately $500 million from Japanese investors.

“We are completing the final steps,” Abdelatty said, noting that discussions with Japanese officials focused on monetary, fiscal and financial cooperation, including budget support and the planned bond issuance.

“We had extensive discussions with our Japanese friends on monetary, fiscal, and financial support, especially with regard to budget support and samurai bonds as well,” he added.

The planned issuance would mark Egypt’s third Samurai bond sale, following previous offerings in 2022 and 2023. In December, the African Development Bank announced it would partially guarantee the planned bond issuance, a move expected to enhance investor confidence and support Egypt’s access to international capital markets.

Abdelatty said the transaction remains important despite the economic challenges posed by regional instability.

“It will be very important, despite the fact that we’ve been hit hard with implications of the (Iran) war,” he said.

Meanwhile, Egypt’s foreign currency position showed modest improvement. According to the Central Bank of Egypt, net foreign reserves increased to $53.134 billion in May, up from $53.009 billion in April.

The rise in reserves, coupled with ongoing efforts to diversify funding sources and attract foreign investment, reflects Cairo’s broader strategy to strengthen economic resilience while navigating a challenging regional and global environment.