Egypt expects foreign investment to top $10bn this year, with the stability provided by last November’s $12bn IMF deal a key driver. But progress on subsidy reform has been disappointing.

Egypt is reaping the benefits of the three-year financial assistance program entered into last November with the IMF (MEES, 18 November 2016). Foreign direct investment (FDI) rose from $6.9bn in 2015-16 to $8.7bn in the 2016-17 financial year (to June 2017). Inflows in the first three months of...