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RIYADH: Egypt’s credit rating was raised by S&P Global to ‘B’ from ‘B-’, while Fitch reaffirmed its ‘B’ rating, citing reform progress and macroeconomic stability. 

S&P said the upgrade reflects reforms implemented over the past 18 months, including the liberalization of the foreign exchange regime, which boosted competitiveness and fueled a rebound in growth.  

In September, Egypt’s Ministry of Planning, Economic Development and International Cooperation reported that the economy expanded 4.4 percent in fiscal year 2024/25, driven by a strong fourth quarter when gross domestic product growth hit a three-year high of 5 percent. 

Welcoming the move, Egypt’s Prime Minister Mostafa Madbouly said: “Both S&P and Fitch have confidence, despite all challenges, that the Egyptian government will continue implementing its economic reform program, and that the returns from this program will grow further in the coming period.”  

According to S&P, economic reforms in the country have also boosted tourism and inward remittances and improved external and fiscal metrics.   
Since March 2024, the Egyptian pound has traded under a more flexible regime, helping stabilize the balance of payments and restore investor confidence. 

“The stable outlook balances our view of Egypt’s improving growth prospects and improving balance of payments trends against continued high government deficits and debt, including external commercial obligations,” said S&P Global. 

The agency said Egypt’s economy has benefited from the $8 billion loan program provided by the International Monetary Fund in March 2024, which helped stabilize the currency and support policy reforms. It also noted more than $10 billion in additional funding from other multilateral donors. 

“The government’s reform efforts, supported by the IMF, have attempted to reduce key structural constraints to growth. These include the large informal sector; relatively weak, albeit improving, governance and transparency of state-owned enterprises; and barriers to competition that prioritized public and military-owned companies and restricted private-sector activity,” said the report.  

In March 2024, the EU announced a €7.4 billion ($8.1 billion) financial and investment package for Egypt over four years, comprising about €5 billion in concessional loans, €1.8 billion in investments, and €600 million for bilateral projects. 

S&P Global said it could consider raising Egypt’s credit rating if the country’s net government and external debt positions improve significantly faster than currently expected. 

The ratings could also be upgraded further if economic diversification progresses steadily and the government opens key sectors to foreign investment, thereby benefiting the broader economy. 

On the downside, S&P Global warned that it could revise Egypt’s outlook to negative if the government’s commitment to macroeconomic reforms — including exchange rate flexibility — weakens, or if economic imbalances such as foreign currency shortages reemerge. 

In a separate report, Fitch Ratings affirmed Egypt’s Long-Term Foreign-Currency Issuer Default Rating at ‘B’ with a stable outlook, citing the country’s large economy, relatively high potential GDP growth, and strong support from bilateral and multilateral partners. 

However, Fitch noted that these strengths are offset by weak public finances, including exceptionally high debt interest-to-revenue ratios, sizable external financing needs, a record of volatile commercial financing flows, elevated inflation, and geopolitical risks. 

According to Fitch, Egypt’s gross international reserves rose by $2.1 billion in the first nine months of 2025 to reach $47 billion. 

The Central Bank of Egypt’s net foreign asset position stood at $10.7 billion in August, remaining broadly stable this year, while the banking sector’s net foreign asset position improved by $13.7 billion during the first eight months of 2025. 

“Our projection for broad stability in external finances partly reflects a steady narrowing of the current account deficit to 2.8 percent of GDP in FY27, following the 1.2 percentage points improvement in FY25 to 4.2 percent of GDP. This is driven by robust expansion of remittances which surged 66 percent in FY25 and tourism, offsetting a widening trade deficit,” said Fitch.  

The report further noted that Egypt’s foreign direct investment is expected to rise to an average of $15.5 billion in FY2026–2027, up from $13.2 billion in FY2025. 

According to Fitch, the country’s rating could be upgraded if Egypt strengthens its international reserves, narrows its current account deficit, and implements structural reforms that reduce the risk of renewed imbalances while improving access to international markets. 

Conversely, the rating could be downgraded if a further escalation of regional conflict heightens instability and security risks in Egypt, resulting in larger negative spillovers for tourism, Suez Canal revenues, or investor sentiment. 

ALKHOBAR: With delivery now dominating the food game, Saudi entrepreneurs are rethinking how restaurants operate and how kitchens can do more with less. 

From asset optimization to rapid brand launches, the cloud kitchen playbook is getting sharper. For Saudi entrepreneur Faris Al-Turki, the move to cloud kitchens wasn’t about chasing a trend; it was about unlocking the full value of what already existed.

“We invested millions into the branch,” said Al-Turki, founder of Faris Breakfast. “But it was only used in the mornings. So, we asked: Why not turn it into a cloud kitchen the rest of the day?”

That shift, using idle kitchens to launch virtual brands and serve new segments, has opened up a path to increased revenue without new real estate.

“Even if it adds a bit of cost,” he said, “our fixed costs are already there. So we might as well expand — different meals, different audiences, same kitchen.”

It’s a hybrid model that keeps overhead low and output high and reflects a broader transformation underway in the Kingdom’s food scene.

But turning physical space into digital brands comes with new pressures, especially when there’s no street visibility or foot traffic.

“One of the biggest challenges is that you don’t have a physical store with a clear logo in a busy area,” Al-Turki said. “You’re completely dependent on ads, influencer marketing, paid placements inside apps.”

That means most customers only encounter the brand in-app, making marketing a survival tool. “If they don’t see your name on the list, they won’t even know your food exists, no matter how good it is.”

While Al-Turki is maximizing physical space, others are skipping it altogether.

Foodtech platform Kaykroo, which entered the Saudi market in 2021, is operating at a different scale. The Dubai-born company runs over 77 digital-first brands in �������� alone, with a presence in Riyadh, Jeddah, Dammam and more.

“We’re well past the early rollout phase,” said Fawaz Al-Otaibi, co-founder and KSA CEO of Kaykroo. “Our platform model allows us to scale quickly while tailoring brands to local consumer demand.”

Instead of leasing kitchen space to outside operators, Kaykroo owns and runs its entire portfolio, combining culinary R&D, logistics, and data science under one umbrella. 

Our platform model allows us to scale quickly while tailoring brands to local consumer demand.

Fawaz Al-Otaibi, co-founder and KSA CEO of Kaykroo

Since launching, the company has sustained a double-digit CAGR in delivery orders, with a significant portion of sales coming from repeat customers. “That reflects the loyalty we’ve built in the Saudi market,” Al-Otaibi added.

For Kenzy Al-Harbi, the cloud kitchen model was a strategic gateway. At just 18 years old, the Madinah-based entrepreneur launched Earth Art, a delivery-only food brand inspired by visual aesthetics and high-end comfort food.

“I chose the cloud kitchen model because it’s much cheaper than a traditional restaurant,” Al-Harbi said. “It gave me a way to test the idea and build the brand without taking a big risk.”

With no storefront to rely on, she focused on packaging, social media, and storytelling to build loyalty. “I invested in visual branding and nice packaging. I wanted people to feel the brand experience even without visiting a branch.”

Still, Al-Harbi says platform commissions eat into margins, and make efficiency critical.

“The hardest part is managing costs, especially the commission that delivery platforms take,” she explained. “I had to create bundles and offers to increase order value, and optimize inventory so I wasn’t wasting money.”

While platforms like Jahez and HungerStation help reach customers, they also serve as gatekeepers. Visibility, rankings, and promotions all come at a cost. “You have to pay just to show up,” Al-Turki added. “And if you want to be near the top of the app, that usually means discounts or free delivery.”

For these operators, tracking performance is no longer optional; it’s built into the workflow.

“I noticed customers love seasonal items or dishes tied to occasions,” Al-Harbi said. “That insight pushed me to update my menu regularly. I also adjusted prices based on what was selling and when.”

Al-Turki agreed: “The market’s moving fast. People want variety, they want convenience, and they want speed. You have to adapt constantly — menus, marketing, even kitchen workflows.”

Kaykroo takes that even further, with teams monitoring customer behavior across all 77 plus brands to optimize offers, locations, and operating hours.

As cloud kitchens multiply, questions around regulation, consolidation, and long-term viability are beginning to surface. “There’s definitely growing competition,” Al-Harbi said. “And I think we’ll start seeing clearer regulations to protect both businesses and customers.” Al-Turki sees a shift already underway. “Dine-in traffic is going down. People want to eat where they are. At home, at work, with friends. That’s not a trend, that’s reality.”

Al-Otaibi, who plays a role in shaping policy frameworks for the sector, expects more structure. 

As the industry matures, strong operators will survive and grow, and weak ones will phase out or consolidate.

Al-Harbi’s advice to first-time founders: “Start small, test your concept, and don’t overspend. Focus on quality and the customer experience — and never stop improving.”

Al-Turki keeps it blunt. “It’s not easy; you’re in a constant fight to stay visible and stay relevant. But if you’re lean, creative, and persistent, the opportunity is there.” As the Kingdom’s F&B scene evolves, one thing is clear: In the race to capture the delivery-first consumer, the winners won’t just cook well, they’ll think fast, market smarter, and adapt without waiting for permission.