Summary

Hafsa emphasized Egypt's economic challenges, including a lack of control over currency devaluation, high inflation, and stalled economic reforms. Despite rumors of devaluation, she pointed out that President Sisi is unlikely to initiate major reforms until his third-term mandate is secured in the upcoming elections, scheduled for late this year or early next year. Hafsa expressed concerns about the prospects of a default, and discussed the limited options for bailouts from Gulf states. She also addressed the impact of inflation on citizens and domestic investors, as well as the government's attempts to encourage domestic investors through various tactics. She noted that Egypt's political stability is at risk due to economic challenges, with President Sisi facing a more vocal opposition. She highlighted the potential for spontaneous and leaderless protests driven by a middle class feeling the economic squeeze. Hafsa also touched on Egypt's evolving relationships with Gulf states, which have become more transactional, and the diminished likelihood of a significant bailout. In conclusion, Hafsa emphasized the lack of confidence and trust in the Egyptian regime both domestically and internationally, with questions about transparency and honesty. She noted that the responsibility for Egypt's economic recovery and reform appears to lie primarily with Riyadh and Abu Dhabi. The discussion was rich in insights into Egypt's economic and political challenges and its relationships with key regional players.

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