Arab Finance: Allianz Trade Economic Research has upgraded Egypt’s short-term country risk rating to D3 in its 2025 Country Risk Atlas report, reversing a downgrade to D4 in last year’s report following the liquidity pressures seen in 2024.

The upgrade reflects a partial improvement in financing conditions and a stabilization in Allianz Trade’s assessment of the immediate risk of non-payment on trade receivables.

Egypt’s country grade remained unchanged at D, which represents the medium-term risk rating assessing the structural condition of an economy over the coming years.

This scale ranges from AA, the lowest risk, to D, the highest.

The numerical component of the rating measures short-term risks over a six to 12-month period that could lead to financial stress or payment defaults.

Egypt received a score of 3, classified as “sensitive.”

The D3 rating may prompt some global trade credit insurers to review shipment limits to Egypt that were restricted during the period of USD shortages before the currency float.

However, Egypt continues to carry the highest possible medium-term risk level under Allianz Trade’s country grading.

In regional comparison, Egypt’s rating remains below several peers, with the UAE rated AA1, Saudi Arabia rated A2, and Morocco rated B1.