Morgan Stanley downgrades Egypt to ‘Equal Weight’ on oil risk, Middle East tensions
Updated 3/10/2026 8:44:00 AM
Arab Finance: Morgan Stanley has downgraded its view on Egypt to “Equal Weight” from “Overweight,” citing headwinds facing the country as a net oil importer amid rising geopolitical risks across the Middle East.
“Amid heightened Middle East uncertainty, we move UAE and Egypt to EW, and upgrade Saudi Arabia to OW to gain exposure to energy," strategists Matthew Nguyen and Emily Woods said in a note.
The strategists attributed the downgrade to Egypt's heavy reliance on tourism and the Suez Canal's recovery.
They also depicted Egypt as one of the region's worst-performing markets since the Middle East tensions escalated.
Moreover, Morgan Stanley expects the country to be among the most negatively exposed markets to oil supply shocks.
As of March 10th, prices of some petroleum products and compressed natural gas (CNG) for vehicles in Egypt increased due to the recent exceptional conditions the global energy market faces.
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