That said, some of the enthusiasm has been curbed by fiscal factors, a key reason behind S&P's decision to lower its outlook on the country. The cabinet's recently approved budget is implementing ways to bring the gap below 10 percent of GDP this year, but some analysts are less sanguine. Investment bank Brown Brothers Harriman (BBH) is forecasting Egypt's deficit to hit 11 percent of GDP this year, despite the phasing out of some subsidies.
"Because of this, the government has committed to further fiscal reforms that would help put public debt on a downward trajectory," said Win Thin, global head of emerging market currency strategy with BBH. Global economic headwinds and falling oil prices have clouded the near term outlook, Thin explained, even though Egypt has gotten some help.
"Foreign reserves have been falling steadily and are poised to fall below $15 billion for the first time since June 2013," Thin said. "This has happened despite several infusions of more than $20 billion in aid from Gulf allies Kuwait, Saudi Arabia, and the United Arab Emirates."