Egypt is still grappling with domestic tensions, and has the uncertainty of a presidential election on the horizon.
Investors, however, appear unfazed, and are betting that a host of economic reforms and an International Monetary Fund (IMF) funding program will pay off. Foreign investment into Egypt's stock market recently hit the highest level since 2010, and direct investment is also on the rise.
Egypt, the most populous country in the Mideast, is riding a wave of optimism—even in spite of domestic unrest marked by terrorism and flare-ups in its volatile Sinai region.
Still, just two months ago, ratings agency S&P Global revised upward the country's outlook to stable, effectively affirming its ability to continue growth. A Reuters poll in July showed economists forecasting economic growth above 4 percent in 2018 and 2019, which should help Egypt whittle down a yawning public spending gap that hovers around 8 percent of its domestic growth.
"Egypt is a country with a still very large budget deficit," Jacob Kirkegaard, a senior fellow with the Peterson Institute for International Economics (PIIE) told CNBC in an interview. "Despite progress, [the deficit] still exists," he said
However, much of that debt is held domestically, meaning Egypt is unlikely to find itself at the mercy of foreign investors demanding higher returns on its debt. Separately, the country is awash in a $12 billion IMF funding program that should help further stabilize the economy.
Amid surging price pressures and slow progress toward reform, the IMF noted the central bank of Egypt is "committed" to reigning in the country's double-digit inflation.