The tough medicine of the $12bn IMF loan and a 55% currency devaluation is starting to cure the patient

but high inflation and interest rates are a burden.

• Political risk (HIGH): Egypt’s involvement in the Qatar diplomatic embargo may add to tensions.

Islamic State has warned it may carry out repeats of the Coptic church bombings that killed dozens of

worshippers.

• Economic risk (MEDIUM): Growth could slow sharply as the fiscal squeeze takes effect while there is

a risk that the targets under the IMF programme may be hard to achieve.

• Financial risk (MEDIUM): The banking system has proved robust during the turmoil of the last few

years and received an upbeat rating from Moody’s. Devaluation has helped attract private capital.

• Commercial risk (MEDIUM): The government has passed a long-awaited investment law and but the

ban on passengers taking laptops on board flights to the US and UK will irk business travellers. However

foreign direct investment is attracted by the cheap pound.