(Bloomberg) -- Egypt named an investor-friendly ex-World Bank economist as finance minister alongside business executives and former bankers to other key portfolios, as the nation seeks to move on from the worst economic crisis in decades. 

The government’s dollar bonds rallied on the news, posting some of the biggest gains in emerging markets on Wednesday. In the non-deliverable forwards market — used to hedge against declines in currencies — the pound’s 12-month contract strengthened the most since late April.

President Abdel-Fattah El-Sisi swore in Ahmed Kouchouk as the new finance minister of North Africa’s biggest economy, taking over from Mohamed Maait, who had held the post since 2018. Kouchouk was previously his deputy. 

Karim Badawi, who worked for US oil service giant Schlumberger NV for the past 28 years, will succeed Tarek el-Molla as energy minister. His role will involve trying to boost Egypt’s production of oil and natural gas, both to increase exports to Europe and to help end power cuts that have gripped the nation for a year.  

The new cabinet, which is headed by Prime Minister Mostafa Madbouly, is part of a sweeping overhaul to address mounting calls for fresh economic management after a fourth currency devaluation since early 2022. 

That move was made possible by a $35 billion megadeal with the United Arab Emirates that helped secure more than $20 billion in other funding, including an expanded International Monetary Fund program. 

Egypt’s sovereign dollar bond due March 2049 jumped the most since March 6, the day the pound plunged and authorities announced the IMF deal. The country’s securities on Wednesday accounted for 14 of the 20 biggest gainers on the Bloomberg Emerging Markets Sovereign Total Return Index.

Inflation, Growth

Officials have said the key priorities of the incoming government will be to curb inflation, boost private sector growth, cut spending and lay deeper foundations for sustainable development. That includes more funding for health and education, as well as increased efforts to expand the urban footprint of a nation where the majority live in the Nile Delta region and along the river’s banks. 

The new cabinet, which includes two deputy prime ministers, reflects an attempt to bring in officials with solid private-sector credentials or those with strong economic and analytical backgrounds. 

For example, Sherif Farouk, the former head of Nasser Social Bank and Egypt Post, takes over as supply minister. He will be responsible for wheat purchases in one of the world’s biggest importers. Egypt recently raised subsidized bread prices for the first time in decades and has been grappling with complaints about shortages of key commodities including sugar. 

The investment ministry has been revived, and will be run by Hassan El-Khatib. It’ll include the trade portfolio after the industry and trade ministry was split, with the industry component being grouped with the transport ministry. 

The new investment chief has held senior posts at the European Bank for Reconstruction and Development between 2012 and 2023, including as a managing director. Badr Abdelatty, a veteran diplomat, replaced Sameh Shoukry as foreign minister, while Lt. Gen. Abdel-Meguid Saqr takes over as defense chief, replacing Mohamed Zaki.

Transport Minister Kamel El-Wazir and Health Minister Khaled Abdel-Ghaffar will also serve as deputies to Madbouly, with El-Wazir responsible for industrial affairs and Abdel-Ghaffar handling human development.

The electricity ministry, which has become the target for Egyptians’ ire over the past year amid rolling blackouts, gets new leadership under Mahmoud Esmat, who’d served as public enterprise minister under the last government. 

Retaining her post as international cooperation minister is Rania Al-Mashat, whose portfolio was expanded to include the planning ministry previously run by Hala El-Said.

--With assistance from Verity Ratcliffe, Abdel Latif Wahba and Srinivasan Sivabalan.

(Updates with market moves starting in second paragraph.)

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