Governance of public investments contributed to increasing private sector participation in economic activity.

The government is continuing to implement financial and economic reforms to increase growth and employment rates.

The second phase of the Macro-Financial Assistance mechanism, valued at €4 billion, will be disbursed in three tranches.

The Grand Egyptian Museum (GEM) opens new prospects for the tourism sector and enhances its contribution to the GDP.

“Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs & Resilience” reflects the state's direction towards a productive economic model.

 We appreciate the strong interaction from thinkers, experts, and researchers in the societal dialogue on “Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs & Resilience”.

We are expanding innovative financing mechanisms to create fiscal space that contributes to implementing economic and structural reforms.

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, held meetings with a number of regional and international media outlets during her participation in the "Future Investment Initiative" (FII) Conference, held in the Saudi capital, Riyadh, with the participation of a selection of heads of state, governments, ministers, and the private sector.

The Minister of Planning, Economic Development, and International Cooperation reaffirmed that the Egyptian economy has achieved positive performance, reflecting its resilience in the face of global geopolitical and economic challenges. 

Dr. Al-Mashat indicated that the economic growth rate in the 2024/2025 fiscal year reached 4.4%, and the economy recorded a growth rate of 5% in the last quarter. She noted that the contribution of the Suez Canal remains negative due to geopolitical developments, while the contribution of the industry, tourism, and ICT sectors has increased, reflecting the diversity in sources of growth.

The Minister of Planning, Economic Development, and International Cooperation added that setting a ceiling for public investments contributed to boosting private sector participation in economic activity. She stressed that the government is continuing to implement financial, economic, sectoral, and social reforms with the aim of supporting the private sector's role and increasing employment and growth.

Regarding the Financial Cooperation Program with the European Union, Dr. Al-Mashat pointed to the signing of €4 billion in financing to support the Egyptian economy, to be obtained in three tranches, after the disbursement of the first tranche of the budget support program, valued at €1 billion, in January 2025.

Dr. Al-Mashat mentioned that the financing is based on the Egyptian Structural Reform Program, the pillars of which were published in   “Egypt’s Narrative for Economic Development” on September 7th.

The Minister also emphasized that the structural reforms being implemented by the government are consistent with cooperation programs with the International Monetary Fund and the World Bank, in addition to the significant support from the European Union for the reform path aimed at increasing private sector participation. 

Dr. Al-Mashat highlighted that growth and employment are the government's priority during the coming phase, and that 2026 will be a year of positive transformation for the Egyptian economy.

The Minister indicated that the opening of the Grand Egyptian Museum (GEM) next Saturday will be an important launch for the tourism sector. 

Dr. Al-Mashat also referred to the ongoing work on debt swap agreements, noting that a €50 million tranche has been completed with the German side, and negotiations are underway for other tranches, in addition to completing a new tranche with the Italian side. She mentioned the implementation of debt swap agreements with the UAE within the Ras El Hekma deal, which represents a prominent transaction in this field in the context of debt-for-investment swaps.

Dr. Al-Mashat pointed out that the Egyptian economy is witnessing significant investment inflows in the sectors of infrastructure, tourism, health, mining, and new and renewable energy, with the participation of investors from Gulf and European countries. She noted that the improvement in macroeconomic stability indicators elevates opportunities for investors to benefit from the Egyptian market and the transformations it is undergoing in the business environment.

Minister Al-Mashat emphasized the continuation of work in priority and investment-attractive sectors. She stressed that the government alone cannot meet the requirements for growth and job creation, and that enhancing private sector participation is a fundamental pillar for the next stage.

Dr. Al-Mashat clarified that private investments contribute over 60% to GDP growth this year, while maintaining the ceiling on public investments. She confirmed the state's continued efforts to empower the private sector and foster its role in the national economy.

Dr. Al-Mashat referred to the meeting of the Higher Committee for the State Ownership Policy Document, about three years after the document's launch in 2022. Work is currently underway to update it in line with the current economic variables and the promising positive prospects in various sectors.

In this context, she explained that the recent period witnessed progress in efforts to partner with the private sector on several assets, including Hurghada International Airport, for which procedures have been initiated for its tender in partnership with the International Finance Corporation (IFC). She affirmed that the state is continuing to expand private sector participation mechanisms, either through the stock exchange or through investment partnerships.

The Minister spoke about “Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs & Resilience” as the Egyptian state's economic and structural program. Dr. Al-Mashat mentioned that it reflects the state's vision for building an economic model based on the development achieved in infrastructure supporting industry and export, and localizing industry, thereby contributing to boosting exports and creating more job opportunities.

Dr. Al-Mashat added that “Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs & Resilience” includes multiple chapters and strategies covering training and capacity building of human capital, localizing development goals, and continuous performance monitoring to ensure the achievement of targeted results.

The Minister stressed that the Narrative relies on maintaining macroeconomic stability as the foundation for driving real economic sectors, noting that an entire chapter includes numerical targets up to 2030, as well as extended targets up to 2050.

Minister Al-Mashat expressed her appreciation for the strong interaction from thinkers, researchers, and various groups within the framework of the societal dialogue launched by the Ministry on the Narrative. She explained that work is underway to incorporate the recommendations submitted by all working groups and participants, to become an economic and executive program accompanied by clear plans for each ministry to achieve the targets.

The Minister reiterated that the citizen will remain the priority in all economic and social policies, asserting that efforts to reduce inflation, boost employment, and increase production, along with health, education, and social protection programs, all fall within an integrated system aimed at improving the standard of living for the Egyptian citizen.

In conclusion, Dr. Al-Mashat reaffirmed that creating the necessary fiscal space to implement these targets and enhancing private sector participation are at the heart of the government's work during the coming phase.