Al-Mashat:

• We seek to achieve a qualitative change in the economic growth model based on tradable and exportable sectors.

• Launch of the Report on “Advancing Economic Development in Egypt: Reforms for Growth, Jobs & Resilience”, focusing on the sectors most contributing to growth and employment.

• The government follows an approach based on policy harmonization and the integration of the economic ministerial group for effective policy-making.

• Continued structural reforms are necessary for macroeconomic stability and continuous improvement of the business environment.

• Infrastructure projects over ten years have paved the way for the transformation of the Egyptian economic model.

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, participated in the concluding session of the Inaugural IMF MENA Research Conference held by the International Monetary Fund (IMF) for the Middle East and North Africa region in Cairo, in cooperation with the Onsi Sawiris Business School at the American University.

The conference was titled "Steering Macroeconomic and Structural Policies in A Shifting Global Economic Landscape" and was attended by Mr. Nigel Clarke, IMF Deputy Managing Director, Mr. Jihad Azour, IMF Director of the Middle East and Central Asia Department, and a selection of international specialists, academics, and central bank governors.

Also participating in the conference were Prof. François Bourguignon, Honorary Chairman, Paris School of Economics; Prof. Barry Eichengreen, Professor of Economics and Political Science at the University of California; Mr. Martin Galstyan, Governor of the Central Bank of Armenia; and Mr. Youssef Boutros Ghali, Member of the Specialized Council for Economic Development. Dr. Mahmoud Mohieldin, UN Secretary-General's Special Envoy for Financing the 2030 Sustainable Development Agenda, along with a selection of specialists, officials from international financial institutions, and academics, also took part.

H.E. Dr. Rania Al-Mashat reviewed developments in the Egyptian economy and the new economic model that the government seeks to adopt amidst regional and global economic changes. She highlighted the periodic reports issued by the IMF. The reports emphasize the importance of achieving macroeconomic stability in Egypt, effective coordination between fiscal and monetary policies, and the reflection of these policies on society and investors, creating an attractive economic environment for private investments.

H.E. Dr. Al-Mashat pointed out that this approach, which Egypt has followed for years, has achieved real transformations in the Egyptian economy. She affirmed that since March 2024, the government has been striving to achieve a qualitative change in the economic model to avoid a repeat of past internal and external shocks that negatively affected economic reform programs.

H.E. Minister Al-Mashat noted that the state is pursuing more harmonized fiscal and monetary policies and continuous coordination among ministers of the economic group, with public awareness of the importance of reform. This enhances the economy's ability to adapt to changes, contributes to increased competitiveness, and attracts more investments.

H.E. Dr. Al-Mashat also touched upon the government's continued reduction of public investments to make way for the private sector. She added that as a result, when analyzing the structure of economic growth today, it is observed that the non-petroleum manufacturing sector is among the most prominent contributors to this growth, in addition to Egyptian exports witnessing a remarkable recovery, which reflects the positive impact of implementing a flexible exchange rate system.

H.E. Dr. Al-Mashat continued: "The Government of Egypt is working to pursue consistent fiscal and monetary policies and create a new economic model that enhances macroeconomic stability and follows comprehensive and continuous structural reforms. This, in turn, leads to comprehensive development and sustainable growth, which is reflected in increased resources, stimulates local and foreign investments, and supports flexibility and competitiveness."

In this context, H.E. Dr. Rania Al-Mashat announced that next month will witness the announcement of the report on “Advancing Economic Development in Egypt: Reforms for Growth, Jobs & Resilience”, which establishes this new economic model. This growth model supports the transformation of the Egyptian economy from non-tradable sectors to tradable and exportable sectors, and supports growth and employment, based on comprehensive and effective macroeconomic policies, measures stimulating foreign direct investment, and clear strategies for localizing industry, encouraging local products, and supporting the transition to a green economy. This is all based on the relative advantages in the Egyptian economy and the significant development in infrastructure and logistics over the past ten years.

H.E. Dr. Al-Mashat reiterated that this narrative contributes to aligning Egypt's Vision 2030 with the Egyptian government's work program in light of local, regional, and international changes. She mentioned that the expansion of infrastructure projects was necessary in the past period to build a comprehensive network of infrastructure such as ports, electricity networks, and roads, which facilitated attracting private sector investments. However, in the long term, these sectors must be utilized to attract investments that create job opportunities and enhance productivity.

H.E. Minister Al-Mashat noted that despite the global economy facing difficult challenges, from slowing growth to escalating geopolitical tensions, Egypt sees this transformation as a promising opportunity to strengthen its position in global value chains. Despite global challenges, they can open the door to huge investment and industrial opportunities that contribute to job creation and enhance local production.

H.E. Dr. Al-Mashat added that within the framework of the ministry's efforts to strengthen economic relations with international financial institutions, this has enabled the private sector to obtain concessional financing, which has helped reduce the cost of financing and mitigate risks over the past five years. She emphasized that the private sector has received concessional financing totaling $15 billion, including $4.2 billion in 2024, despite the difficult geopolitical circumstances in the region.