Egypt is aiming to increase the private sector's share of total investment to over 70% by 2030, Planning Minister Rania Al-Mashat announced, following a 5.3% GDP growth in the first quarter of fiscal year 2025/26. This growth surpassed government expectations, fueled by industrial recovery and robust performance in tourism and ICT. Al-Mashat emphasized structural reforms to boost private investment and ensure economic stability.
Speaking to CNBC Arabia on Tuesday at the World Economic Forum in Davos, Planning, Economic Development and International Cooperation Minister Rania Al-Mashat stated that Egypt's 5.3% GDP growth in the first quarter of fiscal year 2025/26 exceeded expectations. This performance was propelled by a rebound in the industrial sector alongside strong results in tourism and information and communications technology. The Suez Canal has also resumed its positive contribution to GDP after two years of decline, with major shipping lines restarting transits through the waterway.
Currently, the private sector comprises about 65% of total investments. The government is applying 'governance of public investments' to curb state spending and make room for private capital. Efforts focus on structural reforms in tradable sectors like manufacturing, energy, and agriculture to achieve the 70% target by 2030.
Al-Mashat highlighted the second edition of the 'National Narrative for Comprehensive Development,' a strategy blending economic and social policies developed with input from 120 experts. It will be presented to the new House of Representatives and emphasizes human development, education, and universal health insurance.
For the first time, the government has released a National Programme for Structural Reforms featuring timelines and performance indicators. This includes implementing 'programme and performance-based budgeting' across all ministries to monitor per capita growth and job creation. The overarching aims are to secure macroeconomic stability, enhance citizens' quality of life, foster a competitive business environment, and support the shift to green energy.