Egypt’s private investment tops $18 billion as government targets economic growth

Egypt’s private sector now accounts for approximately 65% of total investment, as the government moves to strengthen its partnership with businesses and introduce further incentives to support economic growth.

Finance Minister Ahmed Kouchouk outlined the government’s priorities during a meeting with the Egyptian Private Equity and Venture Capital Association, highlighting its willingness to consider further measures to stimulate investment across sectors.

“We are serious about adopting any initiative aimed at enhancing the competitiveness of the Egyptian economy and driving economic growth,” Kouchouk said.

The figures point to a broader shift in Egypt’s investment landscape following recent economic and financial reforms. The private sector’s share has risen from 40% to 45%, with private investment exceeding $18 billion (EGP 1 trillion) over the past year, according to the Ministry of Investment and Foreign Trade.

Kouchouk highlighted these efforts as part of the government’s broader strategy to pursue balanced, flexible economic policies that promote fiscal discipline and stability, thereby stimulating investment and growth.

As part of these efforts, Egypt has rolled out a series of tax reforms since 2024 aimed at simplifying procedures, broadening the tax base and improving the business environment. According to Kouchouk, tax revenues have grown exceptionally strongly over the past two years, driven by an expanding tax base rather than increases in tax rates.

He attributed the success partly to proposals originating within the tax community itself, adding that the ministry would continue to simplify procedures and support businesses. The Finance Ministry is also developing a mobile application to simplify real estate tax procedures and improve access to services.

Alongside efforts to attract private investment, the government is seeking to create more room for economic growth while maintaining financial stability.

“Maintaining fiscal surpluses helps put debt and the budget deficit on a downward path, giving us greater room for social spending,” Kouchouk said.

Beyond tax reforms, industry leaders are calling for additional incentives to attract institutional investors and strengthen Egypt’s capital markets.

Ayman Soliman, chairman of the Egyptian Private Equity and Venture Capital Association, emphasized the importance of closer collaboration between policymakers and investors to address regulatory challenges and encourage economic growth.

He called for joint working groups to identify investment barriers and develop practical legislative solutions to improve the business environment.

Soliman also highlighted the potential of real estate investment trusts (REITs) to attract international capital, arguing that targeted incentives could strengthen the Egyptian Exchange and encourage greater participation from long-term institutional investors.

He added that financial and economic incentives would be essential to attracting global pension funds, bringing more long-term capital into Egypt’s market.