Egypt targets 78% debt-to-GDP ratio and 65% private sector investment share by 2030

Egypt aims to reduce its debt-to-GDP ratio to around 78% by June 2027 and cut external debt by between $1 billion and $2 billion under its newly approved state budget, Prime Minister Mostafa Madbouly said on Wednesday, as the country’s economy recorded 5% growth in the third quarter despite regional geopolitical tensions.

Speaking during a weekly press conference following a cabinet meeting in the New Administrative Capital, Madbouly outlined the government’s fiscal, investment, and economic priorities for the coming period.

The new budget includes measures designed to strengthen fiscal sustainability, including reducing the financing needs of budget entities to 10% of GDP and lowering debt-servicing costs to 35% of total expenditures over the medium term.

At the same time, the government has increased spending on social programmes and public services. The budget allocates EGP 837 billion to social protection initiatives and EGP 822 billion to public-sector salaries, while spending on health and education will rise by 30% and 20%, respectively. An additional EGP 80 billion has been earmarked to support industry, local manufacturing, entrepreneurship, and exports.

Madbouly said the economy expanded by 5% in the third quarter, up from 4.8% during the same period a year earlier, despite economic pressures stemming from the conflict between the United States and Iran.

He added that Egypt’s petroleum sector had returned to positive growth following the settlement of outstanding dues to foreign partners and the resumption of exploration and production activities.

As part of efforts to improve the business environment, parliament approved six draft laws to amend tax regulations and simplify procedures for investors.

The government is also seeking to expand the private sector’s role in the economy. Madbouly unveiled the second phase of the State Ownership Policy Document, aiming to increase the private sector’s share of total state investments to 65% by 2030. Private investment currently accounts for 56.5% of total investments, up from less than 40% in recent years.

Among the projects highlighted was a $3.1 billion integrated urban development project in East Cairo, being developed through a partnership between Egyptian and Emirati private-sector companies.

Madbouly also pointed to growing momentum in renewable energy investment. Norwegian company Scatec plans to invest more than $5 billion in Egypt, including the first phase of the Obelisk project, which will generate 1,100MW of solar power supported by 200MW of battery storage capacity.

Plans are also underway to establish a 5GW battery storage manufacturing facility, with production expected to begin in June 2027.

Regarding regional diplomacy, Madbouly said that Egypt, alongside Saudi Arabia, Pakistan, and Türkiye, participated in mediation efforts that led to a memorandum of understanding between the United States and Iran. He added that President Abdel Fattah El-Sisi later met with the foreign ministers of the four countries, during which he reiterated Egypt’s opposition to military escalation and its support for regional stability.

The prime minister also acknowledged the impact of regional tensions on tourism. While visitor numbers rose 16% year-on-year in the first quarter following a record 19 million tourists in 2025, the government expects the conflict to weigh on arrivals in the coming quarters and has approved new incentives for tourism investors.

Madbouly added that the Fustat Hills Park project in historic Cairo is nearing completion, with a partial opening expected in the coming months.

He concluded by marking the upcoming anniversary of the June 30 Revolution and congratulating Egypt’s national football team on its recent World Cup victory.