Egypt says private investment rose by 73% in the 2024/2025 fiscal year, according to Finance Minister Ahmed Kouchouk, who spoke at the World Economic Forum in Davos.
Speaking during a session at the forum, Kouchouk said the increase reflects developments in the country’s reform programme. He noted that private sector participation has expanded alongside broader efforts to attract foreign capital.
The announcement, made during a session on Thursday, underscores the government’s push to expand private sector-led growth and attract foreign capital. Speaking on the sidelines of the forum, Minister of Investment and Foreign Trade Hassan El-Khatib reinforced this message, pointing to reforms focused on maximising the efficiency of state assets, transitioning to a green economy, and reducing the state’s footprint in commercial activity.
Kouchouk said Egypt has ranked as Africa’s largest recipient of private foreign investment for the fifth consecutive year, noting that the economy has begun to regain momentum. According to the minister, economic growth has improved, exports are rising, inflation is easing, and foreign exchange reserves now exceed $50 billion.
From the middle of 2024, the government implemented a number of policy changes, including adjustments to the currency regime that allowed the Egyptian pound to float freely in March 2024. Additional measures during the period included tax policy changes and revisions to regulations affecting private sector activity.
Private investment rose by 73% in the 2024/2025 fiscal year. Separately, the government recorded a primary surplus of 3.5% of GDP in the preceding fiscal year. Officials say they are targeting a rise in private investment to more than 70% of total investment by 2030, compared with about 65% at present.
Among the major investment announcements during the period was the Ras El Hekma deal with the United Arab Emirates, a project valued at $35 billion and described by officials as the largest single foreign direct investment commitment in Egypt’s history.
Separately, official data show that Egypt’s construction and real estate sector received $35.8 billion in foreign direct investment in FY 2023/2024, accounting for nearly 76% of total net FDI inflows during the fiscal year.
The reform agenda is being implemented alongside an International Monetary Fund programme. Egypt’s current Extended Fund Facility, a 46-month $8 billion programme agreed with the International Monetary Fund, was expanded in March 2024 from an initial $3 billion deal reached in late 2022. The IMF has said the programme includes measures related to fiscal discipline, debt sustainability, and structural reforms.
Economic growth reached 5.3% in the first quarter of the current fiscal year, according to government figures, while private investment rose by 40%. Industrial output and exports also increased, and tax reforms delivered a 35% rise in revenue, largely through voluntary compliance and dispute settlements.
President Abdel Fattah Al-Sisi, addressing the forum, reiterated the government’s commitment to positioning the private sector as the primary engine of national growth. Authorities have imposed a cap on government investment and announced plans for the state to withdraw from selected public investments.
Despite the positive momentum, Egypt still has challenges to contend with. Suez Canal revenues have been affected by geopolitical and economic pressures related to regional tensions. Inflation has eased from earlier peaks but remains a concern for policymakers. The International Monetary Fund has said further progress will depend on faster implementation of structural reforms, including privatisation and measures to reduce the state’s role in the economy.
Government officials say the reported 73% increase in private investment reflects the impact of recent policy measuresand large investment agreements. Authorities maintain that continued reform implementation will be key to sustaining private sector activity.
