Private sector regaining momentum in Egypt as investment surges – FinMin

The private sector has strongly regained momentum in Egypt, with private investment becoming the largest contributor to economic growth after rising 32 per cent in the latest fiscal year, Finance Minister Ahmed Kouchouk said on Monday.

Speaking during an open dialogue with the business community at the American Chamber of Commerce in Cairo, Kouchouk thanked local and foreign private-sector companies operating in Egypt for their confidence.

Private investment rose 32 per cent in the 2025/26 fiscal year after increasing 77 per cent the previous year, while the private sector accounted for 63 per cent of total investment, Kouchouk said.

He said the private sector was well positioned to build a more productive, competitive, and sustainable national economy.

Foreign direct investment has also been performing very strongly, with further improvement expected in the coming years as new projects in energy and manufacturing come on-stream, he said.

“The Egyptian economy is improving,” Kouchouk said, adding that economic growth was accelerating on the back of solid performance from productive sectors over the past year.

Financial markets are responding positively to the improving economic performance, while yields on Egypt’s international bonds have improved significantly, he said.

Kouchouk also pointed to a marked improvement in the performance of the Egyptian stock market alongside recent tax reforms.

The government has introduced additional incentives to encourage companies to list and trade on the exchange and was targeting major companies for listings, he said.

“We are very pleased to see a significant and strong improvement in the performance of the Egyptian stock market alongside the recent tax reforms,” Kouchouk said.

The government strongly supports service-sector activities, which he said could achieve strong and rapid growth while creating jobs at high rates.

Tax revenues also grew significantly during the year without imposing additional burdens or introducing new taxes, he said, attributing the increase to a broader taxpayer base.

Kouchouk said the government had pursued a policy of tax facilitation, simplifying procedures and improving services to encourage voluntary compliance.

“We will continue this approach of simplification and facilitation and reducing burdens to support our taxpayer partners,” he said, adding that the measures would benefit all sides.