Egypt is targeting a rise in the private sector’s share of total investment to over 70% by 2030, Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat said on Tuesday, following a 5.3% GDP growth rate in the first quarter of fiscal year (FY) 2025/26.
The quarterly growth, which exceeded government expectations, was driven by a recovery in the industrial sector and strong performance in tourism and ICT. Al-Mashat, speaking to CNBC Arabia at the World Economic Forum in Davos, noted that the Suez Canal has returned to a positive contribution to GDP after two years of decline, as major shipping lines resume transit through the waterway.
The government is currently implementing “governance of public investments” to limit state spending and create space for private capital. The private sector currently accounts for approximately 65% of total investments, with the state focusing on structural reforms in tradable sectors such as manufacturing, energy, and agriculture to reach the 2030 target.
Al-Mashat also highlighted the second edition of the “National Narrative for Comprehensive Development,” a strategy that integrates economic and social policies. This framework, developed with input from 120 experts, will be presented to the new House of Representatives and includes a specific focus on human development, education, and universal health insurance.
To ensure transparency, the government has for the first time published a National Programme for Structural Reforms with specific timelines and performance indicators. This includes the adoption of “programme and performance-based budgeting” across all ministries to track progress on per capita growth and job creation.
The minister concluded that the primary goal of these reforms is to ensure macroeconomic stability and improve the quality of life for citizens by fostering a competitive business environment and supporting the transition to green energy.
