Egypt’s private sector investment grew by 73% over the past year and continued to rise by 48% in the first quarter of the current year, Minister of Investment and Foreign Trade Hassan El-Khatib said during meetings with the European Bank for Reconstruction and Development (EBRD) on Wednesday.
Speaking on the sidelines of the World Economic Forum in Davos, El-Khatib and Finance Minister Ahmed Kouchouk met with EBRD officials to discuss increasing the bank’s investments in Egypt and enhancing the competitiveness of the national economy. El-Khatib attributed the investment surge to economic reforms implemented over the last 18 months, which he said have significantly improved macroeconomic indicators and built trust with the business community.
As part of a new initiative to maximise state resources, El-Khatib announced that the government will repurpose former state-owned buildings into “leading hotel and service projects.” The move is intended to generate dollar revenues, create investment opportunities, and stimulate sustainable economic development.
The ministers stated that the government aims to establish a “fair competitive environment” that allows the private sector to lead economic growth. Discussions with the EBRD also focused on a comprehensive support package for Egyptian companies, aimed at improving energy efficiency, opening new markets, and encouraging sustainable export growth.
Finance Minister Ahmed Kouchouk presented Egypt’s tax reform experience as a successful model for building trust with taxpayers. He noted that facilitation measures led to a 35% increase in tax revenue—the highest growth rate in years—achieved through voluntary compliance and the settlement of outstanding files rather than the imposition of new financial burdens.
EBRD representatives expressed the bank’s commitment to supporting Egypt’s export programmes and infrastructure projects. The officials stated the EBRD is prepared to facilitate the transfer of international expertise and provide technical support to Egyptian firms in the fields of energy and resource efficiency to enhance regional and internationalcompetitiveness.
The meeting also addressed raising targets for foreign direct investment (FDI), with El-Khatib noting that sustained momentum depends on continued structural reforms and the improvement of the overall investment climate.
