Egypt Growth Exceeds 5% as Private Sector Share Climbs to 67% of Total Investments, Minister Says

Egypt’s Investment and Foreign Trade Minister Mohamed Farid Saleh highlighted robust economic performance and accelerating private-sector participation, telling global investors that the country’s reform agenda is delivering measurable gains in growth, investment flows, and market confidence.

Speaking during an extensive roundtable with international asset managers and financial institutions in London, organized by Bank of America on the sidelines of a British Egyptian Business Association (BEBA) ministerial mission, the minister presented an updated overview of Egypt’s macroeconomic trajectory and reform priorities.

The meeting brought together senior representatives from leading global investment firms, including Morgan Stanley Investment Management, HSBC Asset Management, Fidelity International, UBS Asset Management, Farallon Capital, Millennium Management, GoldenTree Asset Management, Intesa Sanpaolo, and Schonfeld Strategic Advisors, alongside other institutions managing hundreds of billions of dollars in global assets.

The minister said Egypt’s economy has achieved growth rates exceeding 5%, supported by a coordinated policy framework aimed at strengthening macroeconomic stability and improving the investment climate.

He emphasized a significant structural shift in the economy, noting that the private sector accounted for approximately 67% of total investments during the first quarter of the current fiscal year, compared with an average of around 42% in previous years.

According to the minister, this reflects a broader transition toward an investment- and export-led growth model driven increasingly by private capital.

Farid stressed that the government continues to implement a comprehensive economic reform program focused on fiscal discipline, monetary alignment, and trade and investment policy coherence.

He said these efforts are central to reinforcing investor confidence and sustaining long-term economic growth led by the private sector.

The minister also pointed to ongoing improvements in macroeconomic indicators, describing them as evidence of the effectiveness of balanced economic policies that support both stability and growth.

A key focus of the discussions was Egypt’s ongoing work on a new Foreign Direct Investment (FDI) strategy, being developed in cooperation with the World Bank.

The strategy aims to identify high-priority sectors capable of attracting quality investments, boosting exports, and generating employment opportunities, while ensuring alignment with Egypt’s broader industrial development framework.

Farid reiterated that manufacturing and export-oriented industries remain at the center of Egypt’s growth strategy, as the country seeks to deepen its integration into global value chains.

The minister outlined Egypt’s plans to expand investment zones as a core tool for geographically balanced economic development and industrial localization across the country.

He explained that the new model focuses on simplifying procedures and improving logistics, including the establishment of customs points within investment zones to accelerate export operations and reduce clearance times.

Importantly, he noted that this approach does not rely on exceptional tax incentives but instead emphasizes efficiency, infrastructure quality, and streamlined services to enhance competitiveness.

Farid also reviewed progress in Egypt’s state ownership divestment program, including public offerings and strategic partnerships designed to maximize returns on state assets while expanding private-sector participation.

He highlighted developments in the Egyptian stock market, including increased trading volumes, a growing investor base, and ongoing technological upgrades aimed at deepening capital market efficiency and financing capacity.

On energy, the minister underscored government measures to ensure stable energy supplies and sustain economic activity, alongside increased investment in oil, gas, and renewable energy projects.

The discussions also addressed Egypt’s efforts to develop carbon markets and capitalize on opportunities linked to the global green transition.

The minister said Egypt is positioning itself to benefit from climate finance and renewable energy investment, supported by its expanding clean energy infrastructure and sustainable development projects.

Representatives of participating international institutions expressed strong confidence in Egypt’s economic reform trajectory, pointing to improvements in macroeconomic performance and business conditions.

Investors highlighted particular interest in opportunities across manufacturing, energy, financial services, and infrastructure, while stressing the importance of continuing structural reforms, enhancing transparency, and further developing capital markets.

Concluding the meeting, the minister reaffirmed Egypt’s commitment to sustaining economic and structural reforms aimed at strengthening competitiveness, improving the business environment, and expanding the role of the private sector.

He said the ultimate goal is to attract greater domestic and foreign investment, generate employment, and achieve sustainable long-term economic growth supported by a more diversified and resilient economy.