Motivated by its key role in driving economic growth, Egypt has been seeking to attract greater private-sector involvement in the national economy through packages of incentives and initiatives.
According to Minister of Finance Ahmed Kouchouk, the private sector accounted for around 63 per cent of total investment nationwide during the last fiscal year, ending June 30, following a 77 per cent increase in the previous year, the minister said.
The government has launched over the past years a series of measures to scale up the sector’s share to 70 per cent of total investments. These figures highlight the need to support private investors and strengthen their role in the national economy.
Private-sector companies are hopefully responding to the government incentives and initiatives which aim to encourage investment.
Many initiatives have been directed at supporting companies in their commitment of more capital in launching more projects and expanding their current ones, besides more accesses to finance.
While the government recognises the weight of keeping this growth pace, particularly through increasing production and productivity, expanding exports, and creating more jobs. It also needs to make sure that investment opportunities are supported by demand, infrastructure and skilled labour.
The government officially plans to achieve a 15-per-cent annual growth in industrial exports, while encouraging investment in industries can play a great role in export potential.
For years, the government has been working to create a supportive investment environment, through more access to finance, supporting small and medium investors, and improving the infrastructure needed for business expansion.
According to the Ministry of Planning, international development partners provided concessional financing and credit lines worth nearly $17-billion to the private sector between 2020 and 2025.
Manufacturing is still the key driver in the national economy since Egypt has been working on expanding its export base. The government’s 2025/26 plan expects the private sector to account for more than 83 per cent of manufacturing investment.
Other sectors, mainly information and communications technology, tourism and business services, are also receiving the same support. Rising demand and changing consumption patterns are opening up new opportunities for the private sector to expand activities and invest in new horizons.
One example is Yada Egypt, a 70-million-euro furniture manufacturing project being developed by Poland-based Padma Global in New Alamein City, set to start production in the first quarter of 2027.
This project is aimed to provide approximately 6,000 direct and indirect jobs, in addition to exporting 100 per cent of its output to IKEA outlets in the European Union and the United States.
