RIYADH – Egyptian Minister of Planning, Economic Development and International Co-operation Rania Mashat said the economic and structural reform policies in Egypt have positively affected the growth of productive sectors and exports in the first quarter of the current fiscal year.
Mashat made the remarks on Tuesday during her participation in the closing session of the “AlUla” Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance in cooperation with the International Monetary Fund, held for two days in the Kingdom of Saudi Arabia under the theme “Building Resilience in a Changing World.”
The session titled “A Path for Emerging Markets Resilience” was moderated by Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), with the participation of Mohammad Aurangzeb, Pakistan’s Minister of Finance, Fernando Haddad, Brazil’s Minister of Finance, and Mehmet Şimşek, Türkiye’s Minister of Treasury and Finance.
Mashat highlighted that investment in resilience is an investment in the future, enabling economies to maintain stability and ensure continuous growth, particularly in light of the increasing challenges and fluctuations faced by emerging markets.
Mashat emphasized the necessity of reforming the global financial system and expanding blended finance to reduce risks and encourage private sector investments.
The Minister of Planning, Economic Development, and International Cooperation also pointed out that macroeconomic stability is essential to enhance both domestic and foreign confidence in the economy, implement policies that reduce inflation, and achieve fiscal sustainability.
However, she stressed that these measures should be accompanied by structural reforms that improve the business environment and enhance the economy’s resilience.
Mashat referred to Egypt’s efforts since March 2024, particularly concerning economic reform and financial policy reform, as well as the measures taken to enhance exchange market stability and optimize resource utilization, along with the governance of public investments.
Mashat outlined that the impact of these measures was reflected in the growth indicators for the first quarter of the current fiscal year, particularly in sectors like non-petroleum manufacturing, which transitioned from contraction to growth, and the shift toward exports. Additionally, these measures helped increase private sector investments.
Mashat affirmed that, despite the complex challenges, Egypt has the capacity to address these issues and deal with such situations. The Ministry is working to mobilize local resources, stimulate foreign investment flows, and implement a comprehensive national strategy for development financing.
Mashat also reiterated the significance of country platforms in enhancing coordination between multilateral development banks and mobilizing efforts to support the development process. She highlighted innovative climate financing mechanisms, including debt-for-climate swaps to finance mitigation and adaptation projects.
Mashat also reviewed the results of the national platform for the “NWFE” program and its role in creating integration between international development banks, based on clear national policies to drive the green transformation.
Mashat pointed to the importance of integrating artificial intelligence into economic decision-making to ensure countries keep pace with rapidly evolving technological developments.
The session discussed how emerging markets deal with short-term shocks, considering the continued global shocks, determining the mix of fiscal, monetary, and structural policies to build resilience, maintain stability, and enhance growth.
It is worth noting that the AlUla Conference for Emerging Economies is an annual economic policy conference held in AlUla, KSA, organized by the Saudi Ministry of Finance and the IMF Regional Office in Riyadh.
