Egypt’s private sector investments soared by 73 percent during the previous fiscal year and continued to expand at 42 percent in the first quarter of the current fiscal year, Finance Minister Ahmed Kouchouk said on Monday, underscoring the government’s push to make private enterprise a key driver of economic growth.
Speaking at an Alexandria Businessmen’s Association (ABA) event, Kouchouk described the government’s “bet on the private sector” as a “winning one,” emphasizing coordinated efforts by the economic ministerial group to expand the sector’s contribution to the national economy.
The minister highlighted that more than 600,000 taxpayers voluntarily submitted new or amended tax returns, declaring a total business volume of about 1 trillion Egyptian pounds (EGP). These declarations generated approximately EGP 80 billion in additional tax revenue. Tax collections grew by 35 percent last year and by 31.5 percent during the first eight months of the current fiscal year, achievements accomplished without any changes to existing tax rates.
Kouchouk outlined a second package of tax reforms aimed at encouraging compliance and investment. Measures include the introduction of an “Excellence Card” for compliant taxpayers, providing priority access to tax refunds, inspections, and advance rulings. Additionally, the first 100,000 participants to join a simplified tax system will gain access to low-cost, facilitated financing.
The government also plans to establish three advanced tax centres under e-Tax management to provide specialised services on behalf of the Egyptian Tax Authority. Reforms will address double taxation on dividends between subsidiaries and holding companies, and a mobile application for real estate disposal tax will enable electronic notifications and payments.
Further incentives targeting private sector expansion include reducing value-added tax (VAT) on medical machinery and equipment from 14 percent to 5 percent to support the healthcare sector, exempting e-payment and electronic collection company services from VAT, and waiving real estate disposal taxes for individuals selling units to first-degree relatives. Private sector companies participating in strategic projects will also benefit from deductions of interest on foreign loans from the tax base. Standardised airport departure fees and a manual for administrative seizures are expected to improve fairness and transparency.
The government aims to encourage major companies to list and trade on the Egyptian Exchange, strengthening the private sector’s role in capital markets and investment activity.
Mohamed Henno, Chairperson of the ABA, welcomed the government’s engagement and emphasised the association’s support for initiatives promoting investment and foreign trade. Henno stressed, however, that capturing the full potential of economic opportunities requires improvements in government efficiency and an accelerated pace of digital transformation.
The Egyptian government’s recent policies have focused on lowering the regulatory and tax burden on the private sector while encouraging voluntary compliance and investment. By creating a more favourable environment for businesses, authorities hope to sustain high private sector growth, diversify the economy, and enhance competitiveness in regional and global markets.
As private sector investment continues its rapid ascent, Egypt’s authorities are seeking to maintain momentum through further fiscal incentives, digitalisation of tax administration, and reforms to support innovation, capital access, and inclusive economic growth.
With these measures, the government is positioning private enterprise as a central pillar of Egypt’s economic strategy, targeting sustained growth, increased employment, and stronger participation in domestic and international markets.
