Egypt is opening its doors to increased investment inflows, banking on competitive advantages and an increasingly investor-friendly business climate, Finance Minister Ahmed Kouchouk has said.
Speaking at a meeting of the Union of Arab Chambers of Commerce, Industry and Agriculture, Kouchouk said the government is rolling out tax and customs facilitation measures aimed at rebuilding trust with investors and delivering quick, measurable improvements on the ground.
“Our approach is based on partnership with the business community,” Kouchouk told delegates, adding that Egypt’s policies are designed to reduce costs, speed up procedures and create a predictable environment for both domestic and foreign investors.
He said the Egyptian and Arab private sector has the capacity to drive a major leap in regional economies, stressing that the state’s role is to provide “maximum support” to unlock this potential.
Egypt, the region’s most populous country, has been pushing to attract foreign investment after years of economic strain, including currency shortages, rising debt and inflationary pressures exacerbated by global shocks and regional conflicts. Authorities have since embarked on a broad reform programme backed by international lenders and Gulf partners.
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Kouchouk said Egypt is positioning itself as a regional manufacturing and export hub serving Africa, Europe and Asia, leveraging its strategic location, large domestic market and network of trade agreements.
He noted that fiscal and economic priorities are increasingly focused on expanding the private sector’s role, shifting away from state-led activity towards investment-driven growth that also serves citizens’ interests.
“Intra-regional investments have risen significantly,” he said, while adding that substantial opportunities remain to deepen trade and industrial integration across Arab economies.
On financial stability, Kouchouk pointed to improvements in the banking sector’s net foreign assets and growth in foreign exchange reserves, developments he said reflect rising confidence in the economy following recent reforms.
Public finances, long a concern for investors, have also shown signs of improvement. Kouchouk said the debt ratio of budgetary entities declined to 86 percent of gross domestic product from 96 percent over the past two years, with further reductions targeted this year.
He added that Egypt has reduced the external debt of budgetary entities by around $2 billion, underscoring that the country is “repaying more than it is borrowing” — a message aimed at reassuring markets wary of emerging-market debt risks.
Investment momentum has been particularly strong in Egypt’s economic zones, which have attracted a growing number of companies focused on manufacturing and exports, the minister said.
Private investment rose by 73 percent in the last fiscal year, he added, calling it clear evidence that the private sector is capable of leading Egypt’s growth phase if supported by the right policies.
Kouchouk also announced that, in coordination with the Ministry of Investment and Foreign Trade, a major package of customs facilitation measures will soon be unveiled. The measures aim to boost foreign trade and significantly reduce customs clearance times, a long-standing complaint among importers and exporters.
Egypt has in recent years introduced a series of incentives, including tax breaks, simplified licensing and public-private partnership frameworks, to attract foreign direct investment. It has also allowed greater exchange-rate flexibility and tightened fiscal discipline as part of reforms agreed with the International Monetary Fund.
Despite these efforts, challenges remain. High inflation, rising living costs and external financing needs continue to weigh on the economy, while investors are closely watching the pace of reform implementation.
Still, officials argue that Egypt’s scale, location and reform trajectory give it a competitive edge in a region seeking to diversify beyond hydrocarbons.
“Our objective is clear,” Kouchouk said. “To create an economy led by investment, production and exports and to make Egypt a reliable destination for long-term capital.”
