Egypt implements nearly 500 reforms to boost private sector investment
Egypt has enacted nearly 500 economic reform measures between May 2022 and December 2024 to strengthen private sector participation and drive sustainable growth.
This was contained in a report by the Information and Decision Support Centre (IDSC) reviewed by Prime Minister Mostafa Madbouly.
The reforms align with the country’s State Ownership Policy Document, which aims to shift Egypt toward a private sector-led growth model.
It focuses on six main areas, monetary policy, competition, industrial development, investment climate, legal frameworks, and state ownership. Of the total, 64.6% targeted investment and industrial sector support. In 2024 alone, 321 reforms were implemented, according to Osama El-Gohary, Assistant to the Prime Minister and Head of IDSC, Daily News Egypt reports.
Key measures included a shift by the Central Bank of Egypt to a flexible inflation-targeting regime, expected to reduce inflation to 7% by 2026. This move, along with exchange rate flexibility, helped boost foreign direct investment to $46.1 billion in FY 2023/2024, with an additional $14.5 billion in portfolio inflows.
Efforts to enhance industrial output saw 134 reforms, contributing to a 14% increase in non-oil exports to $40.8 billion in 2024. Industrial zones secured 218 new project contracts worth over $5.1 billion. Credit facilities totalling EGP 67.5 billion supported nearly 2,600 clients, with the majority going to industry and agriculture.
To improve the business environment, 189 reforms were introduced, including tax incentives and expedited licensing. Egypt granted 46 “golden licenses” to strategic investors and signed a landmark $35 billion development deal with the UAE for the Ras El-Hekma project, expected to attract up to $150 billion in total investment.
Legal and regulatory changes (128 measures) improved international governance scores, while 24 reforms targeted state ownership restructuring. Private sector contributions rose to 74.8% of GDP in FY 2022/2023 and accounted for over 81% of new jobs in 2023.
The reform package has received international recognition from the World Bank, UN ESCWA, McKinsey, and StartUp Blink.
