Egypt Daily News – The Egyptian government is working to maintain the momentum in foreign direct investment (FDI) inflows achieved over the past year, largely driven by the landmark “Ras El Hekma” deal, which injected around $35 billion into the Egyptian economy.
According to an official document, Egypt aims to attract $42 billion in FDI during the upcoming fiscal year 2025–2026, which begins on July 1.
Despite this ambitious target, recent data shows a slowdown in FDI flows following the Ras El Hekma deal. FDI during the first half of the current fiscal year stood at approximately $6 billion, compared to $5.5 billion during the same period of the previous year.
Cairo is heavily relying on Gulf investments, particularly from Saudi Arabia and Kuwait, while intensifying efforts to reassure investors through public statements by top officials. A key instrument in this strategy is the “Golden License” system, which simplifies the investment process by allowing major projects, especially those backed by Gulf countries to receive immediate approval through a single-window mechanism that covers establishment, land allocation, and licensing.
Boosting Foreign Reserves and Expanding the Private Sector’s Role
The government also plans to increase its foreign currency reserves by around $4 billion over the next four years, reaching $52 billion by the end of the 2028–2029 fiscal year—up from $48.1 billion at the end of April 2025, according to the same document.
Parallel to this, Egypt is targeting a significant increase in private sector contribution to total investments—from 63% in 2025–2026 to 68% by 2028–2029. This marks a dramatic rise from just 30% in 2021–2022.
To reduce its direct economic role, the government is pursuing a privatization program involving dozens of companies, including five affiliated with the military. There are also plans to assign airport management to the private sector.
In December, Prime Minister Mostafa Madbouly announced a plan to list no fewer than 10 companies in 2025. The expected lineup includes firms such as “Gabal El-Zeit Wind Power Station,” “El-Amal El-Sherif Plastics,” “Misr Pharmaceutical Industries,” and “SID” Pharmaceuticals.
These plans come at a time when both domestic and global markets are facing volatility that could affect the feasibility of government listings. In April, Egypt’s non-oil private sector continued to contract, with the Purchasing Managers’ Index (PMI) falling to 48.5, down from 49.2 in March, its lowest level since the start of the year—indicating continued economic slowdown.
