Ahmed Kamel – Egypt Daily News
Egypt is navigating a pivotal year in 2026, balancing ambitious economic reforms, large-scale infrastructure and tourism projects, and complex regional challenges. At the forefront of this transformation, government officials have highlighted the country’s economic resilience, strategic partnerships, and efforts to ensure sustainability in water and energy resources, all while attracting foreign investment and boosting local industry.
During the World Economic Forum in Davos, Minister of Planning and Economic Development Rania Al-Mashat spoke with Bloomberg about Egypt’s progress and strategic priorities. She emphasized that despite regional instability bordering Gaza, Libya, and Sudan, the Egyptian economy achieved a growth rate of 5 percent in 2025, while tourism revenues reached record levels. Al-Mashat credited this resilience to comprehensive reforms implemented since March 2024, including fiscal and monetary adjustments, industrial modernization, improvements to the business environment, and investment in green technologies. The next phase of reforms will focus on raising productivity, enhancing value-added production, and strengthening trade and private sector investment.
Al-Mashat also highlighted Egypt’s innovative management of public debt, including debt-for-investment and debt-for-development swaps with countries such as Italy, Germany, and China. These mechanisms are being used to fund development projects and the green energy transition, with the country aiming to reach 42 percent renewable energy capacity by 2030. She added that Egypt is directing resources toward social spending, particularly in health and education, while integrating the informal economy into the formal sector to broaden the economic base.
Egypt’s strategic position extends beyond its domestic reforms. Al-Mashat underscored the critical importance of regional stability, especially in the context of Egypt’s ongoing negotiations with Ethiopia over the Grand Ethiopian Renaissance Dam and water security. She noted that U.S. engagement remains vital for reaching sustainable agreements that ensure Egypt’s long-term access to Nile waters, which are central to the country’s agricultural and urban water supply.
On the investment front, Egypt continues to attract significant foreign capital. Chinese chemical conglomerate Shengfa Group announced plans to invest $2 billion in a major phosphate mining and processing project in the so-called “Golden Triangle” region of Egypt, signaling growing confidence in Egypt’s mining sector. The project is planned in three phases, focusing on exploration, extraction, and production of value-added chemical products, with strong government support and technical coordination.
The tourism sector is also witnessing a surge in strategic investments. Egypt has allocated over $526 million to develop the “Supreme Revelation” project in Saint Catherine, South Sinai, aimed at transforming the area into a global hub for spiritual, eco, and mountain tourism. The project covers 1,500 acres and includes hotels, commercial facilities, administrative and recreational buildings, and sustainable housing. The government expects the project to be fully operational in the first half of 2026, contributing to Egypt’s target of hosting over 21 million tourists this year.
Meanwhile, Egyptian industries are facing challenges in international trade. The United States recently imposed a provisional 29.51 percent anti-subsidy duty on Egyptian rebar exports, following a review by the U.S. Department of Commerce. While the duty covers the 2024 calendar year and may be finalized in May 2026, Egypt sees the broader context as an opportunity to strengthen its industrial base and expand value-added processing to meet global standards.
Domestically, Egyptians continue to face persistent challenges related to water scarcity. Official reports indicate that Egypt’s renewable water resources provide only about 500 cubic meters per person annually, less than half the threshold of water poverty. The Nile, largely fed by Ethiopia’s Blue Nile and Sudanese tributaries, provides the bulk of Egypt’s water supply, but only a fraction of regional rainfall reaches the country. In response, Egypt is investing in water management infrastructure, including large-scale sewage treatment, canal lining, and desalination plants along coastal regions.
In the cultural and social domain, prominent figures such as veteran actor Mohamed Sobhi have drawn public attention, highlighting the role of arts and heritage in national identity. Sobhi was recently hospitalized due to a heart condition, prompting widespread concern for his health, reflecting the Egyptian public’s deep connection to cultural icons.
Collectively, these developments portray an Egypt at the intersection of growth, strategic diplomacy, and internal modernization. With ambitious investment projects, economic reforms, and careful management of regional challenges, the country is positioning itself as a resilient player in the Middle East and North Africa, aiming to harness its natural, human, and infrastructural resources to secure sustainable development and enhance its global standing.
