During the World Economic Forum “Davos”:
The Minister of Planning, Economic Development, and International Cooperation reviews Egypt’s economic performance indicators, growth prospects, and the pillars of the “National Narrative for Inclusive Development.”
Dr. Rania Al-Mashat: Achieving a 5.3% growth rate in the first quarter of FY 2025/2026 reflects the recovery of the real economy.
We expect an increased positive contribution from the Suez Canal to GDP indicators in the second quarter of the current fiscal year.
The “National Narrative for Inclusive Development” does not only include economic and financial policies but extends to the social dimension, with the citizen at the center of attention.
Governance of public investments to provide more investment opportunities for the private sector.
We aim to increase the private sector’s share in total investments to more than 70% by 2030.
The industrial sector is witnessing a strong comeback, reflecting growing confidence in the Egyptian economy and increased investment opportunities.
For the first time, we announce a list of policies and measures within the National Program for Structural Reforms with specific timelines.
Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, affirmed that Egypt’s participation in the World Economic Forum “Davos” comes within the framework of strengthening global dialogue on international economic issues, trade, and artificial intelligence, with the participation of government officials, decision-makers, and CEOs of global companies.
This came during her interview with CNBC Arabia, where she discussed the latest economic developments in Egypt, growth performance during the current fiscal year, as well as the features and objectives of the National Narrative for Inclusive Development.
Dr. Al-Mashat stated that Egypt concluded FY 2024/2025 with a growth rate of 4.4%, while the first quarter of FY 2025/2026 achieved a growth rate of 5.3%, exceeding expectations, driven by growth in the industrial sector and the flourishing tourism and ICT sectors.
She explained that the tourism sector witnessed a significant rise in tourist numbers and revenues, reaching unprecedented levels. She emphasized that Egypt’s economic growth has become diversified and is no longer dependent on a single sector, with the real economy experiencing broad momentum as a result of ongoing reforms, reflecting the beginning of a genuine recovery phase paving the way for a strong economic takeoff.
Return of navigation in the Suez Canal and its impact on economic growth
Regarding the impact of the resumption of navigation in the Suez Canal on growth indicators, the Minister explained that the first quarter of FY 2025/2026 saw a positive contribution from the canal after two years of negative contributions. She noted that major global shipping companies have begun to return, which will lead to increased positive contributions during the second quarter of the current fiscal year.
She stressed that the Suez Canal represents a vital artery for global trade, with about 12% of world trade passing through it. Stabilizing navigation in the canal helps reduce shipping costs and thus curb global inflation rates. She added that this is a positive signal for Egypt, the region, and the world at large, as the canal contributes to strengthening global supply chains and facilitating trade flows.
The National Narrative for Inclusive Development as a strategic framework for growth
The Minister also discussed the second edition of the National Narrative for Inclusive Development, affirming that Egypt has a comprehensive economic model based on increasing productivity and expanding exports, following massive infrastructure investments in recent years.
She explained that the first edition of the narrative was launched last September, developed through a broad societal dialogue involving more than 120 experts, resulting in a clear implementation plan to be presented to the new Parliament.
She added that the second edition of the narrative includes a full pillar on human development, with the citizen as the core of the development process. The narrative is not limited to economic and financial policies but extends to social dimensions such as education, universal health insurance, and social solidarity.
The National Program for Structural Reforms
In response to questions about whether the national narrative is a path for crisis management or economic growth, Dr. Al-Mashat stressed that the goal is to achieve sustainable and strong economic growth based on continuous structural reforms over the medium and long term.
She explained that the government has a clear and publicly announced structural reform plan with performance indicators and implementation timelines, noting the application of program-based budgeting across all ministries to ensure specific targets, including per capita growth and private sector contribution to GDP.
Enhancing the role of the private sector in economic activity
Regarding private sector participation, the Minister noted that the government is working on governing public investments to allow greater private sector involvement in economic activity. She explained that the private sector currently represents about 65% of total investments, with a target of exceeding 70% by 2030.
She added that this approach is based on structural reforms in tradable sectors such as tourism, agriculture, energy, ICT, and manufacturing industries. She emphasized that the industrial sector is currently experiencing a strong comeback, reflecting growing confidence in the Egyptian economy, especially given the available investment opportunities and Egypt’s strategic position as a hub for manufacturing and exporting to Africa and Europe.
The National Program for Structural Reforms
The Minister also spoke about the National Program for Structural Reforms, describing it as one of the most important pillars of Egypt’s economic reform. It aims to achieve three main objectives: macroeconomic stability, improving the business environment and competitiveness, and supporting the green transition and renewable energy.
She stressed that the program is characterized by full transparency, with its details published publicly for the first time, clarifying the tasks of each ministry and the timeline of progress, thereby opening the door to both local and foreign investments.
Improving citizens’ quality of life
In conclusion, Dr. Rania Al-Mashat emphasized that the ultimate goal of economic reforms is to improve the quality of life for Egyptian citizens. She explained that the reforms are based on a continuous cycle that begins with macroeconomic stability, passes through structural reforms supporting economic, human, and industrial development, and ends with creating decent job opportunities and improving public services.
She added that the theme of this year’s World Economic Forum is “Growth and Employment,” which aligns perfectly with Egypt’s national priorities.
Dr. Al-Mashat clarified that these reforms aim to create adequate fiscal space for both investment and current spending to improve quality of life, as well as to enhance private sector investments to increase job opportunities and achieve sustainable development.
