H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized that Egypt’s participation in the World Economic Forum in Davos comes within the framework of its commitment to strengthening global dialogue on international economic issues, trade, and artificial intelligence. She noted that this participation takes place alongside government officials, decision-makers, and heads of global companies.
This came during the Minister’s interview with CNBC Arabia. H.E. Dr. Al-Mashat highlighted the most prominent economic developments in Egypt, the performance of growth indicators during the current fiscal year, as well as the features and objectives of Egypt’s Narrative for Comprehensive Development.
H.E. Dr. Al-Mashat pointed out that Egypt concluded FY 2024/2025 with a growth rate of 4.4%, while the first quarter of FY 2025/2026 recorded a growth rate of 5.3%, exceeding expectations. This was driven by growth in the industrial sector and the strong performance of the tourism, communications, and information technology sectors.
H.E. Dr. Al-Mashat reiterated that the tourism sector witnessed a notable increase in tourist arrivals and revenues, reaching unprecedented levels. She also stressed that economic growth in Egypt has become diversified and no longer dependent on a single sector. The real economy is experiencing broad momentum as a result of ongoing reforms, reflecting the beginning of a genuine recovery in preparation for a strong economic takeoff.
The return of navigation in the Suez Canal and its impact on economic growth
Regarding the impact of the return of navigation to the Suez Canal on growth indicators, the Minister mentioned 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.
H.E. Dr. Al-Mashat reaffirmed that the Suez Canal represents a vital artery for global trade, with around 12% of global trade passing through it. Stability of navigation in the Canal contributes to reducing the cost of transporting goods and thus curbing global inflation rates. She added that this represents a positive signal for Egypt, the region, and the world, as the Canal enhances global supply chains and facilitates trade flows.
Egypt’s Narrative for Comprehensive Development as a strategic framework for growth
The Minister also referred to the second edition of Egypt’s Narrative for Comprehensive Development. She underscored that Egypt possesses an integrated economic model based on increasing productivity and expanding exports, following massive investments in infrastructure over recent years.
H.E. Dr. Al-Mashat explained that the first edition of the Narrative was launched last September and was developed through an extensive societal dialogue involving more than 120 experts. This resulted in a clear executive plan that will be presented to the new House of Representatives.
H.E. Dr. Al-Mashat added that the second edition includes a full pillar on human development, considering the citizen as the core of the development process. The Narrative is not limited to economic and fiscal policies, but extends to social dimensions such as education, comprehensive health insurance, and social protection.
The National Structural Reforms Program
In response to questions on whether Egypt’s Narrative for Comprehensive Development is a crisis-management path or a pathway for economic growth, H.E. Dr. Al-Mashat reaffirmed that the objective is to achieve strong and sustainable economic growth based on continuous structural reforms over the medium and long term.
The Minister pointed out that the government has a clear and publicly announced structural reform plan with performance indicators and implementation timelines. She also noted the application of program- and performance-based budgeting across all ministries, ensuring the achievement of specific targets, including per capita growth and the private sector’s contribution to GDP.
Fostering the role of the private sector in economic activity
With regard to the private sector’s contribution, the Minister mentioned that the government is working to govern public investments in order to allow for an expanded role for the private sector in economic activity. The private sector currently accounts for about 65% of total investments, with a target to exceed 70% by 2030.
H.E. Dr. Al-Mashat added that this approach is based on structural reforms in tradable sectors such as tourism, agriculture, energy, communications and information technology, and manufacturing industries. She emphasized that the industrial sector is currently witnessing a strong resurgence, reflecting growing confidence in the Egyptian economy, particularly in light of available investment opportunities and Egypt’s strategic location as a hub for manufacturing and exporting to Africa and Europe.
The National Structural Reforms Program
H.E. Dr. Al-Mashat also spoke about the National Structural Reforms Program, explaining that it is one of the most important pillars of economic reform in Egypt. The program aims to achieve three main objectives: macroeconomic stability, improving the business environment and competitiveness, and supporting the green transition and new and renewable energy.
She confirmed that the program is characterized by full transparency, as its details have been published publicly for the first time. The Minister also clarified the responsibilities of each ministry and the timeline of implementation progress, thereby opening the door to local and foreign investments.
Improving the quality of life for citizens
In concluding her remarks, H.E. Dr. Rania Al-Mashat reiterated that the primary goal of economic reforms is to improve the quality of life for Egyptian citizens. She noted that the reforms are based on an interconnected cycle that begins with macroeconomic stability, passes through structural reforms that support economic, human, and industrial development, and culminates in the creation of decent job opportunities and improved public services. The Minister added that this year’s World Economic Forum theme is “A Spirit of Dialogue” which fully aligns with the direction of the Egyptian state.
H.E. Dr. Al-Mashat further noted that these reforms aim to create adequate fiscal space for both investment and current spending to improve quality of life, in addition to enhancing private sector investments to increase employment opportunities and achieve sustainable development.
Distributed by APO Group on behalf of Ministry of Planning, Economic Development, and International Cooperation - Egypt.
