The Egyptian government continues to make progress on economic reforms, and while many challenges remain, Egypt’s investment climate is improving.  Thanks in part to the macroeconomic reforms it completed as part of a three-year, $12-billion International Monetary Fund (IMF) program from 2016 to 2019, Egypt was one of the fastest-growing emerging markets prior to the COVID-19 outbreak.  Egypt was also the only economy in the Middle East and North Africa to record positive economic growth in 2020, despite the COVID-19 pandemic and thanks in part to IMF assistance totaling $8 billion. Increased investor confidence and high real interest rates have attracted foreign portfolio investment and increased foreign reserves.  In 2021, the Government of Egypt (GoE) announced plans to launch a second round of economic reforms aimed at increasing the role of the private sector in the economy, addressing long-standing customs and trade policy challenges, modernizing its industrial base, and increasing exports. The GoE increasingly understands that attracting foreign direct investment (FDI) is key to addressing many of its economic challenges and has stated its intention to create a more conducive environment for FDI.  FDI inflows grew 11 percent between 2018 and 2019, from $8.1 to $9 billion, before falling 39 percent to $5.5 billion in 2020 amid sharp global declines in FDI due to the pandemic, according to data from the Central Bank of Egypt and the United Nations Commission on Trade and Development (UNCTAD). UNCTAD ranked Egypt as the top FDI destination in Africa between 2016 and 2020.

Egypt has passed several regulatory reform laws, including a new investment law in 2017; a “new company” law and a bankruptcy law in 2018; and a new customs law in 2020.  These laws aim to improve Egypt’s investment and business climate and help the economy realize its full potential.  The 2017 Investment Law is designed to attract new investment and provides a framework for the government to offer investors more incentives, consolidate investment-related rules, and streamline procedures.  The 2020 Customs Law is likewise meant to streamline aspects of import and export procedures, including through a single-window system, electronic payments, and expedited clearances for authorized companies.

Egypt will host the United Nations Climate Change Conference, COP 27, in November 2022. Recognizing the immense challenges the country faces from the impacts of climate change, government officials announced that the Cabinet will appropriate 30 percent of government investments in the 2022/2023 budget to green investments, up from 15 percent in the current fiscal year 2021/2022, and that by 2030 all new public sector investment spending would be green. The GoE accelerated plans to generate 42 percent of its electricity from renewable sources by five years, from 2035 to 2030, and is prioritizing investments in solar and wind power, green hydrogen, water desalination, sustainable transportation, electric vehicles, smart cities and grids, and sustainable construction materials. The government continues to seek investment in several mega projects, including the construction of smart cities, and to promote mineral extraction opportunities.  Egypt intends to capitalize on its location bridging the Middle East, Africa, and Europe to become a regional trade and investment gateway and energy hub and hopes to attract information and communications technology (ICT) sector investments for its digital transformation program.

Egypt is a party to more than 100 bilateral investment treaties, including with the United States.  It is a member of the World Trade Organization (WTO), the African Continental Free Trade Agreement (AfCFTA), and the Greater Arab Free Trade Area (GAFTA).  In many sectors, there is no legal difference between foreign and domestic investors. Special requirements exist for foreign investment in certain sectors, such as upstream oil and gas as well as real estate, where joint ventures are required.

February 24, Foreign exchange payments also growth, rising 10.0 % to $148.5 billion, up from $135.0 billion in FY2022/2023. The primary driver behind this increase was higher import expenditures, which expanded to $67.8 billion, compared to $61.6 billion in the previous year.  

February 20, BNP Paribas forecasted Egypt's economy to grow by 4 % in fiscal year 2025, marking a gradual recovery following a challenging fiscal year in 2024 due to a deep balance of payments crisis. 

February 18, According to the Central Bank of Egypt, Egypt's annual urban headline inflation remained stable at 24 % in January 2025, a slight decrease from 24.1% in December 2024. This marks the lowest inflation rate recorded in two years.

February 10, The National Council of Wages has revealed a 17% increase in the minimum wage for private sector workers, raising it to LE 7,000 ($139) per month, starting March 1, 2025.

January 14        Egypt's Minister of Investment and Foreign Trade announced a plan to reduce customs clearance time to 2 days by 2025. The plan will be implemented in two phases: the first phase will reduce clearance time to 4 days, and the second phase will further shorten it to 2 days. This initiative aims to improve customs efficiency and reduce logistics costs.   

January 13        Egypt's foreign trade reached approximately $104.7bn in the fiscal year 2023/2024. This total comprises $72.1bn in imports and $32.6bn in exports, marking a significant volume of trade with global partners. China secured the fourth spot with $7.2bn in trade value, which includes $6.7bn in imports and $490 million in exports.

January 7         Egypt welcomed a record-breaking 15.7 million tourists in 2024, despite ongoing geopolitical challenges in the region. 

January 5          Despite a recent dip in the prices of some construction materials, including steel and cement, Egypt’s real estate market is expected to face a wave of price increases in 2025. Economic factors such as high inflation and interest rates are likely to place significant pressure on financing and investment costs, leading developers to forecast price hikes between 10% and 30%. 

December 31, Egypt witnessed a remarkable surge in foreign direct investments (FDIs) during FY2023/2024, with an astonishing increase of approximately 998%.  This growth highlights Egypt's growing attractiveness to international investors. 

December 29, Egypt has launched a major new initiative to support the private sector in purchasing machinery, equipment, and production lines. The program targets businesses in sectors including pharmaceuticals, food, engineering, chemicals, textiles, mining, and building materials, with a special emphasis on high-priority regions such as Upper Egypt, border governorates like the Red Sea, and areas along the Suez Canal, including Port Said, Ismailia, and Suez.

December 23, Egypt is advancing its aviation sector with the ongoing development of Terminal 4 at Cairo International Airport, set to accommodate 30 million passengers annually. The New Republic Air Gateway project is expected to bolster the country’s tourism goals, improve traveler experiences, and position Egypt as an international aviation hub.

December 19, Fitch Solutions revises its GDP projections for Egypt in FY2024/2025 from 4.2% to 3.7%.  Despite this adjustment, Fitch remains cautiously optimistic about Egypt’s economic outlook.

December 17, The Egyptian government has released its annual report on Egypt's foreign trade for the year 2023, showing a drop in both exports and imports compared to the previous year. Egypt's total imports declined significantly by 5.2% in 2023, reaching $72.4 billion compared to $76.4 billion in 2022. China remained Egypt's largest import source despite a 7.5% decline, accounting for 15.7% of total imports in 2023.

December 8, The Chairman of the Suez Canal Economic Zone (SCZONE) led the groundbreaking ceremony for the Chinese Henneway luggage manufacturing project at the Qantara West Industrial Zone. The $50 million investment spans 120,000 square meters and is expected to create 3,000 jobs.  

November 29   China Glass Holdings Co., Ltd. broke ground for a 2.23-billion-yuan (310 million U.S. dollars) plant in northeastern Egypt to boost the production of glass products in the North African country. 

November 17  Egypt launched the production line of the Chinese-made Exeed cars at the Egyptian-German Automotive's factory in the Sixth of October City, according to a statement by the Ministry of Industry and Transport. The introduction of the Exeed vehicle aligns with President El-Sisi’s directives to transform Egypt into a leading industrial hub, particularly in the automotive industry.

November 16   The Nasr Automotive Company manufactured its first electric bus in cooperation with Yutong, a leading Chinese company in the manufacture of buses and vehicles. This cooperation comes within the framework of environmental protection, and the plan to develop new clean energy buses.

November 8   The number of inbound tourists to Egypt is expected to reach 15.3 million by the end of this year, an increase of 5% over last year, said Egyptian Minister of Tourism. The minister also expects the country to receive economy flights from China and Scandinavia. 

November 4   Fitch Ratings has upgraded Egypt's credit rating to B from B- with a stable outlook, marking the first positive change since 2019. This upgrade reflects Egypt's reduced external risk, policy adjustments, increased foreign capital inflows, and a more flexible exchange rate. 

October 30     Egypt ranked second among African countries with the most improved infrastructure in 2023, according to Mo Ibrahim Foundation’s 2024 African Governance Index Report issued in October. Egypt came second after Morocco, followed by Mauritius and Algeria. 

October 28       Egypt aims to double investment rates in the upcoming phase and looks to create a conducive environment for the private sector to lead economic growth, aiming for its contribution to the national economy to reach 75 % by 2030.

October 28       Deputy Prime Minister for Industrial Development, Minister of Industry and Transport witnessed the signing of an agreement between China’s BAIC and Alkan Auto, a subsidiary of the Egyptian International Motors, to establish an electric vehicle factory in Egypt.

October 18       S&P Global Ratings affirmed its 'B-/B' long- and short-term foreign and local currency sovereign credit ratings on Egypt, with a positive outlook.

October 11       The General Authority for Investment and Free Zones is planning to launch five private free zones in Greater Cairo within the coming days, an official said. The launch of the free zones comes in response to the high demand for free zones from investors, the official highlighted.

September 26, Egypt aims to achieve foreign direct investments exceeding $20 billion and an export volume of more than $140 billion by 2030. The Prime Minister emphasized that the government is fully committed to enhancing Egypt’s investment environment, creating opportunities for global firms to contribute to the country’s growth.  

September 10, Egypt's new tax incentives focus on simplifying tax processes for small enterprises, startups, and freelancers, with measures such as penalty-free tax return submissions for 2021-2023 and capped late payment penalties. A centralized settlement system for investors and a tiered penalty structure based on business size will be introduced, alongside a simplified VAT refund process and expanded tax audits.

September 10, Egypt's Central Agency for Public Mobilization and Statistics (CAPMAS) said that the annual urban inflation increased for the first time in five months, reaching 26.2% in August 2024, compared to 25.7% in July. Monthly inflation also climbed to 2.1% in August, up from 0.4% in July.

September 4, Fitch Solutions predicts that Egypt will maintain a steady economic growth of 4.2% in the current fiscal year, attributing it to increased investment, a rebound in the manufacturing sector, and the expected resolution of the Gaza conflict by late 2024.

August 21, 2,066 Chinese companies are currently operational, collectively investing $8 billion, as per a disclosure made by Rasha Abdel Aal, the head of the Egyptian Tax Authority.

August 08, Egypt's “economic complexity” and potential makes it one of Africa's most attractive investment destinations, according to a new report by African corporate and investment bank Rand Merchant Bank. With an overall score of 0.49, Egypt was ranked the 3rd most attractive investment destination in Africa, following top destination Seychelles with 0.72 and Mauritius with 0.69 at 2nd place.   

August 08, In a recent cabinet meeting, Minister of Investment and Foreign Trade shared that Egypt expects its gross domestic product (GDP) to grow by 4.2 percent during the current fiscal year (FY2024/2025). The investment minister also disclosed that they anticipate a growth rate of 5.5 percent in the coming FY, with projections at 6.5 percent by 2030.

August 5, A $183 billion seaside mega city, New Alamein in Egypt, is touted to become the crown jewel of the Mediterranean, luring tourists away from traditional European vacation destinations such as Greece, Italy, and Spain.  

August 5, Egypt is considering allocating 43 plots of land for new industrial zones. This initiative aligns with the state's strategy to achieve development by establishing new industrial cities to support national industry and enhance job opportunities for young people in various sectors, such as food, construction, health, and transportation. 

July 28     To bolster the tourism sector, the government recently gave the go-ahead to a new LE 50 billion initiative for building and operating new hotel rooms, including expansions of existing projects or converting closed buildings into hotel facilities.

July 28     The Egyptian market is witnessing remarkable growth in the number of electric cars, with many Chinese-made EVs traveling on Egyptian roads. The number of electric cars grew from the beginning of July 2021 until the end of June 2024, bringing the total number of licensed electric vehicles to 7,213, with BYD as the second most-selling vehicle, according to the data.

July 24     In a recent Reuters poll, several economists predicted Egypt's economic growth to land at 4% during the current fiscal year (FY2024/2025), within a similar range of other forecasts from the IMF, Egypt's government, and the World Bank. 

July 14    Egypt has signed three memorandums of understanding (MoUs) with the Chinese National Development and Reform Commission (NDRC) and the China International Development Cooperation Agency (CIDCA) to strengthen Egyptian-Chinese relations, the Ministry of Planning, Economic Development, and International Cooperation announced.

June 24     The World Bank has approved a $700m Development Policy Financing package for Egypt, aimed at fostering sustainable growth, increasing private sector involvement, and bolstering the country’s economic resilience.

June 22     Egypt’s foreign trade volume for the first half of the fiscal year 2023/2024 reached approximately $51.555bn. Imports accounted for around $35.106bn. China held the fourth position, with a trade volume of $3.312bn, including $2.980bn in imports and $321.9m in exports.

June 11     Egypt’s inflation rate dropped below 30% in May for the first time in 15 months, slowing at a faster rate than most had predicted. Urban consumer price inflation was 28.1% year on year for May, a drop from 32.5 % in April, the Central Agency for Public Mobilisation and Statistics announced. 

June 11     Egypt’s economy is expected to expand to 4.2 % in 2024 and 4.6 % in 2025-2026, according to the latest World Bank Global Economic Prospects report. However, the report expects growth in Egypt to slow in 2023-2024 (July 2023 to June 2024) to 2.8 % due to the impact of regional tensions on shipping through the Suez Canal and the tourism sector.