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.

October 21, Egypt seeks to deepen cooperation with China in combating desertification, managing water resources, and boosting agricultural productivity, drawing on China's expertise in greening arid lands and sustainable development, an Egyptian official said recently.

October 20, Egypt's economy is forecast to grow 4.6% in the fiscal year to next June as inflation and interest rates continue to fall and a weaker currency boosts exports, a Reuters poll showed. Growth in gross domestic product is projected to accelerate to 4.9% the following year and to 5.3% in 2027/28.

October 18, A surge of Chinese tourists is helping revitalize Luxor's winter tourism season, transforming the ancient Egyptian city into a year-round destination and boosting the local economy. According to the Chinese Embassy in Egypt, about 300,000 Chinese tourists visited Egypt in 2024. Egyptian authorities said the figure represented a rise of more than 60 percent from 2023.

October 12, S&P raises Egypt’s long-term sovereign rating to ‘B’ from ‘B-’, citing stronger growth and fiscal performance. Flexible exchange rate and reforms drive tourism, remittances, and foreign investment inflows, improving external balances.

September 25, Egypt advanced five places in Fitch’s Economic Openness Index in just three months, moving to 51st position globally in September 2025 from 56th in June. The upgrade reflects the country’s growing ability to attract foreign investment and expand international trade.

September 17, Egypt’s Minister of Communications and Information Technology, revealed ambitious plans to boost Artificial Intelligence’s (AI) share of the nation’s GDP to 7.7% by 2030. Another critical component is fostering an ecosystem of 250 AI startups, establishing frameworks for data governance, and introducing regulatory measures to streamline AI integration across various sectors.

September 10, The annual inflation rate eased to 11.2% in August, down from 13.1% in July. This reflects a relative slowdown in the pace of price increases on a yearly basis, although inflationary pressures continue to affect many goods and services.  

September 7, Egypt launched a new economic development plan that targets an annual growth rate of 7% by 2030 and aims to significantly increase the role of the private sector in the economy. The plan, titled “The National Narrative for Economic Development: Policies Supporting Growth and Employment,” was officially launched by Minister of Planning, Economic Development and International Cooperation. 

August 26, Egypt is experiencing a sweeping digital transformation, with its e-commerce sector at the forefront. Driven by a young, tech-literate population and underpinned by expanding digital infrastructure, the country is rapidly positioning itself as a regional hub for online commerce. Egypt’s e-commerce market was valued at $10.2 billion in 2025 and is projected to nearly double to $19.3 billion by 2030.

August 13, Several of Egypt’s leading banks have introduced updated policies aimed at making it easier for travelers to obtain foreign currency, cutting international transaction fees, and increasing card usage limits abroad. The move underscores renewed confidence in the country’s banking system and signals a more stable foreign currency environment.

August 10, The Arab Monetary Fund (AMF) anticipates that Egypt's economic growth will accelerate over the coming two years, supported by more relaxed monetary policies and increased investment flows. In its Arab Economic Outlook Report 2025, the AMF projects the country’s GDP will rise by 4.2% in 2025, followed by a further increase to 4.7% in 2026.

August 13, Egypt's Suez Canal Economic Zone (SCZONE) partners with Chinese investors to build a $1.1B industrial ecosystem, focusing on tires, bromine, solar energy, and glass manufacturing.

July 28, Chinese automaker Chery unveiled five new models as part of its expansion into the Egyptian market. The general manager of Chery Egypt said the automaker will accelerate its transition toward hybrid and intelligent vehicle technologies, and collaborate with global partners and suppliers to establish a global network for sales, services and production.

July 22, The Suez Canal Economic Zone (SCZONE) signed three new contracts with leading Chinese textile and ready-made garment companies, totalling approximately $52.6m (EGP 2.58bn) in investments. Together, these projects are expected to create around 3,500 direct job opportunities.

July 16, China appears to be positioning Africa as a testing ground for internationalisation of the yuan as it seeks to expand the currency’s global use and break the dominance of the US dollar. During a recent meeting in Cairo, the central banks of China and Egypt signed a series of agreements to promote the use of the yuan in trade and investment. 

July 15, Egyptians have been become big online shoppers in recent years, it turns out. The study, released annually since 2020, shows dramatic changes in consumer habits. Only 4% of Egyptians shopped online daily in 2020, a figure that reached 15% this year. Weekly online shopping increased from 8% to 15% over the same span of time. 

July 11, Egypt needs to speed up privatization and reform of public enterprises to ensure continued support by the International Monetary Fund and Gulf oil producers. The conflict between Israel and Iran has again demonstrated that Egypt continues to be heavily susceptible to external shocks impacting the region, the Washington-based Institute of International Finance. 

June 25        Chair of the Egyptian Tax Authority affirmed the authority's commitment to enhancing economic cooperation with countries around the world in a manner that fosters new investments into Egypt's business climate. She underscored that Chinese companies are among Egypt' s most significant partners and confirmed ETA's full readiness to provide all necessary support for their expansion and continued growth.

June 19           In 2024, Egypt’s Travel & Tourism sector reached a historic milestone, contributing EGP 1.4 trillion to the national GDP, accounting for 8.5% of the economy—the highest ever. According to the WTTC and Oxford Economics, 2025 is expected to break this record again, with a projected 4.9% annual growth and a rise in GDP share to 8.6%.

June 16          Egypt's annual urban headline inflation rate rose to 16.8 % in May, up from 13.9 % in April, driven primarily by continued non-food price pressures, according to official data.

May 29        Fitch Solutions' research arm BMI has revised its forecast for Egypt's economic growth in FY2025/2026, lowering it slightly to 4.7%, down from an earlier estimate of 5.0%. The downgrade reflects mounting global trade uncertainty stemming from new U.S. tariffs, which BMI says have indirectly affected Egypt through weakened external demand and heightened investor caution.

May 28         The African Development Bank's 2025 Economic Outlook and Risks report presented a positive forecast for the Egyptian economy, projecting a growth rate of 3.6% for the fiscal year 2024/2025.

May 23         Egypt’s four telecom operators are set to launch 5G services in the first half of 2025, enhancing connectivity and digital transformation.  This rollout is for more than just speed, it aims to enable the application of AI, IoT, and smart cities, fueling Egypt’s digital transformation.     

May 22          Recently, Heiba, CEO of Egypt's General Authority for Investment and Free Zones , announced a landmark policy in an exclusive interview with Arab Finance: Egypt has officially opened a direct investment channel for Chinese investors using the Chinese yuan. Heiba advised that companies using non-dollar currencies should focus on export activities to ensure the availability of hard currency. 

April 27, Egypt's unemployment rate declined to 6.6% in 2024, down from 7.0 % in 2023, reflecting a 0.4 percentage point improvement. 

April 13, S&P Global Ratings has revised Egypt's credit outlook from positive to stable, aligning with Fitch Ratings, which also maintained a stable view of the country's credit standing.  

April 12, The Egyptian government has unveiled plans to establish two integrated textile cities in Upper Egypt, each covering 5.5 million square meters, for a combined total of 11 million sqm. The two cities are expected to attract $3.5bn in local and foreign investments and create 400,000 direct and indirect job opportunities. 

April 4, Egypt is constructing three high-speed railway lines with a design speed of 250 kilometers per hour. The total length of the lines exceeds 2,000 kilometers and will connect major cities, industrial zones, and tourist areas across the country. Once completed, Egypt will become the country with the sixth-longest high-speed railway network in the world.  

March 31        Egypt will increase wages for state employees and raise the minimum wage to 7,000 Egyptian pounds per month starting in July. The government will implement a 10 per cent annual allowance hike for civil service employees and 15 per cent for those outside the civil service law, with a minimum increase of 150 pounds per month.

March 13         Egypt is set to receive a significant boost in foreign investment as ten Chinese investors plan to launch small and medium-sized industrial projects in the country this year. The projects will focus on key sectors such as engineering industries, electrical appliances, textile and garment manufacturing, and building materials.

March 6         Egypt's economy is expected to grow by 4% by the end of fiscal year (FY) 2024/2025 and by 4.5% in the next FY, Minister of Planning, Economic Development, and International Cooperation said in an interview. 

March 4        The Suez Canal Economic Zone (SCZONE) has signed an investment agreement with Chinese apparel manufacturer Gold Star Fashion to establish a garment production facility in the West Qantara Industrial Zone.

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.