Egypt has officially launched its Economic and Social Development Plan for the fiscal year 2025/2026, as announced by the Ministry of Planning, Economic Development, and International Cooperation. The plan, presented by Minister Dr. Rania Al-Mashat, comes at a time of complex regional and international economic challenges. It sets out a roadmap for accelerating sustainable development while reinforcing macroeconomic stability and enhancing private sector participation.
At the heart of the plan lies the “finance for development” approach—introduced following the merger of the planning and international cooperation portfolios—which ensures alignment between national strategies and diverse funding sources. These include the state treasury, concessional financing from development partners, and foreign direct investment. The Ministry emphasized its commitment to maintaining strict fiscal discipline by adhering to a defined ceiling for public investment, while simultaneously opening wider channels for private sector capital and strategic partnerships.
The plan targets a 4.5% economic growth rate for the current fiscal year. To achieve this, the government is setting its sights on record investments totaling EGP 3.5 trillion, the highest in Egypt’s history. Of this, EGP 1.94 trillion—roughly 63%—is expected to come from the private sector, reflecting Egypt’s ambition to position the private sector as the key engine of growth. Meanwhile, EGP 1.16 trillion (37%) will be allocated as public investment, with the state continuing to manage its resources efficiently and responsibly in line with its debt reduction strategy.
This year’s economic blueprint continues to implement the National Program for Structural Reforms, built around three pillars: reinforcing macroeconomic stability, improving competitiveness and the business environment, and supporting the transition to a green economy. Special focus will be directed toward boosting tradeable and export-oriented sectors, such as agriculture, manufacturing, information and communications technology (ICT), tourism, and logistics. The plan also underscores the importance of key public service sectors, particularly healthcare, pre-university and higher education, and scientific research.
The plan is underpinned by Egypt’s Medium-Term Budget Framework (2025/2026–2028/2029), ensuring better integration of planning and fiscal policy. A new methodology has been adopted to standardize the selection and evaluation of public projects. This involves updated criteria for feasibility studies and performance monitoring, in collaboration with relevant ministries and local authorities, in accordance with Planning Law No. 18 of 2022. The aim is to improve the quality of development plans and guarantee that public investments yield measurable, high-impact outcomes.
The government’s plan also addresses regional disparities, ensuring that investments are distributed equitably across governorates. It promotes decentralized development and aims to bridge gaps in infrastructure and services between urban and rural areas.
Looking ahead, Egypt anticipates that nominal GDP will reach EGP 20.4 trillion in FY2025/2026, up from EGP 17.3 trillion the previous year—a projected increase of 18%. The investment-to-GDP ratio is also expected to rise to 17.1%, compared to 15% in FY2024/2025 and 13% in the year prior. These projections reflect the government’s confidence in the economy’s resilience and the critical role of investment—both public and private—as the cornerstone of growth.
