Egypt’s economic leadership used the U.S.-Egypt Policy Leaders Forum in Cairo this week to present a data-driven case for one of the most ambitious economic overhauls in the Middle East. Backed by $15 billion in concessional private sector financing, record-breaking tourism and industrial growth, and an expanding green energy pipeline, Cairo is seeking to position itself as a regional nexus for investment, trade, and innovation.
The high-profile forum, held under the patronage of President Abdel Fattah El-Sisi and attended by Prime Minister Mostafa Madbouly, convened over 60 top executives from 42 major U.S. corporations alongside Egyptian ministers and business leaders. The two-day event, organized by the American Chamber of Commerce and the U.S.-Egypt Business Council, underscored Egypt’s strategic pivot: from a state-led, import-heavy model to a private-sector-driven, export-oriented economy.
A $15 Billion Private Capital Pivot
At the center of Egypt’s economic messaging was a bold statistic: more than $15 billion in concessional financing has been directed to Egypt’s private sector over the past five years, according to Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation.
This funding, sourced from multilateral development banks and international financial institutions, represents a shift away from public-sector dominance. For the first time in over a decade, private investment in Egypt surpassed public investment for two consecutive quarters, reflecting what Al-Mashat called a “structural transformation in Egypt’s investment landscape.”
Industrial Recovery: 18% Non-Oil Growth
Egypt’s manufacturing sector—particularly non-oil industrial output—grew by 18% over three successive quarters, confirming the recovery and resilience of domestic production in the face of global supply shocks. This resurgence is anchored by structural reforms, including tax code modernization, customs simplification, and new export incentives.
Tourism is also surging. Egypt is on track to record its highest-ever annual tourism revenue in 2025, driven by cultural tourism and the upcoming July opening of the long-awaited Grand Egyptian Museum.
Meanwhile, the ICT sector is growing at 10% annually, fueled by a digital transformation agenda and a labor force where 60% of Egyptians are under age 30—a demographic advantage that Egypt is leveraging through national upskilling and digital inclusion initiatives.
Macroeconomic Reset in March 2025
The inflection point came in March 2025, when Egypt implemented a sweeping set of monetary and fiscal reforms. In a span of weeks:
- The foreign exchange market was stabilized, eradicating the parallel currency market.
- Inflation was curbed through tighter monetary policy.
- A strict fiscal consolidation path was launched, focused on reducing the primary deficit.
- A new framework for public investment governance was introduced, enhancing spending efficiency and transparency.
- State-owned enterprise oversight was restructured to separate ownership from management—an issue that had long deterred foreign investors.
“The result,” Al-Mashat told forum attendees, “is a fundamentally stronger macroeconomic architecture. We are now operating within a rules-based, investment-driven, and export-ready economy.”
$4 Billion in Green Finance: The NWFE Platform
The NWFE (Nexus of Water, Food, and Energy) initiative—a flagship platform unveiled at COP27—has mobilized $4 billion in green finance for the private sector in just two years. These funds support 4 GW of renewable energy projects, including solar, wind, and emerging hydrogen infrastructure.
Notably, NWFE projects are co-financed by U.S. and European institutions and involve a blend of concessional loans, commercial finance, and grants. “This is not climate philanthropy—it’s climate productivity,” Al-Mashat said, pointing to Egypt’s plan to generate 42% of its electricity from renewable sources by 2030.
Logistics and Trade: Egypt Rises to 54th in Global Index
Egypt is also making rapid progress in positioning itself as a regional trade and logistics hub, building on its strategic location and infrastructure upgrades.
In her keynote address, Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, delivered a pointed message to American financial institutions and investors: Egypt is not only open for business—it is restructuring its economy to prioritize private sector leadership, export-led growth, and macroeconomic resilience.
A Unified Economic Vision
Al-Mashat highlighted unprecedented policy coordination across Egypt’s economic ministries to ensure a unified approach to reform implementation. “There is full integration among Egypt’s economic entities to support structural reform, empower private sector investment, and achieve sustainable, inclusive growth,” she said.
Launching the National Development Narrative in June
Egypt will formally launch its new National Economic Narrative in June 2025, a long-term vision that will publicly outline benchmarks on macroeconomic stability targets , investment and export performance, as well as sectoral growth strategies in industry, energy, logistics, and tourism
Al-Mashat emphasized that Egypt is pursuing a new growth model based on competitiveness, productivity, and sustainability.
Catalyzing U.S. Investments
In a direct appeal to U.S. financial institutions and Fortune 500 companies, Al-Mashat stated: “Egypt is now a credible partner for private capital. We invite you not just to invest—but to help shape the next chapter of economic development in this region.”
She pointed to new partnership opportunities with the U.S. International Development Finance Corporation (DFC), which is scaling its engagement in Egypt, and the potential for co-investment in infrastructure, green energy, food security, and digital transformation.
Strategic Resilience in a Volatile World
Despite regional instability and global macroeconomic pressures, Egypt’s economy has proven resilient. Export growth has remained positive, remittances have rebounded, and currency markets have stabilized.“We’re not merely reacting to global change,” she said. “We are redesigning our economy to thrive in it.”
Al-Mashat concluded by underscoring Egypt’s broader ambition: to become a regional anchor of green growth, industrial competitiveness, and sustainable trade.
