Egypt has earmarked a substantial $1.5 billion to bolster its industrial and tourism sectors within the 2025-2026 budget, which anticipates an 18 percent surge in overall spending. The allocated funds will primarily target productive and export-oriented industrial ventures, alongside initiatives designed to attract a greater influx of tourists to the Arab world’s most populous nation.
Finance Minister Ahmed Kouchouk emphasized the strategic intent behind the budgetary support. “The 2025-2026 budget underpins the government’s endeavors to enhance the economy’s competitiveness by expanding industrial output and domestic production, stimulating investment, and empowering the private sector to assume a more prominent role in economic activity, ultimately becoming the engine of growth and development,” he stated.
The dedicated package includes approximately EGP 8.3 billion for the advancement of the tourism sector, EGP 5 billion ($97 million) for strategically important industries, and EGP 3 billion for a project focused on converting taxis and other vehicles to run on natural gas, promoting a cleaner energy transition.
This sectoral support is part of a larger EGP 4.6 trillion draft state budget for the fiscal year 2025/26, commencing in July, which was approved by the Egyptian cabinet last week. The budget projects an 18 percent increase in expenditures and a 19 percent rise in revenues compared to the current 2024/25 fiscal year, with anticipated revenues reaching approximately EGP 3.1 trillion ($60 billion).
This strategic allocation aligns with Egypt’s previously announced commitment to reduce public investment, encouraging the local private sector to undertake more projects as part of reforms recommended by the International Monetary Fund (IMF). This initiative includes a cap of EGP 1 trillion ($19.5 billion) on public investments during the fiscal year 2024-2025.
On the other hand, Minister of Planning, Rania Al-Mashat, highlighted the increasing role of private capital in the nation’s development. She noted that in the first quarter of the current fiscal year, private capital accounted for nearly 64 percent of total investments. “This demonstrates the growing role the private sector plays in the economy…it also shows that the restrictions on public investments has given a bigger space to the private sector to shoulder its responsibilities in domestic development,” Al-Mashat stated.
The significant financial injection into the industrial and tourism sectors underscores Egypt’s commitment to diversifying its economy, boosting exports, and capitalizing on its rich cultural heritage to attract more visitors. This strategic investment is expected to contribute significantly to job creation, economic growth, and the overall competitiveness of the Egyptian economy in the coming years.
