Egypt’s Minister of Planning, Dr. Rania Al-Mashat, announced the launch of the “National Economic Development Narrative” next month, a strategic initiative aimed at driving Egypt’s economic growth and ensuring long-term stability. In a recent interview on the “Al-Hekaya” program with host Amr Adib, Dr. Al-Mashat revealed that the narrative will focus on key strategies to enhance foreign direct investment, industrial development, and job creation, all aligned with Egypt’s Vision 2030.
Shifting Egypt’s Economy Toward Exportable Sectors
Minister Al-Mashat highlighted Egypt’s ongoing economic transformation, emphasizing a shift toward export-oriented and tradable sectors. This transition is designed to diversify Egypt’s economic base and enhance growth in key industries. She explained that the government is focused on strengthening non-oil manufacturing industries, which have become a significant driver of economic growth in recent months.
Non-oil manufacturing saw a 17.7% growth rate in the second quarter of 2024/2025, marking the third consecutive quarter of positive performance. This growth is attributed to increased industrial production, especially after facilitating customs clearance for industrial goods. With a robust industrial base, vast resources, and an expanding infrastructure network, Egypt remains an attractive destination for both local and international investors.
Corrective Policies Support Growth and Economic Stability
Dr. Al-Mashat also discussed the corrective policies implemented by the government in March 2024, which included monetary and fiscal measures designed to stabilize the economy and encourage growth. These policies have yielded positive results, contributing to Egypt’s ongoing economic recovery.
Public Investments and Human Development Focus
As part of its commitment to human capital development, the Egyptian government has allocated 45% of public investments in the 2025/2026 budget to human development sectors, such as health, education, and vocational training. Minister Al-Mashat reiterated that investing in human development is crucial for sustainable economic growth and the creation of job opportunities.
The government’s focus on education and health is essential for building a competitive workforce that can meet the demands of an evolving global economy.
Strong International Partnerships and Development Financing
Discussing Egypt’s international relations, Dr. Al-Mashat emphasized that Egypt’s approach to economic collaboration is rooted in strategic partnerships rather than reliance on aid. She pointed out that affordable development financing has become one of the key tools for bridging Egypt’s development financing gap. Egypt has established valuable partnerships with international financing institutions, including the World Bank and Swiss Development Cooperation (SDC), which have played a pivotal role in funding development projects.
Minister Al-Mashat also highlighted the positive reception Egypt has received from the international community. She referenced recent engagements at the World Bank’s Spring Meetings, where other nations, such as Jordan and Iraq, expressed interest in replicating Egypt’s successful project models.
Launching the National Economic Development Narrative
The National Economic Development Narrative, which will be unveiled in June 2025, will focus on four core pillars: macroeconomic stability, foreign direct investment strategy, industrial strategy, and employment and labor market strategy. The narrative is developed in collaboration with knowledge partners such as the World Bank, ensuring alignment with Egypt’s Vision 2030 and ongoing economic reforms.
Dr. Al-Mashat explained that this narrative will serve as a blueprint for driving growth, increasing foreign investment, and improving job creation. The economic strategy will outline the country’s objectives for industrial development, job creation, and macroeconomic stability, and it will be vital in shaping the future of Egypt’s economy.
Egypt’s Competitive Advantages Across Key Sectors
Dr. Al-Mashat also pointed out Egypt’s competitive advantages in several key sectors, such as ready-made garments, which are being increasingly exported to Europe. She noted that the Upper Egypt region is seeing a surge in garment manufacturing, attracting investments from East Asian companies looking to increase production and export volumes. Additionally, Egypt’s agriculture, IT and communications, and the Suez Canal Economic Zone are all poised for growth, with Egypt’s economy rapidly diversifying.
The Grand Egyptian Museum is another project generating significant international interest. Dr. Al-Mashat anticipates a record year for tourism in 2025, with an increase in the number of visitors to Egypt.
Governance of Investment Expenditures and Ensuring Economic Stability
Addressing the importance of investment governance, Dr. Al-Mashat emphasized that controlling public investment expenditure is crucial for maintaining overall economic stability. The government has prioritized projects with more than 70% of execution completed, ensuring that resources are allocated efficiently.
In terms of social safety nets, Dr. Al-Mashat underscored the significance of programs like Takaful and Karama, which play a critical role in ensuring that vulnerable populations are supported, particularly during times of economic transition.
Attracting Foreign Direct Investment (FDI)
Egypt’s efforts to attract foreign direct investment (FDI) have been bolstered by partnerships with international entities such as the World Bank, European Investment Bank, and Japanese International Cooperation Agency (JICA). Dr. Al-Mashat highlighted Egypt’s growing appeal as an FDI destination due to its competitive industries and strategic location.
The government is also focused on creating investment guarantees through platforms like “Hafiz” and “Novi”, which are designed to provide technical support and affordable financing to private sector projects, particularly those in renewable energy.
Strong Egypt-EU Partnership
Dr. Al-Mashat also discussed Egypt’s strengthening economic ties with the European Union. Egypt and the EU have developed investment guarantees worth €1.8 billion for the private sector, with a platform set to be launched in June 2025 to facilitate joint investments between Egyptian and European companies.
Conclusion: A Future of Economic Prosperity
Minister Al-Mashat concluded by stressing that Egypt’s economy is poised for continued growth, driven by strategic investments, public-private partnerships, and targeted reforms. With a focus on industrial development, foreign investments, and human capital development, Egypt is positioning itself as a key player in the regional and global economy.
