Egypt efforts to support private sector over two years
This comes as part of Egypt's approach to encouraging and empowering the private sector, in line with the country’s ongoing implementation of its State Ownership Policy for assets and commitment to the International Monetary Fund (IMF) under the ongoing $8 billion loan programme.
According to the IDSC, 293 reforms were implemented, touching upon eight key pillars.
Enhancing flexibility of FX rate
Egypt implemented eight measures to enhance the flexibility of the foreign exchange (FX) rate, with three percent of the total reform measures accomplished.
The most important of these measures was announced by the Central Bank of Egypt (CBE) in March 2024, with its commitment to continue the transition towards a flexible framework for targeting inflation.
Boosting competition and neutral competitiveness
15 measures have been implemented in this framework, representing five percent of the total reform measures implemented.
The most important of these measures is adopting the necessary legislative amendments to cancel preferential treatment for state-owned enterprises and enhance tax neutrality.
Supporting industrial sector
78 measures that reflect the government’s interest in supporting local industry have been applied, representing 27 percent of the total reform measures implemented.
The Ministry of Finance made many decisions to support strategic industrial projects, such as creating a “compensation” system to offset investor claims against their tax or other obligations to government entities.
The government has provided investment and tax incentives for many priority sectors, including green hydrogen projects.
Improving business environment
108 procedures have been implemented, representing 37 percent of the total reform procedures implemented.
The golden license is the most important procedure implemented in this field, as the cabinet granted 31 golden licenses to investors until 30 June.
The government provided EGP 120 billion in concessional loans for agriculture and industry and worked with the banking sector to resolve customs release issues for goods worth over $72.4 billion in 2023.
Between May 2022 and June 2024, the Egyptian government successfully signed the largest foreign direct investment deal with the UAE to develop and expand the city of Ras El-Hekma in February 2024, totalling $35 billion.
The project covers 170 million square metres and is expected to attract $150-billion investments and 8 million tourists, with Egypt's share of the profits estimated at around 35 percent.