In recent months, Egypt has undertaken a series of tax reforms designed to streamline the tax system and improve compliance for both individuals and businesses, part of efforts to enhance the country’s business climate and support economic growth. On October 9, the Ministry of Finance launched the Tax Facilitation Initiative, a key reform aimed at simplifying tax procedures and alleviating financial burdens, particularly for small and medium-sized enterprises. The initiative seeks to resolve long-standing tax disputes, improve transparency, and encourage voluntary compliance—critical steps toward fostering a more efficient and investor-friendly economic environment. “The first package of tax facilitation presents a…
Author: Rana Salem
Moody’s affirmed Egypt’s long-term foreign and local currency issuer ratings at Caa1 on February 19, 2025, maintaining a positive outlook for the country. The agency also confirmed Egypt’s foreign-currency senior unsecured ratings and its MTN program rating at (P)Caa1. Moody’s has upheld its positive outlook on Egypt since March 2024, citing improvements in the country’s debt service burden and external financial position. Notably, the devaluation and flotation of Egypt’s currency have strengthened foreign exchange buffers and lowered borrowing costs. Inflation control The Central Bank of Egypt (CBE) has enhanced its monetary policy credibility, targeting inflation control and maintaining a flexible…
Egypt is gearing up to offer one million job opportunities for its citizens in Germany over the next four years, as part of a broader strategy to tap into international labor markets and address domestic unemployment. Minister of Manpower Mohamed Gobran announced the plan during a phone interview on EL Mehwar TV on February 5, 2024, adding that Egypt would also provide 1,450 training opportunities for employment in Italy. Gobran said that the specifics of the cooperation with Germany will be unveiled once the protocol is signed. “We are working hard to ensure these (work) opportunities provide real value for…
Egypt’s Cabinet has approved a draft law aimed at establishing financial and business zones, following a decision by Prime Minister Mostafa Madbouly, according to an official statement on February 13. New draft law The draft law seeks to regulate operations within these zones, recognizing their critical role in boosting economic growth. It aims to create a balanced legislative framework for the establishment of these districts across Egypt, ensuring optimal outcomes for all stakeholders while adhering to relevant constitutional principles. The law outlines a regulatory framework for central business and financial districts, defining key stakeholders and clarifying the distribution of powers.…
Egypt’s mergers and acquisitions (M&A) activity saw a 27.3% surge in 2024, driven by strong domestic and cross-border dealmaking, according to a report by Baker McKenzie released on February 12. However, despite the increase in transaction volume, the total value of deals declined by 14.2%. Deal value dips The uptick in M&A transactions was fueled by a 31% rise in domestic deals and a 25% increase in cross-border transactions. Egypt averaged 15 deals per month in 2024, up from 12 per month the previous year. However, the average deal value fell to $20.5 million, down from $30.4 million in 2023.…
As Egypt’s economy navigates persistent economic challenges, all eyes are on the upcoming Monetary Policy Committee (MPC) meeting scheduled for February 20, 2025. With inflationary pressures remaining high and the Egyptian pound experiencing fluctuations, the Central Bank of Egypt (CBE) is at a critical juncture. Analysts and business leaders alike are speculating on whether the CBE will shift its stance and ease interest rates after a series of aggressive hikes in the past year. A year of aggressive rate hikes In its effort to combat soaring inflation, the CBE implemented a series of interest rate hikes throughout 2024. The trend…
The real estate sector in Egypt is undergoing a rapid transformation, driven by the surge in PropTech — a fusion of property and technology. As the country continues its shift towards a more digitally-driven economy, PropTech is revolutionizing how Egyptians buy, sell, and rent properties. Startups and real estate companies are using innovative technologies to make transactions faster, more transparent, and more accessible than ever. The rise of local PropTech startups A new wave of Egyptian PropTech startups is transforming the real estate market. Companies like Nawy, BirdNest, and Partment are introducing fresh, innovative solutions that make buying and renting…
The Egyptian Ministry of Finance has entered into a $10.3 million (€10 million) agreement with the European Bank for Reconstruction and Development (EBRD) to launch the “Egypt Account”, a dedicated fund aimed at financing feasibility studies and consultancy services for public-private partnership (PPP) projects. This initiative is designed to accelerate investment in key infrastructure sectors and enhance private sector participation in national development efforts, according to a cabinet statement released on February 5. Accelerating PPP projects Prime Minister Mostafa Madbouly noted that this agreement is a major step toward increasing private sector engagement, both locally and internationally, in public infrastructure…
Marriott International has partnered with Cairo House Egypt for Real Estate and Tourism Investment SAE to transform the historic Mogamma Al Tahrir building into an Autograph Collection Hotel, as part of a broader effort to revitalize Downtown Cairo, the company announced on February 4. Global consortium driving Downtown Cairo revitalization An international consortium of developers and investors, including Global Ventures Group, Oxford Capital Group, Al Otaiba Investments, and Zoser Capital Partners, will lead the development. The hotel will feature 500 guestrooms and serviced apartments, along with a rooftop swimming pool offering panoramic views of Tahrir Square, the Nile, and the…
Egypt’s non-oil private sector saw solid growth in January, marking its first expansion since August 2024, driven by a strong rise in output and sales volumes, according to the S&P Global Egypt Purchasing Managers’ Index (PMI) report published on February 4. Non-oil private sector Egypt’s PMI climbed to 50.7 in January, its highest level in 50 months, up from 48.1 in December. A reading above 50 signals growth, while a figure below 50 indicates contraction. “The ceasefire deal between Israel and Hamas likely added confidence to markets in January. That said, business expectations for the next 12 months remain subdued,…