Egypt’s Ministry of Finance is coordinating with the Ministry of Investment and Foreign Trade and the Ministry of Industry to establish two funds to support targeted activities and sectors, Finance Minister Ahmed Kouchouk said on September 27.
Speaking at the Techne Summit for Entrepreneurship and Technology, Kouchouk said the proposed funds would help make government support more targeted and effective. He did not provide details on the sectors to be covered, the size of the funds, or their expected launch dates.
The funds are part of broader measures to support economic activity while maintaining fiscal stability. Kouchouk said the Ministry of Finance is prepared to finance innovative initiatives that contribute to economic growth and competitiveness, while smaller companies can access concessional financing through the Micro, Small and Medium Enterprise Development Agency (MSMEDA).
Simplified tax regime targets small businesses
Kouchouk also highlighted Egypt’s simplified tax regime, introduced under Law No. 6 of 2025 for businesses with annual turnover of up to EGP 20 million ($383,800).
Under the regime, tax is calculated at graduated rates of between 0.4% and 1.5% of annual turnover, depending on business size. Eligible businesses also receive administrative and tax incentives, including a five-year exemption from tax audits after joining the system, as well as exemptions from several taxes and fees related to business operations and establishment.
The Egyptian Tax Authority has described the regime as permanent rather than a temporary relief measure. The framework is intended to reduce the administrative burden of tax compliance and encourage more small businesses to enter the formal economy.
EGP 80 billion allocated to production and entrepreneurship
The FY2026/27 budget allocates EGP 80 billion ($1.5 billion) to programs supporting production, exports, and entrepreneurship, according to Kouchouk.
The budget targets public revenues of around EGP 4 trillion ($76.8 billion) and expenditures of approximately EGP 5.1 trillion ($97.9 billion).
MSMEDA is also providing financing to smaller businesses. In July, Banque Misr and MSMEDA signed a EGP 500 million ($9.6 million) financing agreement targeting 2,500 microenterprises. The financing supports working capital as well as machinery and equipment purchases.
Digital services expand
Kouchouk also pointed to digitalization as a way to simplify government services. He said the objective is to make procedures easier and more efficient rather than simply transferring existing processes online.
The government’s Real Estate Tax mobile application had more than 1.2 million registered users as of September 27. On September 29, Kouchouk said more than two million real estate units had been registered through the platform during its first 100 days, while 1.5 million citizens had created electronic accounts and 1.2 million tax returns had been submitted.
The measures come as Egypt expands its support for startups and MSMEs. MSMEs account for more than 90% of private-sector businesses and around 43% of GDP, according to figures cited by Ahram Online.
Earlier in 2026, Egypt launched its Startup Charter, establishing a national framework aimed at expanding startup financing, market access, and job creation.
The proposed funds, simplified tax regime, financing programs, and digital services form part of efforts to improve access to government support and reduce administrative barriers for smaller businesses and entrepreneurs.
