In an address during the closing session of the American Chamber of Commerce in Egypt (AmCham Egypt) Investment Conference on April 29, Minister of Investment and Foreign Trade Hassan El Khatib outlined Egypt’s forward-looking economic reform strategy. His remarks offered a comprehensive look at the government’s evolving policy priorities amid shifting global economic conditions.
Navigating a changing global landscape
As global geopolitical dynamics become increasingly fragmented, Egypt is recalibrating its economic path. “The protectionism trend is taking place in Europe, across the world. Nationalism is rising, and the terminology that we’re using as economists is also changing,” El Khatib observed.
He continued, “We’re moving from a unipolar to a dual polar or a multipolar world order.” In light of this transformation, he argued that Egypt must aim higher. “We need to have an aspiration to take our GDP from where we are today to double it in a number of years… say ten years, which is a target that should be achieved.” Achieving that target, he said, requires significantly boosting Egypt’s share of global Foreign Direct Investment (FDI).
Laying the foundation for reform
El Khatib outlined reforms across four key pillars: monetary, fiscal, trade, and export policies.
Monetary policy is now centered on inflation targeting. “It’s targeting inflation, which is the right target… You can do your business plans based on the right monetary policy,” he said, affirming the importance of a flexible exchange rate to support competitiveness.
On the fiscal side, the government is tackling bureaucratic inefficiencies. “We’re changing that culture,” he said, citing 30 to 40 parliamentary-approved measures that are reshaping the relationship between businesses and tax authorities. A nationwide audit of non-tax fees revealed that “40% of these fees and levies are actually based on a law. 60% are actually more of administrative decisions.”
Regarding trade policy, El Khatib made a key distinction: “We don’t have an import problem at all. We do have an export problem.” With exports accounting for just 10% of GDP, the government is implementing 29 measures aimed at reducing customs clearance times from 14 days to just two—an improvement expected to save $1.7 billion annually.
Export support programs are also being restructured. “When I started… I took a principle that I will work with the budget that I have,” he said. The redesigned program now targets high-value sectors and areas of economic complexity, offering more flexibility to support strategic industries.
Looking ahead
El Khatib also stressed a more proactive trade strategy, including stricter enforcement of trade remedies and deeper engagement with African markets. “Our share of experts in the total continent is 1.5%… 68% of our experts are actually to Libya, Tunisia, and Morocco,” he noted, underlining the need for broader regional diversification.
In closing, El Khatib delivered a clear message: “Big choices are needed. We have to make choices of that nature.” With a sharpened policy framework and renewed focus on growth, Egypt is laying the groundwork for long-term economic transformation and enhanced global competitiveness.
