Private investment in Egypt rose to 47.5% of total executed investments in fiscal year 2024/2025, its highest level in five years, according to new data from the Ministry of Planning, Economic Development, and International Cooperation.
At the same time, public investment fell to 43.3%, signaling a significant shift in Egypt’s economic structure as the government seeks to empower the private sector and curb public spending.
“Public investment decreased from EGP 627.5 billion in 2023/2024 to EGP 526.6 billion in 2024/2025, while private investment increased from EGP 474.7 billion to EGP 590.7 billion, indicating an expanding role of the private sector in investment activity over the past year,” said Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation.
Private sector at the core
Al-Mashat noted that the decline in public investment aligns with the government’s structural reform agenda to rationalize state spending and expand private sector participation. “The approach is part of Egypt’s structural reform agenda, aimed at reducing fiscal burdens, improving efficiency, and expanding the base of economic contributors,” she said.
The government aims to increase the private sector’s share of total investments to 66% by 2030, up from 60% under the current fiscal plan. “The private sector is the state’s strategic partner,” Al-Mashat emphasized, describing it as the main driver of productivity, innovation, and long-term competitiveness.
Improved financing conditions are supporting this shift. In February 2025, 43.22% of total credit facilities extended to the private sector were directed to industrial enterprises—highlighting Egypt’s focus on export-driven and high-value industries to boost external performance and job creation.
Investment and growth outlook
According to Al-Mashat, total investments are projected to rise to EGP 3.5 trillion for the first time, compared to around EGP 2.6 trillion in 2024/2025. The government expects the investment rate to reach 17.1% of GDP in 2025/2026, up from 15% this year, while overall economic growth is forecast to climb to 4.5%, compared to 2.4% in 2024/2025.
“The Ministry is working to enhance green investments and support sustainable infrastructure within the framework of the state’s efforts to shift toward a green economy,” Al-Mashat added. Under the Environmental Sustainability Standards Guide, the share of green projects in Egypt’s investment plan is set to rise to 55% of total public investments in 2025/2026, up from 50% this year.
Privatization and IPO acceleration
Egypt is also fast-tracking its state-owned enterprise (SOE) privatization and IPO program to attract foreign capital and boost efficiency. In October 2025, Prime Minister Mostafa Madbouly directed officials to expedite listings across key sectors such as telecommunications, petrochemicals, banking, tourism, and real estate, including military-affiliated companies like Safi, Chill Out, and Silo Foods.
Earlier phases of the program saw Abu Dhabi’s ADQ acquire stakes worth $800 million in Egyptian energy and petrochemical firms. Previous deals in 2022 included acquisitions in Abu Qir Fertilizers and MOPCO, reflecting sustained investor confidence in Egypt’s reform momentum.
Egypt currently has 705 companies fully or partially owned by 33 public entities, including 84 in the financial sector. The Central Bank of Egypt holds stakes in four financial institutions, among them The United Bank, which is 99.9% state-owned.
As Egypt deepens its liberalization and green transformation, this shift toward private sector-led growth represents a structural milestone. By reducing the state’s economic footprint, fostering sustainability, and opening new channels for investment, Egypt aims to position itself as a resilient and competitive emerging market economy in the decade ahead.
