Egypt Sets LE 3.5 Trillion Investment Target for FY2025/2026

Minister of Planning, Economic Development and International Cooperation, Dr. Rania Al-Mashat, reported a clear upswing in Egypt’s economic performance during the first half of the current fiscal year, with GDP growth accelerating from 3.5 percent in Q1 to 4.3 percent in Q2. During her address to the House of Representatives, she added that growth projections for Q3 and Q4 stand at 4.1 percent and 4.2 percent respectively, bringing the expected annual growth rate to 4 percent.

Presenting the main goals of Egypt’s Economic and Social Development Plan for FY2025/2026—part of the national medium-term strategy (2025/2026–2028/2029)—Al-Mashat pointed to several key indicators of recovery. These include a rise in tourism revenues to $4.8 billion in Q1 of FY2024/2025, up from $4.5 billion in the same quarter a year earlier. The decline in Suez Canal revenues also showed signs of easing, with the drop narrowing from 63 percent in October 2024 to 23.8 percent by February 2025.

In parallel, Egypt’s foreign reserves saw a strong year-on-year increase of 34 percent, reaching $47.4 billion by the end of February 2025, up from $35.3 billion in February 2024. Inflation has also continued on a downward trajectory, supported by base-year effects. Al-Mashat highlighted the government’s ongoing commitment to aligning domestic energy prices with international market trends and production costs.

Another strong indicator came from remittances by Egyptians abroad, which jumped to $17.1 billion in the first half of FY2024/2025—up from $9.4 billion the year before. Moreover, Egypt recorded a dramatic rise in foreign direct investment (FDI), surging from $10 billion in FY2023/2024 to $46.1 billion in FY2024/2025.

Looking ahead, Egypt aims to achieve 4.5 percent GDP growth in FY2025/2026, a marked improvement from the 2.4 percent growth recorded in FY2023/2024, which was hindered by global and regional economic challenges. Al-Mashat emphasized, however, the need to remain vigilant in the face of ongoing geopolitical risks that could impact the outlook.