Egypt Accelerates Investment Reforms and Prepares New State-Owned Company Listings
Egypt’s Minister of Investment and Foreign Trade, Mohamed Farid Saleh, announced that the government plans to intensify efforts to improve the business environment and reduce bureaucratic obstacles, while preparing to list up to four state-owned companies on the Egyptian Stock Exchange over the next 12 months.
According to Saleh, the planned reforms aim to simplify company formation procedures, facilitate capital raising, and streamline mergers and acquisitions, particularly for non-listed firms. The government’s immediate priority is to make it easier for existing businesses to operate and expand.
The minister also stated that more than seven companies could be listed on the stock exchange during the coming year, including three to four state-owned enterprises and four to five private-sector firms. The move forms part of a broader strategy to increase private-sector participation and gradually reduce the state's direct role in economic activity.
In March, the government announced plans to sell up to a 20% stake in Misr Life Insurance, a transaction expected to raise approximately EGP 14 billion.
Regarding foreign direct investment (FDI), Saleh projected that inflows during the current fiscal year would increase by 10–15% compared with the previous year’s level of $12.2 billion.
The minister reaffirmed Egypt’s commitment to a flexible exchange-rate regime despite recent pressures on the Egyptian pound stemming from regional tensions. He also stressed that the government remains committed to fiscal discipline and to implementing the economic reforms agreed upon with the International Monetary Fund (IMF).
Saleh further noted that Egypt has met or exceeded several targets under its $8 billion IMF program and indicated that the government is not currently considering a follow-up financing arrangement once the existing program expires.
These measures come as Egypt seeks to strengthen its position as one of the leading destinations for foreign investment in the Middle East and North Africa. Over the past several years, the country has faced a series of economic challenges, including the effects of the COVID-19 pandemic, rising global borrowing costs, regional conflicts, and pressures on foreign currency earnings.
In response, the government has placed foreign direct investment at the center of its economic strategy, viewing it as a more sustainable source of foreign exchange than external borrowing or short-term portfolio inflows. This approach has been accompanied by a wide-ranging reform agenda that includes exchange-rate liberalization, an expanded privatization program, and efforts to create a more competitive environment for private businesses.
Despite its economic challenges, Egypt remains an attractive market for investors due to its strategic geographic location, large domestic market of more than 110 million people, and its role as a regional hub connecting Africa, the Middle East, and Europe. Key sectors attracting investor interest include manufacturing, renewable energy, logistics, real estate, and technology.
However, international investors continue to closely monitor issues such as exchange-rate stability, the ease of profit repatriation, public debt levels, and the pace of reforms aimed at expanding the role of the private sector. The success of the government's current initiatives will likely play a significant role in determining whether Egypt can sustain higher levels of foreign investment in the years ahead.
