Investment and Foreign Trade Minister Mohamed Farid Saleh said the share of private investment in Egypt’s total investments had risen to around 65%, up from previous averages of 40% to 45%.Private-sector investments exceeded EGP 1 trillion last year, reflecting the sector’s growing role in economic activity, he added.
Speaking on the sidelines of the launch of the Alam El Roum investment zone on Egypt’s North Coast, Farid said the figures reflected coordination and integration among ministries and government entities to support the private sector and streamline procedures for investors.
The government aims to strengthen the role of private investment in driving economic growth and creating jobs, he said. Foreign direct investment in Egypt reached around $15 billion excluding major deals, according to Farid’s estimates. He expected foreign investment to continue growing, supported by the Egyptian economy’s strengths, including its manufacturing and construction capabilities and the availability of local expertise across several sectors.
Farid said investment zones were an important mechanism for accelerating project implementation and facilitating economic activities. They allow investors to obtain various license’s and approvals through the zone’s board of directors and executive board, reducing the number of procedures and entities they must deal with.
The ministry is working to improve services for investors by expanding electronic platforms and automating procedures, while making use of the golden license system to speed up the launch of investment activities and address procedural challenges, in compliance with the law and the regulatory mandates of the relevant authorities, he said.
Farid stressed that expanding investment zones was not solely aimed at attracting capital, but also at promoting locally driven development and creating jobs for communities surrounding projects, while leveraging state-built infrastructure to stimulate local economic activity.
The private sector employs around 70% or more of Egypt’s workforce, he said, adding that achieving annual economic growth of 5.5% to 6.5% over several years would require raising investment to around 25% of gross domestic product and strengthening the private sector’s role in driving growth and employment.
Farid affirmed that the Ministry of Investment and Foreign Trade would continue supporting new projects and coordinating with the Ministry of Housing, relevant land-owning authorities and other government bodies to expand investment and free zones, enhance Egypt’s appeal to domestic and foreign investors and support the country’s economic development targets.
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