Egypt is implementing a series of measures to improve its investment climate and stimulate growth in key economic sectors, according to Investment and Foreign Trade Minister Hassan El-Khatib, speaking in an interview with CNBC International on the sidelines of the World Economic Forum in Davos. The minister emphasised the government's commitment to ensuring clear and stable rights and obligations for investors. He noted the completion of a survey identifying government entities interacting with investors and those responsible for collecting fees. Work is underway to restructure the financial dues collection system, limiting the number of collecting entities to a maximum of four, in coordination with the Ministry of Finance. This aims to reduce administrative and financial burdens on projects and enable them to know their financial obligations in advance. El-Khatib also stated that the government is developing amendments to legislation to ensure Egypt's investment environment keeps pace with global economic changes and investor needs, aiming to create a flexible and attractive legislative framework for both local and foreign investment An Investment and Trade Policy Document is also being finalised, aiming to provide a comprehensive vision for improving the investment and foreign trade climate and enhance the competitiveness of the Egyptian economy, focusing on stable fiscal and monetary policies, legislative development, improving the investor experience, supporting foreign trade, and increasing export competitiveness. The minister further noted that foreign direct investment (FDI) in Egypt reached approximately $46.1 billion last year, compared to about $10 billion in 2023. This significant increase is largely attributed to the $35 billion Ras El-Hekma deal. He confirmed that an FDI Strategy document has been prepared in cooperation with the World Bank, focusing on creating an attractive investment environment, achieving macroeconomic stability, establishing a supportive legal and regulatory framework, and maximising the benefits of foreign investment. The minister further outlined the priority sectors the government is focusing on for economic growth: * Industry and Manufacturing: aiming for an 8 per cent industrial growth rate and increasing industry's contribution to GDP to 20 per cent by 2027; * Communications and Information Technology: where Egypt seeks to enhance digital infrastructure and support digital innovation; * Agriculture: where the state aims to increase cultivated land by 20 per cent; * Tourism: with the goal of increasing tourists to 30 million annually and raising sector revenues to $30 billion by 2027; * Renewable Energy: where the updated energy strategy aims to source 60 per cent of the total energy mix from renewable sources by 2040, accelerating the timeline to reach 42 per cent by 2030 The minister also stated that the new export burden refund programme features transparency, clarity, and faster disbursement of dues to exporters. Payments will be made in full starting from shipments of July 1, 2024, within a maximum of 90 days of submitting documents. He mentioned that Egyptian non-petroleum exports reached $40.8 billion in 2024, an unprecedented figure, but one that doesn't yet reflect Egypt's full potential. In short, Egypt, through these measures and plans, seeks to improve the investment climate, attract more investment, and achieve sustainable economic growth in various sectors. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
