Egypt's Minister of Planning and International Cooperation said she expects 2026 to be a "turning point" for the country's economy, with a peace deal in Gaza set to restore normal navigation in the Suez Canal and boost revenues alongside growth in industry and tourism. Speaking in an interview with Bloomberg after the Sharm El-Sheikh peace summit, Minister of Planning Rania Al-Mashat said a sustainable settlement would be "very positive" for both Egypt and the cost of global trade. "It is a very important day, not just for the region but for the entire world," Al-Mashat said of the summit. "We know that the Palestinian people have suffered for two years, so reaching a resolution and laying the foundations for peace will be essential for the future of the region." Al-Mashat also said that President Abdel Fattah Al-Sisi had a "decisive and clear vision" for achieving peace in Gaza from the beginning of the conflict, based on a full commitment to the rights of the Palestinian people. She highlighted that Egypt had dealt flexibly with the decrease in Suez Canal traffic caused by regional tensions by implementing necessary economic reforms since March 2024. These reforms, including fiscal consolidation, a flexible exchange rate, and a ceiling on public investments, contributed to GDP growth reaching 4.4% by the end of June and 5% in the last quarter, she said. "If we look at the structure of growth in Egypt, we find that its sources come from increased manufacturing activity, benefiting from the reforms implemented in March 2024," Al-Mashat said, adding that the country is continuing an ambitious structural reform programme to increase competitiveness and foster private sector participation. She pointed to recent strong investment flows, especially in the Suez Canal Economic Zone, as favourable opportunities for the Egyptian economy to increase production and exports. Al-Mashat added that during the upcoming annual meetings of the International Monetary Fund (IMF) and the World Bank, Egypt will present its economic reform story and highlight the continuation of positive momentum following the historic summit. She also noted that a recent credit rating upgrade by Standard & Poor's is proof that the reforms are moving in the right direction. "We are committed to them, and we are working to open the economy further, increase competition, and overcome the challenges we faced during the past years," she said.
