🇪🇬EgyptNorth Africa
Egypt targets 5.4% economic growth and increased investment in 2026/2027 fiscal plan
via Egypt Today2 min read
Egypt's government aims for 5.4% economic growth in the next fiscal year, with projections reaching 6.8% by 2029/2030. The plan emphasizes expanding investment and private sector participation, targeting LE 3.7 trillion in total investments, with the private sector expected to contribute 59% initially and 64% by the end of the medium-term plan. The investment rate is forecast to rise from 17% of GDP next year to 20% by 2030. Growth is anticipated to be driven by real economy sectors, particularly manufacturing, which is projected to contribute 29% of total growth. Other key sectors include trade, tourism, construction, and agriculture, collectively accounting for 64% of economic expansion. GDP is projected to reach LE 24.5 trillion in FY2026/2027 and grow to LE 36.8 trillion by the end of the decade. The plan also prioritizes human development, with health sector allocations increasing by 25% and pre-university education spending rising by 11.5%. Social protection funding is set to increase by 57%, and infrastructure investments will continue across sectors like water, housing, irrigation, and renewable energy. The "Haya Karima" initiative remains central, focusing on completing its first phase and rolling out a second phase to improve rural living conditions. While global challenges persist, they are seen as opportunities for industrial localization and increased exports. The plan's success will be measured by both growth figures and improvements in citizens’ quality of life
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This summary was AI-generated from a story originally published by Egypt Today.
Prime Minister Mostafa Madbouly met with Saleh bin Eid Al-Husseini, Saudi Arabia's Ambassador to Cairo, to explore deeper economic and investment cooperation between the two nations. Discussions focused on expanding bilateral trade, identifying investment opportunities in Egypt's high-potential sectors, and reviewing ongoing joint projects. Both parties emphasized the importance of removing obstacles for investors and improving the business climate, especially as Egypt continues its economic and structural reforms. The meeting concluded with a reaffirmation of their commitment to ongoing coordination and strengthening cooperation across various sectors, highlighting their strong strategic partnership and shared economic interests.
Egypt's index for manufacturing and extractive industries, excluding crude oil and petroleum products, increased by 1.5 percent in February 2026, reaching 120.69 from 118.88 in January 2026. This data was released by the Central Agency for Public Mobilization and Statistics CAPMAS. The pharmaceutical, chemical, and medicinal products industry index saw a 9.05 percent rise, climbing to 140.48 in February 2026 from 128.82 in January 2026, attributed to market dynamics and regulatory policies from the Egyptian Drug Authority. The motor vehicles industry index also experienced a significant increase of 29.27 percent, reaching 459.74 in February 2026 compared to 355.65 in January 2026, driven by supply and demand conditions. Conversely, the textiles industry index declined by 7.39 percent, falling to 149.59 in February 2026 from 161.52 in January 2026, largely due to reduced working shifts during Ramadan. The index for printing and reproduction of recorded media also dropped by 14.15 percent, from 124.18 in January 2026 to 106.61 in February 2026, primarily due to the completion of contracts related to the Ministry of Education.
Prime Minister Mostafa Madbouly has instructed the Ministry of Housing to appoint a consulting firm to develop an integrated plan for the North Sinai coastal zone. This initiative aims to attract tourism, agricultural, and industrial investments. During a government meeting, Madbouly highlighted North Sinai's strategic importance and its significant, untapped investment potential, especially in tourism. Concurrently, the Prime Minister reviewed his government statement to Parliament, which addressed the ongoing regional crisis, its international and domestic impacts, and immediate mitigation efforts. He also detailed the government's response strategies and measures taken in response to the complex regional and global environment, noting that the economic effects of the crisis are expected to persist through the end of the current year, even if the crisis itself subsides.
Egypt's Cabinet has approved a draft presidential decree to pardon a number of convicted prisoners, allowing for the remainder of their sentences to be commuted. This decision comes in anticipation of Eid Al-Adha, an Islamic holiday observed on the 10th day of Dhu Al-Hijjah, which is expected to occur in the last week of May this year.