Egypt's Prime Minister Madbouly outlines national strategy to mitigate Iran war's economic impact
via Egypt Today4 min read
Prime Minister Mostafa Madbouly addressed Egypt's House of Representatives, detailing the government's proactive measures to counter the global economic pressures stemming from the Iran war. He highlighted the war's extensive impact on energy supplies, supply chains, inflation, prices, transport, trade, industry, and tourism, noting a historic shock to global oil supplies following attacks on energy infrastructure and disruptions in the Strait of Hormuz. Oil prices surged from $69 to $120 per barrel before settling at $95, with warnings of further increases if the situation worsens. The tourism sector faces regional losses estimated at $600 million daily, and the FAO food price index rose by 2.4 percent, indicating severe food supply chain disruptions. Domestically, Egypt implemented a five-pillar plan: real-time monitoring, careful analysis, presenting alternatives, decisive action, and assessing public impact. A crisis committee was formed to secure energy and maintain market stability, alongside a Foreign Ministry task force and a 24-hour hotline for Egyptians abroad. Strategic reserves of food and medicine were secured for several months. The government coordinated with the Central Bank to provide foreign currency for essential goods, supported by exchange rate flexibility and inflation-targeting policies. A LE 40 billion cash support package was distributed to 15 million families, and public sector wages increased by 21 percent, raising the minimum wage to LE 8,000 at a
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President Abdel Fattah El-Sisi welcomed Finnish President Alexander Stubb to Cairo, emphasizing the strong bilateral relations and commitment to expanding cooperation across various sectors. Following talks at Al-Ittihadiya Palace, El-Sisi described the discussions as constructive and comprehensive, covering regional and international developments, as well as opportunities to deepen bilateral ties. The Egyptian president stressed the importance of enhancing economic, trade, and investment cooperation, encouraging stronger engagement between the business communities of both countries. Discussions explored cooperation in key sectors including information and communication technology, digital transformation, renewable energy, education, healthcare, advanced industries, mining, and wood industries. The talks also addressed cooperation within the Egypt–European Union strategic partnership, with El-Sisi highlighting Finland’s role in supporting this partnership. On regional issues, El-Sisi reaffirmed Egypt’s commitment to supporting stability and security, stressing the need for continued coordination to address ongoing crises in the Middle East. He reiterated Egypt’s rejection of attacks against Arab states and emphasized that Arab security is integral to Egypt’s national security. The president also highlighted Egypt’s efforts to promote de-escalation and prevent further conflict in the region, welcoming the current truce as a positive step. Regarding the Palestinian issue, El-Si
Must ReadThe Suez Canal Economic Zone SCZone has attracted approximately $16 billion in investments over the past four years, a substantial increase from about $2 billion in earlier periods, according to its chairman Walid Gamal El-Din. Speaking at the Egypt–OECD Country Programme High-Level Roundtable, Gamal El-Din attributed this progress to reforms and development efforts initiated since 2015, describing 2025 as a "harvest year" for these initiatives. More than 160 factories and projects have been established across the zone’s ports and industrial areas, indicating increased industrial activity and investor interest. Investments secured since the beginning of the current year have reached around $6 billion, with further growth anticipated as new agreements are finalized. Gamal El-Din highlighted that international partnerships, particularly with the Organisation for Economic Co-operation and Development, and strong government support have improved the investment climate and driven development within the zone. The SCZone has transformed into an integrated hub for industry, logistics, and trade, solidifying its role as a regional center for global commerce. The zone also ranks among the top three globally in container terminal performance and first in the Middle East and Africa. Looking forward, the authority plans to expand investments in green sectors and advanced industries, aligning with Egypt’s broader goals for sustainable growth and attracting higher-value investments.
Must ReadPrime Minister Mostafa Madbouly met with Christophe Périllat, CEO of the French global automotive supplier Valeo, to discuss the state's support for the company's expansion in Egypt. Madbouly praised the inauguration of Valeo’s new Artificial Intelligence Development Center, which is intended to become a premier global R&D facility. He noted the efficiency of Egyptian youth and their ability to serve major global automakers through Valeo's advanced technologies. The Minister of Communications stated that the new center will start with 35 engineers, with plans to expand beyond 100 specialists. The facility will focus on integrating AI into Valeo's global productivity and developing next-generation software for smart mobility solutions.
Must ReadEgypt's Planning Minister Ahmed Rostom stated that the Suez Canal Economic Zone SCZone is a key component of the country's strategy to attract foreign investment and integrate into global supply chains. Speaking at a roundtable with the OECD and the Suez Canal Economic Zone Authority, Rostom noted that the Suez Canal handles approximately 12 percent of global trade and 20 percent of worldwide container traffic. The SCZone, which includes six ports and four industrial zones, is being developed as an integrated hub for manufacturing, logistics, and trade, supported by a unified digital platform for investor services. Rostom also mentioned improved performance, with Suez Canal activity growing by 8.6 percent in the first quarter and 24.2 percent in the second quarter of the current fiscal year. The government is prioritizing the localization of production, diversification of supply chains, and strengthening links between international investors and Egyptian companies to boost exports, attract foreign direct investment, enhance productivity, and facilitate technology transfer. This roundtable is part of the Egypt–OECD Country Programme, extended until June 2026, which includes 35 projects focused on economic reform, digital transformation, governance, and sustainable development, aiming to improve the investment climate and reinforce the SCZone's role as a regional gateway connecting Africa, Europe, and Asia.