Egypt Sets LE 3.5 Trillion Investment Target for FY2025/2026
Presenting the main goals of Egypt's Economic and Social Development Plan for FY2025/2026—part of the national medium-term strategy (2025/2026–2028/2029)—Al-Mashat pointed to several key indicators of recovery. These include a rise in tourism revenues to $4.8 billion in Q1 of FY2024/2025, up from $4.5 billion in the same quarter a year earlier. The decline in Suez Canal revenues also showed signs of easing, with the drop narrowing from 63 percent in October 2024 to 23.8 percent by February 2025.
In parallel, Egypt's foreign reserves saw a strong year-on-year increase of 34 percent, reaching $47.4 billion by the end of February 2025, up from $35.3 billion in February 2024. Inflation has also continued on a downward trajectory, supported by base-year effects. Al-Mashat highlighted the government's ongoing commitment to aligning domestic energy prices with international market trends and production costs.
Another strong indicator came from remittances by Egyptians abroad, which jumped to $17.1 billion in the first half of FY2024/2025—up from $9.4 billion the year before. Moreover, Egypt recorded a dramatic rise in foreign direct investment (FDI), surging from $10 billion in FY2023/2024 to $46.1 billion in FY2024/2025.
Looking ahead, Egypt aims to achieve 4.5 percent GDP growth in FY2025/2026, a marked improvement from the 2.4 percent growth recorded in FY2023/2024, which was hindered by global and regional economic challenges. Al-Mashat emphasized, however, the need to remain vigilant in the face of ongoing geopolitical risks that could impact the outlook.
Egypt's GDP is projected to reach LE 9.1 trillion at constant prices and LE 20.4 trillion at current prices in FY2025/2026, up from an estimated LE 17.3 trillion in FY2024/2025—an increase of 18 percent. This growth is expected to be driven by a balanced contribution from final consumption (27 percent), investment (37 percent), and net exports (36 percent).
Sectors expected to fuel this growth include wholesale and retail trade, agriculture, manufacturing, real estate, transportation, and social services—given their large share of GDP and growing economic activity.
On the investment front, Al-Mashat announced a record-setting LE 3.5 trillion in planned investments for FY2025/2026, up from LE 2.6 trillion projected for the current fiscal year and LE 1.8 trillion in actual investments for FY2023/2024. The investment-to-GDP ratio is forecast to reach 17.1 percent, up from 15 percent in FY2024/2025 and 13 percent in FY2023/2024.
Private sector investment is expected to play a leading role, contributing LE 1.94 trillion, or 62.7 percent of total investments, compared to 37.3 percent from the public sector—reflecting the government's drive to empower private enterprise, ensure competitive neutrality, and enhance governance.
Public sector investments are projected at LE 1.16 trillion in FY2025/2026, up from LE 1 trillion expected this year. The distribution includes 37.6 percent by government agencies, 43.3 percent by public economic authorities, and 19.1 percent allocated to governorate-level investments. Al-Mashat emphasized that these allocations are aligned with the state's fiscal responsibility goals, aiming to reduce debt burdens and open space for increased private sector participation in national development.
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