Minister of Investment and Foreign Trade Participates in a Dialogue Session with Harvard University Alumni on the Role of the Private Sector in the Egyptian Economy and Growth Opportunities
- El-Khatib Highlights Economic Reforms and the Attractiveness of the Egyptian Market
- Egypt Seeks to Build a Competitive Business Environment that Empowers the Private Sector and Attracts Foreign Direct Investment
- Harvard Business School Alumni Discuss Investment and Business Opportunities in Egypt
Eng. Hassan El-Khatib, Minister of Investment and Foreign Trade, and Mr. Ahmed Kouchouk, Minister of Finance, participated in a dialogue session with Harvard University alumni on “Doing Business in Egypt.” The session featured an open and interactive discussion addressing Egypt’s economic conditions and the latest financial and economic developments. During the session, the Minister of Investment and Foreign Trade responded to a number of questions raised by participants.
The Minister reviewed the key opportunities and challenges facing the Egyptian economy, stressing that achieving the targeted growth rates requires doubling the volume of foreign direct investment, noting that this objective is pursued amid strong regional and global competition to attract investments.
He emphasized that Egypt possesses genuine opportunities that position it favorably in this competition, supported by its strategic geographic location connecting multiple markets, as well as the extensive development of infrastructure undertaken by the state, which enhances the business environment and strengthens the country’s capacity to absorb higher investment inflows in the coming period.
In response to a question regarding Egypt’s current investment strategy and how it differs from that of five years ago, the Minister explained that Egypt aims to build a competitive business environment that stimulates the private sector and enhances the attraction of foreign direct investment. He noted that economic reforms target increasing GDP growth rates to exceed 6–7%, in line with growing demographic challenges and to ensure that citizens benefit from the economic growth cycle.
The Minister affirmed that Egypt’s current investment strategy is centered on paving the way for a more competitive environment for investment and trade and enhancing the overall competitiveness of the economy. He added that Egypt is now better positioned to transition into a new phase compared to five years ago, supported by clearer and more disciplined policies.
Responding to a question on the sectors in which Egypt seeks to excel over the coming decade, El-Khatib stated that the government has developed a national strategy to attract foreign direct investment in partnership with the World Bank. This strategy adopts a data-driven approach and focuses on directing investments toward sectors where Egypt enjoys competitive advantages, prioritizing labor-intensive sectors capable of generating employment opportunities, increasing exports, and achieving inclusive growth.
He explained that these sectors include textiles and garments, agro-processing and food industries, logistics, light manufacturing, and assembly activities. Egypt enjoys clear structural advantages in these areas, most notably a large, young, and cost-competitive labor force, as well as its geographic proximity to European, Middle Eastern, and African markets, which reduces market access time and costs.
El-Khatib further noted that Egypt’s extensive network of trade agreements provides preferential access to more than 70 countries, in addition to the availability of industrial zones and export-oriented production clusters that help shorten business start-up timelines and reduce operational risks. He emphasized that the state is clearly shifting toward an export-oriented manufacturing model rather than relying on import substitution.
Regarding trade policies, the Minister explained that Egypt adopts an open and sustainably competitive trade policy. He highlighted that customs clearance time has been reduced from 16 days to 5.8 days, with a target of reaching just two days through a package of reform measures. He also pointed to the launch of a new, more flexible export subsidy program focused on supporting higher value-added industries, with a commitment to disburse dues within 90 days, alongside the implementation of trade defense instruments in line with World Trade Organization rules and a plan to expand into African markets.
The Minister added that Egypt applies WTO-compliant trade defense measures, including anti-dumping, countervailing, and safeguard measures, to protect local industry and ensure fair competition.
In this context, El-Khatib addressed a question regarding the government’s stance on sectors in which the state should compete or participate. He explained that the government has adopted the State Ownership Policy Document, which clearly defines sectors where the state remains a partner and those from which it will gradually exit in favor of the private sector. He also noted the establishment of a central unit to manage state-owned enterprises, aimed at unifying governance standards, measuring performance, and separating the state’s roles as owner, regulator, and policymaker, thereby reducing conflicts of interest and enhancing efficiency.
The Minister further highlighted the clear alignment between fiscal, monetary, and trade policies, reflecting a more disciplined and transparent policy framework. He noted that the results of this transformation are beginning to be directly reflected in economic indicators, and that markets respond positively once difficult reforms are fully absorbed, supporting Egypt’s transition toward a more flexible and attractive model for long-term investment, under a more predictable fiscal policy and greater clarity of rights and obligations.
El-Khatib emphasized that Egypt combines market scale with cost competitiveness, enabling investors to expand and achieve stable returns. He added that Egypt’s geographic location provides a competitive advantage in near-market manufacturing, alongside the availability of a workforce supportive of labor-intensive industries, services, and light manufacturing.
In response to a question on how the government supports entrepreneurship and startups by simplifying procedures and enhancing their ability to grow and sustain operations within the Egyptian market, the Minister explained that the government supports the startup ecosystem by reducing procedural burdens, curbing bureaucracy, and simplifying interactions with government entities, thereby facilitating company establishment and operations. He stressed that the government’s role is to provide space for this sector to grow and continue supporting it, while relying on the innovation of entrepreneurs to address challenges and enhance companies’ ability to survive and expand within the Egyptian market.
In closing, Eng. Hassan El-Khatib delivered a message to Harvard Business School students and alumni, emphasizing that the coming phase requires builders, operators, and long-term investors—not merely observers or consultants. He underscored the importance of transferring global best practices into real-world applications, building genuine partnerships with local talents and institutions, and investing in export-oriented sectors that contribute to job creation.
