El-Khatib: Monetary Policy Stability and Free Capital Flows Strengthen Investor Confidence in the Egyptian Market
Renewable Energy and Digital Transformation Drive Long-Term Growth and Investment Opportunities in Egypt
State Asset Restructuring and the Development of Regional Industrial Value Chains Support the Attraction of Foreign Investment
Engineer Hassan El-Khatib, Minister of Investment and Foreign Trade, participated in a discussion session organized by CI Capital under the title CI Capital Connect 2026, moderated by Ms. Sara Saada, Chief Economist at CI Capital. During the session, the Minister reviewed key developments in Egypt’s investment climate and highlighted the economic policies being implemented by the State to support the private sector and enhance foreign direct investment inflows.
The Minister affirmed that the government continues to implement a comprehensive economic reform program aimed at creating a more attractive business environment for both domestic and foreign investment. He noted that Egypt invested approximately USD 550 billion between 2014 and 2024 in infrastructure development, including transport networks, the establishment of 22 new cities, port expansions, and increased renewable energy capacity. These investments, he explained, form a solid foundation for a new phase of private sector–led growth in the coming years.
El-Khatib pointed out that the current monetary policy focuses on inflation targeting as the primary driver of economic stability, stressing that this approach has contributed to improved macroeconomic indicators. Net foreign assets have turned positive to approximately USD 30 billion, remittances from Egyptians abroad have risen to USD 37 billion, and foreign exchange reserves have exceeded USD 50 billion.
He added that inflation has declined from its peak of nearly 40% to around 12% currently, with a target range of 7%–9% by year-end, emphasizing that monetary stability enhances investor confidence and creates a more stable environment for business growth.
The Minister also outlined recent fiscal policy reforms, noting that the Ministry of Finance has adopted a new approach focused on simplifying procedures and building trust with the business community. This has resulted in a 35% increase in tax revenues within one year and the opening of approximately 600,000 new tax files, with declared revenues exceeding EGP 1 trillion.
He further noted that the State is working in parallel to ease non-tax burdens and restructure certain fees to strike a balance between supporting economic activity and improving collection efficiency, reflecting a positive response from the private sector and growing confidence in the reform trajectory.
El-Khatib highlighted the State’s objective to boost exports and increase their share to between 20% and 30% of GDP through a package of measures aimed at enhancing competitiveness, facilitating trade flows, and expanding access to international markets.
He explained that 83% of imports consist of production inputs used in manufacturing and exports, adding that efforts are underway to accelerate customs clearance procedures. Average clearance time has been reduced from 16 days to approximately 5.8 days, with a target of two days through expanded digitalization and the application of risk management systems.
The Minister stressed that improving Egypt’s ranking in ease-of-doing-business indicators is a key priority, with the goal of placing Egypt among the top 50 countries in the coming years and within the top 20 by 2030, through procedural simplification and integrated government services.
He reviewed progress in digital transformation for investment services, noting the launch of a unified platform for licensing and investment services that currently provides more than 460 electronic services and permits, enabling investors to complete procedures without the need to visit government offices.
El-Khatib also noted that the State is reengineering project establishment procedures in several sectors, reducing required steps in some activities from 34 to just 9, and shortening licensing timelines from approximately 24 months to a maximum of 90 days. He emphasized that this approach will be gradually rolled out across all economic sectors.
In response to a question on Egypt’s potential to attract long-term investment in digital transformation and artificial intelligence, the Minister explained that AI relies on key components including energy, semiconductors, infrastructure, models, and applications. He highlighted Egypt’s strong advantage in renewable energy, its strategic geographic position through which nearly 70% of data traffic between Europe and Asia passes, making it an ideal location for large-scale data centers. He also underscored the importance of Egypt’s human capital—engineers, youth, and entrepreneurs—as a major competitive advantage, particularly in applications and advanced technologies.
Responding to another question regarding priority sectors for attracting further foreign direct investment, El-Khatib noted that while Egypt recorded approximately USD 12 billion in FDI last year, ambitions remain higher. Renewable energy tops the list of targeted sectors, followed by tourism, with plans to increase tourist arrivals from around 18.9 million to 30 million over the medium term. Healthcare also receives significant attention through hospital expansion and efforts to position Egypt as a regional hub for medical tourism. The industrial sector remains a top priority, particularly intermediate industries and automotive components, alongside initiatives to build integrated production value chains with countries across the region.
