El-Khatib: Government implementing a comprehensive program to restructure economic policies
-Improving the business environment and accelerating digital transformation are central pillars of reform
-All reforms aim to empower the private sector, create a competitive investment climate, and transform Egypt into a regional hub for investment and services
Eng. Hassan El-Khatib, Minister of Investment and Foreign Trade, met with a delegation from Moody’s Investors Service, including Mr. Matt Robinson, Assistant Managing Director for Sovereign Ratings in the Middle East and Africa, and Mr. Alexander Bergesi, Vice President and Senior Credit Officer for Sovereign Risk Management.
The meeting reviewed recent developments in the Egyptian economy, as well as the economic, institutional, and investment reforms being implemented by the Ministry, in the presence of Ms. Ghada Nour, Assistant Minister for Investment, Promotion, and Government IPOs; Ms. Dalia El-Hawary, Deputy CEO of the General Authority for Investment and Free Zones; and Mr. Abed Mehran, Assistant to the Minister.
The Minister affirmed that the government is implementing a comprehensive program to restructure economic policies, led by monetary policy as the cornerstone upon which other reforms are built. He noted that recent decisions have delivered tangible improvements in net foreign assets and foreign exchange reserves, reaching unprecedented levels.
El-Khatib explained that the government has adopted a strategic and pragmatic approach to subsidy reform and energy pricing, aimed at enhancing efficiency and correcting economic distortions. These measures contribute to restoring macroeconomic balance, strengthening resilience against inflationary pressures, and supporting sustainable and balanced growth over the medium term.
He added that fiscal policy has undergone a fundamental transformation in coordination with the Ministry of Finance, through simplifying the tax system and building a trust-based relationship with the business community.
The Minister noted that tax revenues increased by 35% in a single year—the highest growth rate since 2005—describing this as clear evidence of the success of the confidence-building approach with the private sector and the positive impact on investment.
El-Khatib stressed that foreign trade is a top national priority, highlighting that the government has reduced average customs clearance time from around 16 days to nearly 5 days, with a target of reaching just two days. These measures have generated annual savings estimated at billions of dollars.
He also pointed out that operating ports seven days a week instead of five, along with extending working hours, has directly doubled operational efficiency and reduced costs for investors. In parallel, a large number of non-tariff barriers accumulated over years have been removed, in full coordination with the private sector within a genuine partnership framework.
The Minister reaffirmed Egypt’s full commitment to World Trade Organization rules, underscoring the country’s ability to confront global challenges and enhance national competitiveness. Egypt has begun applying technical safeguard measures on certain products in line with international standards and has successfully completed more than 20 safeguard actions in cooperation with relevant authorities—reflecting the state’s commitment to protecting domestic industry while maintaining an open and attractive investment environment.
On the business climate, El-Khatib emphasized that improving the business environment and accelerating digital transformation are core pillars of reform. He explained that investors previously had to deal with around 41 entities to obtain 460 licenses and services, with procedures taking an average of 24 months. The government now aims to reduce this to less than 90 days through process reengineering and the launch of a unified digital platform, which includes an investment map identifying available land, targeted activities, and pre-approved permits—enabling immediate project implementation.
He added that Egypt’s strategic location linking regional and global markets positions it as a pivotal investment hub in energy, infrastructure, data centers, and advanced industries. Developing these sectors enhances competitiveness, supports foreign investment inflows, and drives sustainable and balanced industrial growth over the medium term.
The Minister stated that Egypt is targeting sustainable economic growth of 6%–7% annually, driven primarily by higher investment levels—especially foreign direct investment. He noted that investment volume, rather than traditional indicators alone, will be the key growth driver in the coming phase. Current FDI averages about USD 12 billion annually, with strong potential to double this figure through ongoing reforms.
El-Khatib highlighted tourism as a major growth engine, noting that the investment map under preparation covers the North Coast, the Red Sea, and other areas, with precise identification of investment needs—whether hotels or premium tourism projects—to increase capacity and maximize returns from tourism assets.
He further explained that state asset management is a central pillar of economic reform, emphasizing that the Sovereign Fund aims to maximize returns on assets rather than merely retain them.
The Minister outlined Egypt’s strategic vision across five core pillars: energy—with a focus on renewables and data centers; semiconductors to support advanced technologies; infrastructure to attract investors and ensure efficient project operations; operational models for effective project management; and finally applications and artificial intelligence to develop data ecosystems and modern technologies, ensuring full integration across all pillars.
El-Khatib affirmed that all these reforms are designed to empower the private sector, create a competitive investment environment, and transform Egypt into a regional hub for investment and services—leveraging its strategic location and capabilities in energy, infrastructure, and technology—to drive a tangible increase in foreign investment inflows over the coming years.
For his part, Mr. Matt Robinson expressed appreciation for Egypt’s ongoing economic reforms, highlighting the importance of strengthening transparency, governance, and the business environment to attract foreign investment and reinforce confidence in local markets.
Meanwhile, Mr. Alexander Bergesi commended the progress achieved in subsidy reform, energy pricing, and the digitalization of licensing procedures, stressing that these steps support economic and financial sustainability and reflect the state’s commitment to achieving balanced and sustainable growth over the medium term.
