Egypt's Minister of Finance, Ahmed Kujuk, has stated that the private sector has regained its momentum, accounting for 63% of total investments last year. This significant increase reflects the sector's growing role in supporting economic growth. During a recent open dialogue with the American Chamber of Commerce in Cairo, Kujuk highlighted that private investments have become the largest contributor to economic growth.
The Minister of Finance revealed that private investments grew by 32% in the last fiscal year, compared to a 77% growth in the previous year. He emphasized that the private sector has the potential to lead a more productive, competitive, and sustainable economy. Kujuk's statements underscore the government's efforts to promote private sector growth and its role in driving economic development.
Foreign direct investment in Egypt continues to perform well, with expectations of further improvement in the coming years. New projects in the energy and manufacturing sectors are driving this growth. The Minister of Finance attributed the positive outlook to the government's ongoing reforms and efforts to enhance the business environment.
Egypt's macroeconomic indicators continue to improve, with the growth rate accelerating due to the good performance of productive sectors. The Minister of Finance noted that market reactions have improved, and the yields required on international Egyptian bonds have decreased. These developments reflect the government's progress in stabilizing the economy.
The Egyptian stock market has shown significant improvement, particularly following recent tax reforms. The government has approved a package of additional incentives to encourage listing and trading, focusing on attracting large companies to register on the stock exchange and deepen the market. These measures aim to enhance market efficiency and attract more investors.
The government continues to support service activities, which are capable of achieving high growth rates and creating job opportunities quickly. The Minister of Finance reported that tax revenues grew substantially last year without imposing new taxes or additional burdens on taxpayers. This growth reflects the success of efforts to broaden the tax base.
The Ministry of Finance has adopted a policy of tax facilitation, simplifying procedures, and improving services to promote voluntary tax compliance. This approach will continue in the coming period, with a focus on expanding simplification and facilitation measures, reducing burdens, and supporting the business community while achieving the state's interests.
Key points
- The private sector accounted for 63% of Egypt's total investments last year, with a 32% growth rate.
- Foreign direct investment is expected to rise, driven by new projects in the energy and manufacturing sectors.
- Egypt's tax revenues grew significantly without imposing new taxes or additional burdens on taxpayers.
