Egypt's Minister of Finance, Ahmed Kujuk, recently engaged in an open dialogue with the American Chamber of Commerce in Cairo, expressing his appreciation for the trust placed in him by the local and foreign private sector. He noted that the private sector has regained its momentum, accounting for 63% of total investments during the previous year. This development underscores the sector's crucial role in driving Egypt's economic growth.
According to Minister Kujuk, private investments have emerged as the largest contributor to growth, registering a 32% increase in the past fiscal year. This follows a remarkable 77% surge in the preceding year. He emphasized that the private sector is well-positioned to help create a more productive, competitive, and sustainable national economy. The minister's statements reflect the government's efforts to foster a favorable business environment.
Minister Kujuk also highlighted the robust performance of foreign direct investment in Egypt, expecting even better results in the coming years, particularly with new projects in the energy and manufacturing sectors. He expressed optimism about the country's economic prospects, citing a significant improvement in the growth rate, driven by the strong performance of productive sectors during the previous year.
The minister noted that international markets are responding positively to Egypt's economic developments, with a notable decrease in yields on Egyptian international bonds. He attributed this improvement to the government's recent tax reforms, which have helped enhance the country's investment climate. The minister expressed his satisfaction with the Egyptian stock market's performance, which has coincided with these tax reforms.
Minister Kujuk emphasized the government's strong support for service activities, which are expected to drive rapid growth and create high-quality job opportunities. He cited the significant increase in tax revenues during the previous year, achieved without imposing additional tax burdens or introducing new taxes. This outcome reflects the government's strategy to broaden the tax base.
The minister outlined the government's approach to providing tax incentives, simplifying procedures, and improving services to encourage voluntary compliance. He confirmed that the government will continue to pursue this path, aiming to reduce the tax burden and facilitate the process for taxpayers. This approach is designed to benefit all stakeholders and promote economic growth.
In conclusion, Minister Kujuk's statements underscore the Egyptian government's commitment to fostering a favorable business environment and promoting economic growth. The private sector's significant contribution to growth, coupled with the government's efforts to simplify tax procedures and improve services, is expected to drive Egypt's economic development in the coming years.
Key points
- The Egyptian private sector accounted for 63% of total investments during the previous year.
- Private investments registered a 32% increase in the past fiscal year.
- The government aims to attract large companies to list on the Egyptian stock exchange.
