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El Khatib: Private Sector primary driver of economic growth

Businessmen Team news 21 October 2025 01:10 PM
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El Khatib: Private Sector primary driver of economic growth

Minister of Investment and Foreign Trade, Engineer Hassan El Khatib, on Tuesday outlined the government’s reforms and economic vision, stressing a focus on the private sector and entrepreneurship, during an event hosted by the Entrepreneurs’ Organization (EO Cairo).

El Khatib detailed efforts to strengthen the economy and attract investment, telling business leaders that the state has carried out a massive investment programme over the last decade, including the development of infrastructure, new cities, and renewable energy networks.

He affirmed the government's commitment to sustainable financial management, aiming to lower the country's debt-to-GDP ratio.

The Minister said Egypt is uniquely positioned to become a regional hub for investment, trade, and exports, and highlighted a new economic vision resting on four key pillars: monetary policy, fiscal policy, trade, and the state’s role, intended to balance growth and stability.

He pointed to major reforms aimed at easing the burden on businesses: Tax Reform: Simplifying procedures and fees has led to increased revenues and a reduction in public debt.

Trade Facilitation: The government aims to reduce customs release time by 63 percent and have ports operating seven days a week to reach an average release time of just two days before the end of the year.

Digitalisation: A unified digital platform for business establishment has reduced the required steps to start a commercial activity from 34 to only nine. The ministry has implemented about 60 percent of 300 reform measures to improve the investment climate.

Public Asset Governance: A specialised unit is being established to improve the governance and production efficiency of public companies.

The Minister stressed that effective administrative practices are crucial for attracting Foreign Direct Investment (FDI) in the face of fierce global competition.

El Khatib identified several key growth sectors:

Tourism: The government seeks to reduce the approval cycle for new tourism projects from two years to just one month. The minister noted that popular destinations, particularly the North Coast, have reached their capacity.

Industry: El Khatib called for a long-term plan to provide clarity for investors, stressing that localising industry is a national priority.

Energy: The country aims to become a regional energy export hub. Efforts are underway to expand renewable energy, especially solar power, and produce green hydrogen and ammonia, with plans to secure concessional financing for such projects.

In a Q&A session, El Khatib confirmed that Egypt currently has a surplus in electricity production and is cooperating with major global companies to localise the production stages of solar energy components. He affirmed that the government aims to double industrial capacities in the coming years.

Addressing the technological shift, the minister said Egypt is closely monitoring Artificial Intelligence (AI) developments and preparing specialised cadres to enhance national competitiveness.

He concluded that Egypt has a historic opportunity to strengthen its economic position by completing fiscal and trade reforms, supporting local manufacturing, and attracting investment in renewable energy and AI to cement its status as a leading regional centre for investment and technology.