Overview:
Egypt's economic policy agenda advanced on multiple fronts this week as officials announced a 5.2% real growth rate for the first nine months of fiscal year 2025–2026 and secured presidential approval for new tax measures and development financing initiatives. Prime Minister Mostafa Madbouli convened meetings with Finance Minister Ahmad Kojak to review proposals for stock exchange reform, renewable energy transition in industry, and infrastructure development funded through international partnerships. The government is also studying conversion of the Egyptian Exchange into a shareholding company to strengthen market performance.
Details:
Finance Minister Ahmad Kojak announced that the Egyptian economy achieved 5.2% real growth during the first nine months of the 2025–2026 fiscal year, underpinning state capacity to manage fiscal consolidation. The government successfully reduced budget sector debt by 13.2 percentage points of gross domestic product over the past two years, reflecting improved macroeconomic discipline. President Abdel Fattah Al-Sisi approved issuance of tax-backed securities financed by taxpayers, with amounts deductible from future tax liabilities, designed to reduce debt servicing costs. The Finance Ministry signaled implementation of a second package of tax facilitations following presidential endorsement, and directed launch of a third facilitation package to strengthen investor confidence and advance the tax administration modernization agenda.
Parallel development initiatives include ministerial review of development financing mechanisms supporting diverse projects in partnership with international financial institutions. Proposals under consideration include restructuring the Egyptian Exchange as a shareholding company to enhance market liquidity and private sector participation. Daily trading volumes on the stock exchange currently exceed 15 billion Egyptian pounds. The government is also pursuing industrial sector transition to solar energy and waste recycling initiatives as part of broader sustainability strategy.
Outlook:
Investors are monitoring implementation timelines for the third tax facilitation package and market reaction to proposed exchange structural reforms. Officials are tracking global oil price volatility and currency stability amid broader macroeconomic policy adjustments aimed at sustaining growth momentum beyond the International Monetary Fund program conclusion.