Egypt’s Private Sector Accounts for 65% of Total Investment

Private-sector investment accounts for 65% of Egypt’s total investment, Finance Minister Ahmed Kouchouk said. He attributed that share to the private sector’s strong and swift response to Egypt’s economic and financial reforms.

Egypt’s Finance Ministry has made stimulating investment across sectors a top priority. Kouchouk described the policy as a genuine partnership with the business community, with private capital already accounting for most total investment.

What is the ministry’s investment agenda?

A ministry press release quoted Kouchouk: “We are serious about adopting any initiative aimed at enhancing the competitiveness of the Egyptian economy and driving economic growth.” He made the statement during a meeting with Ayman Soliman, chairman of the Egyptian Private Equity and Venture Capital Association, and other association members.

At that meeting, Kouchouk and Soliman discussed tax facilitation, fiscal policy and tools for drawing long-term capital into Egyptian markets. The Egyptian Exchange and Kouchouk’s proposed real estate tax application both featured in the agenda.

The ministry is pursuing what Kouchouk called a balanced and flexible policy. He said the approach promotes fiscal discipline and stability while encouraging economic activity through attractive incentives.

How does fiscal discipline support the push?

“Maintaining fiscal surpluses helps put debt and the budget deficit on a downward path, giving us greater room for social spending,” Kouchouk said. His policy makes surplus management part of the investment framework, with fiscal discipline supporting stability.

Kouchouk said the ministry’s tax-facilitation measures succeeded because they emerged from the tax community itself. He said the ministry would continue efforts to simplify procedures and provide support.

A broader tax base should generate sustainable revenues that serve both investors and citizens, Kouchouk said. His revenue strategy therefore combines wider participation with administrative simplification, rather than higher tax rates.

Kouchouk said tax revenues recorded exceptionally high growth rates over the past two years. The tax base expanded alongside those collections, without any change in tax rates, he said.

What is the proposed real estate tax app meant to do?

Kouchouk described a proposed real estate tax mobile application as an initiative aimed at simplifying and improving services provided to citizens. The app would give citizens mobile access to real estate tax services, he said.

Kouchouk presented the application as a service-delivery initiative under the ministry’s tax-facilitation program. He identified simpler procedures and better services for citizens as its stated objectives.

Why is EPEA backing the push?

Soliman praised Kouchouk’s efforts to create an encouraging business environment. He said the ministry’s approach can foster confidence and a partnership with investors.

Soliman urged more encouragement for real estate investment trusts, or REITs. He said expanding those trusts would strengthen the Egyptian Exchange’s position.

Soliman’s case linked two outcomes: a stronger Egyptian Exchange and more long-term institutional and international capital. He presented both as reasons to encourage REITs.

What comes next?

Kouchouk said the ministry would continue simplifying tax procedures and providing support. He also maintained that it would back initiatives aimed at improving competitiveness and driving economic growth.

For investors, the forward-looking elements are the proposed real estate tax app, continued tax-procedure reform and wider use of REITs. Soliman said the latter could draw more long-term institutional and international capital while strengthening the Egyptian Exchange.

Egypt’s Finance Ministry has tied its investment push to private-sector participation, fiscal stability and tax-system modernization. The next phase will test whether those tools can build on the 65% private-sector investment share Kouchouk cited.