The Ministry of Finance is focusing on increasing foreign direct investment inflows as part of its strategy to support Egypt's economic trajectory aimed at stimulating investment, growth, and employment.

According to State Information Service Egypt, the ministry emphasized the management of public finance with flexibility to boost economic activity and growth while maintaining fiscal discipline and reducing debt. Following Standard and Poor's affirmation of Egypt's credit rating at B/B with a stable outlook, the ministry is working to diversify economic growth and enhance exports.

The ministry highlighted that proactive policies are fortifying the Egyptian economy's resilience against regional crises. The stable outlook reflects a balance between growth prospects and ongoing economic reforms, with key sectors like manufacturing, telecommunications, and tourism driving growth projected to reach 5.1% in fiscal year 2025/2026.

Additionally, the private sector is playing a significant role, accounting for 65% of total investment and showing high growth rates. The Standard and Poor's report anticipates further growth as government incentive measures continue, procedures are simplified, and predictability is enhanced.

The Finance Ministry reported a primary surplus of 4.9% of GDP and a reduction in the overall budget deficit to 5.8% of GDP in the previous fiscal year, despite challenges. Tax facilitation measures have increased tax revenues to 13% of GDP without additional burdens.

The ministry acknowledged the challenges posed by rising debt-servicing costs and financing requirements, but expects improvements as interest rates decline. Exceptional revenues are being used to accelerate the government's debt-reduction plan.

The government aims to reduce public debt to 78% of GDP by June 2027 and decrease external debt by $1-2 billion annually. The ministry also reiterated its commitment to continuing social protection programs targeted at eligible beneficiaries and vulnerable groups.