Madbouly said a new committee will be formed to assess the performance of state-owned and government-backed companies, and determine which require financial or managerial support through the Sovereign Fund of Egypt (TSFE).
The committee will include the Ministries of Planning, Economic Development and International Cooperation, Finance, and Investment and Foreign Trade.
IMF reviews and economic indicators
The PM noted that Egypt’s economic indicators have outperformed expectations ahead of the arrival of the International Monetary Fund (IMF) mission. The mission is expected to conduct the fifth and sixth reviews of Egypt’s Extended Fund Facility programme.
“There is optimism that things will proceed in a good direction in light of the positive indicators of the Egyptian economy,” Madbouly said, according to a cabinet statement.
The IMF mission arrived in Cairo on Monday to discuss two reviews under the current EFF and the first review of the Resilience and Sustainability Facility (RSF) loan deal.
Madbouly reiterated that the government aims to bring inflation down to 8–8.5 percent by the second half of 2026. “We want to make sure that any price increases will occur in the second half of the year,” Madbouly added.
He stated that the government is focusing on reducing external debt, which has risen partly due to borrowing in currencies other than the US dollar and euro.
Egypt’s external debt stood at $168.06 billion in 2023, up from $163.09 billion in 2022, according to the World Bank’s newly released International Debt Report.
Updating the State Ownership Policy
Moreover, Madbouly said the 2022 State Ownership Policy Document will be updated for the first time. The review will assess which sectors expanded beyond expectations and which underperformed over the past three years.
According to Madbouly, the goal is to create more space for the private sector in specific industries while identifying areas that should remain under state control.
During the cabinet's weekly meeting, Madbouly stated that the Ministry of Petroleum and Mineral Resources has offered new incentives to attract local and global investment in mining, particularly in gold and rare earth minerals. He added that the ministry is developing a geological survey map of Egypt’s richest mineral areas.
Review of Nile Corniche land portfolio
Madbouly said the government will assess all used and unused state-owned lands along the Nile Corniche to determine their appropriate value and potential uses, including through partnerships with the private sector.
“It’s not about a sale. We want to see how the state can benefit from these lands, whether through upgrading them or establishing joint ventures,” he said. Projects built on these lands would generate tax revenues and create jobs, he noted.
Furthermore, the PM also revealed that over 10,000 new hotel rooms will be built close to the Pyramids and the Grand Egyptian Museum (GEM) in cooperation with the private sector.
He added that the government has received requests from investors to convert residential properties into three- and four-star hotels in Cairo, Giza, Luxor, and Aswan.
Second package of tax incentives
During the press briefing, Minister of Finance Ahmed Kouchouk announced a second round of tax incentives aimed at expanding the tax base, improving cooperation with taxpayers, and encouraging local and foreign investment.
According to Kouchouk, VAT refunds increased by 151 percent, reaching EGP 7.2 billion in FY 2024/2025. The government, he added, aims to increase refunds to boost liquidity for businesses.
Moreover, Kouchouk stated that the Ministry of Finance is coordinating with the MSME Development Agency to provide incentives to the first 100,000 taxpayers joining the simplified tax system.
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