This comes as part of Egypt's approach to encouraging and empowering the private sector, in line with the country’s ongoing implementation of its State Ownership Policy for assets and commitment to the International Monetary Fund (IMF) under the ongoing $8 billion loan programme.

According to the IDSC, 293 reforms were implemented, touching upon eight key pillars.

Enhancing flexibility of FX rate
 

Egypt implemented eight measures to enhance the flexibility of the foreign exchange (FX) rate, with three percent of the total reform measures accomplished.

The most important of these measures was announced by the Central Bank of Egypt (CBE) in March 2024, with its commitment to continue the transition towards a flexible framework for targeting inflation.

Boosting competition and neutral competitiveness
 

15 measures have been implemented in this framework, representing five percent of the total reform measures implemented.

The most important of these measures is adopting the necessary legislative amendments to cancel preferential treatment for state-owned enterprises and enhance tax neutrality.

Supporting industrial sector
 

78 measures that reflect the government’s interest in supporting local industry have been applied, representing 27 percent of the total reform measures implemented.

The Ministry of Finance made many decisions to support strategic industrial projects, such as creating a “compensation” system to offset investor claims against their tax or other obligations to government entities.

The government has provided investment and tax incentives for many priority sectors, including green hydrogen projects.

Improving business environment
 

 108 procedures have been implemented, representing 37 percent of the total reform procedures implemented.

The golden license is the most important procedure implemented in this field, as the cabinet granted 31 golden licenses to investors until 30 June.

The government provided EGP 120 billion in concessional loans for agriculture and industry and worked with the banking sector to resolve customs release issues for goods worth over $72.4 billion in 2023.

Between May 2022 and June 2024, the Egyptian government successfully signed the largest foreign direct investment deal with the UAE to develop and expand the city of Ras El-Hekma in February 2024, totalling $35 billion.

The project covers 170 million square metres and is expected to attract $150-billion investments and 8 million tourists, with Egypt's share of the profits estimated at around 35 percent.

Reforms related to legal, regulatory, and institutional frameworks
 

The government implemented 63 measures, representing 21 percent of the total reform measures implemented.

In this regard, a more investment-friendly tax system has been established.

Over 461,000 income and value-added tax disputes have been resolved.

 In April 2024, the cabinet approved amendments to the Economic Courts Law to improve economic litigation.

 In January 2024, the cabinet approved new regulations regarding eliminating tax and fee exemptions for state entities in investment and economic activities.

The General Authority for Investment and Free Zones also reduced the required documents by 62 percent for forming executive committees and starting activities.

The General Authority for Suez Canal Economic Zone (SCZONE) has experienced significant activity and momentum to encourage industrial investment.

In June 2024, a framework agreement was signed to establish several industrial investment projects, in addition to five framework agreements in January 2024 for partnerships between SCZONE and various private-sector companies in the industrial sector.

Implementing the State Ownership Policy
 

21 measures have been applied, representing seven percent of the total reform measures implemented.

In May 2024, the cabinet approved a draft law regulating state ownership in companies owned by it or owns a stake in it.

The cabinet also approved a draft law establishing a central unit to inventory, monitor, and regulate state-owned companies.

Raising private sector contribution to the economy
 

The private sector’s contribution to total investment increased to 37 percent during the fiscal year 2023/2024.

This percentage is expected to increase to 48 percent, according to the state’s economic plan for the fiscal year 2024/2025.

These agreements aim to maximize the benefits of state resources and provide encouraging and supportive incentives for investors.

The Egypt-EU Investment Conference led to the signing of 29 agreements and memoranda of understanding worth 49 billion euros with EU-affiliated companies.

Six agreements and memoranda of understanding valued at 18.7 billion euros were signed with other alliances and companies.

Initial Public Offering (IPO) Programme
 

Egypt's Initial Public Offering (IPO) programme has attracted about $5.6 billion from the full or partial divestment of 14 companies until December 2023.