The meeting covered multiple sectors, including exports, tourism, industry, and agriculture, while addressing the Egyptian economy's challenges and proposing potential solutions.
Debt concerns
Hassan Heikal, a prominent businessman, raised concerns about Egypt's mounting domestic public debt, which currently stands at around EGP 10 trillion, with an interest rate of 30 percent. Heikal pointed out that the interest payments alone amount to EGP 3 trillion, significantly burdening the state.
He also highlighted Egypt's foreign debt, totalling $140 billion and with an interest rate of six percent, which results in annual interest payments of about $15 billion.
He estimated the total foreign debt, including liabilities from other entities, could be closer to $200–250 billion.
While acknowledging the normalcy of foreign debt in managing dollar resources, Heikal underscored the need for a unified budget to tackle this issue.
In response, Madbouly clarified that the total state debt was $168 billion, reduced to $152 billion by the end of November.
He also noted that 2024 is expected to be the heaviest year for debt repayment.
Madbouly further revealed on Wednesday that Egypt repaid approximately $7 billion of its due debts in November and December, bringing the total amount repaid in 2024 to $38.7 billion.
Heikal proposed creating a new fund to eliminate the country's debt by selling state-owned companies and lands. The Central Bank of Egypt (CBE) holds 60-70 percent of the fund, and private companies own the rest. However, Madbouly responded that the CBE had acknowledged it would not be able to manage such an initiative.
Dollar crisis & investment challenges
Businessman Hisham Talaat Moustafa, CEO of Talaat Moustafa Group, stressed the urgency of resolving the dollar deficit, a critical issue for Egypt’s economic growth. He called for a shift in the government’s approach to the dollar crisis. He suggested learning from successful figures in sectors like construction and manufacturing to address the country's economic challenges.
Mohamed El-Etreby, CEO of the National Bank of Egypt, highlighted the departure of 2,360 companies from Egypt to the UAE in the first half of 2024 due to the ease of doing business there. He underscored that foreign investors would not be attracted unless local investors could overcome their challenges. El-Etreby also urged closer cooperation between the public and private sectors to support the private sector and boost Egypt's competitiveness, mainly through programmes like the export rebate initiative.
Tourism & aviation
Bassel Sami Saad, Executive Chairman of Al Dau Development, stressed the critical role of tourism in Egypt's foreign currency generation. He proposed involving the private sector in managing Egypt’s aviation sector, allowing the government to focus on its regulatory role. Madbouly acknowledged the importance of tourism, stating that it is one of the fastest sectors in which hard currency is generated.
He announced two new projects to increase the number of hotel rooms in Egypt, particularly around the Giza Plateau and the Grand Museum and the Old Downtown. Madbouly expressed optimism that the country would receive 15.5 million tourists this year, with a target of 18 million in 2025. This growth is expected to boost tourism revenues beyond the usual range by $20 to $22 billion.
Construction & real estate sector
Businessman Ahmed Ezz raised concerns about the slow growth of Egypt’s construction and real estate sectors, which are expected to grow by only three percent next year. Ezz noted that these sectors had traditionally grown faster than GDP and pointed out a steel and cement consumption decline. He called for a reassessment of policies to boost growth, particularly in industries reliant on building materials, as 70 percent of Egypt’s population faces restrictions on construction.
Airport privatization
PM Madbouly outlined plans for privatizing the management and operation of several Egyptian airports. The cabinet had approved a contract with the International Finance Corporation to facilitate public-private partnerships for airport management. Madbouly also proposed expanding private sector involvement in establishing airlines, in collaboration with the state, to contribute to expanding Egypt’s aviation fleet.
Empowering private sector
Madbouly reiterated the government’s commitment to empowering the private sector, especially in non-strategic industries, to drive economic growth and innovation.
He emphasized the government's belief in the national private sector’s ability to lead Egypt’s economic expansion and its efforts to attract foreign investment.
Economic growth & interest rates
Despite the challenges faced over the past five years, including the COVID-19 crisis, the Russian-Ukrainian war, and ongoing regional conflicts, Madbouly confirmed that Egypt’s economy is growing positively.
He projected growth rates exceeding four percent and targeted growth between six and seven percent in the coming years.
El-Etriby also expressed confidence in Egypt's economic potential, predicting a three-to-six percent reduction in inflation and interest rates in 2025. Madbouly also stated that interest rates are expected to drop to 12-13 percent by December 2025.
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