The IMF staff is currently in Cairo to conduct the seventh review of Egypt’s Extended Fund Facility (EFF) programme and the second review under the Resilience and Sustainability Facility (RSF).
Upon completion on 15 June, the reviews can potentially unlock around $1.6 billion in new financing for Egypt.
Madbouly confirmed that discussions between the IMF, the Central Bank of Egypt, and the Finance Ministry are going well.
The Fund is reviewing the pace of reforms implemented by Egypt amid regional tensions.
It will assess the impact of the ongoing war in the Middle East on the Egyptian economy and suggest policies needed to advance Egypt’s reform programme.
New incentives in FY26/27
In other related news, the state will offer new tax, customs, and real estate incentives starting the next fiscal year, FY 2026/2027, which starts on 1 July 2026.
The government aims to encourage local and foreign investment to bolster Egypt’s economy in the upcoming period, the PM said.
Tax revenues have increased by 28.7 percent year-on-year in the first nine months of FY 2025/2026, reaching EGP 1.85 trillion and constituting 8.7 percent of the country's GDP.
During the first ten months of the same fiscal year, tax revenues rose 29.3 percent year-on-year to EGP 2.21 trillion, equivalent to 10.4 percent of GDP.
The FY 2026/2027 budget targets a 27.6 percent increase in general revenues, or EGP 4 trillion, and a 5.4 percent GDP growth.
It also targets the expansion of private sector participation.
Similarly, the state continues its efforts to increase spending on health and education. The government will increase funding for the health sector by 30 percent, allocating approximately EGP 47.5 billion to support health insurance. It will also increase funding for education by 20 percent.
The new state budget will allocate EGP 90 billion to programmes that support economic activity, including export, manufacturing, and entrepreneurship-related activities. Approximately EGP 48 billion will go toward export subsidies for goods and services.
Other incentives include encouraging owners to use empty plots of land and closed-off units. Citizens and factories will also be motivated to install solar-cell systems for on-site electricity generation, thus expanding the usage of renewable energy in factories and diversifying electricity sources.
IPO updates
In addition to the 16 state-owned firms listed on the Egyptian Stock Exchange (EGX), four unnamed companies will be listed before the end of June, according to Madbouly. EGX listing procedures are underway for ten more unnamed firms.
Four or five more state-owned firms will also be listed on the bourse before the end of December 2026.
Last month, the Egyptian government announced it was planning to list four companies, Wataniya, Silo Foods, ChillOut, and the National Company for Roads Building and Development, on the EGX or offer them to strategic investors.
These firms are affiliated with the Armed Forces. They are part of the state’s initial public offering (IPO) programme to increase the private sector's role in the national economy and raise $5 billion under the State Ownership Policy Document.
During the cabinet meeting, PM Madbouly announced that the government has approved four oil and gas projects worth $52.97 million, as well as the drilling of six new wells.
The first project will be carried out by Egyptian Natural Gas Holding Company (EGAS) and oil and gas exploration firm Cheiron Egypt Delta Limited in the East Alexandria offshore area.
Another project, led by EGAS and IPR South Disouq Limited ( a subsidiary of US-based IPR Energy Group), includes exploration and development of crude oil and gas in the North Tanta Onshore Area in the Nile Delta.
The third project, carried out by EGAS in collaboration with Perenco North Sinai Petroleum (a subsidiary of Egypt Kuwait Holding (EKH)), will explore oil and gas in the Al-Fayrouz Regional Area in North Sinai.
EGAS and the General Petroleum Company (GPC) will carry out the fourth petroleum exploration project in the Asran Development area in North Amer in the Eastern Desert.
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