Egyptian President Abdel-Fattah El-Sisi (c) heading the meeting with Prime Minister Mostafa Madbouly (L), Finance Minister Ahmed Kouchouk (front R) and Presidential Spokesman Mohamed El-Shennawy (Back R) during their meeting in New Alamein City, Egypt. Photo courtesy of Egyptian Presidential Spokesman.
El-Sisi also directed the government to launch a third tax-facilitation package as part of efforts to simplify procedures, ease financial burdens and strengthen investor confidence.
The decisions were made during a meeting in New Alamein City with Prime Minister Mostafa Madbouly and Finance Minister Ahmed Kouchouk to review Egypt’s fiscal performance, public debt and measures to hedge against fluctuations in global oil prices.
El-Shennawy said the proposed tax sukuk would offer an “attractive and appropriate” return. The scheme is intended to reduce the government’s financing requirements and, consequently, its debt-servicing costs.
Growth and public debt
Kouchouk said Egypt’s real GDP grew by 5.2 percent during the first nine months of FY2025/2026, amid improvements in most economic and fiscal indicators over the past year.
These improvements included reducing the external debt of budget-sector entities, broadening the tax base through simplified and automated procedures, and increasing non-tax revenues.
The minister also reported a marked improvement in the performance of Egypt’s financial markets and the Egyptian Exchange, alongside lower sovereign default-insurance costs and declining yields on Egyptian government bonds.
The government has reduced budget-sector debt as a share of GDP by approximately 13.2 percentage points over the past two years, according to El-Shennawy.
It aims to achieve further reductions to create greater fiscal space for supporting citizens and investors.
The meeting also reviewed the latest developments in Egypt’s hedging strategy against global oil-price fluctuations for FY2025/2026 and FY2026/2027, as well as the final fiscal performance for FY2025/2026.
Tax facilitation
Kouchouk announced that legislation governing the second tax-facilitation package had entered into force following presidential ratification.
He said the package reflected the state’s approach to supporting growth, streamlining procedures and reducing burdens, thereby strengthening the Egyptian economy’s competitiveness and creating a more attractive investment environment.
The business community had responded with “considerable confidence” to the government’s tax-facilitation initiative, contributing to a substantial increase in tax revenues during the past fiscal year, Kouchouk added.
El-Sisi stressed the importance of continuing to modernize the tax system, improve tax services, provide further facilitation and build trust with investors. He directed the government to launch a third tax-facilitation package.
Kouchouk also reviewed the implementation of the real estate tax facilitation package, including the introduction of a mobile application and measures to simplify its use.
A similar application and digital system for the real estate disposal tax will be launched within the coming days, he said.
Green-industry financing
Kouchouk also presented initiatives to support the industrial sector’s transition to solar energy and finance projects that recycle solid waste into alternative fuel.
The proposed initiatives aim to reduce implementation costs and encourage investment in renewable energy and waste-management projects.
Egypt has been implementing a phased tax-reform programme since 2024, centred on resolving legacy disputes, simplifying and digitizing procedures, broadening the tax base and encouraging voluntary compliance rather than raising tax rates.
The second package expanded this approach through faster VAT refunds, preferential services for compliant taxpayers and investment incentives.
The proposed third package is expected to deepen these reforms, while the newly proposed tax sukuk would differ from conventional sovereign sukuk by allowing taxpayers to finance the state in return for yields and credits against future tax liabilities.
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