H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, in Expanded Dialogues with Regional Media during WEF Davos Forum:

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, in Expanded Dialogues with Regional Media during WEF Davos Forum:

 

Human development and social justice top the second edition of “Egypt’s Narrative for Comprehensive Development”.

 

The executive program of the Narrative includes clear, time-bound targets for ministries and various government entities through 2030.

 

Implementation of a “program and performance” budget and linking development impact to financial performance to ensure spending efficiency.

 

A targeted growth rate of 7.5% by 2030 and increasing the contribution of private sector investments to more than 70% of total investments.

 

Security and stability have been a fundamental pillar of Egypt’s economic growth in recent years despite regional challenges.

 

The government’s continued implementation of fiscal, monetary, and structural reforms has strengthened the economy’s resilience and enabled growth.

 

Achieved growth rates are driven by real, labor-intensive sectors such as industry, tourism, and communications.

 

Governance of public investments contributed to reducing spending and increasing private investments to 65% in the previous period.

 

H.E. President Abdel Fattah El-Sisi assured major global companies that the private sector is the main driver of development in Egypt.

 

Egypt’s Narrative includes details of the state’s efforts to empower the private sector and the issuance of the updated State Ownership Policy Document next March.

 

Offering airports to the private sector reflects the state’s serious orientation toward increasing its contribution to development efforts.

 

The government is working to stimulate real economic sectors that directly affect citizens’ living conditions.

 

$ 9.5 billion in international financing to support the budget during the IMF program period is linked to specific measures within the national structural reform program.

 

Egypt’s agricultural exports are gaining strong ground in global markets, driven by the state’s focus on food security and expansion of cultivated land.

 

International disruptions create challenges for international cooperation but open opportunities for regional integration, partnerships, and various alliances.

 

The global economy proved more resilient and achieved growth despite international tensions thanks to the strength of the private sector and ongoing technological advancement.

 

 

 

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation emphasized that Egypt’s Narrative for Comprehensive Development aims to transition toward an economic model that builds on achievements in infrastructure investment in order to shift more strongly toward higher-productivity sectors with greater access to export markets. This was during expanded dialogues with regional and international media on the sidelines of the World Economic Forum in Davos. She added that during the last quarter of the previous year, societal dialogue, both structural and interactive, was very rich, culminating in the release of the second edition last December.

 

H.E. Dr. Al-Mashat added that the most prominent feature of the second edition of Egypt’s Narrative for Comprehensive Development is its strong focus on human development, in light of the state’s prioritization of this vital sector due to its direct connection to citizens, in addition to international cooperation and partnerships, the green transition, and other priority sectors. This edition also includes an executive program with specific timelines for achieving the Narrative’s targets.

 

H.E. Dr. Al-Mashat stressed that the Narrative’s theme is “Driving Economic Change, Enhancing Quality of Life,” because the ultimate goal of all state policies and measures is the citizen, across health, education, social protection, and enhancing labor market efficiency. All macroeconomic reforms generate fiscal surpluses that are used to increase spending on various human development sectors.

 

H.E. Dr. Al-Mashat continued: “Another very important component is the existence of an executive program for Egypt’s Narrative for Comprehensive Development. For the first time, a program and performance budget will be implemented by linking the government’s development performance to its financial performance, and by committing to vertical targets for each ministry through 2030, as well as horizontal targets that bring together different entities and ministries. To reach 7.5% economic growth by 2030 and raise private sector investments to more than 70%, each ministry has clear objectives and a clear mechanism for monitoring implementation.”

 

Regarding Egypt’s economic growth exceeding 5% in the first quarter of the current fiscal year, H.E. Dr. Al-Mashat mentioned that: “To interpret this figure, we must return to H.E. President Abdel Fattah El-Sisi’s speech at Davos Forum. The President highlighted security and stability in Egypt and efforts to establish peace in the region as a fundamental pillar for growth and prosperity. Another factor is the state’s fiscal, monetary, and structural reforms, which are implemented flexibly and continuously, creating resilience within the Egyptian economy. Therefore, despite the difficult conditions in fiscal year 2024/2025 and the contraction of Suez Canal activities and the extractive sector, achieving 5.3% growth in the first quarter of the current fiscal year was driven by industry, tourism, and communications, real sectors involving manufacturing, employment, and private and foreign investments, and contributing to increased Egyptian exports, both services and goods.”

 

H.E. Dr. Al-Mashat noted: “Economic growth is based on real sector activities despite the decline in the Suez Canal’s contribution and the continued contraction of extractive industries. On the expenditure side, private investments contributed 65% as a result of public investment governance measures implemented by the state to make room for the private sector. We are also seeing improvement in the trade balance.”

 

H.E. Dr. Al-Mashat expected the Egyptian economy to achieve at least 5% growth in the current fiscal year, with the possibility of exceeding this rate, driven by strong interest from international companies entering Egypt’s industrial sector, in addition to the major boom in tourism. The sector is witnessing diversification, especially after the opening of the Grand Egyptian Museum, along with increased private sector participation. H.E. President El-Sisi has also met with major global companies and emphasized that the private sector is the main driver of development in Egypt.

 

H.E. Dr. Al-Mashat noted that Egypt’s Narrative for Comprehensive Development includes a full section on the state’s role in economic activities and efforts to implement the updated State Ownership Policy Document, scheduled for release in March. In this context, the state is working to increase private sector participation in airport management for the first time in the coming period, including Hurghada Airport, one of Egypt’s largest airports. She underscored that the government is working to stimulate real economic sectors to achieve greater momentum, focusing on sectors that directly affect citizens and their living standards. Accordingly, the Narrative prioritizes sectors with high employment multipliers that generate direct jobs and additional indirect employment opportunities.

 

Regarding international praise for the Egyptian economy and the USD 9.5 billion in financing obtained to support the budget, she stated that these funds cover the period from late 2023 through 2026, coinciding with the IMF program, which amounts to approximately USD 8 billion. She explained that the USD 9.5 billion was provided by international institutions and development partners, including the European Union, the World Bank, and others, to support the budget, and that all of this financing is linked to structural reforms stipulated in the National Narrative for Comprehensive Development. In addition, there are guarantee instruments to enable Egypt to issue international bonds at lower cost.

 

H.E. Dr. Al-Mashat added that the government adheres to a ceiling for public investments; therefore, external financing has become prioritized and primarily directed toward strategic needs and commodities, as well as expanding fiscal space for public finances.

 

On the significant development of agricultural exports, H.E. Dr. Al-Mashat reiterated that H.E. President El-Sisi consistently emphasizes the priority of food security and energy security alongside water security. She noted that substantial investments have been made in agriculture and food security through massive projects such as the New Delta and other agricultural lands. As a result, Egypt has witnessed growth in agricultural production, higher productivity, and leadership in numerous global markets. She added that this represents an important entry point for agro-industrial development, that is why Egypt’s Narrative prioritizes sectors such as agriculture, irrigation, tourism, and information and communications technology, and includes future policies to expand cultivated land.

 

Regarding disruptions in international markets and challenges facing global international cooperation, the Minister noted that the World Economic Forum has sounded the alarm about the future of international cooperation. At the same time, these disruptions have prompted countries to seek new alliances, pursue regional integration, and remove obstacles to regional partnerships. Global instability has created space for new forms of cooperation, as seen in statements by the Prime Minister of Canada and in emerging alliances across Europe and Latin America that had been stalled for years. Thus, there are significant opportunities for new types of partnerships with other countries.

 

H.E. Dr. Al-Mashat pointed out that the World Bank and the International Monetary Fund are the two largest international institutions and therefore have an important role in emphasizing the importance of alliances.

H.E. Dr. Al-Mashat explained that global economic growth, which exceeded expectations, is attributable to the resilience shown by the global private sector in confronting challenges and adapting to them. Another key factor is technology, particularly artificial intelligence (AI), which boosted global growth resilience against protectionist measures taken by the United States. As a result, global growth reached 3.3% despite geopolitical and economic tensions overall.

Dr. Rania Al-Mashat's interview with Sky News Arabia during the Davos Forum

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