Arab Republic of Egypt Ministry of Investment and Foreign Trade General Organization for Export and Import Control

Minister of Investment and Foreign Trade, Engineer Hassan Al-Khatib, affirmed that the Egyptian state has sought during recent months to develop clear, transparent, and long-term policies to facilitate and encourage investment in such way that supports the Egyptian economy, leading to a positive impact in just a short term.

Al-Khatib said, in an interview with the journalist Sherif Amer on the TV Show “Happening in Egypt” on “MBC Egypt” channel on Thursday evening, that the decisions taken by the Egyptian state regarding monetary, financial and trade policies, as well as the measures taken regarding reducing inflation, stimulating investment, improving the level of competitiveness and production and strengthening the infrastructure, aimed to consolidate confidence between the Egypt and the investor, either local or foreign, and to provide a better climate for investment and trade in Egypt.

He added that the world and the major economic changes it is witnessing give the Egyptian state a historic opportunity to have a role in the new economic system that befits Egypt’s potential and its strategic position in relation to regional and global economic activity, which is what the Egyptian state is working to implement by attracting production chains, localizing industries and creating a sustainable economy with growth rates that the Egyptian citizen can feel the fruits of.

Al-Khatib explained that the economic decisions and measures taken by the Egyptian government succeeded in reducing the inflation rate from about 40% to 12% this year, and this rate is targeted to be reduced between 7% and 9% next year. He added that the net value of foreign assets has turned from negative figures to about $15 billion this year, in addition to increasing the volume of foreign currency to about fifty billion dollars, and increasing the value of remittances from Egyptians abroad to $37 billion.

Al-Khatib indicated that the measures taken by te Ministry of Investment and Foreign Trade regarding alleviating obstacles before the investors, as the Ministry reduced customs release time in cooperation with all concerned parties, and work was intensified throughout the week and working hours increased daily to nine hours, which led to a decrease in the time of customs release from 16 days at the beginning of this year to 5.8 days now, and this period is in scheduled to be reduced this period to two days before the end of the year.

He referred that the Ministry of Investment and Foreign Trade is currently working on the Business Readiness Report based on three main axes: improving service time, digitizing services and procedures, and structural and legislative reform. He explained that the Ministry, in cooperation with the Economic Ministerial Group, launched a digital platform that connects all relevant parties and provides about 460 services and procedures to facilitate the work of companies and investors, in addition to working on launching a larger platform for economic entities that brings together all procedures of establishment and licensing for companies and services for investors, so that time and procedures for various economic activities are shortened.

In this context, Al-Khatib pointed out that these measures have improved some indicators related to investment and foreign trade, explaining that foreign investment will increase during this year by a percentage ranging from 20% to 25%, and that the trade deficit this year will reach $30 billion, which is the lowest level since 2010.

Al-Khatib stated that these steps have had a positive impact on the private sector, which has significantly increased its contribution to the economic activity. Moreover, the Egyptian government believes in the importance of strengthening public-private partnerships, explaining that the private sector plays a fundamental role in the success of economic policies. Al-Khatib stressed that Egypt has a significant potential and a historic opportunity for economic growth, adding that the Egyptian state is working to maximize the returns from state-owned enterprises by establishing a unit for the state-owned entities, which primary role is to review the status of these companies, explore ways to develop them, and prepare them to be included in the sovereign wealth fund, which is tasked with maximizing the role of these companies and positively impacting the Egyptian economy.

He stated that Ministry of Investment and Foreign Trade aims to attract major brands in the fields where manufacturing can be localized in Egypt, such as electric vehicles and renewable energy, within the framework of clear and comprehensive policies aimed at stimulating production and trade, localizing industries, and sustaining the economy.

The Minister of Investment and Foreign Trade affirmed that Egypt has a historic opportunity to achieve a comprehensive economic transformation that will redraw the map of growth and development, noting that the current stage represents a new starting point after the implementation of a package of reform policies that have begun to bear fruit in macroeconomic indicators.

The minister explained that his ambition for the country is great, and that what has been achieved during a short period of financial, trade and monetary reforms confirms that Egypt is moving in the right direction, noting that the current results are promising, and that the biggest challenge is to accomplish the largest economic reform process in the shortest possible time, while maintaining a balance of public policies and supporting the private sector as the main driver of growth.

Al-Khatib indicated that foreign direct investments have increased by 20% recently, which reflects a positive response from local and foreign investors to the new government policies, explaining that the economic agenda is expanding day by day to include more in-depth and comprehensive files in the fields of investment, trade, manufacturing and export.

The minister confirmed that reducing the average customs clearance time to 5.8 days instead of 16 days is one of the most important steps taken to facilitate the business environment. He noted that the target is to reach just two days by the end of this year, with future plans including reducing this to a few hours next year. This will contribute to lowering import costs, which were previously around $150 million per day, and will generate savings for the national economy estimated at approximately $1.5 billion.

Regarding the file of state-owned companies, Al-Khatib explained that Egypt has approximately 500 companies wholly or partially owned by the state, noting that the goal is to maximize the return on these assets through modern management that achieves operational efficiency and expands ownership through private sector participation, listing on the stock exchange, or regional expansion into foreign markets.

The minister affirmed the state's commitment to the State Ownership Policy document announced in 2022, noting that a new unit for managing state-owned entities was established, with its law approved by Parliament last summer, and will commence operations this November. This unit will study the status of companies and assess their readiness for transfer to the Egyptian Sovereign Fund, or for merging some of them to maximize efficiency and achieve optimal use of public assets.

Al-Khatib pointed out that the role of the sovereign wealth fund is to maximize the return on state-owned assets and manage them according to private sector standards, by converting companies from Law 203 to Law 159, which gives them greater flexibility in management and attracts technical expertise and talent. He stressed that the goal is to expand the ownership base without compromising the rights of workers, but rather by increasing productivity, expanding the size of companies, and attracting new capital.

The minister added that the state’s economic plan aims to increase Egyptian exports to more than $145 billion by 2030, noting that the previous experience in 2004, when exports rose from $7 billion to $20 billion in just four years, confirms the ability of the Egyptian economy to achieve high growth rates under the current reforms.

He explained that increasing exports depends on expanding the production capacity of existing factories and operating the closed factories, noting that the export councils confirmed that the current capacity is capable of increasing exports by 35%, and that the government is working to create a financial and industrial environment that allows companies to expand despite the high interest rates, through financing and incentive initiatives for the industrial sector.

The minister affirmed that the government is closely monitoring the ongoing developments in the Suez Canal Economic Zone and the industrial zones in various governorates, noting that there is significant activity in establishing new projects and localizing strategic industries, which will contribute to achieving a leap in exports and attracting quality investments in the coming years.

Al-Khatib noted that Egypt already has global brands in multiple areas of the automotive industry, such as General Motors and Nissan, pointing out that the ministry aims during the next phase to attract more global companies in the electric vehicle and renewable energy sectors, and to localize their industries within Egypt to be a regional center for manufacturing and exporting to African and Arab markets.

The minister pointed out that renewable energy represents the growth future in Egypt, explaining that estimates from international companies indicate that the Western Desert region alone can generate between 700 and 1000 gigawatts of solar energy, and that Egypt has already begun to localize the solar panel industry through 3 to 4 major companies operating in the Suez Canal Economic Zone, taking advantage of the availability of local raw materials and production components.

The minister pointed out that Egypt has strategic industrial components such as quicklime, which allows localization of industries and meeting local and regional production needs, noting that the majority of production is currently located in Africa. This advantage enables international companies to establish their factories and operational centers in Egypt, supporting the state's plan to reduce imports and increase the local component in Egyptian industry.

Engineer Hassan Al-Khatib concluded his statements by emphasizing that Egypt has emerged from the stage of major challenges and is now entering the stage of economic construction based on investment, production and export, noting that the state is moving with confident steps towards achieving Egypt’s Vision 2030, and that what has been accomplished in just a year and a half confirms that the reform is not only a slogan but a reality supported by figures, policies and political will.