Egypt has approved a package of 78 billion Egyptian pounds ($1.5 billion) to support industries and tourism in its 2025-2026 budget which projects 18 percent rise in spending.

The funds cover mainly productive and export-oriented industrial projects and those which aim to attract more tourists to the most populous Arab nation.

“The 2025-2026 budget supports the government’s efforts to make the economy more competitive by expanding industries and domestic output, spurring investment and enabling the private sector so it will play a greater role in economic activity and become the wheel of growth and development,” Finance Minister Ahmed Kouchouk said.

He said the package set for this purpose includes around EGP 8.3 billion ($162 million) for the development of the tourism sector, EGP 5 billion ($97 million) for “priority” industries and EGP 3 billion ($58 million) for a project to convert taxis and other vehicles to operate on natural gas.

The package also includes up to EGP 5 billion ($97 million) for incentives to small and medium enterprises, the Minister said, quoted by Alahram and other local dailies.

Egypt’s cabinet last week approved an EGP 4.6 trillion ($90 billion) draft state budget for the 2025/26 financial year that will begin in July.

Expenditures will rise by 18 percent and revenue by 19 percent over the current 2024/25 budget. Revenue is expected at around EGP3.1 trillion ($60 billion).

Egypt said last year it would slash public investment to encourage the local private sector to embark on more projects as part of IMF-recommended reforms.

The initiative includes a ceiling on public investments of EGP 1 trillion ($19.5 billion) during fiscal year 2024-2025.

In the first quarter of the current fiscal year, private capital accounted for nearly 64 percent of the total investments, Planning, Economic Development and International Cooperation Minister Rania Al-Mashat said.

“This demonstrates the growing role the private sector plays in the economy...it also shows that the restrictions on public investments has given a bigger space to the private sector to shoulder its responsibilities in domestic development,” she said.

(1 US Dollar = 51.39 Egyptian pounds)

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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