Farid outlines plan to improve business climate, boost private investment

Updated 3/8/2026 9:59:00 AM

Arab Finance: Minister of Investment and Foreign Trade Mohamed Farid outlined a comprehensive vision for enhancing the business environment in Egypt, according to a statement.

During his speech at the annual Iftar of the American Chamber in Cairo, Farid addressed the state’s economic reform policy and key themes, including digital transformation, sustainability, capital markets, and industrial funds.

The minister highlighted improvement in financial indicators, represented in Egypt's shift from a net foreign asset deficit of $27.2 billion to a surplus of $25.5 billion.

He noted that the primary surplus remains in the positive zone, providing a stable platform for business and investment in a secure environment, alongside a decline in the inflation rate.

As for investment ratios, private investments recently accounted for nearly 53% or 54%, compared to 35% between the period from 2020 to 2024.

Additionally, the minister explained that digital transformation and streamlining procedures will not happen simultaneously across all government entities, with several government bodies involved in the licensing system.

He anticipated that the system would become fully integrated within two to two and a half years, emphasizing that the ministry is currently working to link and coordinate with five entities to ensure that procedures do not pose an obstacle to companies' expansion.

Touching upon entrepreneurship, Farid stressed the need to develop a registry for startups to facilitate their licensing within the framework of the recognized international standards.

One of the main challenges facing entrepreneurs in Egypt is the scarcity of limited partnerships (LPs), which provide long-term financing. However, Egypt ranked second in Africa in attracting startup funding, as per a report by Magnet.

The minister also announced the establishment of a venture capital (VC) fund that will partner with existing long-term funding entities to support startups and help them grow and attract further investment.

Regarding the sustainability file, the minister rolled out plans to shift from voluntary carbon markets (VCM) to mandatory or compliance markets, in coordination with relevant ministries, such as the Ministry of Finance and the Ministry of Environment.

This will contribute to increasing the price of Egyptian carbon certificates, as carbon credit prices in voluntary markets are currently around $5, while prices in mandatory markets range between $15 and $20.

The government also created a registry for renewable energy projects seeking to issue IRX certificates via a dedicated platform to help solar and wind energy companies benefit from these certificates as an additional support factor.

In the same vein, the number of new investors entering Egypt’s capital market previously did not exceed about 20,000 annually, he said. Following the digital reforms, the figure rose to around 300,000 in a single year and reached about 250,000 last year.

Farid expects roughly 280,000 new investors to join the market this year, attributing the growth to the adoption of digital identity and electronic contracting (eKYC).

Regarding trade, the minister emphasized that the situation is more challenging given current global developments. Thus, the ministry is taking significant steps to reinforce communication with global trading partners and exporters.

Farid unveiled plans to set up new investment funds, in cooperation with the Ministry of Finance, to provide the necessary financing for the industrial sector growth. These funds are expected to be announced after Ramadan.