Egypt Aims for 4.5% GDP Growth in 2025-26 with Massive LE 3.5 Trillion Investment Plan

August 29, 2025
Egypt Aims for 4.5% GDP Growth in 2025-26 with Massive LE 3.5 Trillion Investment Plan
  • The construction industry is set to grow by approximately 4.7% in 2025, supported by increased foreign direct investment (FDI) and government spending on renewable energy and industrial projects.

  • Minister Rania Al-Mashat emphasized efforts to maintain public investment levels, attract FDI, foster regional partnerships, and boost private sector participation in development.

  • Key economic priorities include macroeconomic stability, enhancing business competitiveness, implementing structural reforms, and transitioning towards a green economy.

  • Institutional construction is expected to grow by 4.2% in 2025 and continue at an average of 6.6% annually from 2026 to 2029, supported by investments in education and healthcare.

  • A medium-term framework covering 2025/2026 to 2028/2029 has been introduced to ensure coordinated planning between the Ministry of Planning and the Ministry of Finance.

  • Private investments are projected to constitute about 63% of total investments, reaching nearly LE 1.94 trillion, reflecting government efforts to stimulate private sector growth, with total investments expected to be around LE 3.5 trillion.

  • Egypt has set an ambitious investment target of nearly LE 3.5 trillion for 2025/26, up from LE 2.6 trillion in 2024/2025, with the investment rate expected to rise to 17.1% of GDP.

  • Infrastructure construction is projected to grow by 3.6% in 2025 and at an annual rate of 6.9% from 2026 to 2029, with ongoing investments in roads, railways, ports, and the construction of over 1,100 bridges by 2030.

  • Egypt is projecting a 4.5% real GDP growth for the fiscal year 2025-26, driven by an anticipated 17% increase in investments, with the GDP expected to reach around LE 20.4 trillion, an 18% rise from the previous year.

  • Construction output is forecasted to grow at an average annual rate of 7.4% from 2026 to 2029, supported by investments in housing, renewable energy, and transport infrastructure, including a goal to develop 10GW of renewable energy capacity by 2028.

  • Egypt’s strategic focus remains on infrastructure, private sector development, and economic reforms to sustain growth and attract foreign investment, emphasizing targeted investments across various sectors.

  • The energy and utilities sector is expected to grow by 3.7% in 2025 and 7.8% annually through 2029, driven by investments in renewable energy and water infrastructure.

Summary based on 3 sources


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