Egypt today is one of the most promising markets in the Middle East and Africa. With a population exceeding 110 million, a young and increasingly urban workforce, and a location that connects three continents, the country offers scale and reach that few other economies can match. Over the past decade, Egypt has embarked on a far-reaching program of reform, building a foundation of stability while investing in the sectors that will drive its long-term growth.

For international partners — and particularly for Finnish companies seeking new markets and regional gateways — Egypt represents an economy on the move. Its growth is increasingly broad-based, spanning manufacturing, tourism, information and communications technology (ICT), and agribusiness. Together, these industries illustrate how Egypt is repositioning itself as both a domestic powerhouse and a hub for wider regional integration.

Opportunities and Outlook

Egypt's economic outlook is defined by its ambitious long-term strategy, which extends beyond its current reforms. The country is making massive investments in infrastructure (as evident in improvements in Egypt’s rankings in safety of roads), including high-speed electric trains, new ports, and large-scale water desalination projects. This isn't just about building—it's about creating a modern network that will connect industries and boost efficiency. For Finnish companies, this presents opportunities in construction, smart city technology, and water management solutions.

Simultaneously, Egypt is making a firm commitment to the green economy. The country is leveraging its immense solar and wind resources to become a regional leader in renewable energy. With a target of generating 42% of its electricity from clean sources by 2035, Egypt is not just addressing its own energy needs but is also positioning itself as a hub for green hydrogen production and export. This opens doors for investment in renewable energy projects, smart grid technology, and sustainable manufacturing.

Unlocking Investment Potential with the Golden License

To attract investment and spur economic growth, Egypt has made creating a favorable investment climate a top priority during its economic reform period. A strong investment environment is crucial for encouraging both domestic and foreign investors to inject capital, thereby boosting employment, providing job opportunities, and achieving target growth rates. Central to these efforts have been legislative amendments aimed at opening the door for the private sector, both Egyptian and foreign, to contribute significantly to increasing employment and economic growth.

A key component of these legislative reforms is the Golden License, a significant tool designed to streamline the investment process. This license allows investors to acquire and operate land, and even demolish and rebuild structures, without needing a separate permit from the government. It acts as a one-stop-shop for investors, consolidating a range of approvals into a single, comprehensive license. By simplifying bureaucratic hurdles and accelerating the start of new projects, the Golden License directly supports the broader goal of fostering a more attractive and dynamic investment environment in Egypt.

Suez Canal Economic Zone (SCZone)

Recognizing the need to capitalize on its unique geographic advantage and stimulate economic growth, Egypt embarked on a massive project to transform the area surrounding the Suez Canal into a global economic and industrial hub. This initiative, officially established in 2015, is known as the Suez Canal Economic Zone (SCZone), a sprawling development that encompasses 461 square kilometers and includes six key ports and four distinct development areas, notably Ain Sokhna and East Port Said. By leveraging the canal's strategic location—a critical artery connecting Europe and Asia—the SCZone is serving as a magnet for international commerce and investment

This ambitious project is strategically designed to attract foreign investment by cultivating a business-friendly environment and offering a comprehensive suite of incentives. In pursuit of this goal, the SCZone provides benefits such as tax exemptions, reduced customs duties on imported raw materials, and a streamlined "one-stop shop" administrative system to simplify the process for investors. Ultimately, by localizing industries and developing a modern, integrated infrastructure, the SCZone is poised to create a significant number of jobs, diversify Egypt's economic base, and substantially increase its role in global trade. Key sectors currently under development, including through successful partnerships with international partners, range from renewable energy, petrochemicals, textiles, automotive assembly, to logistics, which are all poised to thrive due to the Zone's unparalleled access to major international markets.

Reform as the Cornerstone

Egypt’s economic agenda is underpinned by a decade of reform aimed at fiscal discipline, institutional modernization, and private-sector participation. The results are visible. Real GDP growth accelerated to 4.2 percent in the first nine months of the 2024/25 fiscal year, almost doubling the pace recorded in the previous year.

Inflation fell below 15 percent by June 2025 — its lowest level in more than two years. The state has modernized tax collection through digital platforms, streamlined customs procedures, and rationalized subsidies to create more space for investment. At the same time, the balance between public and private investment has shifted significantly: private capital now accounts for nearly two-thirds of total implemented investment, signaling greater confidence in Egypt’s economic trajectory.

Manufacturing: A Strong Industrial Base

Manufacturing has emerged as a central pillar of Egypt’s diversification strategy. Non-oil manufacturing grew by nearly 16 percent in the third quarter of FY2024/25, supported by improved access to foreign exchange, the clearance of import backlogs, and stronger production dynamics, which catered to resolve challenges that previously faced investors. Non-oil exports rose by one-third in the first nine months of FY2024/25, reaching USD 32 billion. Textiles, chemicals, engineering industries, and food processing are among the sectors leading the way. They are not only supplying domestic demand but also strengthening Egypt’s export profile. This aligns with the government’s long-term goal of turning the country into a competitive production hub for regional and global markets. These sectors, and others, offer promising prospects for Finnish companies that can enrich the Egyptian industrial mix with investments in modern machinery, sustainable technologies, and innovation partnerships.

Tourism: Reclaiming Global Leadership

Tourism has long been one of Egypt’s signature industries, and it is once again at the forefront of economic expansion. In 2024, the country welcomed a record 15.7 million tourists, with revenues in the first half of FY2024/25 rising to USD 8.7 billion, compared to USD 7.8 billion a year earlier. This recovery is the result of deliberate investment and promotion. Infrastructure has been expanded, hotel capacity is increasing, and new financing facilities are supporting private operators. Crucially, Egypt is diversifying its appeal: alongside iconic heritage sites, it is marketing its resorts, desert landscapes, religious sites, and cultural festivals to global audiences. Opportunities for international businesses extend into design, digital platforms, and sustainable construction.

ICT and Digital Transformation

Perhaps the most dynamic story in Egypt’s economy today is the rise of ICT. The sector expanded by almost 15 percent in the third quarter of FY2024/25, cementing Egypt’s position as the third-largest global destination for cross-border outsourcing. The country’s young, well-educated workforce provides a strong base for digital services, while government investments in e-government, fintech, and e-commerce are reshaping markets. For Finnish firms, opportunities exist in cybersecurity, software, cloud services, and digital governance.

Agribusiness and Food Exports

Agriculture remains a vital employer, but it is the expansion of agribusiness and food industries that is redefining Egypt’s role in regional trade. Supported by export subsidies and targeted incentives, these sectors have been able to expand their global footprint. Food processing, agricultural crops, textiles, and chemicals are at the heart of this growth. Finland’s expertise in sustainable agriculture, food processing, and packaging solutions can support Egypt’s ambitions in this space.

***

Egypt has entered a new phase of growth and transformation. Anchored by reform and driven by dynamic sectors such as manufacturing, tourism, ICT, and agribusiness, the country is building a diversified economy capable of generating opportunities on a large scale. For Finnish businesses, Egypt represents not only a large domestic market but also a strategic hub connecting continents. By engaging with its reform story and aligning with its sectoral priorities, Finnish companies can participate in Egypt’s journey of resilience and renewal — a journey that promises long-term rewards for those ready to invest in its future.

Ambassador Mohamed Ghoneim

the Ambassador of the Arab Republic of Egypt to Helsinki

Embassy of Egypt in Helsinki

Tehtaankatu 34 A, 00150 Helsinki

Tel. 09 4777470

The Egyptian Market: Resilience and Rising Opportunities