Egypt is steadily progressing toward full liberalization of energy prices in line with global market rates, according to Dr. Mohy Abdel Salam, an economic expert, who cited the country’s commitments to the International Monetary Fund. He explained that biannual review committees are expected to recommend gradual fuel price increases of 12% to 20% in the upcoming October adjustment, with full alignment to international prices anticipated within six to seven months. These measures, though necessary, coincide with government efforts to strengthen domestic production, promote local industries, and identify non-dollar alternatives to narrow the financing gap and meet import obligations for strategic commodities such as wheat, sugar, oil, and beans. Despite regional geopolitical tensions, including the ongoing conflict in Gaza, foreign investments continue to flow into Egypt, driven by tax incentives, logistical zones, and new industrial hubs—particularly around the Suez Canal and Aqaba Gulf. Strong expectations exist for major labor- and capital-intensive projects, including shipbuilding. The government aims to increase annual exports from the current $100–120 billion range to between $100 billion and $120 billion over the next three years, while cutting imports from $130 billion to under $70 billion, thereby improving the trade balance and key economic indicators. Inflation has begun to ease, declining from peak levels to an average of 20%, with projections suggesting a drop to 14–15% by 2026. Economic growth reached approximately 3.5% in 2024, with forecasts pointing to 5% by the end of 2025. Unemployment is also expected to decline to around 6%. These positive trends are attributed to bold reform measures, Egypt’s expanding international alliances—including its BRICS membership—and balanced partnerships across East and West, alongside internal stability and strong national security, all of which have bolstered investor confidence. Abdel Salam affirmed that Egypt is poised to reap the benefits of these reforms, with a clear five-year strategy in place to ensure gradual and sustainable economic improvement.
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Economic expert: Egypt is approaching full liberalization of energy prices.. and plans to reduce the bill
Dr. Mohy Abdel Salam, economic expert, said Egypt is moving clearly toward liberalizing energy prices in line with global prices, as part of its commitments to the International Monetary Fund.
He pointed out that the periodic review committees, which meet every six months, will push for gradual increases in fuel prices by 12 to 20 percent in the next review scheduled for October, with global prices expected within six to seven months.
Encouraging national industries
Abdel Salam explained in exclusive statements to “News Room,” that these increases are inevitable but coincide with government efforts to boost local production, encourage national industries, and seek dollar alternatives to reduce the funding gap and settle obligations for importing strategic goods such as wheat, sugar, oil, and beans.
The economic expert pointed out that the tense geopolitical situation in the region, especially with the continuation of the war in Gaza, has not prevented the flow of foreign investments into the Egyptian market, thanks to investment and tax incentives and the establishment of new logistical and industrial zones, most notably in the Suez Canal area and Aqaba Gulf, with strong expectations for the entry of labor- and capital-intensive investments in major industries including shipbuilding.
Abdel Salam confirmed that the state’s goal is to raise the value of exports to between $100 billion and $120 billion over the next three years, compared to reducing imports from the current $130 billion to less than $70 billion, thus enhancing the trade balance and achieving noticeable improvement in economic indicators.
Declining inflation rates
He noted that inflation rates have begun to gradually decline, dropping from high levels to an average of 20%, with expectations of reaching 14–15% by 2026, while the economic growth rate rose to about 3.5% in 2024, with expectations of reaching 5% by the end of 2025, while unemployment rates are heading toward decline to around 6%.
He added that these positive indicators came as a result of bold reform measures and Egypt’s international and regional alliances, whether through joining the BRICS group or through diversifying its partnerships between East and West, in addition to internal stability and strong national security that enhanced the confidence of foreign investors.
He emphasized that the Egyptian economy is about to reap the fruits of these reform policies, and that the state, despite challenges and external pressures, has a clear five-year plan ensuring gradual and sustainable improvement.