Egypt integrates over 60 structural reforms into Q1 FY 2025/2026 GDP indicators

CAIRO – 27 November 2025: Egypt has incorporated more than 60 structural reforms, implemented since July 2024, into the GDP growth indicators for the first quarter of FY 2025/2026, according to a statement from the Ministry of Planning, Economic Development, and International Cooperation. The ministry said this step marks a significant advancement in enhancing transparency, strengthening governance, and ensuring the long-term sustainability of the country’s economic reform trajectory.

According to the ministry, the government has implemented a broad range of structural reforms over the past year aimed at reinforcing macroeconomic stability and boosting private-sector confidence. Among the most prominent measures is Law No. 159/2023, which eliminates tax exemptions and fee waivers previously granted to state entities engaged in economic and investment activities. This policy shift represents a key move toward establishing a fairer and more competitive environment between public and private sector actors.

The government also activated the Public Finance Law to implement a fixed annual ceiling for general government debt. This applies to all 59 economic authorities and is supported by the establishment of a dedicated debt-management unit within the Ministry of Finance, a measure intended to enhance fiscal discipline and strengthen long-term debt sustainability.

To improve the governance and efficiency of public investment, the Ministry of Planning has issued a comprehensive guidance document to all executive ministries outlining updated criteria for evaluating public investment projects. At the same time, the government expanded the Takaful and Karama cash-transfer program to increase support for vulnerable households amid ongoing reforms.

The ministry noted significant progress in improving competitiveness and the business environment. Reforms have included amendments to the executive regulations of the Investment Law, streamlined procedures for obtaining the Golden License, and strengthened competitive neutrality—reinforced by three policy guidelines issued by the Egyptian Competition Authority.

The government further advanced governance reforms with the issuance of Law No. 170/2025, which regulates key provisions related to state ownership in affiliated companies. As part of this effort, a specialized State-Owned Enterprises Unit has been established under the Cabinet to enhance oversight, transparency, and the efficient management of state-owned firms.

Another milestone was the issuance of the new Labor Law (No. 14 of 2025), designed to address persistent challenges in the labor market, improve worker protections, and promote a more balanced and competitive employment environment.

To support startups and emerging enterprises, the government introduced a simplified tax regime under which companies with annual revenues below EGP 20 million qualify for a range of incentives. These include a streamlined income tax that varies between 0.4 percent and 1.5 percent, depending on annual turnover. Participants in this regime will also be exempt from capital gains tax on the sale of fixed assets, machinery, and production equipment, as well as from taxes on dividend distributions and stamp duties.

The ministry emphasized that integrating these structural reforms into GDP reporting for the first time demonstrates Egypt’s commitment to linking reform measures with measurable economic performance—signalling a shift toward more data-driven policy evaluation and stronger macroeconomic governance.