Egypt Pursues 5.4% Growth Target Amid 23% Suez Canal Revenue Surge: Minister

October 5, 2026 20:34

CAIRO: Egypt is targeting economic growth of at least 5.4 percent in fiscal year 2026/27, driven by manufacturing, technology, and a recovering Suez Canal, according to the country’s planning minister. “We are focused on sustaining this momentum for the next fiscal year, expecting growth to reach at least 5.4 percent,” Minister of Planning and Economic Development Ahmed Rostom told Arab News. This target sits at the upper end of the government’s official range of 5.2 to 5.4 percent. It follows stronger performance in the previous fiscal year, with GDP expanding 5.1 percent in the 12 months to June 2026, up from 4.4 percent a year earlier. Rostom attributed the growth to a “balanced approach,” with manufacturing leading the real economy and making a remarkable contribution to exports. He emphasized that the sector should remain a priority for future investment, noting that the Ministry of Investment and Foreign Trade is developing new opportunities, particularly in industry. Technology also played a significant role, with the ICT sector “significantly contributing to our growth,” Rostom said, describing it as “another opportunity to tap into for years to come.” The Suez Canal, alongside industrial, trade, and telecommunications sectors, accounted for nearly half of total growth last year. The Suez Canal, a primary source of foreign currency alongside tourism and remittances, is recovering after more than two years of Red Sea disruptions that forced shipping lines to divert vessels around Africa. Rostom noted the canal’s contribution to growth rose 23 percent, with cargo tonnage up 22 percent and vessel numbers up nearly 9.8 percent. Official data shows canal revenues rose 23 percent to $4.67 billion in fiscal year 2025/26, with activity climbing around 34 percent in the final quarter. “The Red Sea is not just critical for Egypt’s growth; it is critical for the global economy,” Rostom said. “The Suez Canal is the vein for trade and logistics for this globe.” However, the recovery remains incomplete, with revenues still roughly half the record $9.4 billion set in 2022/23. Regarding oil price volatility, Rostom said the government is preparing through scenario planning rather than relying on a single forecast. “Maintaining fiscal discipline is critical to building buffers and managing risks associated with oil price volatility,” he said. Other measures include strengthening strategic reserves and diversifying growth across industry and services. Egypt also plans to increase the share of renewable energy to 45 to 48 percent within the next two to three years. Rostom described Egypt as “the largest market in the entire region” and a logistics hub, supported by a decade of major infrastructure investment and a trained workforce. Looking towards 2030, Egypt’s priorities include diversification, deeper integration, and “managing and sharing risks in an uncertain environment.” Key pillars for sustainable growth include a knowledge-based economy, investment in people, ICT and startups, renewable energy, deeper industrialization, fiscal discipline, and exchange rate flexibility. “These are all recipes for weathering shocks, sustained growth, and reaching the growth potential that this region and country deserve,” he concluded.

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