H.E. Minister Rania A. Al-Mashat Outlines Key Targets for Egypt’s Manufacturing & Extractive Industries in FY 2025/2026 During House of Representatives Session

EGP 27 billion in public investments for the manufacturing sector and EGP 25.8 billion for the extractive sector in the 2025/2026 plan.

The manufacturing sector contributes 16% to the Gross Domestic Product (GDP), 14% of total employment, and over 85% of Egypt's non-oil exports.

 

During the plenary session of the House of Representatives chaired by Speaker H.E. Dr. Hanafy El-Gebaly, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, presented the main targets of Egypt’s economic and social development plan for FY 2025/2026—marking the first year of the Medium-Term Development Plan (2025/2026–2028/2029). Her address focused on the strategic objectives for both the manufacturing and extractive sectors, including petroleum and natural gas.

H.E. Dr. Al-Mashat emphasized that the industrial sector holds a central position in the government's structural reform agenda, serving as a key driver of economic growth and transformational change within Egypt’s production landscape. The sector benefits from high value-added contributions and strong linkages with other industries, positioning it to contribute no less than 16% to the national GDP.

The manufacturing sector also possesses a high employment absorption capacity, currently providing over 4 million job opportunities across small, medium, and large-scale projects—representing about 14% of the total workforce. In addition, the sector contributes over 85% of Egypt’s total non-oil exports.

H.E. Dr. Al-Mashat noted that this focus on the industrial sector aligns with Egypt Vision 2030, which regards manufacturing as a leading pillar of economic growth. The FY 2025/2026 plan allocates approximately EGP 27 billion in public investments to the sector, with the majority implemented by public sector companies.

She outlined five core pillars of the manufacturing development strategy. The first pillar focuses on deepening domestic production of imported components that can be manufactured locally, thereby creating investment opportunities for national companies and saving foreign exchange. A national inventory of substitution projects is already underway, based on current import lists and domestic manufacturing capabilities.

The second pillar targets the completion and upgrading of infrastructure in industrial zones. This includes finalizing utility works at the Robeiki Leather City, enhancing infrastructure in tourism-driven areas of Upper Egypt—specifically in Sohag and Qena—continuing upgrades in other specialized industrial complexes, completing the establishment of 17 industrial complexes across 15 governorates with over 5,000 ready-to-use units under usufruct, and finalizing two additional high-tech industrial hubs along with the release of new land plots for private investment.

The third pillar involves advancing export-oriented manufacturing to serve promising international markets, with a goal of increasing industrial exports by no less than 15% annually. The fourth pillar emphasizes workforce development and improving product quality. This includes enhancing vocational training efficiency, upgrading technical university education outcomes, and modernizing industrial schools, vocational training centers, and industrial apprenticeship facilities.

The fifth and final pillar prioritizes the growth of environmentally friendly, green industries to ensure sustainable development. These include the green hydrogen sector, manufacturing components for solar power stations—such as panels and cells—constructing wastewater treatment and seawater desalination plants, producing electric vehicles, and manufacturing water- and energy-efficient devices.

Extractive Industries

Turning to extractive industries—namely petroleum and natural gas—H.E. Dr. Al-Mashat highlighted their strategic importance as key drivers of national economic growth and as primary sources for meeting domestic energy demand. Despite global and regional disruptions affecting energy markets, including unstable supply chains and geopolitical tensions, Egypt aims to maintain sectoral growth at a modest 1.8% during the plan year.

The FY 2025/2026 plan allocates around EGP 25.8 billion in public investments to the extractive sector. H.E. Dr. Al-Mashat explained that the strategy seeks to ensure energy security by diversifying import sources, entering forward contracts for price hedging, and expanding refinery and petrochemical capacities.

The plan also aims to sustain confirmed reserves of crude oil and natural gas, build strategic stockpiles for future needs, and expand storage capacities. Additional targets include diversifying the energy mix by increasing the share of renewable energy sources and continuing Egypt’s transformation into a regional hub for trading natural gas—both liquefied and conventional—as well as crude oil.

H.E. Dr. Al-Mashat further noted efforts to attract increased foreign investment in the petroleum and gas sector. These include launching new international bid rounds, developing new oil agreement models and partnerships, and continuing to settle outstanding dues to foreign partners. She also highlighted initiatives to expand private-sector participation in refinery development, upgrade transport infrastructure, adopt multi-modal logistics systems, improve distribution networks, and accelerate the delivery of natural gas to both industrial and residential users. Additionally, development and capacity expansion projects are ongoing at Egypt’s two major liquefaction plants in Idku and Damietta to boost LNG export capabilities.