Full Interview of H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, with Bloomberg International during the 2026 World Economic Forum in Davos

Al-Mashat: President Abdel Fattah El-Sisi’s messages were clear on the need to entrench peace and security in the region, with Egypt’s water security as a top priority

Egypt operates in a highly volatile regional environment, yet the economy has achieved growth and demonstrated resilience due to comprehensive reforms

The reform path continues across all sectors, enhancing credibility with the business community and creating an attractive investment climate

Through Egypt’s Narrative for Comprehensive Development: Reforms for Growth, Jobs & Resilience, we are maximizing returns on infrastructure investment to transition toward high-value production, exports, and investment

Reform is an ongoing process amid accelerating regional and global transformations

Human development—particularly education and health—alongside sustaining growth and job creation, remains a top priority

Economic reforms have created fiscal space to enhance social spending, a trajectory we are committed to maintaining

Public debt management in Egypt is diversified and innovative, including debt-for-development swaps with Germany and Italy, with further programs under preparation with China

Budget support from international partners extends debt maturities, reduces financing costs, and supports diversification of funding sources

Al-Mashat highlights three key messages from Davos discussions: geopolitical risks affect all countries, the global economy has shown resilience despite protectionist policies, and the widening digital divide between countries poses a serious risk

 

Bloomberg International conducted an interview with H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, during the 2026 World Economic Forum in Davos. The discussion addressed Egypt’s participation in the Forum—led by President Abdel Fattah El-Sisi—as well as the outlook of the Egyptian economy and its resilience amid surrounding regional tensions.

 

H.E. Dr. Al-Mashat spoke about President El-Sisi’s address during the Forum’s plenary session and his bilateral meeting with President Donald Trump, noting that the President focused on two main pillars. The first concerned the second phase of the peace process. Egypt previously hosted the Sharm El-Sheikh Peace Conference and has played a pivotal mediation role over the past two years, including efforts related to ceasefires, hostage releases, and the recovery of remains. This phase, she emphasized, is critically important, as the region stands at a decisive crossroads. The discussions between the two leaders reaffirmed the commitment to move forward and underscored the importance of collective action to ensure full implementation of all elements of the plan.

 

The second pillar centered on Egypt’s water security. For more than a decade, Egypt has been engaged in negotiations with Ethiopia regarding water allocations and the implications of the Grand Ethiopian Renaissance Dam on its water security. During President Trump’s first term, negotiations came close to reaching an agreement, making renewed U.S. engagement particularly significant in this sensitive file.

 

Regarding the Peace Council and its role in fostering long-term stability, H.E. Dr. Al-Mashat stressed that current developments reflect growing recognition that peace and security serve the interests of all. Discussions in Davos focus on economic growth and prosperity—objectives that cannot be achieved without a stable and secure regional environment.

 

She highlighted that Egypt operates within a highly volatile regional context, bordering Gaza, Sudan, and Libya. Despite these challenges, the Egyptian economy recorded a 5% growth rate, while tourism revenues reached record highs—demonstrating strong economic resilience achieved through a comprehensive and well-sequenced reform package.

 

She added that Egypt launched macroeconomic reforms—both fiscal and monetary—in March 2024. Since then, reforms have expanded to include industry, the business environment, and the green transition. This integrated reform agenda has enhanced Egypt’s credibility with investors and fostered a more attractive climate for private investment, whether from domestic investors, local companies, or foreign firms. Within the framework of Egypt’s Narrative for Comprehensive Development: Reforms for Growth, Jobs & Resilience, Egypt is now working to maximize the returns on extensive infrastructure investments made over the past decade, paving the way for a second phase of reform focused on higher value-added production, productivity gains, and trade expansion.

 

On future reforms, H.E. Dr. Al-Mashat emphasized that reform is a continuous process. Amid rapid global and regional shifts, countries must remain flexible to strengthen resilience and achieve sustainable growth. Growth and job creation remain core priorities, alongside continued investment in human capital—particularly in health and education. The fiscal space created by reforms, combined with mechanisms to address financing gaps, will be fully directed toward strengthening social spending, a course Egypt is committed to sustaining.

 

Turning to debt-swap initiatives, she explained that Egypt’s public debt management approach is characterized by diversity and innovation. Egypt has secured direct budget support from international financial institutions, extending debt maturities and reducing overall financing costs, thereby enhancing fiscal sustainability. Additionally, Egypt employs two debt-swap models: debt-for-investment and debt-for-development. Over recent years, Egypt concluded debt-swap agreements with Germany and Italy and is currently preparing a new agreement with China. Debt swaps with Germany are linked to green transition objectives, aligning with Egypt’s target to reach 42% renewable energy by 2030. Foreign investment in renewable energy—including wind, solar, hydrogen, and battery storage—is expected to reach approximately USD 6 billion in the coming years.

 

Responding to questions on financing diversification, H.E. Dr. Al-Mashat explained that a cornerstone of macroeconomic stability is establishing a clear ceiling on public investment supported by a robust governance framework to crowd in private sector investment. Egypt’s current borrowing priorities focus on financing strategic commodities and covering budget financing gaps. Budget support therefore remains a key priority in engagements with multilateral development banks and international partners, as it lowers financing costs compared to international capital markets. Egypt also benefits from guarantees provided by international financial institutions for bond issuances, such as previously issued Panda bonds.

 

She underscored the accuracy and credibility of Egypt’s growth data, noting Egypt’s IMF membership, periodic reviews, and adherence to internationally recognized statistical methodologies, including those related to the Sustainable Development Goals. She clarified that discussions around data are not about quality or reliability, but rather the integration of segments of the informal economy into national accounts.

 

She concluded that the size of the informal sector reflects the breadth of the economy rather than deficiencies in data quality. Egypt has enacted a new law for micro, small, and medium-sized enterprises to incentivize informal businesses to formalize through comprehensive regulatory and financial incentives, with tangible results already emerging.

 

In closing, H.E. Dr. Al-Mashat highlighted three central themes from Davos discussions: first, geopolitical risks and pervasive uncertainty affect all countries; second, the global economy has demonstrated greater resilience than expected despite rising protectionism; and third—perhaps the most serious risk—the widening inequality gap driven by artificial intelligence, particularly between countries.

 

She noted extensive discussions on the divide between countries that merely use AI technologies and those that actively develop them through research, development, and programming. This shift could redefine economic convergence globally, underscoring the need for genuine collective action and a strong commitment to inclusivity in addressing AI-related challenges.