CAIRO, Nov 27 (MENA) – Egypt’s non-oil industrial sector led economic growth in the first quarter of the 2025-26 fiscal year, contributing 1.83 percentage points to overall GDP, the Ministry of Planning, Economic Development and International Cooperation said on Thursday. The sector grew 14.5 percent, while communications and information technology also expanded 14.5 percent and tourism rose 13.8 percent.
Minister of Planning, Economic Development and International Cooperation Rania al-Mashat highlighted the growth during a weekly press briefing with Prime Minister Mostafa Madbouly, citing improvements in domestic and external demand, expanded production capacity and a more supportive industrial business environment, including targeted incentive policies. Key manufacturing industries, including vehicles, ready-made garments, chemicals, beverages, furniture and pharmaceuticals, posted double-digit growth ranging from 17 percent to 50 percent.
Mashat said the non-oil industrial sector’s growth is expected to continue, driven in part by plans to manufacture over 10 million mobile phones in 2025, compared to 3.3 million last year. Export-oriented industries also contributed to growth, with semi-finished goods exports up 8.4 percent in July and 34.1 percent in August and finished goods exports rising 2.8 percent and 2.4 percent over the same months. Specific sectors, including pharmaceuticals, sanitary paper, and ready-made garments, recorded significant export increases, reflecting the ability to convert production expansion into tangible export growth.
According to Mashat, the communications and IT sector’s growth was fueled by Egypt’s national strategy to transform the sector into a technology-driven, export-oriented industry, with digital infrastructure investments and faster internet speeds expanding service coverage. She highlighted that Egypt received a regional leadership award from the Arab Organization for Communications and IT for progress in implementing IPv6.
Tourism, encompassing hotels and restaurants, grew 13.8 percent in Q1 2025-26, supported by improved services, transportation, marketing campaigns and adoption of AI technologies for tourist promotion, the minister said. Egypt maintained its top position as Africa’s leading tourist destination and rose six places globally in tourism performance rankings, she also said. Tourist nights increased to 58.7 million, and visitor numbers rose to 5.1 million, marking growth of 13.8 percent and 19.2 percent respectively compared to the same period last year, she added.
According to her, “other sectors also contributed to GDP growth. Suez Canal activity rebounded for the first time since 2023-24, increasing 8.6 percent as regional stability returned. The electricity sector grew 5.4 percent, reflecting higher consumption across commercial, residential, industrial and other sectors, supported by infrastructure expansion and renewable energy integration. Transport and logistics expanded 3.9 percent, construction rose 3.3 percent, and banking grew 10.2 percent, supported by sound macroeconomic policies. The insurance sector posted 8.9 percent growth, driven by financial inclusion, digital platforms, and expanded coverage. Oil and gas activity saw a relative slowdown but recent discoveries in the Mediterranean and Gulf of Suez are expected to increase output.”
“Private investment surged 25.9 percent in Q1 2025-26, representing around 66 percent of total investment, while credit to private businesses continued to recover. Structural reforms implemented between July 2024 and October 2025 included more than 350 measures across sectors such as startups, social programs, institutional efficiency, finance, regulation, strategy, digital transformation, incentives, transparency, industry and energy.”
Mashat concluded that preliminary economic indicators point to a projected GDP growth rate of at least 5 percent for fiscal year 2025-26, with potential for higher growth supported by macroeconomic stability, ongoing structural reforms, strong production activity and regional stability.
