Listen to the audio version of this content
After a turbulent period marked by inflation challenges, Egypt’s economy is on the path to recovery, projected to grow by 4.0% by June 2025 as it emerges from austerity measures tied to an International Monetary Fund (IMF) programme1. This renewed confidence is demonstrated by the country’s CEOs who are optimistic about economic growth, confident in their company's revenue prospects, and have been busy making and anticipating future acquisitions. Notably, as our survey reveals, nearly half of Egypt’s CEOs made acquisitions involving more than 10% of assets in the past three years, and 56% ventured into new sectors in the past five years - both figures surpassing their counterparts in the six countries surveyed. These actions highlight a proactive approach to reinvention, with Egyptian business leaders driving growth through diversification and strategic investments.
Despite significant challenges, such as rising interest rates and a weakening Egyptian pound, CEOs in Egypt have also shown exceptional adaptability by targeting new customer bases, developing innovative products, and exploring new market routes, outperforming their peers in the GCC and the broader Middle East.
“Despite the challenges posed by the currency devaluation, geopolitical uncertainties, importation difficulties and frequent changes in regulations, CEOs in Egypt continue to demonstrate resilience. They are adapting to these complexities by finding innovative solutions and developing strategies that not only address immediate obstacles but also position their businesses for long-term success. Our country has a huge potential and stands out for its strategic location and dynamic young population. This is a pivotal moment for business leaders in Egypt to seize opportunities as financial stability returns to the country and inflation recedes. Leaders must embrace AI with greater urgency, incorporate sustainability in business operations, upskill the workforce and leverage partnerships in new sectors and territories. These bold steps will lay the foundation for a resilient and sustainable future.”
CEOs optimistic amid economic recovery
CEOs in Egypt are optimistic about their domestic economy, with the country seeing the first signs of economic recovery as a result of improved GDP growth projections and stabilisation efforts from international investments. 63% of CEOs are confident about economic growth improving in their territory over the next 12 months, higher than the global average of 57%. They are equally confident about the prospects for their own organisation – with 88% of CEOs in Egypt expecting to see revenue growth over the next 12 months, and 82% expecting revenue growth over the next three years.
Q. How confident are you about your company’s prospects for revenue growth?
This optimism is highlighted by the fact that CEOs in Egypt plan to grow their workforce at a faster pace than their peers both globally across the wider Middle East, with 69% expecting to increase headcount over the next 12 months compared to 61% regionally and only 42% globally.
When asked about key threats over the next 12 months, CEOs in Egypt feel most exposed to inflation at 63%, followed by geopolitical conflict (41%), cyber risks (38%) macroeconomic volatility (25%) and technological disruption (25%).
Ongoing geopolitical tensions in the region, coupled with disruptions in critical maritime routes via the Suez Canal and the Red Sea, have impacted Egypt’s economy, fuelling the urgency for business leaders to explore new strategies for business viability.
Last year, the US$35 billion investment from the UAE played an important role in driving key reforms - especially around currency2 and with the support of the IMF, World Bank and European Union, financial stability has returned considerably in Egypt. The risk of inflation should gradually recede as reforms to stabilise the fiscal and external position take hold.
Q. How exposed do you believe your company will be to the following key threats in the next 12 months? (Showing sum of ‘highly exposed’ and ‘extremely exposed’ responses)
The urgent need for reinvention – driven by AI and climate
This year, more than half of CEOs in Egypt (56%) believe they will need to adapt their businesses in 10 years or less to remain viable, higher than the global average of 42%. Given this keenness to future-proof their businesses, business leaders in Egypt have already taken a number of bold moves to innovate.
Q. If your company continues running on its current path, for how long do you think your business will be economically viable?
In the last five years, despite challenges such as rising interest rates and a weakening Egyptian pound, 69% of business leaders in Egypt have targeted new customer bases (significantly higher than their global peers at 32%), 66% have focused on developing innovative products, and 47% have explored new market routes (versus 25% globally). These proactive measures to ensure viability also surpass the efforts of their peers across the Middle East, highlighting the commitment of business leaders in Egypt to resilience and adaptability.
Q. To what extent has your company taken the following actions in the last five years?
Egypt is also deepening AI integration across sectors to address societal challenges and strengthen digital infrastructure for both government and private entities. It was the first MENA country to adopt the OECD’s Principles on Responsible AI.3 The National AI Council, set up in 2019, has helped to raise awareness of the capabilities of AI and develop a strategy to increase digital skills. Early in 2025 the second phase of Egypt’s National AI Strategy was launched4, which includes plans to improve the computational infrastructure for government and private entities. The ultimate objective, as part of Vision 20305, is to increase the GDP contribution of AI to more than US$42 billion (equivalent to 7.7% of the total) by 20306.
Egypt’s business leaders are demonstrating a strong belief in the transformative potential of AI and Generative AI (GenAI), with 41% expressing significant trust (to a large extent) in these technologies - nearly double the global average of 24%. This trust is driving strategic action, as a majority of CEOs plan to embed AI into their companies’ core processes.
Survey findings also reveal that Egypt’s CEOs are more likely to integrate AI and GenAI into their business operations than their global peers, with 81% planning to integrate GenAI into their tech platforms, 78% into business processes and workflows, and 72%% into new product development. And 72% in their workforce and skills strategies within the next three years. This underscores Egypt’s proactive stance in leveraging AI to gain a competitive edge.
Q. To what extent, if at all, do you predict AI (including generative AI) will be systematically integrated into the following areas in your company in the next three years? [Large or very large extent]
Green investment a priority
Our survey findings show that across the Middle East region, almost eight out of 10 CEOs say that their organisation has made climate-friendly investments in the past five years. In Egypt, the growth of green industries and sustainable development are a priority and the Egyptian government’s development plan for 2024-2025 promises to allocate 50% of public investment7, with an objective of meeting its 100% target by 2030.
According to our Egypt survey data, 84% of CEOs in Egypt have made climate-friendly investments in the last 5 years, on par with their global peers and higher than the Middle East average at 79%. Additionally, 22% of business leaders in Egypt said they are more likely to accept lower returns on green investments, compared to only 14% across the Middle East.
Q. In the last 12 months, has your company accepted rates of return for climate-friendly investments that were lower than the minimum acceptable rate of return your company uses for other investments?
Hosting COP 27 in 2022 significantly boosted Egypt's profile in global climate discussions, reinforcing its commitment to sustainability and climate resilience. The event catalysed initiatives like the launch of Egypt's National Climate Change Strategy 2050 and strengthened investments in renewable energy projects, such as green hydrogen production. COP27 also saw the launch of the Climate Responses for Sustaining Peace (CRSP) initiative, aiming to mobilise integrated climate responses that advance sustainable peace and development. And Egypt has since reaffirmed its goal to 42% renewable energy in its electricity generation by 2030.
Driving growth through expansion and convergence
International expansion is a key growth driver aligned with Egypt’s ambitions to boost exports. Leaders are focusing on accessing global markets and a cross sector of industries to widen client bases. This reflects a growing global trend, where boundaries between traditional industries have begun to blur as competition increases and companies seek new domains of growth. In Egypt, more than half (56%) of CEOs said their company had begun competing in a new industry over the last five years, higher than their Middle East (43%) global peers (38%)
Many CEOs are exploring acquisitions as a way of entering new markets, gaining critical skills or accessing new customers. In 2024, Egypt saw an uptick in the number of deals, with 46 mergers and acquisitions involving Egyptian targets completed in the first half of the year, up from 38 deals in the same period in 2023. 47% of the CEOs in Egypt we surveyed revealed they had completed a major acquisition (more than 10% of assets) within the past three years, significantly higher than CEOs globally (26%) and across the wider Middle east (27%).
The UAE Ras El-Hekma land deal – which aims to transform Egypt's northwest coast into a major urban and tourism hub, including resorts, residential areas and an international airport is particularly notable, and is expected to attract up to US$150 billion in future investments.8 This deal is expected to generate substantial employment opportunities and revenue streams, positioning Egypt as a hub for regional and international investment.
Q. Has your company made a major acquisition (more than 10% of assets) in the last three years?
Looking ahead, 72% of CEOs in Egypt plan to make at least one acquisition within the next three years – more than the 56% of CEOs in the wider Middle East and 54% globally. This highlights the proactive stance of Egyptian business leaders in leveraging M&A to drive growth, access new capabilities, and adapt to an evolving competitive landscape.
Q. How many acquisitions is your company planning to make in the next three years?
CEOs in Egypt can set reinvention plans on a course for success if they:
- Continue to prioritise innovation and sustainability. By integrating AI technologies and climate-friendly initiatives into their core strategies, CEOs in Egypt can differentiate their businesses and align with evolving consumer demands. They can position sustainability as a core value to attract eco-conscious customers and investors.
- Address workforce upskilling proactively to meet the demands of a rapidly evolving business landscape, particularly in high-growth areas like AI and digital transformation. Invest in education and training programmes to equip employees with critical skills in AI, digital technologies and green competencies, addressing the increasing need for climate and environment-related expertise.
- Leverage international expansion and strategic acquisitions to enhance competitiveness and diversify revenue streams. Egypt’s business leaders can collaborate with international entities to enhance competitiveness and gain a foothold in global value chains.
Related content
