Renewable energy is at the centre of this shift. Egypt’s target of generating 42% of its electricity from renewables by 2030 is driving substantial activity, much of it concentrated in the Suez Canal Economic Zone. A landmark agreement with Norway’s Scatec to build a 1 GW solar plant — alongside wind and green hydrogen developments — demonstrates growing confidence in Egypt’s low-carbon transition. “The country is making significant strides towards low-carbon sectors by investing in electric vehicles (EVs), positioning Egypt as a sustainable destination for clean transportation,” says Islam Zekry, Group Chief Finance and Operations Officer at CIB.
CIB also sees potential in infrastructure and transport, where Egypt has developed a pipeline of PPPs across metro modernisation, high-speed rail, port development and logistics hubs. Tourism remains a major generator of foreign currency and employment, with 15.7 million visitors in 2024 and rising investment momentum in hospitality, destination infrastructure and ancillary services.
Tarek Abdel Rahman, a managing partner at private equity firm Compass Capital, adds agriculture to tourism and infrastructure as the three areas to watch. “I expect continued growth in greenfield operations — people setting up new companies, new hotels, new agricultural land,” driven by a mix of domestic and foreign investors,” he says.
Bankable projects through blended finance
As Egypt enters a new investment cycle, it has the added advantage of a new range of financing instruments. CIB plays a central role in structuring such deals. A $100 million, seven-year IFC facility supports water treatment, green buildings, renewable energy and sustainable agriculture, while a €50m GEFF facility with the EBRD channels credit to small and mid-sized green projects.
The bank has partnered with tech firm Lantern Ventures and the country’s Micro, Small and Medium Enterprises Development Agency to support export-oriented SMEs. This includes providing structured finance solutions, export credit facilities, and digital banking services tailored for export-oriented and start-up enterprises.
CIB frequently acts as arranger or intermediary for complex infrastructure financings, offering equity bridge loans, development bonds and on-lending structures. Risk-mitigation instruments — from political risk insurance to partial risk guarantees — are essential for attracting sovereign investors and private equity into long-dated PPP projects. Zekry notes the bank has also supported the government on PPP structuring, along with providing currency-risk solutions for landmark projects such as Benban Solar Park.
Another advantage for Egypt at this stage is the growing willingness of development partners to expand their climate and infrastructure commitments. Institutions such as the EBRD, IFC, Proparco and the Green Climate Fund have increased their appetite for co-financing structures. These reduce risk for commercial lenders like CIB and allow large-scale projects to reach financial close more quickly. Such partnerships also standardise documentation, build capacity within the PPP unit and create a clearer pathway for replicable project models in energy, water and logistics — a key requirement for institutional investors deploying long-term capital.
The proof is in the pudding
Even with stronger financing structures, the underlying investment environment remains critical. Some of Egypt’s earlier infrastructure spending — particularly on mega-projects — added to the debt burden without clear short-term returns. But Rahman notes that the country has also spent heavily on infrastructure that will yield dividends over the long term, including power grids, roads and airports. “That provides the necessary conditions for investors to come in and set up operations and have the basics function,” he says.
Egypt’s next wave of FDI is unlikely to be broad-based, but nor will it be short-term and speculative. Instead, it will be concentrated in well-structured, sustainable projects that combine commercial viability with development impact. With stronger PPP frameworks, blended finance platforms and international partnerships, Egypt is creating the conditions for institutional investors to engage on a long-term basis. But there remains more to do.
Regulatory hurdles can still slow down or even stymie investment. As James Swanston, a senior economist in the emerging markets team at Capital Economics, puts it: “The bureaucracy remains a major challenge. Licensing, permits, and red tape all add friction. Unless these are reduced, foreign investors may prefer Morocco or other North African markets.”
For many investors, the government’s recent statements about reducing its role in the economy and giving more space to private capital are encouraging — but will ultimately be judged by delivery. “They haven’t seen sufficient proof yet,” says Rahman. “The proof is in the pudding. The authorities need to actually follow through.”
If that happens, Egypt has a rare opportunity: a combination of stabilising macro conditions, clearer project structures and a genuine pipeline in renewables, transport and tourism. The challenge now is to turn promising frameworks into bankable, repeatable transactions — and prove that the next wave of FDI will be deep, long term and genuinely transformational.
