CAIRO: Egypt is aiming for economic growth of at least 5.4 percent in fiscal year 2026/27, with manufacturing, technology and a recovering Suez Canal expected to drive the expansion, according to the country’s planning minister. “What we should watch next is our continuing the momentum of our growth for the next fiscal year, that we expect to reach at least 5.4 percent,” Minister of Planning and Economic Development Ahmed Rostom told Arab News. The target sits at the upper end of the government’s official range of 5.2 to 5.4 percent for the coming year. It follows a stronger performance in the last fiscal year, with gross domestic product growing 5.1 percent in the 12 months to June 2026, up from 4.4 percent a year earlier. Growth drivers Rostom said growth came from “a balanced approach,” with manufacturing leading the real economy. “Its contribution also to exports has been really remarkable,” he said, adding that the sector should be a priority for future investment. He noted that the Ministry of Investment and Foreign Trade, led by Mohamed Farid Saleh, is developing new investment opportunities, particularly in industry. Technology also played a significant role. The ICT sector “has also significantly contributed to our growth,” Rostom said, describing it as “another opportunity to tap on for the years to come.” The Suez Canal, together with the industrial, trade and telecommunications sectors, accounted for nearly half of total growth last year. Suez Canal recovery The Suez Canal is one of Egypt’s main sources of foreign currency, alongside tourism and remittances from Egyptians abroad. Its recovery follows more than two years of disruption in the Red Sea, during which many shipping lines diverted vessels around Africa. Rostom said the canal’s contribution to growth rose 23 percent, with cargo tonnage up 22 percent and vessel numbers up almost 9.8 percent. Official data shows canal revenues rose 23 percent to $4.67 billion in fiscal year 2025/26, while activity climbed around 34 percent in the final quarter. “The Red Sea is not really critical only for Egypt’s growth. It’s really critical for the global economy’s growth,” Rostom said. “The Suez Canal is the vein for trade and logistics for this globe.” The recovery, however, remains incomplete. Revenues are still roughly half the record $9.4 billion recorded in 2022/23. Managing oil price risks Rostom said the government is preparing for oil price volatility through scenario planning rather than a single forecast. “Maintaining fiscal discipline is really critical to help us build the buffers, manage risks when it comes to volatility in oil prices,” he said. Other measures include strengthening strategic reserves and spreading growth across both industry and services to reduce reliance on any single sector. Egypt also plans to increase the share of renewable energy to 45 to 48 percent within the next two to three years. Investment opportunity Rostom described Egypt as “the largest market in the entire region” and a logistics hub, supported by a decade of major infrastructure investment and a trained workforce. “It’s a tested market that welcomes all potential serious investors for the years to come,” he said. Looking towards 2030, the minister said Egypt’s priorities include diversification, deeper integration and “managing risks and also sharing risks in an uncertain environment.” He identified a knowledge-based economy, investment in people, ICT and startups, renewable energy, deeper industrialization, fiscal discipline and exchange rate flexibility as key pillars of sustainable growth. “These are all recipes for weathering shocks, recipes for sustained growth, and recipes to reach the growth potential that this region deserves and this country deserves,” he said.