Karim Badawi, Minister of Petroleum and Mineral Resources, presented the latest reforms, incentives, and opportunities within the petroleum and mining sectors during a roundtable meeting with a group of International financial institutions and investment banks, including JPMorgan, EIG, Rothschild & Co., BlackRock, Jefferies, and Kirkland & Alice. The meeting, which took place on February 10, was also attended by Ahmed Kouchouk, Minister of Finance, and Hassan El-Khatib, Former Minister of Investment and Foreign Trade
According to the Ministry of Petroleum and Mineral Resources (MoPMR), the meeting seeks to open new channels with financial institutions to secure funding for faster project execution and to promote direct investment in priority projects, thereby maximizing sector returns.
Badawi said the ministry is working to attract investments through new investment models and targeted incentives designed to further attract the private sector.
He also emphasized continued commitment to paying monthly dues to international oil companies (IOCs) while simultaneously reducing past arrears toward full settlement, especially as they resume investments for oil and gas exploration and production.
The minister stressed efforts to boost oil and gas exploration, halt production decline, and leverage Egypt’s infrastructure, pointing to the regional cooperation with Cyprus to connect Cypriot gas fields to Egypt and maximize returns by utilizing the country’s liquefaction plants.
He highlighted expansion in value-added industries such as petrochemicals and fertilizers, green hydrogen potential, and the importance of integrating mining into critical minerals supply chains required for energy transition technologies.
For his part, Kouchouk said the ministry’s policies are designed to stimulate economic activity and drive private sector growth through production and exports. He noted strong performance across productive, industrial, tourism, communications, and IT sectors, reflected in a robust economic growth rate of 5.3% in the first quarter of the current fiscal year.
Kouchouk pointed out that the 40% increase in private investments during the first quarter reflects investor confidence in the Egyptian economy, noting ongoing efforts to build trust-based partnerships with financiers through tax services that encourage voluntary compliance and protect the rights of all parties, supported by several tax facilitation packages.
Participating global financial institutions and investment banks expressed strong interest in exploring energy sector investment opportunities and pursuing partnerships with Egypt, citing the sector’s significant potential in petrochemicals, mining, gas, and oil, supported by an attractive investment climate, legislative and financial reforms, and strong infrastructure.
Egypt has cleared approximately $5 billion of the arrears due to its foreign partners in the oil sector, significantly reducing the sector’s dues to IOCs from a mid-2024 peak of $6.1 billion, and is expected to reach$1.2 billion by the end of June 2026.
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