Egypt has signed a $1 billion financing agreement with the World Bank to support the second phase of its Development Policy Financing (DPF) programme, which aims to strengthen the economy, encourage private investment and support the country’s transition to a greener economy.
The agreement was signed on Sunday, November 1, at the Foreign Ministry’s headquarters in the New Administrative Capital, in the presence of Prime Minister Mostafa Madbouly. It comes as Egypt continues to pursue economic reforms amid regional instability and growing pressure on its economy.
What Is the World Bank Financing Deal About?
The agreement falls under the World Bank’s programme, titled “Building Resilience, Creating Opportunities and Enhancing Wealth for Egypt’s Prosperity and Stability.”
The $1 billion financing package is the second of three development policy financing operations planned for Egypt, with the World Bank’s Board of Executive Directors approving the funding in May 2026.
The programme is designed to improve the competitiveness of the Egyptian economy, strengthen its ability to withstand external shocks and create a more supportive environment for private-sector growth.
The agreement was signed by Foreign Minister Badr Abdelatty, who also serves as Egypt’s governor at the World Bank, and Alwaleed Alatabani, the bank’s regional director.
Reforms Aim to Attract Investment and Create Jobs
A major focus of the second phase is making it easier for private businesses to operate and invest in Egypt.
The reforms include improving the governance of state-owned enterprises, removing barriers to private investment, strengthening fair competition and improving public financial management.
The programme also aims to increase domestic revenue collection and reduce the government’s borrowing costs, helping improve the sustainability of public finances.
By addressing these areas, the government hopes to encourage greater private-sector participation in the economy and create more opportunities for employment.
Social Protection and Green Development Are Also on the Agenda
Beyond economic reforms, the financing package includes measures aimed at supporting vulnerable households and advancing Egypt’s environmental goals.
One of the key measures is expanding the number of beneficiaries covered by the Takaful and Karama cash-transfer programmes, which provide financial assistance to low-income families.
The programme also includes efforts to improve the monitoring of greenhouse gas emissions and develop carbon credit markets, as part of Egypt’s broader push towards a green economy.
Other reforms focus on improving the financial sustainability of the electricity and water sectors, while strengthening the country’s ability to deal with the effects of climate change.
Part of a Broader World Bank Partnership
The agreement is aligned with the World Bank Group’s 2023–2027 Country Partnership Framework for Egypt, which outlines a $7 billion financing envelope over five years.
The framework includes $5 billion in financing from the International Bank for Reconstruction and Development and approximately $2 billion from the International Finance Corporation, alongside guarantees from the Multilateral Investment Guarantee Agency.
The financing also supports Egypt’s wider development agenda, including Egypt Vision 2030, the State Ownership Policy, the government’s IPO programme and the National Climate Change Strategy 2050.
During the signing ceremony, Abdelatty said the agreement reflects progress in implementing economic and institutional reforms, particularly those aimed at expanding private-sector participation, removing investment barriers and improving public financial management.
What This Means for Egypt’s Economy
The $1 billion agreement comes as Egypt seeks to attract more investment, strengthen its economic resilience and navigate ongoing regional and global challenges.
The World Bank’s October 2026 Macro Poverty Outlook reported that Egypt’s economy expanded by 5.1% in the 2025/26 fiscal year, while also highlighting risks to the country’s economic outlook from the conflict in the Middle East.
Ultimately, the financing is intended to support more than the government’s budget. Its success will depend on how effectively the reforms translate into a stronger business environment, more job opportunities, better protection for vulnerable households and a more sustainable economy.
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