Every year, an average of 1.3 million young Egyptians enter the labor market, yet in the same year, only about half a million jobs are created. Additionally, a large majority of women in Egypt are either unemployed or not participating in the labor force. This imbalance underscores the urgency of accelerating job creation—and the immense potential that Egypt’s youth have to create a more sustainable and prosperous future for the country. Achieving full youth employment could increase GDP by 36 percent, and closing the gender employment gap could raise it by an estimated 68 percent.
The government’s new economic development narrative, shaped by national priorities and drawing on insights from the World Bank Group and other partners, emphasizes that job creation goes beyond simply increasing employment figures. Achieving sustainable growth requires robust institutions, effective regulations, macroeconomic stability, and an inclusive environment that empowers women and youth. If these measures are fully realized, Egypt’s economy could grow by more than 6 percent annually between 2026 and 2050, generating as many as 2.3 million jobs each year.
Empowering Businesses to Create Jobs
The private sector already produces about 75 percent of Egypt’s GDP and employs more than 80 percent of the workforce, making it the natural engine of job growth. Yet its full potential is held back by several structural barriers. Access to finance remains limited, with private sector credit standing at less than 30 percent of GDP compared to 47 percent in lower middle-income economies and 135 percent in middle-income countries.
State-owned enterprises remain prominent, with 561 entities active in 18 sectors. While the 2022 State Ownership Policy has introduced reforms, the significant presence of these enterprises may present challenges to fostering competition and innovation. Trade barriers and logistics also pose significant constraints to Egypt’s export competitiveness and private sector growth.
By easing these constraints—through predictable regulations, better access to land, labor, and capital, and greater transparency—Egypt can strengthen its investment climate and unlock the full potential of private sector-led job creation. Egypt has taken important initial steps to help businesses start, grow, and create jobs. Efforts are underway under the Digital Egypt program to expand online company registration, e-signatures, and e-payments, while ongoing customs modernization is gradually reducing cargo release times—from 16 to 8 days so far. Continued efforts to effectively implement these initiatives on the ground are crucial to ensure citizens can truly benefit from them. Complementary measures to expand access to finance for SMEs, strengthen industrial land allocation, and modernize technical and vocational training will also be key to translating reforms into tangible job creation.
Transforming Vision into Action
The World Bank Group is working hand in hand with Egypt to translate reforms into real opportunities for people and businesses. One such initiative is the Catalyzing Entrepreneurship for Job Creation Project, which provides both financial support—such as debt financing and equity investments that help small and growing businesses access capital—and non-financial support, including training, mentorship, and advisory services that strengthen business skills and improve access to markets. The project has already created more than 400,000 jobs and supported over 200,000 beneficiaries, 40 percent of whom are women and 40 percent are young people.
This project is also nurturing innovation. “Our vision is to build an integrated platform that helps companies manage, incentivize and develop their blue-collar workers. We also aim to provide opportunities for growth and support services for the blue-collar workers themselves,” says Farah Osman, co-founder of Bluworks, an HR-tech startup supported by the program.
In Upper Egypt, the World Bank’s Local Development Program is helping businesses in the governorates of Qena, Sohag, Minya, and Assiut access new markets, modernize their operations, and expand. More than 79,000 businesses have already benefited from the program’s support, leading to the creation of around 9,000 jobs. Eighty percent of participating businesses reported that the program had a positive impact on their growth and competitiveness.
"The program helped in training and increasing the number of workers," says Naeema Mohamed Abed, who revived the traditional textile Ferka craft and created new opportunities for women in her community.
Across multiple sectors, the International Finance Corporation (IFC) is investing in businesses that create and sustain quality jobs—particularly for women and youth. In retail, for example, IFC’s $30 million loan and earlier $15 million equity investment in Kazyon, Egypt’s largest discount grocery chain, are helping the company expand into Morocco and across the region. The investment is supporting 750 new stores and two distribution centers, expected to generate up to 30,000 jobs over the next five years. Beyond direct employment, the project strengthens local supply chains, engages small suppliers, and integrates women into the company’s recruitment and promotion framework—demonstrating how private investment can translate into inclusive, lasting job opportunities.
Jobs of the Future
The jobs of tomorrow also must be better than those of yesterday. Over the last two decades, most new jobs in Egypt have been created in lower value-added, non-tradable sectors such as construction, retail, and transport. While these sectors remain important, future growth lies in higher-value-added industries. Non-oil manufacturing—including textiles, pharmaceuticals, food processing, electronics, and automotive—offers significant opportunities for expansion. Renewable energy is emerging as a key sector as Egypt advances toward a green transition, while information technology and digital services are growing rapidly alongside the country’s digital transformation. Healthcare will expand in response to population growth and rising demand, and tourism will continue to play a vital role by leveraging Egypt’s rich cultural heritage and natural assets.
The World Bank Group has supported the development of Egypt’s Industrial Development and Trade Enhancement Strategy, a roadmap that identifies reforms to boost manufacturing, exports, and job creation in high value-added sectors. It has also provided technical assistance for a new Foreign Direct Investment Strategy, designed to attract investors and channel capital into 13 sectors with strong employment potential. Complementing these efforts, the Bank has advanced analytical work on trade logistics to help reduce trade costs, improve connectivity, and strengthen the link between industrial growth and job creation. Together, these strategies are helping the government define a clearer pathway for private-sector-led, export-driven, and sustainable job growth, forming key building blocks of Egypt’s emerging national economic narrative.
Investing in these sectors will diversify the economy, create higher-quality jobs, and spread opportunity beyond the traditional centers of Cairo and Alexandria into governorates across the country.
"Creating more and better jobs is the most pressing challenge and greatest opportunity for Egypt’s future," said Stéphane Guimbert, World Bank Division Director for Egypt, Yemen and Djibouti. "Egypt is already taking important steps to empower businesses as engines of job creation, and sustained high-level commitment will be essential to ensure all Egyptians benefit from these efforts. The World Bank Group remains a steadfast partner in supporting reforms and programs that turn this potential into inclusive and sustainable growth."
"Lasting job creation depends on a dynamic private sector," said Cheick-Oumar Sylla, IFC’s Division Director for North Africa and the Horn of Africa. "Through our investments and advisory work, IFC is helping Egyptian companies grow, integrate more women and youth into the workforce, and expand across borders – in alignment with the government’s reform agenda and the World Bank’s efforts to strengthen the enabling environment for businesses to thrive."
