Every year, around 1.3 million young Egyptians enter the labor market, but only about half a million new jobs are created annually. Most women in Egypt are either unemployed or not participating in the workforce. Addressing these challenges is crucial for the country’s economic future. According to recent analysis, full youth employment could increase Egypt’s GDP by 36 percent, and closing the gender employment gap could boost it by an estimated 68 percent.
The Egyptian government has developed a new economic development strategy that focuses on more than just job numbers. This approach emphasizes strong institutions, effective regulations, macroeconomic stability, and an inclusive environment for women and youth. If these reforms are fully implemented, projections suggest that Egypt’s economy could grow by over 6 percent each year from 2026 to 2050, potentially creating up to 2.3 million jobs annually.
The private sector currently generates about three-quarters of Egypt’s GDP and employs over 80 percent of its workforce. However, several barriers limit its growth potential. Access to finance remains restricted; private sector credit accounts for less than 30 percent of GDP—lower than many comparable economies. State-owned enterprises also have a significant presence across multiple sectors despite ongoing reforms under the State Ownership Policy introduced in 2022. Additional obstacles include trade barriers and logistical issues that affect export competitiveness.
Efforts are underway to improve conditions for businesses through regulatory reforms and digital initiatives such as online company registration and customs modernization under the Digital Egypt program. These measures aim to reduce bureaucratic delays and make it easier for companies to operate and expand.
The World Bank Group is working closely with Egyptian authorities to support these changes on the ground. The Catalyzing Entrepreneurship for Job Creation Project offers financial tools like debt financing and equity investments as well as non-financial support including training and mentorship programs for small businesses. So far, this project has created over 400,000 jobs and benefited more than 200,000 people—40 percent of whom are women and another 40 percent young people.
“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,” said Farah Osman, co-founder of Bluworks—a startup supported by this initiative.
In Upper Egypt, local development programs backed by the World Bank have helped nearly 80,000 businesses modernize operations or access new markets in governorates like Qena, Sohag, Minya, and Assiut—leading to approximately 9,000 new jobs so far.
"The program helped in training and increasing the number of workers," said Naeema Mohamed Abed who revived traditional textile crafts in her community with support from these initiatives.
IFC—the International Finance Corporation—is also investing in projects designed to create sustainable employment opportunities particularly for women and youth. For example, IFC provided loans totaling $45 million (including both debt financing and equity investment) to Kazyon—Egypt’s largest discount grocery chain—to help expand its regional footprint with up to 750 new stores expected over five years resulting in up to 30,000 jobs created.
Most new jobs in recent decades have been concentrated in lower value-added sectors such as construction or retail; however future growth prospects lie within industries like manufacturing (textiles/pharmaceuticals/food processing/electronics/automotive), renewable energy as part of Egypt’s green transition plans; IT/digital services; healthcare; and tourism leveraging national heritage assets.
The World Bank Group has contributed technical expertise toward developing strategies focused on industrial development/trade enhancement along with foreign direct investment targeting high-employment sectors while providing analysis on trade logistics improvements—all aimed at supporting export-driven private-sector-led job creation across more regions beyond Cairo or Alexandria.
"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."