To break away from the middle income trap The Egyptian economy needs to foster its path towards diversification to high productivity activities. Building upon the accumulated reliable data-driven policy instruments, particularly Global Economic Diversification Index for the period 2000–2022, this study aims to examine the performance of economic diversification for the Egyptian economy. The analysis demonstrates a robust and significant correlation between the GEDI and ECI results, both on a global scale and within Egypt. This consistency underscores the common goal among developing nations to achieve economic diversification, thereby enhancing complexity. However, the study also reveals that Egypt remains a low-diversified, low-complexity economy, highlighting the challenges it faces in escaping the middle-income trap due to difficulties in advancing towards high-productivity sectors. To foster economic diversification and enhance complexity, Egypt should implement a sustained and clear strategy supported by a flexible framework for economic diversification and structural transformation. This strategy should be complemented by industrial policies, incentives for private investment in R&D, and ongoing reforms to improve the business environment. To sum up, accumulation of comprehensive polices and supporting framework to Improving drivers of both total and sector productivity is key.