$11 billion.. Growth of foreign direct investment in Egypt

Khaled El-Degwi, a member of the General Division of Importers at the General Federation of Chambers of Commerce, said that the growth of foreign direct investment in Egypt is confirmation of the success of the state’s steps in attracting foreign and local investors. Improving the investment environment with all the tools that the state possesses to help in that.

He added, the past ten years witnessed real development at all levels, the foremost of which was the development and support of the investment sector, both local and foreign, which the Egyptian economy felt its results during this period, despite the unprecedented economic challenges the world is going through.

Increase in foreign direct investment

The United Nations Trade and Development Board (UNCTAD) said that Egypt recorded an increase in foreign direct investment by more than double, to reach $11 billion, as a result of the growth of cross-border merger and acquisition sales during 2022.

Egypt seeks to offer 32 state-owned companies on the stock exchange or to a strategic investor during the next four years, with a target proceeds of about $40 billion, Within the framework of increasing the participation of the private sector in economic development, Egypt aims to increase attracting foreign direct investments during the current fiscal year, at a value of $11 billion.

Investment flows to Africa reached $45 billion in 2022, down from the record $80 billion set in 2021, and accounted for 3.5% of global foreign direct investment.

Investment flows

Investment flows rose to 72% during this year 2023, and the investment of Arab countries reached 40% of total investment flows, and investment will witness greater diversification during the coming period, especially in the tourism, industry, and agricultural sectors.

Thes investment comes after the government issued 22 decisions by the Supreme Investment Council, which facilitated procedures, especially with regard to the expiry of licenses with specific time plans.  

Investment efforts

It comes in shadow of the state's investment efforts, the implementation of the state ownership document and the opening of important paths, the government's offering program and its importance to the business community, which gives more confidence in the flow of investments.

Investment law amendments

In implementation of the directives of President Abdel Fattah El-Sisi to create an attractive climate for investment and solve the obstacles facing investors, whether local or foreign, the amendments to the Investment Law approved by the House of Representatives came.

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The amendments recently approved by the Council included expanding the scope of projects that may be licensed under the free zones system to include projects operating in the fields of petroleum manufacturing, fertilizer industries, iron and steel, manufacturing, liquefaction and transportation of natural gas, and energy-intensive industries.

• The amendments also put in place a legislative treatment for the issue of the exit of hazardous waste from free zones into the country, with the aim of disposal or recycling, all in accordance with the Waste Management Regulation Law.

• The law aims to grant an additional investment incentive with special determinants and controls to attract more industries in different regions of the country.

• In addition, the amendments included an important plan to encourage foreign direct investment, and a qualitative step aimed at improving investor confidence in the Egyptian economy.

• The law will aim to stimulate private sector activity, support industrial investments and attract more foreign exchange.

• The new amendments included extending the period during which the new company or establishment must be established to establish the investment project in order to enjoy special incentives.