Figures reveal investment developments in Egypt

Dr. Hani Geneina, an economist at the American University, said that the government is intensifying its efforts to activate and return foreign investments to the market, after the measures it took to save dollars in banks and adopt a flexible exchange rate.

Foreign direct investment activities

He said that there are many foreign direct investment activities in Egypt, which is establishing a company for the first time for the purpose of investing in Egypt.

He explained that this is currently limited to the oil and gas sector, as it is a sector characterized by clear contracts with the General Petroleum Corporation, as it gives flexibility to resort to international arbitration in the event of any disputes.

Companies operating in Egypt

He indicated that the other type of foreign investment in Egypt is the reinvestment of the profits of foreign companies operating in Egypt.

Third type of foreign direct investment

Genena indicated that there is a third type of foreign direct investment, which is expected to gain strong momentum in the coming period, which takes place through the acquisition of stakes exceeding 10 percent in companies offered for public subscription. Especially companies that can generate their profits in dollars and not in the local currency, such as ports and others that have export activities.

Egypt will lead the countries in the region in 2022

In this context, the Arab Corporation for Investment and Export Credit Guarantee (Daman) revealed that Egypt will lead the countries in the region in 2022 as the largest future for foreign direct investment projects in terms of investment costs, with a value of $107 billion, representing 53.4% of the Arab total.

Investment climate in the Arab countries

In its 28th annual report on the investment climate in the Arab countries for the year 2023, the Foundation indicated that Egypt topped as the largest beneficiary of the number of jobs created in the region, according to FDI Markets estimates, with a total of 61 thousand jobs, representing 35% of the Arab total.

Egypt also ranked third in terms of the number of projects, with 148 projects, representing 9.2% of the Arab total, as 130 Arab and foreign companies announced the start of their implementation during the year 2022.

Incoming foreign direct investment

With regard to indicators of incoming foreign direct investment flows and balances to Egypt, according to UNCTAD data, the report's data showed that Egypt ranked second in the Arab world in terms of foreign direct investment inflows into the region, with its acquisition of $11.4 billion, with a share of 21.2% of the Arab total.

Direct foreign investment

Egypt ranked third in the Arab world in terms of foreign direct investment balances incoming to the region by the end of the year 2022, with its acquisition of $149 billion, with a share of 14% of the Arab total.

Highest growth rate

Egypt witnessed the highest growth rate among the Arab countries in foreign direct investment inflows to the region during the year 2022, at a rate of 122.6%.

Mergers and acquisitions (sales deals)

Egypt ranked fourth in the Arab world in the value of mergers and acquisitions (sales deals) with a value of $3.4 billion, with a share of 9.3% of the total sales deals in the region.