How did the country succeed in attracting foreign investment during 2023?

During the past years, the Egyptian state revealed its comprehensive plan to attract foreign investments, which aims to enhance economic development, diversify the base of the economy, and promote sustainable growth.

upgrading the infrastructure

Egypt pays great attention to improving infrastructure, including transportation, energy, communications, and ports, by launching large development projects such as the New Suez Canal and the New City of El Alamein.

Developing strategic sectors

The country has focused its efforts on attracting investments in strategic sectors such as energy, tourism, manufacturing industries, information technology, communications, agriculture, and special economic zones.

Develop and encourage innovation, research and development

The government works to encourage innovation, research and development by providing support and incentives to startups and promoting cooperation between universities and companies.

Benefiting from international agreements

Egypt encourages the use of international agreements to protect investment and enhance economic cooperation with other countries.

Capital market development

The government took an unprecedented step as several measures were taken to strengthen the Egyptian financial market, including developing the Cairo Stock Exchange and improving the legislative and regulatory framework for investment funds, hedge funds, and derivative securities.

Tax reform

The state has issued several tax reform measures to simplify the tax system and improve tax collection.

Strengthening the role of banks

VAT was implemented in 2017 as part of efforts to broaden the tax base and diversify financial resources. Measures have also been taken to enhance financial inclusion in Egypt, including strengthening the role of banks and non-bank financial institutions in providing financial services to unsaving groups that are weakly included in the financial system.

Golden licence

  In addition to granting companies a golden license in order to facilitate government procedures, which is one of the factors that attract foreign investment.

More than 20 foreign investors obtained a golden license, which prompted investment. The Egyptian state also provided other facilities aimed at attracting foreign investment in Egypt, such as:

• -Special investment zones were established in Egypt to provide a suitable and facilitated investment environment for foreign companies. These areas are characterized by advanced infrastructure, easy administrative procedures, and special tax and customs facilities.

• Providing tax exemptions and financial privileges for some sectors and investment projects, with the aim of encouraging foreign investment. These exemptions are determined in accordance with applicable laws and legislation.

• The Egyptian government provided a package of financial incentives to foreign companies, such as joint financing, investment financing, soft bank loans, and credit facilities.

• Political and economic stability is an important factor in attracting foreign investment, and Egypt seeks to provide a stable environment for investors by maintaining security and enhancing political stability.

• The re-listing of the JP Morgan index is a strong reflection of international investors’ confidence in Egypt and its fundamentals, as 90% of investors surveyed voted in favor of listing Egypt, according to statements by the Egyptian Minister of Finance yesterday.

• The listing helps stabilize inflows to Egypt. Accession will provide a kind of relative stability to foreign flows into local debt instruments at the present time. This type of hot money investor is less volatile than the investments of active fund managers.

• Reducing the risks of money exit, which a number of emerging markets may witness if US interest rates are raised.