A woman counts U.S. dollars at a money changer in Yangon May 23, 2013 - REUTERS
CAIRO - 1 August 2022: Net foreign direct investment (FDI) in Egypt grew by 183 percent in the first quarter (Q1) of 2022, to reach $4.1 billion, compared to $1.4 billion in the same period of 2021, according to data from the Central Bank of Egypt (CBE).
Thus, net foreign direct investment in Egypt recorded the highest value since the first quarter of 2018, which amounted to $6.9 billion at the time.
In the first nine months of the last fiscal year 2021/2022, net foreign direct investment to Egypt increased by 53 percent, to record $7.3 billion, compared to $4.8 billion in the same period of the previous fiscal year 2021/2020.
According to the data of the CBE, the total cumulative investments amounted to $141.61 billion until the end of last March, compared to $134.3 billion in June 2021.
Egypt is seeking to attract more local and foreign investments, and to support the role of the private sector as a partner in various development processes.
In June, Minister of Finance Mohamed Maait stated that the Egyptian government aims to attract $10 billion in foreign direct investment (FDI) annually.
Maait elaborated that this comes in a manner that ensures raising economic growth rates, creating more job opportunities, and enhancing aspects of spending on improving the standard of living of citizens and upgrading the services provided to them.
Moreover, the UN Conference on Trade and Development (UNCTAD) stated in a report that Egypt ranks second in Africa in inflows of foreign direct investment in 2021/2022.
Gulf investment inflows are expected to reach $22 billion. The move will help recover FDI rates in Egypt, according to the report.
Last April, Prime Minister Mostafa Madbouli confirmed that the government plans to expand the establishment of free zones, which contributes to serious investors pumping more of their investments, whether by establishing new factories, or expanding existing ones, whether these investments are local or foreign.
During the last period, Egypt attracted Gulf investments that contributed to enhancing dollar liquidity in the largest Arab country in terms of population, amid the repercussions of the Russian-Ukrainian crisis, and raising the US interest rate.
Recent Gulf support included a $5 billion Saudi deposit with the Central Bank and Emirati and Qatari investments in local companies, totaling $20 billion.
Egypt has remained as a top recipient of FDI in Africa for the fifth year in a row in 2020/2021, reaching $5.9 billion, which represents 53 percent of foreign direct investment directed to North Africa.