CAIRO - 8 August 2022: Investments in the stock portfolio in Egypt recorded a net outflow of about $17.2 billion during the first 9 months of the last fiscal year 2021/2022, compared to a net inflow of $16 billion during the same period of prior year.
A stock portfolio is a collection of stocks that an investor invests in with the hope of making a profit.
The Central Bank of Egypt (CBE) said in a report on the performance of the Egyptian balance of payments, that most of the outflow took place during the first quarter of 2022 (from January to the end of March 2022), when they recorded a net outflow of about $14.8 billion.
The CBE said that the exit reflects investors' concern over the outbreak of the Russian-Ukrainian conflict and fear of the outbreak of a third world war, in addition to the contractionary monetary policies pursued by the US Federal Reserve, which in turn leads to the exodus of hot money from emerging markets.
Meanwhile, the report revealed that the net foreign direct investment (FDI) in Egypt increased during the first nine months of the last fiscal year 2021/2022 by 53%, on an annual basis.
It elaborated that the net foreign direct investment in Egypt recorded about $7.3 billion during the period from July 2021 until the end of March 2022, compared to $4.78 billion in the same period of the previous fiscal year.
According to the data, the net foreign direct investment in the non-oil sectors increased by about $3.9 billion, to record an inflow of about $9 billion, including $4.6 billion during the period from January to the end of March 2022.