CAIRO - 26 July 2023: Net foreign direct investment (FDI) in Egypt increased by 8.1 percent during the first nine months of the fiscal year 2022/23, reaching $7.945 billion, according to the Central Bank of Egypt (CBE).
In a report on the performance of the balance of payments, the CBE detailed that net foreign direct investment from July 2022 to March 2023 amounted to approximately $7.945 billion, compared to about $7.348.5 billion in the corresponding period of the previous year, indicating an increase of $596.9 million.
The report revealed that foreign direct investments in non-oil sectors achieved a net inflow of about $8.9 billion during the first nine months of 2022/23, slightly lower than the $9 billion recorded in the same period of the previous year.
The increase in net investments was mainly due to the establishment of new companies or an increase in the capital of existing ones, amounting to $801.7 million, reaching approximately $3.2 billion (including $187.9 million for establishing new companies). Net retained profits also rose, reaching about $4.2 billion, compared to about $3.7 billion in the comparative period.
On the other hand, the net proceeds from the sale of companies and productive assets to non-residents decreased during the first nine months of 2022/23, reaching approximately $1 billion, compared to $2.3 billion in the previous year. Net investments received to buy real estate by non-residents also decreased to $477 million, compared to $643.5 million in the corresponding period.
In the petroleum sector, foreign direct investments saw an increase in total inflows, amounting to about $4.2 billion in the first nine months of 2022/23, compared to about $3.8 billion in the same period of 2021/22.
Remittances abroad, representing the recovery of costs incurred by foreign partners during previous periods in research, development, and operation, declined to about $5.1 billion during the first nine months of 2022/2023, compared to about $5.4 billion in the same period of the prior year. This led to an improvement in the net outflow, limited to $925 million, compared to about $1.7 billion in the same period last year, according to CBE data.
The government aims to increase its dollar proceeds from foreign direct investment by 10 percent over the next three years, reaching $13 billion, according to previous statements by Prime Minister Mostafa Madbouly.
In the first quarter of the fiscal year 2022/23, the services sector attracted the highest foreign investments with a value of $1.9 billion, out of a total of $3.3 billion in foreign direct investments recorded during the same period. The industrial sector followed with just over $1 billion, and the construction sector with a value of $1 billion.