FDI in Q1 2022 reached USD 4.1 billion according to the Central Bank of Egypt
FDI into Egypt grew by 183% in Q1 2022, according to the Central Bank of Egypt (CBE). Q1 saw inflows of USD 4.1 billion, compared to USD 1.4 billion over the same period last year.
Q1 2022 saw the highest inflows since the Q1 2018, which saw inflows of USD 6.9 billion.
FDI passes USD 140 billion since March
In the first nine months of fiscal year 2021/22, FDI into Egypt increased by 53%, to USD 7.3 billion, compared to USD 4.8 billion over the same period in fiscal year 2020/21. According to the CBE’s data, total cumulative investments amounted to USD 141.61 billion until the end of last March, compared to $134.3 billion in June 2021.
According to a report by the United Nations Conference On Trade and Development (UNCTAD), Egypt ranked second in Africa for inflows of FDI in 2021/2022. Gulf investment inflows are expected to reach $22 billion. The inflows will help recover FDI rates in Egypt, according to UNCTAD.
Investments from the GCC
Over the past six months, Egypt has attracted significant investments from the Gulf that have contributed to enhancing dollar liquidity. Recent support from the GCC included a Saudi deposit with the Central Bank and Emirati and Qatari investments in local companies.
The news comes as Egypt actively seeks to attract more local and foreign investments and the government is seeking to increasingly involve the private sector in a range of development processes.
In June, Minister of Finance Mohamed Maait stated that the Egyptian government aims to attract USD 10 billion in FDI annually.
Maait stated that the government is seeking to increase the rate of economic grow within the country in order to increase job opportunities and to improve the standard of living in the country through increased and targeted spending, specifically on services.
Earlier in the year, Prime Minister Mostafa Madbouli confirmed that the government plans to expand the establishment of free zones in order to attract further investment, specifically through the creation of factories owned by either local or international companies.
Egypt remained a top recipient of FDI in Africa for the fifth year in a row in 2020/2021, with FDI reaching $5.9 billion, or 53 percent of foreign direct investment directed to North Africa, according to the Egyptian government and UNCTAD.