According to the data announced by Central Bank of Egypt (CBE), the net foreign direct investments in Egypt (FDI) has jumped by 52.9% during the first 9 months of the last fiscal year, compared to the same period of 2020-2021.
The value of net foreign direct investments (FDI) was $4.8 billion during the first 9 months of the fiscal year 2020-2021, whereas during the same period this year, it has reached $7.3 billion.
Despite the economic downfalls that occurred following COVID-19, where Egypt’s FDI in 2020 witnessed a 35% decline when compared to 2019, the inflows during the three months ending on the 31st March of 2022 has tripled, compared to the same period in the previous fiscal year. With a value of $4.1 billion, Egypt has broken its own record, reaching the strongest single quarter of FDI inflows since 2018.
According to the UN, Egypt has been the second-largest recipient of FDI in Africa after South Africa, despite a 12% fall in inflows in 2021.
The increases in FDI in Egypt alligns with the numerous foreign investments taking place in Egypt, which, according to a CBE report, lead to a rise in net inflows by $38.3 million, where a value of $87.1 million was aimed at establishing new firms.
However, with several economic crises rising globally, there is no guarantee for what to be expected.
“The war on Ukraine – on top of the lingering effects of the pandemic – is causing a triple food, fuel and finance crisis in many countries around the world. Investor uncertainty could put significant downward pressure on global FDI in 2022” said the World Investment Report 2022.
If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.