Foreign investments rises in Egypt by 24% during H1 2018: UNCTAD

CAIRO – 18 October 2018: The United Nations Trade and Development Board (UNCTAD) said that Egypt remains the first destination in Africa during the first half of 2018, as total foreign investment inflows hiked to 24 percent compared to the first half of 2017.

UNCTAD added in a report that foreign direct investment (FDI) dropped globally by 41 percent in the first half of 2018 to only $470 billion, down from $794 billion in the same period of 2017.

The report pointed out that the largest decline was concentrated in developed countries, where FDI inflows declined sharply by 69 percent to about $135 billion, while the participation rate of developing economies in global foreign direct investment reached a record rate of about 66 percent.

Minister of Investment Sahar Nasr said that Egypt is reaping the fruits of the economic reform program, noting that reforms contributed to increasing foreign direct investment, and improving its recent ranking in the Global Competitiveness Report as well as the report of the United Nations Trade and Development Board.

This progress came as a result of the efforts to improve the legislative framework of the investment environment during the last period and to keep abreast of the economic legislation of the best international applications, which contributed to the jump of Egypt's six centers, which means that Egypt's ability to achieve a high rate of per capita GDP, Nasr added.

Egypt embarked on a bold economic reform program that included the introduction of taxes, such as the value-added tax (VAT), and cutting energy subsidies, with the aim of trimming the budget deficit.

The country floated its currency in November 2016 before it clinched a $12 billion loan from the International Monetary Fund (IMF).

Regarding Global Competitiveness Index (GCI), Egypt came in the 94th place in the 2018 GCI among 140 world countries, recording 63.4 points, and gaining 0.4 point compared to the rating of 2017.

It also occupied the 24th position among 140 states in the GCI report in the market size.
The GCI report tackles 12 main pillars, including financial system, institutions, labor market and business dynamism.