Egypt attracts $1.66 billion in foreign investments in 3 months

CAIRO - 3 February 2022:  Net foreign direct investment in Egypt increased during the first quarter of the current fiscal year 2021/2022 by 3.7 percent, on an annual basis, according to the Central Bank of Egypt (CBE).

 

A Central Bank report on the performance of the balance of payments indicated that net foreign investment in Egypt rose to $1.66 billion during the period from July to the end of last September, compared to $1.6 billion during the same period last fiscal year.

 

The report showed that foreign direct investments in the non-oil sectors rose by $473.7 million to record $2.2 billion during the three months, as a result of the increase in net retained earnings and the surplus in credit balances at a rate of 24.7 percent to reach about $1.5 billion.

 

The increase in foreign direct investment also came as a result of the increase in net remittances to purchase real estate in Egypt by non-residents by $103.2 million to record $231.1 million during the first quarter of the current fiscal year, as well as the result of selling companies and production assets to non-residents by $32.2 million to record $56.7 million during the period, and an increase in capital and net inflows for the purpose of establishing new companies by $38.3 million to record $351.6 million, including $87.1 million for establishing new companies.

 

As for the petroleum sector, the net outflow of investments in the petroleum sector increased during the first quarter of the current fiscal year to reach $489.2 million, compared to $75.3 million during the same period last fiscal year.

 

This came as a result of a decrease in the total inflow to be limited to about $1.2 billion during the three months, compared to $1.56 billion during the same period of the last fiscal year.

 

It also referred to the increase in remittances abroad to reach $1.7 billion at the end of last September, compared to $1.63 billion during the comparable period of the last fiscal year, which represents the recovery of costs borne by foreign partners during previous periods in research, development and operation.