Egypt targets $12B in FDIs by end of FY23\24

CAIRO – 3 January 2024: Egypt targets securing $12 billion in foreign direct investments (FDIs) by the end of the 2023/2024 fiscal year (FY) , CEO of the General Authority for Investment and Free Zones (GAFI), Hossam Heiba, announced during an interview with Al-Arabiya.

Egypt also set a target to achieve 20 percent rise in FDI flows, driven by the depreciation of its currency. This decline in currency value has lowered investment costs, generating heightened investor interest in the Egyptian market, the CEO of GAFI added.

Heiba emphasized that the real estate and industrial sectors have emerged as the most attractive sectors for foreign direct investment in Egypt.

Following closely behind are the energy and green energy sectors, which have witnessed the signing of agreements for eight projects with total investments amounting to approximately $50 billion over the past decade.

Heiba also mentioned the government's efforts to develop the automobile industry, resulting in the signing of nine contracts in this sector.

Furthermore, the government has introduced incentives to enhance local component manufacturing and promote the expansion of hotel room capacity to bolster tourism in Egypt.

Earlier in November, the Central Agency for Public Mobilization and Statistics (CAPMAS) reported that the IDF in Egypt witnessed a growth of 120 percent during the third quarter (Q3) of FY2022/2023, to reach $2.2 billion, compared to $1 billion at the same period in FY2019/2020.

Furthermore, FDI recorded $2.4 billion in the second quarter (Q2) and $3.3 billion in the first quarter (Q1) of FY2022/2023.

CAPMAS's report also highlighted a significant surge of 156.3 percent in FDI volume during the Q3 of FY2021/2022, amounting to approximately $4.1 billion.