CAIRO – 23 June 2024: Egypt experienced a 13.6% annual decline in foreign direct investment in 2023. The recorded figure was $9.841 billion, down from $11.4 billion in 2022, according to data from the United Nations Conference on Trade and Development (UNCTAD).
However, UNCTAD predicts a positive outlook for 2024, with expectations of increased investments. This growth is anticipated to be fueled by the Ras El Hekma deal and Egypt's Initial Public Offering (IPO) program.
In February, Egypt and the United Arab Emirates (UAE) signed a significant real estate investment agreement. The agreement involved the Abu Dhabi Developmental Holding Company (ADQ) acquiring the development rights for the Ras El Hekma project.
This deal, valued at $35 billion, stands as Egypt's largest foreign investment and aims to develop Ras El Hekma, located in the North Coast.
Egypt received an initial installment of $5 billion from this deal in February.
Additionally, in May, the Cabinet confirmed the receipt of the second tranche from the UAE.
Furthermore, in February, Egypt's Minister of Finance, Mohamed Maait, announced the country's goal of attracting $6.5 billion through its IPO program in 2024.
Launched in March of the previous year, the IPO program offers state-owned stakes in approximately 40 companies and banks across 18 sectors. Originally scheduled to conclude by March 2024, the program's deadline has been extended to December.
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