FDIs surged in FY2023/2024 to hit historic $46.1B: CBE

Cairo – October 1, 2024: The fiscal year 2023/2024 was a great year for Egypt in terms of foreign direct investments (FDI), recording a historic net inflow of $46.1 billion, compared to the previous fiscal year’s $10 billion, according to the latest Balance of Payments (BoP) data released by the Central Bank of Egypt (CBE).

The largest surge of inflows, approximately $40.5 billion, was recorded in the second half of the fiscal year, mainly due to the execution of the Ras El Hekma agreement valued at $35 billion.

Portfolio investments in Egypt also saw a significant jump, with a net inflow of $14.5 billion, compared to a net outflow of $3.8 billion the previous year, which the CBE attributed to strong foreign investor appetite driven by the improved performance of the Egyptian economy following the March 6 reforms.

Investment in the non-oil sector saw particularly strong growth, with FDI rising to $46.4 billion, a significant leap from $11 billion the previous fiscal year.

FDI inflows in the oil sector remained relatively stable at $5.7 billion, despite some fluctuations in cost recovery transfers by foreign partners, the CBE noted.

Revenues from the Suez Canal saw a steep decline of 24.3 percent, dropping to $6.6 billion from $8.8 billion in the previous year.

This downturn was attributed to a 29.6 percent decrease in net tonnage and a 22.2 percent drop in the number of transiting vessels, largely due to disruptions in maritime traffic in the Red Sea that forced shipping companies to reroute.

Remittances from Egyptians working abroad slightly declined by 0.6 percent, totaling $21.9 billion, although they surged by 61.4 percent in the final quarter of FY 2023/2024.

The Egyptian economy reported a significant balance of payments (BoP) surplus of $9.7 billion for the FY2023/2024, according to the CBE in the same document.

The overall surplus was largely driven by a substantial performance in the second half of FY2023/2024, where it soared to $10.1 billion, attributed to structural reforms implemented on March 6, 2024, which bolstered investor confidence.