Net foreign direct investment jumps 90% during Q1

CAIRO - 29 March 2017: There was a 90 percent increase in net foreign direct investment (FDI) during the first quarter of the current fiscal year, 2016/17, compared to the same quarter last year, recording $1.9 billion during this period, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced Wednesday.

It also announced a 48.2 percent increase in Net International Reserves in December 2016 compared to same month in 2015 and a 5.2 percent increase in Net International Reserves compared to November 2016.

Finance Minister Amr El-Garhy predicted FDI into Egypt will rise to reach around $15 billion dollars in fiscal year 2017/18, which starts July 1, according to a phone interview with

Reuters

on March 20.

The expected increase in FDI comes as the government seeks to implement an economic reform program that includes a value-added tax (VAT), exchange rate liberalization and cuts in subsidies for electricity and petroleum products.

Egypt aims through reforms to revive the economy and to reduce imports of non-essential goods.

In November 2016, Egypt freed its exchange rate against foreign currencies in a move aimed to stabilize its exchange market and eradicate the black market for currency in addition to encouraging foreign investment.

The parliament will conclude within days the final version of investment law after a few amendments, according to the statement of Executive Chairman of the General Authority for Investment and Free Zones Mohamed Khodair to

Youm7

on Tuesday.

Khodair said the Economic Committee concluded the discussion of all articles of the law and is expected to vote on its articles within 15 days.

Khudair added that the committee will vote on the controversial articles and will submit the law to the parliament.

Member of Board of Directors of the Union of Industries, Dr. Mahmoud Soleiman, said that draft investment law satisfies aspirations of investors on Monday according to

Shorouk

.

He added during a meeting of the Chamber of Chemical Industries in the Federation of Egyptian Industries that the investment law includes 114 articles and has many incentives for investors, as it changes existing penalties and offers satisfactory solutions for investors.