Egypt has recently succeeded in attracting fairly large amounts of foreign investments thanks to sustained efforts to promote macroeconomic stability and its new structural reforms which have been the key elements contributing to this success.
Over the past four years, the North African Country carried out a series of constructive measures to optimize the business climate and stabilize the expectations of foreign investors to further boost foreign capital inflows into one of the largest economies in the MENA, especially in high-end sectors and central and western regions, according to economic experts and analysts.
“Despite the global economic crises, the most populous country in North Africa and the Arab world is increasingly attractive to foreign investment, thanks to its growing weight in the global energy chain, the expanding domestic market, and policies facilitating foreign investment,” they said.
They also predicted that the country will maintain its high level of growth in foreign direct investment throughout the second half of the year.
The latest data from the IDSCE showed that FDI into the nation totalled $4.1 billion in the first half of the year, surging by 183 percent.
In fact, Egypt is seeking to stimulate more domestic and foreign investments and to support the role of the private sector as a partner in various development processes to deal with World Bank requirements.
The National Bank of Egypt said in this regard that the state will likely further boost foreign investors’ confidence by building a more market-oriented and law-based business environment that meets international standards.
Following this news, many business leaders have expressed growing interest in increasing their investment in Egypt’s market.
Also in this regard, Egypt’s Petroleum and Mineral Resources Ministry announced that US Corporation Apache is set to pump more investments in its concession areas in the Western Desert.
The step aims to improve the productivity of aging wells, intensify research and exploration activities and make new discoveries in light of the significant results of seismic research operations, which showed promising petroleum potential.
According to domestic reports, the Saudi Sovereign Fund is about to acquire a stake in Misr Aluminium within the next few weeks by pumping about $215m into the company’s capital increase, in addition to acquiring a stake in a new hotel company that is “under establishment” within two months.
Last week, the Saudi Egyptian Investment Company, a subsidiary of the Saudi Public Investment Fund, acquired stakes in four Egyptian companies amounting to $1.3bn (EGP 25bn).
The list of firms includes eFinance, Abu Qir Fertilisers, MOPCO, and Alexandria for Container Handling.
The Saudi Minister of Investment, Eng. Khalid Al-Falih said his country is very optimistic about the development prospects of Egypt’s economy. Saudi firms have upgraded their business strategies to further tap market potential in China, Al-Falih said.
Additionally, the Emirati Sovereign Fund is currently negotiating a 10 to 15% stake in Abu Qir Fertilisers.
Meanwhile, the Qatar Investment and Development Authority, the Qatar Investment Authority which is ranked ninth in the world with assets amounting to $450bn, is conducting advanced negotiations with the Egyptian Sovereign Fund regarding acquiring stakes in Egyptian companies focused on fintech and renewable energy.
The agency is currently studying acquiring stakes in three or four new companies, including eFinance and Fawry. It is expected that Egypt will start seeing the first investments over the next few weeks.
Qatar aims to pump investments worth $5bn in Egypt after the Saudi and Emirati Sovereign Funds revealed their intentions to also invest in the country.
In June, Minister of Finance Mohamed Maait noted that the Egyptian government aims to attract $10 billion in foreign direct investment (FDI) annually by relying on a broad-based reform effort to encourage foreign investments in the country.