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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Goldman Sachs Expects Egypt's FDI Inflow to Exceed $33 Billion


Thu 23 May 2024 | 12:16 AM
Taarek Refaat

Goldman Sachs expected Egypt to achieve a surplus in external financing of about $26.5 billion over the next four years, compared to expectations of recording a deficit of $13 billion in February.

The bank said in a report that over the first quarter, the UAE’s investment in the Ras al-Hikma project on the northern coast of Egypt, floating the pound, increasing interest rates, and signing an enhanced agreement with the IMF contributed to changing Egypt’s financing prospects in the medium term.

Goldman Sachs attributed its expectations of achieving a financing surplus to the presence of stronger external financing sources under implementation, including net portfolio flows worth approximately $15 billion since the beginning of March.

It said that while it is expected that solving the problem of the foreign currency shortage in Egypt will lead to a widening of the current account deficit in the medium term, it believes that this effect will be further dissipated by stronger capital flows to the country.

The bank said that Egypt's foreign direct investments inflows will likely reach more than $33 billion and are likely to rise at a faster pace than it had expected, while the macroeconomic stability is in the making and investments in new projects increase.