The United Nations Conference on Trade and Development World Investment Report 2023, has revealed that Egypt experienced a tremendous increase in FDI, more than double of the $11 billion in 2022, establishing it as Africa’s leading economy with the most foreign investments.
Business Insider reported that this considerable growth can be ascribed to increased cross-border merger and acquisition activity, which reflects growing investor confidence and interest in Egypt’s thriving market.
Egypt’s capacity to attract significant FDI reflects its strategic position and economic resilience. With a strategic geographical location, a vast and diverse economy, and a strong regulatory framework, Egypt remains an appealing destination for international investors seeking long-term growth and returns.
The growth in foreign direct investment inflow indicates Egypt’s commitment to economic reform, stability, and openness to foreign investment, further solidifying its position as a key player in the global investment landscape.
Furthermore, a research by American global management consulting firm Kearney ranks Egypt 14th among the world’s most attractive and trustworthy emerging economies for foreign investment, ahead of Turkey, Morocco, South Africa, and Russia.
Egypt has received the most foreign direct investment in Africa during the last two decades. Between 2001 and 2019, Egypt’s net FDI inflows led the continent and ranked third among Arab countries .
Even in 2021, Egypt still has the highest FDI rates in Africa, despite the continent’s dramatic decline in FDI inflows following the pandemic.
Egypt’s total FDI inflows in 2020 were $5.9 billion, more than half of North Africa’s inflows that year (UNCTAD database, 2021).
According to the Central Bank of Egypt, more than half of FDI inflows into Egypt between 2019 and 2020 were either for new firms or to raise capital for the expansion of existing operations.