The World Bank highlighted that FDI inflows to the region increased by 70% last yearز
The bank further noted that the surge in FDI inflows to Egypt reflects a boom in green investments - File Photo
Egypt emerged as the largest recipient of foreign direct investment (FDI) inflows in the Middle East and North Africa (MENA) region last year, according to the World Bank. The country accounted for 87% of the total FDI in the region.
The World Bank highlighted that FDI inflows to the region increased by 70% last year, primarily driven by a sharp rise in investments in Egypt.
The bank further noted that the surge in FDI inflows to Egypt reflects a boom in green investments and an increase in the capital of existing companies.
However, the World Bank reported a decline in remittance flows to the MENA region, dropping by 3.8% to $64 billion in 2022, following a strong growth rate of 12.2% in 2021.
These findings were published in the latest edition of the Migration and Development Brief released by the World Bank.
Earlier in press statements, Egypt's Minister of Finance, Mohamed Maait, stated that the targeted growth rate in Egypt's budget for the new fiscal year 2023-2024 would reach 4.1%.
The Minister of Finance also anticipated an initial surplus of 2.5% of the gross domestic product.
Recent data from the African Development Bank revealed that Egypt secured the second position in terms of foreign direct investment inflows in the African continent in 2021, attracting nearly $5.1 billion.
The data, part of the African Economic Outlook 2023 report, highlighted that South Africa was the largest recipient of FDI in 2021, with investments exceeding $40.9 billion, representing nearly half of the total inflows to the continent that year.
Egypt and Mozambique followed, each attracting around $5.1 billion, accounting for approximately 6.2% of the total volume.
Egypt's robust performance as the leading destination for FDI in the MENA region underscores the country's attractiveness to investors.
The surge in green investments and increased capital infusion into existing companies demonstrates the growing confidence in Egypt's economic potential. This bodes well for the country's development agenda and showcases its commitment to sustainable and inclusive growth.
Furthermore, Egypt's fiscal plans for the upcoming fiscal year, including targeted growth rates and a projected surplus, reflect the government's efforts to strengthen the economy and foster a favorable investment climate.
