The increase in foreign investment is a result of the significant efforts made by the state in recent years.
the increase in foreign investment is a result of the significant efforts made by the state in recent years - File Photo
Dr. Youmna El-Hamaki, Professor of Economics at Ain Shams University, stated that the Egyptian economy has been able to achieve positive indicators, as evidenced by the UNCTAD report, which revealed that Egypt was the top investment destination in Africa for the year 2022, with foreign direct investment inflows reaching $11.4 billion.
El-Hamaki emphasized that the increase in foreign investment is a result of the significant efforts made by the state in recent years to implement strong infrastructure, create an attractive economic legislative framework, issue several decisions and legislation that facilitate investments, remove obstacles and difficulties faced by investors.
This is in addition to major national projects, the Suez Canal Economic Zone, and green economy initiatives, which have made the investment climate in Egypt outstanding and attractive to foreign investors.
She pointed out that statements made by the Egyptian Prime Minister, Dr. Mostafa Madbouly, during a press conference, revealed that the government has concluded contracts for the sale of government assets to private companies worth $1.9 billion as part of the government offerings plan.
The government also aims to achieve an additional $1 billion through divestment from new companies. These developments confirm that Egypt has become attractive for foreign direct investment, especially considering the promising opportunities and advantages in the renewable energy sector.
El-Hamaki reiterated that despite the Egyptian economy's positive indicators, they have not yet translated into direct benefits for citizens. Therefore, the government must take concrete actions to ensure that these indicators positively impact the lives of the Egyptian people.
Minister of Planning, Hala El-Said, stated during the press conference that the government has sold minority stakes in three companies in the pre-offering fund, ranging from 25% to 30%, to the Abu Dhabi Development Holding Company (ADQ) at a value of $800 million.
Egypt's targeted foreign currency revenues by 2026 consist of $88 billion from commodity exports, $20 billion from tourism revenues, $45 billion from remittances of Egyptians abroad, $13 billion from foreign direct investment, $17 billion from Suez Canal revenues and maritime services, and $9 billion from outsourcing services and digital exports.
Egypt's strong economic performance and top ranking as an investment destination in Africa highlight the country's successful efforts to create an attractive business environment.
The implementation of robust infrastructure, legislative reforms, and major national projects have significantly contributed to Egypt's economic growth.
With ongoing investments and a focus on sustainable sectors like renewable energy, Egypt is poised to further enhance its economic potential, create job opportunities, and improve the quality of life for its citizens.
