Ahmed Kamel – Egypt Daily News
Egypt has secured $9 billion in foreign direct investment (FDI) during the first half of 2025, a figure that nearly matches the total annual FDI inflows received in both 2023 and 2024 excluding the one-time Ras El Hekma deal, according to the head of Egypt’s General Authority for Investment and Free Zones (GAFI), Hossam Heiba.
In an interview with Asharq Business, Heiba noted that a significant portion of these investments came from key Gulf partners, including Saudi Arabia, the United Arab Emirates, and Qatar. He also highlighted growing interest from Chinese investors, particularly in the textile and automotive industries, as well as Turkish investors focused on textiles, engineering, and home appliance manufacturing.
Egypt’s FDI performance in 2024 was driven largely by the landmark Ras El Hekma deal with the UAE, which brought in $35 billion and pushed total FDI for the year to around $47 billion. By contrast, total FDI in 2023 stood at approximately $10 billion.
High Hopes Beyond Mega Deals
Despite the strong start to 2025, Egyptian officials acknowledge that maintaining investment momentum will require more than one-off megaprojects. The government has set an ambitious target of attracting $42 billion in FDI during the current fiscal year, which began in July 2025 and ends in June 2026.
According to Heiba, Egypt attracted around $15 billion in FDI during the fiscal year that ended in June 2025, signaling a moderate upward trend that the government hopes to accelerate.
Gulf investments remain a cornerstone of Egypt’s FDI strategy, with Cairo continuing to reassure investors through legal reforms and targeted incentives. A key instrument in this effort is the “golden license” initiative, which streamlines regulatory approvals by allowing qualified projects to obtain permits, land allocations, and operating licenses through a single governmental entity.
The golden license program is aimed at large-scale strategic projects, particularly those from Gulf countries. So far, Egypt has issued 50 such licenses, including 34 for industrial projects and five in renewable energy, according to Heiba.
Strategic Focus and Sectoral Growth
Egypt is actively promoting its industrial base as a destination for international capital, especially in sectors such as textiles, automotive manufacturing, renewable energy, and engineering. Authorities hope that diversified investments in these sectors will support job creation, strengthen local supply chains, and boost export capabilities.
The government also sees foreign investment as a critical pillar of its broader economic stabilization plan, particularly amid ongoing efforts to manage inflation, currency reform, and rising debt levels.
While challenges remain, the latest FDI figures suggest that investor confidence in Egypt is gradually recovering helped by high-profile deals, regulatory reforms, and strong interest from regional and global partners.
