Egypt Daily News – The Central Bank of Egypt has reported significant inflows of foreign investments, particularly from Arab countries, amounting to $18.55 billion during the first nine months of the fiscal year 2023/2024.
Notably, there was a substantial increase in net investments during the third quarter, which reached approximately $16.09 billion, in stark contrast to the $2.46 billion reported during the first half of the fiscal year.
The United Arab Emirates (UAE) emerged as the leading source of these investments, contributing around $15.54 billion during the third quarter. In February 2023, Egypt entered into a major investment partnership with the UAE aimed at developing the city of Ras Al-Hikma, located west of Alexandria.
This partnership is touted as the largest direct investment deal in Egyptian history, with anticipated total investments of $150 billion over the lifespan of the project.
Prime Minister Mostafa Madbouly highlighted that the Emirati will inject $35 billion in foreign direct investments within a two-month scope, with Egypt expected to receive 35% of the project profits over its duration.
Additionally, the deal entails an upfront payment that includes $11 billion in Emirati deposits at the Central Bank of Egypt, which will be converted into Egyptian pounds for investment in the project. Importantly, this arrangement will effectively remove these funds from the external debt category for Egypt, providing much-needed financial relief.
