Egypt Daily News – Egypt received net direct investment flows from Arab countries worth $20.9 billion during the last quarter of the last fiscal year, according to recent data issued by the Central Bank of Egypt.
Data showed that the total investments of Arab countries coming to Egypt during the last fiscal year amounted to $39.448 billion, compared to $4.3 billion at the end of the previous fiscal year.
UAE investments directed to the construction sector represent 95.3% of the total inward investments into Egypt during the last fiscal year, amounting to about $37.5 billion, compared to inward Emirati investments of about $1.7 billion in the fiscal year (2022-2023).
Banking sources said that the noticeable growth in investments from Arab countries coming to Egypt, especially from the United Arab Emirates, is an expected result after Egypt signed the Ras al-Hekma deal, with investments amounting to $35 billion.
Last February, Egypt and the UAE signed a real estate investment deal, under which the ADQ Holding Company acquired the rights to develop the “Ras El Hekma” project for $24 billion with the aim of developing the region, in addition to transferring $11 billion from Emirati deposits to the Central Bank of Egypt to be completed, using it to invest in major projects throughout the country, Egypt has already received the first and second installments of the Ras El Hekma deal, which has strengthened the country’s dollar resources.
Exceptional growth of Arab investments
The sources pointed out that the direct investments that Egypt received from Arab countries in the last fiscal year are exceptional, and they expected the flows to continue in the current fiscal year, but at lower rates than the last fiscal year.
A financial analyst at an investment bank said that the Ras El Hekma deal significantly supported foreign direct investment flows in Egypt and the country’s dollar resources in light of the decline in Suez Canal revenues and geopolitical turmoil.
He pointed out that Egypt is anticipating new direct investments from some Arab countries, in addition to its intention to accelerate the pace of government proposals, which is what drives the growth of foreign direct investments during the second half of the current fiscal year.
Saudi Arabia increased its direct investments in the Egyptian market during the fourth quarter of the last fiscal year by about $221.3 million, jumping to $585.5 million by the end of the last fiscal year 2023-2024.
Net Qatari investment flows grew by about $141.4 million during the period from March to last June, jumping to $447 million during the fiscal year (2023-2024).
Foreign investment flows
The Central Bank of Egypt revealed the growth of direct foreign investment flows in Egypt by about $22.4 billion during the fourth quarter of the last fiscal year, bringing net foreign direct investment flows to jump to $46.1 billion during the fiscal year ending in June 2024.
Net direct investment flows to Egypt in the industrial sector recorded $2.5 billion during the last fiscal year, while investments in the agricultural sector amounted to about $90.3 million. Egypt attracted investments in the service sector amounting to about $6.9 billion during the last fiscal year, according to official data.
The Egyptian government aims to attract foreign direct investments amounting to $30 billion in the fiscal year 2024-2025, which began last July, according to the general report of the Plan and Budget Committee of the House of Representatives.
