Foreign Direct Investment increases by 75.41%,records $5.7 bn during H1-2022/2023

The Central Bank of Egypt revealed, In a report issued today, that the net inflow of foreign direct investment in Egypt reached $5.7 bn during the first half of the fiscal year 2022/23, compared to $3.3 bn during the same period of the previous year.

Foreign direct investments in non-oil sectors rose to record a net inflow of about $6.6 bn, compared to $4.4 bn.

As a result of the increase in net investments received to establish new companies or increase the capital of existing companies, to record $2.2 bn during the first half of the current fiscal year, compared to $1 bn during the same period of the previous year.

Also due to the increase in the proceeds of selling companies and productive assets to non-residents, to record about $1.1 bn during the first half of the fiscal year 2022/23, compared to $340.8 mn during the same period of the previous year.

Net retained eaarnings increased, to record about $3 bn during the period from July to December 2022, compared to $2.6 bn during the same period of 2021.

Whereas, foreign direct investments in the petroleum industry witnessed a decline in net outflow by $277.9 mn, to be limited to $857.5 mn.

This comes as a result of the increase in the total inflow, which represents new investments for foreign oil companies, to record about $2.6 bn during the first 6 months of the current fiscal year, compared to $2.2 bn during the same period of the previous year.

Transfers abroad (which represent the recovery of costs incurred by foreign partners during previous periods in research, development and operation) increased by $16.6 mn, to record $3.5 bn during the first half of the current fiscal year.

Moreover, CBE indicated that the trade deficit decreased by 28.4%, with a value of $6.2 bn, to be limited to about $15.5 bn during the first 6 months of the current fiscal year, compared to $21.7 bn during the same period of the last fiscal year.

service balance surplus doubled, jumping by 92.62%, to record $10.868 bn during the first half of the fiscal year 2022/2023, compared to $5.642 bn during the same period of the fiscal year 2021/2022, an increase of $5.226 bn.

Capital and financial transactions account also achieved a net inflow of about $2.8 bn during the July/December 2022 period, compared to about $11.4 bn during the same period of the previous year.

As a result, Balance Of Payments achieved a surplus of $599.1 mn during the first half of the fiscal year 2022/2023, compared to a deficit of $14.1 mn during the same period of the previous fiscal year.