CBE: Foreign Direct Investment in Egypt Surges by 8.22%, Reaching EGP 7.9 Bn At 9M-22/23

The Central Bank of Egypt released a report revealing a significant increase in net foreign direct investment in Egypt, rising by 8.22% to reach $7.9 bn during the period of July/March in the fiscal year 2022/2023. This marks a notable improvement compared to $7.3 bn recorded during the same period in the fiscal year 2022/2021.

Non-petroleum sectors experienced a robust influx of foreign direct investments, totaling $8.9 bn during the first 9 months of the fiscal year 2023/2022. In contrast, the same period of the previous fiscal year saw around $900 mn in investments.

CBE attributed this growth to increased net investments in establishing new companies or increasing the capital of existing companies, amounting to $801.7 mn. Out of this, $3.2 bn was directed to the establishment of new companies, with $1.879 bn specifically targeted for this purpose.

Furthermore, Net profits also witnessed an upswing, reaching $4.2 bn during the first 9 months of the fiscal year 2023/2022. This compares to $3.7 bn recorded during the same period in the fiscal year 2022/2021.

On the other hand, Net revenues from the sale of companies and productive assets by non-residents declined to about $100 mn during the period of July/March 2023/2022, as opposed to around $2.3 bn during the same period in 2022/2021.

Similarly, net investments by non-residents in real estate also decreased, totaling $477 mn during the first 9 months of the fiscal year 2023/2022, compared to $643.5 mn during the same period in the fiscal year 2022/2021.

In another report, CBE announced a total surplus in the balance of payments, amounting to $281.9 mn during the period from July to March 2022/2023.

The Egyptian economy's transactions with the external world during the period of July/March in the fiscal year 2022/2023 exhibited a notable improvement, with the current account deficit reduced significantly by 61.2% to approximately EGP 5.3 bn.

CBE's report further indicated that the capital and financial transactions account achieved a net inflow of around $8.1 bn.

This surge in foreign direct investment indicates growing confidence in Egypt's economic prospects and may potentially fuel further economic growth in the country.