We are delighted to bring pivotal insights into the burgeoning landscape of direct foreign investment in Egypt. Over the past decade, the Egyptian government has embarked upon bold economic reforms, notably through monetary policies that led to the liberalization of the exchange rate. These reforms have stimulated an influx of foreign capital investments, surpassing $30 billion since the exchange rate liberation. According to the Central Agency for Public Mobilization and Statistics, the net value of direct foreign investments in Egypt reached $66.7 billion over the last ten years, underscoring the financial appeal for foreign investors in Egyptian markets.

Egypt's steadfast economic reforms have yielded compelling results, showcasing a notable surge in net foreign direct investment. In 2022, direct foreign investment soared to $8.9 billion compared to $5.2 billion in 2021, while the first quarter of the current year witnessed an increase in net foreign direct investment flows to Egypt, reaching approximately $3.3 billion. This accomplishment positioned Egypt at the forefront of North African countries in terms of foreign investment inflows and ranked as the leading Arab nation in foreign investment growth.

The decisions of monetary reform contributed to achieving a surplus in the balance of payments, supported by an increase in tourism revenues, the proceeds from non-petroleum and petroleum exports, in addition to the rising revenues of the Suez Canal. There was also an escalation in the foreign direct investment in Egypt, reflecting in the highest historical rates of international reserves in December 2018, totaling $45.55 billion. However, it relinquished these levels due to global influences, declining to $33.53 billion by November 2022, subsequently, starting to recover by August 2023 to $34.9 billion.

The Central Agency for Public Mobilization and Statistics (CAPMAS) in Egypt clarified in a statement that the net foreign direct investment amounted to $5.7 billion during the first half of the fiscal year 2022/2023, compared to $3.3 billion during the same period in the fiscal year 2021/2022, indicating an increase of $2.4 billion. It highlighted that Saudi Arabia topped the list of the top ten investing countries in Egypt during the first half of the fiscal year 2022/2023, with investments totaling $2.1 billion, followed by the UAE at $1.5 billion, Italy at $1.2 billion, the United Kingdom at $1.2 billion, the United States at $1 billion, Luxembourg at $705.7 million, the Netherlands at $641.4 million, China at $418.6 million, Switzerland at $388.6 million, and finally Kuwait at $282.2 million, as per the official Middle East News Agency in Egypt.

In parallel with the impressive surge in direct foreign investment, Egypt has witnessed accelerated inflation rates that have exceeded earlier forecasts. However, the government's steadfast commitment to economic stability and ongoing reforms has significantly mitigated these challenges. From a peak of 21.6% in 2017/2018 following the exchange rate liberalization, inflation rates gradually decreased to 6.4% and 7% in the subsequent years of 2019/2020 and 2020/2021, respectively. Although affected by global and local factors such as the Russo-Ukrainian war, inflation surged again. Nevertheless, projections indicate a return to stability by 2024, aiming for rates below 20%.

  • RPLF's Role in Supporting Foreign Investors:

Ragy & Partners Law Firm – Attorneys & Counselors at Law LLP (RPLF) plays a crucial role in facilitating and safeguarding foreign investments in Egypt. Our expert legal team specializes in navigating the complexities of the Egyptian investment climate, ensuring that our clients fully leverage the legal protections and incentives provided under Investment Law No. 72 of 2017 and its executive regulations.

At RPLF, our steadfast commitment to delivering tailored legal counsel and comprehensive support has played a pivotal role in the success of numerous ventures and the establishment of significant foreign investments in Egypt.

With a deep understanding of local laws and regulatory frameworks, RPLF acts as a strategic ally to investors, offering comprehensive legal assistance from the inception of investment strategies to ensure successful continual adherence to business operations.

Prepared by/


RPLF Team



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