Egypt’s net foreign direct investments (FDI) rose by 54.6 percent in the fiscal year ending 30 June 2015 to stand at $6.37 billion, their highest since the 2011 revolution.
According to the central bank’s September bulletin, Egypt’s FDI rose by $2.25 billion since standing at $4.12 billion a year earlier.
The huge increase follows fiscal and legislative reforms introduced by Egypt since the start of 2014/15, and comes during the country’s first period of sustained political stability since the 2011 revolution.
Money from Arab countries made up most of the investment inflows, increasing 51.6 percent to $2.67 billion from $1.3 billion the year before.
European Union investments rose 3.5 percent to $6.9 billion from $6.6 billion.
Saudi Arabia, the United Arab Emirates and Kuwait have showered Egypt with over $30 billion in aid and grants since Muslim Brotherhood member Morsi was ousted. Gulf states have also pledged increased investment in Egypt.
Egypt’s net foreign direct investments dropped 34 percent in the fourth quarter of the fiscal year ending 30 June to register $690 million compared to $1.045 billion in the same period a year earlier,
The net FDI for the fiscal year 2014/15 remains well below the $13.2 billion garnered in 2007/08 prior to the 2008 financial crisis.
Foreign direct investments are one of Egypt’s primary sources of foreign currency, along with Suez Canal revenues and the tourism industry.
The country’s net foreign reserves dropped for the third consecutive month in September to stand at $16.3 billion.
In September, investment minister Ashraf Salman said the country needs $10 billion in FDI along with LE400 billion ($51.1 billion) in domestic investments to grow at 5 percent.
Egypt is targeting a 5 percent growth rate for the fiscal year 2015/16, up from the estimated 4.2 percent for 2014/15.
Source: Ahram Online
