Egypt witnessed robust foreign direct investment (FDI) inflows in 2016, boosted by the hydrocarbon sector, a recent report issued by the United Nations Conference on Trade and Development (UNCTAD) found.
“Robust foreign direct investment inflows into Egypt drove a hike in inflows in North Africa. FDIs in Egypt rose 17% in 2016, to $8.1bn, topping inflows in the region,” the report said.
According to the report, this influx of FDIs came on the back of major hydrocarbon discoveries and investments in the oil and gas sectors, including Shell’s Western Desert concession. In contrast, FDIs in Morocco, the second most attractive destination for investors in 2016, fell 29%, to $2.3bn.
Egypt was one of the few nations that beat the downslide of FDIs continent-wide in 2016, with investments falling 3% to $59bn.
On the regulatory side, the report took note of the passing of the Investment Act in 2017, which should incentivise investments, and the formation of the Supreme Investment Council.
“Egypt established the Supreme Council for Investment, which will overlook the state’s investment policies with a view of further improving the investment climate and facilitating investment. Moreover, in 2017, the country’s parliament adopted a revised investment law providing, inter alia, for a one-stop shop and several investment incentives,” the report said.
Egypt saw a net FDI inflow of $6.6bn in the first three quarters of fiscal year (FY) 2016-17, mostly directed into the oil sector.
(Source: Daily News Egypt)