Direct foreign investment in Egypt down 16%

According to data released by the Central Bank of Egypt, direct foreign investment in Egypt in the fiscal year 2009/10 totaled US$6.8 billion, down 16 percent from 2008/09 and 48.5 percent from 2007/08, according to the Ministry of Investment.

The Ministry said the drop was caused by the global financial crisis.

Direct foreign investment amounted to US$13.2 in the fiscal year 2007/08 before dropping to US$8.1 billion in the fiscal year 2008/09.

Minister of Investment Mahmoud Mohie Eddin said the total number of private investment companies in Egypt was 70,000 in the previous fiscal year, with capital adding up to LE655 billion.

The petroleum sector attracted the most investment in the previous fiscal year, alone accounting for 53 percent of the flow of net foreign investment.

Investment in the real estate sector reached US$305 million. Investment in new companies and existing ones totaled US$ 2.7 billion.

Sherif Sami, an economic expert, said direct investment has dropped worldwide due to the global financial crisis. He added that special attention should be given to investment in the field, which represents added value to the local economy–namely the manufacturing industry, real estate and tourism.

Sami said investors coming to Egypt face significant problems which need solving, such as difficulty acquiring land and energy, and conflicting legislation.

Translated from the Arabic Edition.

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