Faced with the effects of global crises, the Egyptian government continues to provide unprecedented incentives to increase foreign investment participation in the local economy.
According to the UNCTAD report "Global Investment for 2022," foreign investment recovered last year, with assets totaling 1.6 trillion dollars, up from 1.5 trillion dollars in 2019, but this is unlikely to continue in 2022, especially since the global economy is expected to grow at a slower pace. The industrialized countries benefit the most, with investment increasing 134% from 2020 while developing countries benefit only 30%.
In Egypt, the Central Bank reported 5.1 billion dollars in net foreign direct investment in 2021, down from 5.9 billion in 2020, a 12.5 percent decrease. In light of these developments, the government is "preparing new steps to bring the contribution of foreign investment to 50 percent of GDP within three years," in addition to the "state ownership policy" document that came to strike a balance between the participation of the public and private sectors. The coming period will see the introduction of state-owned companies on The Stock Exchange and the beginning of granting the "golden license" for new projects.
Furthermore, the indicators of economic performance over the last nine months were encouraging, with the total deficit falling to 4.9 percent while maintaining a primary surplus and increasing government investments, including the allocation of 80 billion pounds to the presidential initiative for the development of Egypt's countryside, "A decent life."
Concerning the steps Egypt should take to overcome the global crisis, stimulating local factories and providing them with the impetus to overcome obstacles stand out.
Promoting national projects to foreign investors and attempting to attract more foreign currency by listing companies on the stock exchange or through strategic investors are among the top priorities.
Despite the Corona pandemic, Egypt remained at the forefront of African countries receiving foreign direct investment in 2020 and 2021, with a rate of 35%, according to the Egyptian Ministry of Planning.
Share This Post On
0 comments
Leave a comment
You need to login to leave a comment. Log-in
