Partner, Ahmed Mamdouh & Co. Kreston Egypt
Mohamed Mamdouh is the Director at Ahmed Mamdouh & Co. Kreston Egypt. He is also a committee member of Kreston Global Middle East.
Egypt’s Foreign Direct Investment outlook for 2024
February 9, 2024
After an impressive bounce-back period of recovery post-Covid, Egypt’s Foreign Direct Investment outlook for 2024 again looks promising. Recently, Mohammed Mamdouh of Kreston Egypt shared his thoughts on the 2024 market with Wealth Briefing, examining the developments in Egypt’s investment climate. Read the full article in Wealth Briefing, or a summary below.
Egypt’s FDI market overview
Growth in Egypt’s Foreign Direct Investment
In 2022, Egypt saw a significant increase in FDI, with figures doubling to exceed $11 billion. This growth stems from a combination of a $3 billion International Monetary Fund loan and governmental regulatory reforms. These steps have marked a shift towards economic openness, facilitating a rise in foreign investment.
Egypt’s strategic location and demographic profile offer distinct advantages for FDI. Its position as a nexus for Asia, Africa, and Europe enhances its role in global trade, while its young population provides a substantial workforce.
Efforts to modernise investment laws since 2017 have improved Egypt’s business environment. Reforms include a new investment law that simplifies processes, tax holidays, and guarantees for investors, alongside updates to company, bankruptcy, and customs laws, aimed at increasing efficiency and fairness for foreign businesses.
Policy changes are aligning with new investment potentials in sectors such as financial services, renewable energy, and technology. The government’s ongoing regulatory updates support expansion in these fields, presenting opportunities for investors.
The role of local expertise
For entities looking to enter the Egyptian market, the engagement of local expertise is essential. Understanding the regulatory landscape and adapting to local business practices are crucial for successful entry and avoiding costly operational mistakes.
Egypt’s strategic initiatives and regulatory reforms are creating a conducive environment for FDI. As the country continues to adjust its economic policies, it presents a viable option for foreign investors.