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Egypt expects an increase of 20-30 percent in foreign direct investment (FDI) inflow during 2025 as it is pursuing a drive to attract capital as part of IMF reforms.
Over the past two years, FDI flow into the third largest Arab economy has ranged between $8 billion and $10 billion, minister of investment and foreign trade Hassan Al-Khateeb told a business forum in Cairo this week.
The minister said Egypt has set an “ambitious” target to attract $30 billion and GDP growth of 6-7 percent in 2030.
“The current period constitutes a real chance for Egypt to attract more capital despite global challenges that have seen a decline in capital flow,” Al-Khateeb said in his address published on the ministry’s website.
“The government is working to speed up structural reforms and implement more flexible economic policies characterised by stability and sustainability…we aim to increase FDI flow by 20-30 percent to around $12 billion this year,” he added.
Egypt’s ministry of planning, economic development and international cooperation said in August it expects a large increase in investments and that this would allow the country to attain a targeted growth of 4.5 percent.
China and Gulf states
China, the UAE and other Gulf states have emerged as the largest investors in Egypt, mainly in industry, real estate, tourism and texiles.
One of the largest FDI projects received by Egypt is the Ras Al-Hekma development which is being carried out by Abu Dhabi-based global sovereign investor ADQ. The project west of the Northern Mediterranean port of Alexandra envisages a commitment by ADQ to pump nearly $35 billion.
FDI flow into projects in Egypt stood at around $10 billion in 2023 and jumped to a record high of $46.1 billion in 2024 following the signing of that deal.
Officials said that cumulative investment in this mammoth project could exceed $110 billion by 2045 and contribute over $25 billion to Egypt’s GDP.
Chinese investors have also pumped billions into projects in textile, industry and other sectors in Egypt’s SCZONE following a series of visits by Egyptian officials to China.
A delegation from China’s textile industry visited Egypt this year as part of the Cairo government’s strategy to attract investment to its fabric and garment business, which the Arab country sees as one of the backbones of its economy.
Qatar has also emerged as a major investor in the most populous Arab country and is close to signing a $4 billion investment deal with Cairo. The deal involves converting Qatar’s $4 billion deposits in the Egyptian central bank into investments in the Ras Alam El-Rum region, located on the country’s northwestern Red Sea coast, according to Fakhry Elfeki, Chairman of the Planning and Budget Committee in the Egyptian Parliament.
The proposed deal will be implemented through a usufruct agreement and will not involve a land sale, he said last month.
(Writing by N Saaed; Editing by Anoop Menon)
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