Egypt Ranks 9th Globally, First in Africa for Investment with Record $46.1 Billion FDI

Egypt has secured its position as the ninth-largest investment destination globally and the top destination in Africa, attracting a record-breaking net inflow of $46.1 billion in foreign direct investment (FDI) during the 2023/2024 fiscal year. This extraordinary achievement represents a staggering 361% increase from the previous year’s $10 billion, marking the largest foreign investment surge in the nation’s modern history.

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Speaking at the Egypt–Bahrain Business Forum, Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), highlighted the Egyptian market’s attractive features, including a large labour force exceeding 32 million people, a strategic geographical location, competitive tax rates, robust infrastructure, and trade agreements with around 70 countries, enabling access to nearly 3 billion consumers worldwide.

Record-Breaking Growth Driven by Strategic Deals

The largest surge of inflows, approximately $40.5 billion, was recorded in the second half of the fiscal year, mainly due to the execution of the Ras El Hekma agreement valued at $35 billion. This landmark deal with the United Arab Emirates has fundamentally transformed Egypt’s investment landscape and positioned the country for sustained economic growth.

The historic Ras El Hekma agreement, announced in February 2024, involves the development of a premium Mediterranean coastal area by an ADQ-led consortium. Spanning over 170 million square meters, Ras El-Hekma will be a next-generation city comprising mainly of tourism amenities, a free zone and an investment zone combining, among else, residential, commercial, and recreational spaces.

The project is expected to attract over $150 billion in total investments throughout its development phases, making it one of the largest urban development projects in the region. The Egyptian government will retain a 35% stake in the development, ensuring long-term national benefits.

Strategic Economic Positioning and Market Access

Egypt’s remarkable FDI performance stems from its unique competitive advantages that make it an attractive investment destination. With a workforce of over 32 million people, the country offers one of the largest labor markets in the Middle East and North Africa region. The nation’s strategic location at the crossroads of Africa, Asia, and Europe provides unparalleled access to global markets.

Heiba pointed to Egypt’s competitive advantages, including a workforce of over 32 million, a diversified economy, strategic location, competitive tax rates, strong infrastructure, and trade agreements granting access to nearly 3 billion consumers across 70 countries.

The country’s extensive network of trade agreements with 70 countries enables businesses to access nearly 3 billion consumers worldwide, making Egypt a strategic hub for international trade and manufacturing operations.

Suez Canal Economic Zone: A $10.2 Billion Success Story

The Suez Canal Economic Zone (SCZONE) has emerged as a major driver of Egypt’s investment attractiveness. Egypt’s General Authority for the Suez Canal Economic Zone (SCZONE) had signed contracts for 311 projects over the past 38 months, with total investments reaching $10.2 billion, Chairman Walid Gamal El-Dien said.

The zone has successfully attracted investors from more than 20 countries, reflecting international confidence in its role as a center for cooperation and sustainable development. Backed by six seaports and four fully operational industrial zones, SCZONE now targets 21 diverse sectors, including pharmaceuticals, automotive manufacturing, textiles, and renewable energy industries.

The zone’s strategic importance is underscored by its location along the Suez Canal, which facilitates 12% of global trade, handles 10% of all seaborne goods, and accommodates 26,000 vessels annually. Despite challenges from Red Sea shipping disruptions, SCZONE reported a 38 percent year-on-year increase in revenue in the fiscal year 2024/25, reaching 11.43 billion Egyptian pounds ($234 million).

Green Hydrogen: Egypt’s $64 Billion Opportunity

Egypt is positioning itself as a global leader in green hydrogen production, with SCZONE securing $64 billion in green hydrogen investments through 12 framework agreements. The 12 finalised framework agreements are projected to produce 18 million tons of green hydrogen annually.

This massive investment in green hydrogen technology aligns with Egypt’s commitment to sustainable development and positions the country as a key player in the global transition to clean energy. The projects will not only contribute to Egypt’s export targets but also support the country’s vision of becoming a regional hub for renewable energy production and export.

Ambitious Export Targets: $140 Billion by 2030

Egypt has set an ambitious target to raise export volumes to $140 billion by 2030, more than doubling current export levels. The objective is to achieve $140 billion in exports by 2030, avoid competing with domestic investment entities in the local market, uphold fair investment principles, maximise the benefits of incentive policies, focus on green transformation and environmental compliance.

To achieve this target, Egypt plans to expand its public free zones to 16 by adding four new zones by the end of 2026. The new zones will be located in 10th of Ramadan, New October, New Borg El-Arab, and New Alamein, with production directed exclusively toward exports.

Egypt’s record-breaking non-oil exports reached $40.8 billion in 2024—an unprecedented achievement in the nation’s history. However, government officials stress that this does not yet reflect Egypt’s full potential, with continued efforts underway to enhance the competitiveness of Egyptian products in global markets.

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Portfolio Investment Surge and Economic Stability

Beyond FDI, Egypt has also witnessed significant improvement in portfolio investments. Portfolio investments in Egypt also saw a significant jump, with a net inflow of $14.5 billion, compared to a net outflow of $3.8 billion the previous year, which the CBE attributed to strong foreign investor appetite driven by the improved performance of the Egyptian economy.

The country achieved a significant balance of payments surplus of $9.7 billion for FY2023/2024, largely driven by structural reforms implemented in March 2024 that bolstered investor confidence.

Sector-Specific Investment Performance

Investment in the non-oil sector saw particularly strong growth, with FDI rising to $46.4 billion, a significant leap from $11 billion the previous fiscal year. This diversification away from oil-dependent investments demonstrates Egypt’s success in attracting capital across multiple economic sectors.

The pharmaceutical, automotive, telecommunications, and renewable energy sectors have emerged as key areas of foreign investment interest. Major international corporations including BMW, Nissan, GlaxoSmithKline, and Samsung Electronics have established significant operations in Egypt, leveraging the country’s strategic location and competitive advantages.

Regional and Global Investment Sources

Figures from the Central Bank show that in the fiscal year 2023/24, FDI inflows came chiefly from the UAE (68.7%), the U.S. (5.3%), the UK (5.2%), and Italy (3.7%). This diversified source of investment demonstrates global confidence in Egypt’s economic reforms and investment climate.

The substantial UAE investment reflects the strong economic ties between the two countries and the UAE’s confidence in Egypt’s long-term growth prospects. The significant contributions from the United States, United Kingdom, and Italy indicate broad-based international interest in Egyptian market opportunities.

Investment Incentives and Business Climate Reforms

Egypt has implemented comprehensive reforms to improve its investment climate and attract foreign capital. The country offers extensive investment incentives through GAFI, including the “golden license” program that streamlines the process for major industrial and infrastructure projects.

The Investment Law (Law 72 of 2017) gave the General Authority for Investment and Free Zones (GAFI) the authority to issue “golden licenses” to create a streamlined process to set up new industrial and infrastructure projects that meet a certain set of requirements and criteria.

Recent regulatory reforms include the elimination of the 51% Egyptian ownership requirement for companies registering on the importers’ registry, allowing foreign-owned enterprises greater market access. The government has also removed foreign ownership caps in several sectors, including international and private schools.

Economic Impact and Future Outlook

The massive influx of foreign investment is already generating substantial economic benefits across Egypt. The investment projects are creating thousands of direct and indirect jobs, supporting local industries, and contributing to technology transfer and skills development.

GAFI’s strategy focuses on providing tailored services and incentives to different business sectors, supporting the Ministry of Investment and Foreign Trade’s broader economic objectives. The authority has developed an Investment Map featuring around 1,200 opportunities across various sectors and regions.

Challenges and Considerations

Despite the remarkable investment achievements, Egypt continues to face economic challenges including inflation pressures, currency stabilization needs, and infrastructure development requirements. The country’s external debt obligations remain significant, with approximately $32 billion in debt servicing requirements in 2024.

However, the massive investment inflows, coupled with ongoing IMF support and structural reforms, have provided the government with increased fiscal flexibility and improved market confidence. The flexible exchange rate adoption and monetary policy adjustments have helped stabilize the economic environment.

Regional Leadership and Global Recognition

Egypt’s achievement as Africa’s top FDI destination reinforces its position as a regional economic leader and gateway to African markets. The country’s success in attracting record investment levels during a challenging global economic environment demonstrates the effectiveness of its economic reforms and the confidence of international investors.

The ranking as the 9th largest global investment destination places Egypt among the world’s most attractive investment markets, competing with established destinations in Asia, Europe, and the Americas. This recognition is expected to attract additional investment and strengthen Egypt’s position in international investment flows.

Conclusion: A Transformative Investment Milestone

Egypt’s record-breaking $46.1 billion FDI achievement represents more than just impressive statistics—it marks a fundamental transformation in the country’s economic trajectory. The combination of strategic mega-projects like Ras El Hekma, successful industrial zones like SCZONE, ambitious export targets, and comprehensive business climate reforms has created a compelling investment proposition for global investors.

As Egypt continues to implement its Vision 2030 strategy and expand its infrastructure, industrial capacity, and market access, the country is well-positioned to maintain its momentum as Africa’s leading investment destination and a key player in global trade and manufacturing. The foundation laid by this historic investment year provides a strong platform for sustained economic growth and diversification in the years ahead.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

3rd September, 2025