Egypt economy: FDI hits $23.7b net inflow in 1st 9m of FY 23-24

Egypt’s Foreign Direct Investments (FDI) in the first nine months of the fiscal year 2023/24 registered a net inflow of $ 23.7 billion against $ 7.9 billion in the same period last year.

FDI inflows in the non-oil sector

The FDI in the non-oil sectors rose to a net inflow of $ 23.9 billion compared to $8.9 billion in the same period last year, according to the Central Bank of Egypt (CBE) July/March 2023/24 External Position of the Egyptian Economy report published on Tuesday.

The report attributes this growth to the implementation of the Ras El Hekma agreement which resulted in a total of $15.0 billion in inflows from January to March 2024, comprising $10.0 billion in cash inflows and the conversion of $5.0 billion of UAE deposits at the CBE into FDI.

FDI inflows/outflows in the oil sector

FDI inflows in the oil sector increased to $4.4 billion, up from $4.2 billion, reflecting greenfield investments by foreign oil companies. At the same time, outflows, which represent cost recovery for development, exploration, and operations incurred by foreign partners, decreased to $4.6 billion from $5.1 billion. As a result, net outflows improved during the review period, totalling $175.6 million compared to $925.0 million previously.

Attribution: CBE External Position of the Egyptian Economy Report

Subediting: M. S. Salama