Egypt’s net foreign direct investments (FDI) fell 21.5 percent in the financial year ending 30 June 2016 to stand at $992.9 million.
According to the central bank’s latest bulletin, Egypt’s FDI retreated by around $272.1 million since standing at $1.265 billion a year earlier.
While investment inflows dropped to $2.876 billion approximately by end of June 2016, outflows recorded $1.883 billion, the central bank added citing the falling investments as among key factors to Egypt’s dollar shortage.
U.S. investments tumbled to around $207.2 million by end of June 2016, compared to $377 million in the same period a year earlier. European Union investments also edged down by 13.6 percent to $1.988 billion at June-end 2016, from $2.302 billion at September-end 2015, and $2 billion at June-end 2015.
Money from Arab countries registered the biggest decline by end of June 2016, falling by 44.7 percent to stand at $425.2 million, from $769.6 million by the end of September 2015 and $470.8 million by the end of June 2015.
UAE investments to Egypt decreased to $190.6 million at June-end 2016 versus $591.3 million by the end of September 2015.
Foreign direct investments are one of Egypt’s primary sources of foreign currency, along with Suez Canal revenues and the tourism industry.