Egypt targets $12 bln in FDI inflows in FY2023/24: GAFI chairman

The targeted value of net FDI inflows represents a 20 percent increase on an annual basis, Heiba said.

In FY2022/2023, Egypt recorded a 10 percent year-on-year increase in FDI inflows, reaching $10 billion compared to $8.9 billion in FY2021/2022, according to previous statements by GAFI.

“These projected FDI inflows don’t include investments in the oil sector or indirect investments in debt instruments like treasury bills and bonds, as there is a noticeable surge in cash flows,” he added during an interview with Al-Arabiya.

Heiba further highlighted the challenge posed by the exchange rate fluctuations in the Egyptian market, adding that the devaluation of the Egyptian pound encourages attracting more foreign investments, as it reduces the cost of investment.

Egypt has devalued its currency three times against the US dollar since March 2022, resulting in a total loss of around 70 percent of its value.

British bank HSBC and Fitch Solutions have both predicted a further devaluation of the Egyptian pound during the first quarter of 2024. HSBC estimated the devaluation to range between EGP 40 and EGP 45, while Fitch expected it to reach EGP 38.

The government intensifies efforts to create a conducive investment climate, pressing ahead with efforts to attract more foreign investments, by implementing measures to simplify the procedures for establishing companies.