The Egyptian government continues to make progress on economic reforms, and while many challenges remain, Egypt’s investment climate is improving.  Thanks in part to the macroeconomic reforms it completed as part of a three-year, $12-billion International Monetary Fund (IMF) program from 2016 to 2019, Egypt was one of the fastest-growing emerging markets prior to the COVID-19 outbreak.  Egypt was also the only economy in the Middle East and North Africa to record positive economic growth in 2020, despite the COVID-19 pandemic and thanks in part to IMF assistance totaling $8 billion. Increased investor confidence and high real interest rates have attracted foreign portfolio investment and increased foreign reserves.  In 2021, the Government of Egypt (GoE) announced plans to launch a second round of economic reforms aimed at increasing the role of the private sector in the economy, addressing long-standing customs and trade policy challenges, modernizing its industrial base, and increasing exports. The GoE increasingly understands that attracting foreign direct investment (FDI) is key to addressing many of its economic challenges and has stated its intention to create a more conducive environment for FDI.  FDI inflows grew 11 percent between 2018 and 2019, from $8.1 to $9 billion, before falling 39 percent to $5.5 billion in 2020 amid sharp global declines in FDI due to the pandemic, according to data from the Central Bank of Egypt and the United Nations Commission on Trade and Development (UNCTAD). UNCTAD ranked Egypt as the top FDI destination in Africa between 2016 and 2020.

Egypt has passed several regulatory reform laws, including a new investment law in 2017; a “new company” law and a bankruptcy law in 2018; and a new customs law in 2020.  These laws aim to improve Egypt’s investment and business climate and help the economy realize its full potential.  The 2017 Investment Law is designed to attract new investment and provides a framework for the government to offer investors more incentives, consolidate investment-related rules, and streamline procedures.  The 2020 Customs Law is likewise meant to streamline aspects of import and export procedures, including through a single-window system, electronic payments, and expedited clearances for authorized companies.

Egypt will host the United Nations Climate Change Conference, COP 27, in November 2022. Recognizing the immense challenges the country faces from the impacts of climate change, government officials announced that the Cabinet will appropriate 30 percent of government investments in the 2022/2023 budget to green investments, up from 15 percent in the current fiscal year 2021/2022, and that by 2030 all new public sector investment spending would be green. The GoE accelerated plans to generate 42 percent of its electricity from renewable sources by five years, from 2035 to 2030, and is prioritizing investments in solar and wind power, green hydrogen, water desalination, sustainable transportation, electric vehicles, smart cities and grids, and sustainable construction materials. The government continues to seek investment in several mega projects, including the construction of smart cities, and to promote mineral extraction opportunities.  Egypt intends to capitalize on its location bridging the Middle East, Africa, and Europe to become a regional trade and investment gateway and energy hub and hopes to attract information and communications technology (ICT) sector investments for its digital transformation program.

Egypt is a party to more than 100 bilateral investment treaties, including with the United States.  It is a member of the World Trade Organization (WTO), the African Continental Free Trade Agreement (AfCFTA), and the Greater Arab Free Trade Area (GAFTA).  In many sectors, there is no legal difference between foreign and domestic investors. Special requirements exist for foreign investment in certain sectors, such as upstream oil and gas as well as real estate, where joint ventures are required.

November 29   China Glass Holdings Co., Ltd. broke ground for a 2.23-billion-yuan (310 million U.S. dollars) plant in northeastern Egypt to boost the production of glass products in the North African country. 

November 17  Egypt launched the production line of the Chinese-made Exeed cars at the Egyptian-German Automotive's factory in the Sixth of October City, according to a statement by the Ministry of Industry and Transport. The introduction of the Exeed vehicle aligns with President El-Sisi’s directives to transform Egypt into a leading industrial hub, particularly in the automotive industry.

November 16   The Nasr Automotive Company manufactured its first electric bus in cooperation with Yutong, a leading Chinese company in the manufacture of buses and vehicles. This cooperation comes within the framework of environmental protection, and the plan to develop new clean energy buses.

November 8   The number of inbound tourists to Egypt is expected to reach 15.3 million by the end of this year, an increase of 5% over last year, said Egyptian Minister of Tourism. The minister also expects the country to receive economy flights from China and Scandinavia. 

November 4   Fitch Ratings has upgraded Egypt's credit rating to B from B- with a stable outlook, marking the first positive change since 2019. This upgrade reflects Egypt's reduced external risk, policy adjustments, increased foreign capital inflows, and a more flexible exchange rate. 

October 30     Egypt ranked second among African countries with the most improved infrastructure in 2023, according to Mo Ibrahim Foundation’s 2024 African Governance Index Report issued in October. Egypt came second after Morocco, followed by Mauritius and Algeria. 

October 28       Egypt aims to double investment rates in the upcoming phase and looks to create a conducive environment for the private sector to lead economic growth, aiming for its contribution to the national economy to reach 75 % by 2030.

October 28       Deputy Prime Minister for Industrial Development, Minister of Industry and Transport witnessed the signing of an agreement between China’s BAIC and Alkan Auto, a subsidiary of the Egyptian International Motors, to establish an electric vehicle factory in Egypt.

October 18       S&P Global Ratings affirmed its 'B-/B' long- and short-term foreign and local currency sovereign credit ratings on Egypt, with a positive outlook.

October 11       The General Authority for Investment and Free Zones is planning to launch five private free zones in Greater Cairo within the coming days, an official said. The launch of the free zones comes in response to the high demand for free zones from investors, the official highlighted.

September 26, Egypt aims to achieve foreign direct investments exceeding $20 billion and an export volume of more than $140 billion by 2030. The Prime Minister emphasized that the government is fully committed to enhancing Egypt’s investment environment, creating opportunities for global firms to contribute to the country’s growth.  

September 10, Egypt's new tax incentives focus on simplifying tax processes for small enterprises, startups, and freelancers, with measures such as penalty-free tax return submissions for 2021-2023 and capped late payment penalties. A centralized settlement system for investors and a tiered penalty structure based on business size will be introduced, alongside a simplified VAT refund process and expanded tax audits.

September 10, Egypt's Central Agency for Public Mobilization and Statistics (CAPMAS) said that the annual urban inflation increased for the first time in five months, reaching 26.2% in August 2024, compared to 25.7% in July. Monthly inflation also climbed to 2.1% in August, up from 0.4% in July.

September 4, Fitch Solutions predicts that Egypt will maintain a steady economic growth of 4.2% in the current fiscal year, attributing it to increased investment, a rebound in the manufacturing sector, and the expected resolution of the Gaza conflict by late 2024.

August 21, 2,066 Chinese companies are currently operational, collectively investing $8 billion, as per a disclosure made by Rasha Abdel Aal, the head of the Egyptian Tax Authority.

August 08, Egypt's “economic complexity” and potential makes it one of Africa's most attractive investment destinations, according to a new report by African corporate and investment bank Rand Merchant Bank. With an overall score of 0.49, Egypt was ranked the 3rd most attractive investment destination in Africa, following top destination Seychelles with 0.72 and Mauritius with 0.69 at 2nd place.   

August 08, In a recent cabinet meeting, Minister of Investment and Foreign Trade shared that Egypt expects its gross domestic product (GDP) to grow by 4.2 percent during the current fiscal year (FY2024/2025). The investment minister also disclosed that they anticipate a growth rate of 5.5 percent in the coming FY, with projections at 6.5 percent by 2030.

August 5, A $183 billion seaside mega city, New Alamein in Egypt, is touted to become the crown jewel of the Mediterranean, luring tourists away from traditional European vacation destinations such as Greece, Italy, and Spain.  

August 5, Egypt is considering allocating 43 plots of land for new industrial zones. This initiative aligns with the state's strategy to achieve development by establishing new industrial cities to support national industry and enhance job opportunities for young people in various sectors, such as food, construction, health, and transportation. 

July 28     To bolster the tourism sector, the government recently gave the go-ahead to a new LE 50 billion initiative for building and operating new hotel rooms, including expansions of existing projects or converting closed buildings into hotel facilities.

July 28     The Egyptian market is witnessing remarkable growth in the number of electric cars, with many Chinese-made EVs traveling on Egyptian roads. The number of electric cars grew from the beginning of July 2021 until the end of June 2024, bringing the total number of licensed electric vehicles to 7,213, with BYD as the second most-selling vehicle, according to the data.

July 24     In a recent Reuters poll, several economists predicted Egypt's economic growth to land at 4% during the current fiscal year (FY2024/2025), within a similar range of other forecasts from the IMF, Egypt's government, and the World Bank. 

July 14    Egypt has signed three memorandums of understanding (MoUs) with the Chinese National Development and Reform Commission (NDRC) and the China International Development Cooperation Agency (CIDCA) to strengthen Egyptian-Chinese relations, the Ministry of Planning, Economic Development, and International Cooperation announced.

June 24     The World Bank has approved a $700m Development Policy Financing package for Egypt, aimed at fostering sustainable growth, increasing private sector involvement, and bolstering the country’s economic resilience.

June 22     Egypt’s foreign trade volume for the first half of the fiscal year 2023/2024 reached approximately $51.555bn. Imports accounted for around $35.106bn. China held the fourth position, with a trade volume of $3.312bn, including $2.980bn in imports and $321.9m in exports.

June 11     Egypt’s inflation rate dropped below 30% in May for the first time in 15 months, slowing at a faster rate than most had predicted. Urban consumer price inflation was 28.1% year on year for May, a drop from 32.5 % in April, the Central Agency for Public Mobilisation and Statistics announced. 

June 11     Egypt’s economy is expected to expand to 4.2 % in 2024 and 4.6 % in 2025-2026, according to the latest World Bank Global Economic Prospects report. However, the report expects growth in Egypt to slow in 2023-2024 (July 2023 to June 2024) to 2.8 % due to the impact of regional tensions on shipping through the Suez Canal and the tourism sector.

May 29      The Central Agency for Public Mobilization and Statistics (CAPMAS) has revealed that the trade exchange between Egypt and China amounted to $13.9bn in 2023, compared to $16.6bn in 2022. Egyptian imports from China totalled $12.9bn, compared to $14.8bn in 2022. The key commodities imported by Egypt from China in 2023 were machinery and electrical appliances worth $4.3bn; iron and steel worth $1.2bn; synthetic textile fibres worth $1.1bn; organic chemical products worth $790m; and plastics and their products worth $773m.

May 28      The total number of foreign nationals who received work permits in Egypt’s private and investment sectors reached 17,357 in 2023, compared to 13,331 in 2022. CAPMAS revealed that 7,973 foreigners were issued work permits for the first time in 2023, accounting for 45.9% of the total. Additionally, 9,384 foreigners had their contracts renewed, making up 54.1% of the workforce.

May 26     Egypt is expected to experience a significant increase in its foreign currency reserves during the fiscal year 2024/2025, with a surge of $16.20 billion. A report by U.S. multinational finance firm JPMorgan predicts further rise of $2.60 billion in the following fiscal year, 2025/2026. 

May 22     Egypt has trimmed its economic growth expectations to between 2.8% and 2.9% for the current fiscal year ending in June, from previous expectations of 3%, Planning and economic Development Minister told. 

May 13     The government is eyeing expansion initiatives for 13 key tourist airports across the country to accommodate the anticipated surge in hotel rooms. In 2023, Egypt received a record-breaking number of tourists, reaching 14.906 million people in 2023, which surpassed a previous record of 14.731 million tourists in 2010.

April 24      Egypt approved establishing a special free zone and international touristic port in the Ras al-Hikma peninsula, west of Alexandria. Egypt in February signed a $35 billion investment partnership agreement with the United Arab Emirates to develop the peninsula, in one of the biggest deals of its kind.

April 21      Saudi Arabia's Waja Company has sealed a framework cooperation agreement with the Arab Organization for Industrialization (AOI) to establish a joint venture (JV) for manufacturing electric vehicles (EVs) in Egypt, as per a disclosure to the Saudi Exchange (Tadawul).

April 22      Egypt is targeting a 4.20% economic growth rate in the fiscal year (FY) 2024/2025, said the Minister of Planning and Economic Development. The Egyptian government revised down growth prediction for FY 2023/2024 from 4% to between 2.90% and 3%. 

April 9       Egypt registered a 6.10% increase in tourism revenues to $7.80 billion in the first six months (6M) of the fiscal year (FY) 2023/2024. The recorded amount is compared to$7.30 billion a year earlier, according to official data.

April 8       Egypt’s annual urban consumer price inflation rate slowed to a lower-than-expected 33.3% in March from 35.7% in February. Month-on-month, prices rose by 1.0% in March, down from 11.4% in February. 

April 8       Starting from May 2024, the minimum wage will be set at EGP6,000 ($126). This decision demonstrates Egypt’s dedication to safeguarding workers’ interests, particularly in light of recent economic developments both domestically and internationally. 

March 25     The Suez Canal Economic Zone (SCZONE) has recently announced securing contracts for 127 projects within just nine months, totaling an impressive investment of approximately $2.8 billion. This surge in investments underscores the region’s growing appeal as a prime destination for industrial development and investment.

March 13    A recent report by the Central Agency for Public Mobilization and Statistics revealed that the trade deficit in Egypt reached $3.03 billion in December 2023, a notable increase from $2.57 billion in December 2022. This increase underscores the challenges Egypt’s trade sector is facing as it navigates through economic fluctuations and global market dynamics.

March 13    Egyptian and Chinese officials have engaged in further discussions about setting up a Chinese industrial zone along the Mediterranean Sea, according to a local news report. The plan involves an industrial zone to serve the local market and facilitate exports to Europe and America. 

March 7     Egypt floated its currency and announced a deal with the International Monetary Fund to increase its bailout loan from $3 billion to $8 billion, moving to shore up an economy hit by a staggering shortage of foreign currency and soaring inflation.