Egypt targets $35bn foreign investment in next five years

Egypt expects foreign direct investment of $35 billion over the next five years as the government aims to boost economic growth.

The government aims to attract around $12 billion in foreign direct investment in 2023/2024, with a projected annual increase of 15 percent and 20 percent, Egypt Today reported, citing General Authority of Free Zones and Investment chairman Hossam Heiba.

Speaking at the Future Investment Initiative forum in Riyadh, he said Egypt is keen on promoting green and renewable energy projects, pointing to the nine framework agreements signed since Cop27, with investments worth $50 billion over the next 10 years.

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Cairo is focused on transforming the local automotive industry into a regional hub by attracting major manufacturers.

Five golden licences have been granted to automotive companies, with additional licences poised to be granted soon, Heiba added.

S&P Global Ratings last week lowered Egypt’s long-term sovereign credit rating to B- from B citing recurring delays in implementing monetary and structural reforms, which are worsening imbalances in the currency market.

Moody’s Investor Service has also downgraded Egypt’s credit rating to Caa1 from B3 due to high inflation and rising domestic borrowing costs.

Global index provider FTSE Russell said last month that it will add Egypt and Pakistan to the watch lists for potential demotion in its equity index suites.

The two countries will be on watch lists for demotion from “secondary emerging markets”, with Egypt moving to become an “unclassified market” and Pakistan getting “frontier market” status.