The Cabinet’s Information and Decision Support Centre (IDSC) highlighted a recent report by Fitch Ratings titled “Egypt’s Investment Openness Analysis,” underscoring the country’s strong potential to attract foreign direct investment (FDI) and sustain expanding inflows across a broad range of sectors.
According to the report, Egypt ranks third among 18 markets in the Middle East and North Africa (MENA) region and 27th globally out of 202 markets in terms of investment openness. Key sectors drawing FDI include oil and gas, automotive manufacturing, information and communications technology (ICT), food processing, renewable energy, infrastructure, and financial services.
Fitch attributes Egypt’s rising FDI inflows to several key factors, including robust economic growth, a strategic geographic location, competitive labour costs, skilled workforce, distinctive tourism assets, substantial energy reserves, and a large domestic market.
The report also underscores the importance of the regional context, noting that Egypt has benefited from capital inflows from Gulf markets. It adds that, in line with recommendations of the International Monetary Fund, maintaining a more flexible exchange rate is expected to attract significant FDI in the short to medium term, supporting sustained foreign currency inflows.
Egypt has set realistic FDI targets through 2030, aiming to attract approximately $60 billion in inflows between 2026 and 2030. By comparison, the entire African continent typically attracts less than $60 billion annually. Excluding exceptional mega-projects, Egypt generally secures between $9 billion and $11 billion per year, suggesting that the target is achievable.
Fitch also highlighted China’s plans to invest in Egypt under the Belt and Road Initiative, alongside growing interest from Gulf investors. China intends to invest around $400 billion in more than 600 projects across 57 member states of the Organisation of Islamic Co-operation by 2030, with Egypt among the key participating economies. Planned projects include the development of an economic zone in the Suez Canal area, as well as investments in maritime and land transport infrastructure.
Egypt is also leveraging its coastal areas to attract FDI in construction and tourism, particularly along the North Coast, which is rapidly emerging as a prime destination for Gulf investors. With the real estate sector contributing around 20% of GDP, maintaining a competitive investment environment remains essential.
Fitch further highlighted Egypt’s leading FDI stock in North Africa, ranking third in the MENA region after Saudi Arabia and the UAE.
