The Egyptian government has been working on facilitating investment procedures and creating an investor-friendly environment. From May 2022 to June 2024, the government implemented 293 procedures to reform the private sector and enhance investment performance. As a result, private sector investments accounted for 37% of the total investments in fiscal year (FY) 2023/24. The Cabinet further targets boosting this share to 48% by the end of FY2024/25.

In 2023, Egypt maintained its position as the top destination for foreign direct investment (FDI) in Africa, capturing 18.3% of the continent’s total FDI inflows.

In this Factsheet, we will introduce a comprehensive analysis of investment inflows into the Egyptian economy during the first half (H1) of 2024. It will also tackle the number of newly established companies and their segmentation, and the sources of capital inflows and sectorial categorization.

• The total number of new companies in Egypt increased by 23.2% to 19,524 in H1 2024 from 15,851 in the same period a year earlier.
• The services sector had the lion’s share of new companies, with 11,173 companies, representing 57.2% of the total. The industrial sector came in second with a share of 14.8%, followed by the construction sector, which represented 13% of the total new companies.
• The number of non-Egyptian companies rose by 55% to 4,007 in H1 2024, with Sudanese companies topping the list with 1,119 companies that represent a share of 29%. Syrian andSaudi Arabian companies came in second and third with 22.3% and 8.4% shares, respectively.
• Capital inflows from new company formations jumped to $5.02 billion in H1 2024, compared to $3.3 billion in H1 2023. The increase was driven to by higher inflows into the tourism, construction, agriculture, and services sectors.
• Construction companies attracted $1.5 billion in capital inflows, acquiring 30% of total inflows. Significantly, the sector’s capital inflows were 96% higher compared to H1 2023. Meanwhile, the tourism and services sectors received $1.4 billion and $1.1 billion in capital, respectively.
• The majority of capital inflows came from Egyptian companies, contributing $3.82 billion or 76% to total inflows in H1 2024. Non-Arab foreign companies generated capital inflows of $950 million (19%), while Arab capital inflows totaled $255 million (5.1%).
• Egyptian investors mainly focus on construction, services, and tourism, while non-Arab foreign investors tend to invest in tourism, industry, and services, and Arabs invest in construction, industry, and services.
• In H1 2024, capital inflows from the UAE reached $86.75 million and represented 7.2% of total foreign inflows from new companies in Egypt. Türkiye came in second with inflows of $45.3 million, and Mauritius came in third with inflows of $37.5 million.

By: Amina Hussein

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