Data from greenfield investment monitor fDi Markets shows that FDI into Egypt is down in 2013. Inward investment has declined by 29% in the first six months of 2013, compared with the same period in 2012. Job creation has suffered a decline of 41% over the same period, with inward capital expenditure also down, totalling less than $600m.
Cairo has remained the most popular destination city for investment in 2013. Companies based in the Middle East have increased the number of investments made in Egypt by 100% in the first half of 2013 compared to the same period in 2012, while investors from western Europe have reduced their projects by 40%. During the first half of 2013, Saudi Arabia has surpassed the UK as the dominant source country for Egypt-destined FDI.
During the same period, Egyptian outward FDI levels have also decreased significantly. Projects have decreased by 55% and Egypt’s outward investment capital expenditure has dropped to $47.7m, a 96% reduction from the same period in 2012. Outward FDI project sectors have seen the emphasis shift from traditionally high capital expenditure industries such as chemicals and metals to areas within business services and retail.
Regions of focus have changed from Africa, which accounted for 66% of FDI originating from Egypt during the first and second quarters of 2012, to the Middle East, now accounting for 100%. During the first and second quarters of 2013, Saudi Arabia has emerged as a key destination for Egyptian FDI, accounting for 75% of projects.