The investment climate in Egypt has witnessed major legislative and institutional reforms, with a tangible impact on both the level of domestic investments, as well as inflows of foreign direct investment (FDI). The Egyptian economy has also been receiving historically unprecedented levels of FDI inflows, which increased from US$2 billion in 2004 to US$13.2 billion in 2008; and in 2009 alone, FDI reached US$8.1 billion. As a result, confidence in the Egyptian economy has been strengthened by the key role played by the Egyptian government, in terms of improving the outlook for Egyptian, Arab and foreign investments, as well as instigating and sustaining high levels of growth and employment opportunities.
Investors have responded positively to this business environment in Egypt, with close to half of companies operating under the umbrella of the governing investment legislations that have been established during the last four year-period. A positive response to streamlining investment procedures has been reflected in the increase in the number of newly established companies as well as expansions undertaken by companies already in operation.
On the non-bank financial services front, we have introduced mortgage finance to the Egyptian economy, implemented major reforms in the capital market and restructured the insurance sector. These regulatory reform measures have been initiated to allow the non-bank financial services sector to accommodate new products as well as position Egypt as the regional centre for financial services. As a result, the Nile Stock Exchange (NILEX) was established to be the first medium and small cap market in the MENA region; the Egyptian Financial Supervisory Authority (EFSA) was created; and an Auditors Oversight Board was set up.
The Asset Management Program has become a much broader version of the traditional privatization program. The Ministry of Investment has been responsible for supervising the implementation of restructuring programs for all SOEs, improving their corporate governance, and overseeing and managing the transformation of ownership to the private sector in cases of privatization.
With an array of investment opportunities, Egypt’s Ministry of Investment is currently supervising a number of 46 projects in sectors such as infrastructure and public utilities in different governorates throughout the country, at a total cost of US$ 16 billion. The projects range over various fields including roads, railways, ports, sewage plants, water plants, integrated development projects of the Upper-Egypt Red Sea Road, the Special economic zones in the North of West Suez Gulf, developing technological industries, integrated civil and commercial centres throughout Egypt, developing tourism and introducing new medical cities. This comprehensive Public Private Partnership Scheme aims at enhancing the quality of services available in the country.