Latest news with #WorldInvestmentReport
Daily News Egypt
10 hours ago
- Business
- Daily News Egypt
Egypt jumps to 9th in global FDI rankings as Africa sees rebound
Egypt's foreign direct investment (FDI) surged in 2024, making it the ninth-largest recipient globally and the main driver of a rebound in investment across Africa, according to a UN report launched in Cairo on Thursday. The World Investment Report 2025 from UN Trade and Development (UNCTAD) showed that Egypt's performance contrasted with a second consecutive annual decline in global FDI when excluding volatile financial flows. The global outlook for 2025 remains negative amid heightened investor uncertainty. FDI inflows to Africa rebounded by 75% in 2024 to $97bn, largely due to flows into Egypt. This increased the continent's share of global FDI to 6% from 4% the previous year, and its share of developing-country inflows to 11% from 6%. Egypt was identified as the primary driver of this turnaround, with a mega-project in urban development at Ras El-Hekma being a significant contributor. Globally, FDI rose 4% in 2024 to $1.5 trillion, but UNCTAD noted this headline figure was inflated by volatile flows through conduit economies. When these are excluded, global FDI registered an 11% decline. The report also found that investment in sectors related to the Sustainable Development Goals (SDGs) in developing countries fell by 25–33% across infrastructure, renewable energy, water and sanitation, and agrifood systems. Only the health sector saw growth, though from a small base. 'This year's findings call for renewed efforts to mobilize private investment for sustainable development, especially in economies facing structural constraints,' said Richard Bolwijn, Director of UNCTAD's Investment Research Branch. While Africa experienced an overall FDI rebound, the report detailed a mixed picture across the continent. Announced greenfield projects fell in both number, by 5%, and value, by 37%, in most countries. Cross-border mergers and acquisitions turned negative, resulting in net divestments of $1.5bn compared with net investments of $9.5bn in 2023. However, announced international project-finance deals in Africa increased in value by 15%, boosted by a megaproject in Egypt, even as the number of such deals dipped by 3%. In Egypt, which jumped from 32nd to 9th place among global FDI recipients, project-finance commitments doubled, supported by large-scale investments in energy and transport infrastructure. The country also defied the continent-wide decline in announced greenfield projects. The report identified North Africa, led by Egypt, as the main growth engine for FDI on the continent. The findings were presented at an event hosted by the Government of Egypt to mark the report's launch. 'In a year marked by shifting global investment patterns, Egypt's consistent presence on the investment landscape, as captured in the World Investment Report, comes as we double down on an ambitious reform agenda that places industrial production, exports, and foreign direct investment at the heart of our economic development model,' said Dr Rania Al-Mashat, Egypt's Minister of Planning, Economic Development & International Cooperation. 'Our focus remains clear: unleashing private sector potential through structural reforms that foster quality growth and resilience by driving job creation, boosting productivity and increasing value-added.' Eng Hassan Elkhatib, Minister of Investment and Foreign Trade, added: 'Egypt is writing a new investment narrative, coupling deep structural reforms and clear, predictable policies with a competitive, transparent business climate and a dynamic private sector. This vision reinforces Egypt's growing role in the regional and global investment landscape, transforming the country into a hub of opportunity and connectivity.' The report also examined policy trends, finding that the number of investment policy measures reached its second-highest level on record in 2024, at 174. Of these, 78% were favourable to investors, although many were shaped by geopolitical and industrial-policy objectives. In the digital economy, the report noted that investment is expanding rapidly but remains highly concentrated, with data centres and fintech attracting most of the flows and leaving significant regional gaps. The launch event in Cairo included a technical briefing on the report's findings and a discussion with representatives from the private sector, international organisations and academia.
Al-Ahram Weekly
10 hours ago
- Business
- Al-Ahram Weekly
Egypt ranks 9th globally among top FDI recipient countries in 2024 - Economy
Egypt ranked ninth globally in foreign direct investment (FDI) attraction in 2024, receiving $47 billion in investments, a significant leap from 32nd place in 2023, when it received $10 billion, a joint statement by the Ministries of Planning and Investment said Thursday. The announcement was made at the World Investment Report launch event, which was held by the United Nations Conference on Trade and Development (UNCTAD). This came during a press conference held at the General Authority for Investment and Free Zones (GAF) by Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat and Minister of Investment and External Trade Hassan ElKhatib. The UNCTAD report attributed the FDI jump largely to the Ras El-Hekma development project and several major deals the state inked in 2024. Egypt ranked ninth after the United States (first), Singapore, Hong Kong, China, Luxembourg, Canada, Brazil, and Australia. The report highlighted key global trends in foreign direct investment in 2024 and Egypt's position among the most attractive countries for investment, given the economic reforms implemented by the Egyptian government. It also pointed to a 75 percent increase in FDI flows to Africa, rising from $55 billion in 2023 to $97 billion in 2024. Egypt topped the list of fastest-growing and most attractive African countries for FDI, with a growth rate of 373 percent, followed by Ethiopia, Côte d'Ivoire, Mozambique, and Uganda. In her remarks, Al-Mashat highlighted that 2024 witnessed shifts in global investment patterns, with Egypt maintaining a strong presence in attracting FDI. She emphasized the government's ongoing efforts through an ambitious reform agenda, prioritizing industry, exports, and direct investment to achieve economic development. These efforts mainly focus on empowering the private sector through structural reforms promoting sustainable growth, resilience, job creation, productivity, and increased value. Minister ElKhatib also stated that Egypt's hosting of the launch of the 2025 World Investment Report reflects the country's significant progress in private sector investment, infrastructure, and digitalization. He affirmed that Egypt's vision aims to build a competitive, open, and globally integrated economy, with the private sector being the primary driver of sustainable growth. Moreover, he noted that 2024 saw transformational changes in FDI trends, including increased investor confidence and strategic partnerships. The minister pointed out that Egypt recorded its highest-ever annual increase in FDI, with the Ras El-Hekma development agreement being a major contributor to this surge. For his part, Mr. Richard Bolwijn, director of the Investment Research Branch at UNCTAD, stressed the importance of international cooperation to help developing countries overcome investment climate volatility. 'This year's findings call for renewed efforts to mobilize private investment for sustainable development, especially in economies facing structural constraints,' he stated. The 2024 World Investment Report indicated that global FDI flows declined by 11 percent, reaching $1.5 trillion in 2024 compared to $1.67 trillion in 2023. However, newly established investment projects saw a modest three percent increase, reaching 19,356 projects. Developed economies experienced a 22 percent decline in FDI, while levels remained stable in developing countries. FDI flows to the least developed countries rose by nine percent. Despite global economic challenges and geopolitical tensions, the Egyptian government plans to continue implementing economic and structural reforms to strengthen macroeconomic stability, improve the investment climate, promote the green economy, and achieve private sector-led economic growth. Follow us on: Facebook Instagram Whatsapp Short link:
Gulf Today
01-03-2025
- Business
- Gulf Today
UAE consolidating its position as strategic destination for FDI
The UAE has solidified its position as one of the world's most preferred investment destinations, successfully attracting foreign direct investments that have boosted its cumulative balance. In 2024, the UAE issued 200,000 new economic licences across various economic activities, with more than 1.1 million companies and economic institutions operating in its markets. According to data from the Ministry of Investment, the total new and announced capital inflows of foundational Foreign Direct Investment (FDI) in 2023 reached $16 billion, reflecting the UAE's status as a preferred destination for international investors. The UAE continues to attract significant foundational investments from various countries, highlighting its dynamic business environment and strategic economic initiatives that create job opportunities, drive innovation, and support sustainable growth. The country's vibrant investment landscape serves as a key driver of economic expansion and capital inflows, reinforcing its position as a leading global investment hub. Abdullah Bin Touq Al Marri, Minister of Economy, told the Emirates News Agency (WAM) that the UAE is committed to providing a competitive legislative environment for new economy sectors. Over the past six years, the country has developed and issued more than nine key economic legislations aimed at expanding businesses and projects in new economy sectors within its markets. He further noted that, over the past four years, the UAE has issued more than 30 laws, regulations, and economic policies, including new legislation for family businesses, e-commerce, cooperatives, consumer protection, commercial transactions, trademarks, copyright, and related rights. The primary sectors driving foundational investment growth in the UAE include business services, software, and IT services, which have generated numerous job opportunities and attracted substantial capital inflows. Sectors such as financial services, industrial equipment, transportation, and storage have also played a significant role in foundational investment growth, leading to a 7.5% increase in total jobs created, a 31% rise in announced projects, and a 37% surge in total announced foundational foreign direct investment inflows. Emerging sectors, including renewable energy, electric vehicles, and cloud computing, have made significant contributions to the UAE's economic growth and created major investment opportunities. The UAE's diversified economy and its business-friendly environment for sustainable growth have enabled it to maintain its position as the leading investment destination in the Arab world and the region while achieving comprehensive global development. This is reflected in the record growth of FDI inflows, which increased by 35% to reach Dhs112.6 billion in 2023, according to the 2024 World Investment Report issued by UNCTAD. According to the World Investment Report 2024 by UN Trade and Development (UNCTAD), the UAE has strengthened its position as a leading global destination for promising investment opportunities and a key player in the global economy by capturing 45.4 per cent of the total foreign direct investments (FDIs) flowing into the Arab states, amounting to Dhs248.3 billion in 2023. This is evident from the record growth in FDI inflows to the UAE, which increased by 35 percent to reach Dhs112.6 billion in 2023. The UAE topped the list of countries in attracting FDIs, thanks to its enablers, flexible policies, and competitiveness that facilitate the establishment of diverse business activities and pioneering startup projects. The country also boasts advanced investment legislation and incentives that boost FDI inflows. Amendments to the Commercial Companies Law, allowing foreign investors to establish and fully own companies, facilitated over 275,000 new companies within a year and a half, bringing the total to over 788,000 companies by the end of 2023. The UAE continues to collaborate across various government and private sectors to achieve the goals of the 'We the UAE 2031' vision, aiming to double the GDP to Dhs3 trillion and increase UAE's foreign trade to Dhs4 trillion. Notably, the UAE ranked second globally after the United States in greenfield FDI project announcements in 2023, with 1,323 new projects registered, marking a growth rate of approximately 33 percent compared to the previous year. In October 2024, Mohammed Abdul Rahman Al Hawi, Under-Secretary of the UAE Ministry of Investment, said that in 2023, key sectors driving the growth of greenfield investments in the UAE included business services and software and IT Services, which created a significant number of jobs and attracted substantial capital. Additionally, sectors such financial services, industrial equipment, and transportation and warehousing played an important role in contributing to this growth. 'These investments led to a 7.5 per cent rise in total jobs created, along with a 31 percent increase in the number of announced projects, and a 37 percent rise in announced greenfield Foreign Direct Investment (FDI) capital inflows,' he said in statements to the Emirates News Agency (WAM).
