
Egypt’s momentum reflects the effectiveness of regulatory and strategic reforms intended to draw international capital. GAFI's chief executive outlined several of the country's competitive strengths: a vast workforce exceeding 32 million people, its strategic geopolitical location, favourable tax regime, robust infrastructure, and access to nearly 3 billion consumers across about 70 trade-partner nations.
At the Egypt–Bahrain Business Forum held in Cairo, same GAFI chief invited Bahraini business interests to explore the Egyptian market through the Investment Map, which lists around 1,200 opportunities, as well as via visits to free and investment zones. The strategy aligns with the Ministry of Investment and Foreign Trade’s ambition to elevate export volumes to US $140 billion by 2030.
Attention also turned to the Suez Canal Economic Zone, whose chairperson reported that over the past 38 months, agreements were signed for 311 industrial, logistics, and service projects, corresponding to total investments of around US $10.2 billion. Since its launch in 2015, the zone has moved through phased development—from infrastructure building to enabling investment and localisation—today functioning as a global industrial and logistics hub. It incorporates six seaports and four industrial zones, targeting 21 sectors such as pharmaceuticals, automotive, textiles, and renewables, and offering capabilities like customs and tax relief, digital one-stop-shop services, and access to skilled technical labour.
Underlying this success is a suite of policy measures aimed at bolstering investor appeal. These include incentives under the Green Hydrogen Law enacted in January 2024, which offer tax deductions, VAT exemptions, property tax relief, and a “golden licence” mechanism for swift approvals and project commencement. Investors, nonetheless, still face hurdles such as administrative complexity, weak transparency and enforcement, foreign currency restrictions, skill gaps, complicated customs regulations, and intellectual property risks.
Global investor confidence rankings support Egypt’s rising appeal. In the 2025 survey of emerging markets, Egypt placed 13th worldwide for FDI confidence, remaining the only African nation to appear among the top emerging markets in that category.
Economic reforms have further strengthened fundamentals. A 2024 currency flotation led to a 38 percent depreciation of the Egyptian pound and attracted more than US $50 billion in international financing, boosting the country's credit outlook. Private investment rose sharply last year, contributing more than half of total investment and exceeding public investment for the second consecutive quarter.
Topics
MENA