Egypt is set to introduce a new foreign direct investment (FDI) strategy in partnership with the World Bank, marking a significant shift from general promotion to direct investor targeting. The strategy will focus on 16 priority sectors, according to Minister of Investment and Foreign Trade Mohamed Farid. This move aims to enhance the competitiveness of the Egyptian economy and streamline business operations.
The ministry's vision is to revamp investment and foreign trade frameworks, with a focus on translating policy plans into tangible measures. The current phase operates under the motto "from strategy to implementation." The ministry is building an integrated investment ecosystem structured around four main pillars: facilitating business practice, localising development while supporting small and medium-sized enterprises (SMEs), effective targeting, promotion, and marketing of investment opportunities, and mitigating investment risks while mobilising capital.
Egypt's macroeconomic indicators demonstrate an improved capacity to absorb investment, with gross domestic product (GDP) growth rising to 5.1% from 4.4%. Official targets are set at 5.5% to 6%. The economic model relies on expanding private sector participation. The government is updating the operational methodology of the Sovereign Fund of Egypt (SFE) and its sub-funds to encourage private partnerships and lower entry risks.
To guide incoming capital, the ministry has published an updated investment map featuring approximately 1,330 opportunities across various governorates and sectors. Egypt retained its position as Africa's top destination for FDI for the fourth consecutive year, securing $15.5bn in inflows during the last calendar year. The priority is converting available opportunities into actionable, scalable projects that deepen local manufacturing, increase production, and boost exports.
The ministry is preparing amendments to the executive regulations of Companies Law No. 159 of 1981 to ease mergers and acquisitions (M&A), simplify company valuations, and expand available financing instruments. The state is also activating and increasing the number of dispute resolution committees and agreement committees. A platform dedicated to capital increase procedures is undergoing testing ahead of its launch within weeks.
On digital transformation, an economic entities platform will connect 92 government entities to manage services linked to approximately 486 licences, redesigning the investor journey to reduce administrative time and costs. The ministry is introducing a regulatory trade laboratory (sandbox) to test innovative digital solutions aimed at modernising the trade ecosystem and expanding service exports.
Supporting existing investors by enabling them to reinvest profits, scale operations, and deepen their local investments remains a fundamental priority. Continuous dialogue with the private sector will ensure reforms respond to practical operational challenges and deepen Egypt's integration into global supply chains. Localising development across governorates through investment zones and medium-sized zones is a core policy objective, with operational examples in Benha, Mit Ghamr, and three investment zones in Alexandria.
Key points
- Egypt will launch a World Bank-partnered FDI strategy targeting 16 priority sectors.
- The strategy aims to enhance the competitiveness of the Egyptian economy and streamline business operations.
- Egypt secured $15.5bn in FDI inflows during the last calendar year, retaining its position as Africa's top destination for FDI.
