Minister El Said Highlights Egypt's Investment Appeal at 17th Asia Financial Forum in Hong Kong

Minister of Planning and Economic Development, Dr. Hala El Said, underscored Egypt's commitment to attracting investments and fostering partnerships during her participation in the 17th Asia Financial Forum's second session in Hong Kong on January 24, 2024. Emphasizing the nation's appeal for both domestic and foreign private investments, she detailed the government's focus on economic development and infrastructure projects, aligning with Egypt's status as a promising investment destination.

This statement was made during her participation in the second general session of the 17th Asia Financial Forum, titled "Multilateral Cooperation for a Shared Future," held on January 24 and 25 in Hong Kong. Dr. Mohammed Sulaiman Al Jasser, President of the Islamic Development Bank Group, Jin Liqun, President of the Asian Infrastructure Investment Bank, and Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, were also part of the session.

El Said explained that the global context in which Egypt and various countries are working to encourage investment and achieve comprehensive development is characterized by unprecedented economic and geopolitical changes and challenges. Despite these challenges, the Egyptian government continues its efforts to stimulate development and attract both local and foreign private investments.

She highlighted the successful implementation of the first phase of the National Program for Economic and Social Reform in November 2016. This program involved various reforms and incentive measures to create a conducive working environment and pave the way for private sector involvement in infrastructure projects, contributing to economic development and creating decent and productive job opportunities.

El Said further detailed legislative and institutional reforms undertaken by Egypt to support the investment environment. These include the issuance of laws and regulations to simplify project establishment procedures and encourage domestic and foreign private investments. The focus remains on improving infrastructure quality as a key element in stimulating the private sector.

The minister pointed out significant projects such as road network development, the expansion of the Suez Canal as a global logistics and industrial center, and initiatives in new and renewable energy production. She highlighted collaborative efforts with the private sector, the establishment of smart cities (23 cities), including the new administrative capital and New Alamein City, emphasizing the role of the private sector as a key pillar of the national program for structural reforms.

El Said provided statistics on foreign direct investment (FDI) during the specified period, indicating a notable increase in net FDI due to the capital increase of existing companies and the establishment of new ones. She also highlighted the growth in investment applications for available opportunities and a significant increase in net FDI inflows by 451.3% in the second quarter of the fiscal year 2022/2023.

Discussing Egypt's business and investment environment, El Said highlighted positive investment characteristics, including a large domestic market with 105 million consumers and favorable access to regional and international markets through trade agreements. She anticipated Egypt's growth as one of the fastest economies in the region, particularly in the field of new and renewable energy over the next decade.

The minister emphasized investment opportunities in agriculture, communications, information technology, and tourism. She referred to the UNCTAD's 2023 World Investment Report, where Egypt ranked first in Africa for foreign direct investment inflows, reaching $11.4 billion in 2022, representing a significant growth rate of 122%.

El Said discussed the role of the Supreme Investment Council in addressing obstacles to new company formation and the state's ownership policy document, clarifying the government's role as an economic activity overseer in various sectors. She mentioned the golden license for project establishment, operation, and management within 20 working days.

Furthermore, El Said highlighted the role of Egypt's Sovereign Wealth Fund and its subsidiary funds in shaping, managing, and improving investment opportunities in Egyptian state assets. Regarding Egypt's green transformation efforts, she mentioned the government's focus on integrating environmental dimensions into national plans for sustainable development within the framework of Egypt Vision 2030.

The government aims to increase the percentage of green projects in the investment plan to 50% by 2024/2025. El Said disclosed the allocation of EGP 410 billion for adaptation projects during 2022/2023. Additionally, she announced the launch of the National Green Hydrogen Council and Egypt's electronic platform for environmental and climate investment to connect investors with green economic opportunities in Egypt.