CAIRO: Net foreign investments totaled $2.8 billion in the first half of the current fiscal year according to Hassan Fahmy, head of the General Authority for Investment and Free Zones Thursday.
The previous fiscal year, they reached $3 billion, Fahmy said. His comments came during an Energy Committee conference at the Egyptian Union for Investors Association.
“From July to May, 5,993 new companies have been established in Egypt, bringing in $1.2 billion. Further, 1,006 other companies have experienced capital increases worth a total of $3.4 billion,” Fahmy added.
He attributed this to an increase in foreign investments, along with a large increase of established companies and government stabilization efforts following the events of June 30.
Fahmy also said the government plan for the current fiscal year will include a program for growing the economy through pumping 291 billion EGP into new investments. He additionally said the private sector will be responsible for around 60 percent of the project for achieving sustainable development, increasing growth rates and creating jobs.
Also commenting on the growth, Farag Abdel Fattah, an economics professor at Cairo University, attributed the latest increase in foreign investments to economic and political actions, and told The Cairo Post the constitutional referendum and upcoming presidential elections were major factors for the new investments.
However, he cautioned that not all growth can be attributed to the government.
“We cannot say that the investments are signs of government success, as it is an interim government that does not control all decision making,” Abdel Fattah said. “The upcoming period will witness new foreign investments, especially from Arab countries following the completion of presidential elections.”
In related news, Wafaa Sobhi, GAFI’s head deputy, announced that the authority is working on removing investment obstacles and that GAFI is coordinating with different government bodies to facilitate finishing measures needed for starting investments.