CAIRO: Net foreign direct investment inflow rose to $2.7 billion during the first half of this fiscal year (to end June 30,) compared to $2.1 billion in the past year, said the Central Bank of Egypt (CBE.)
The rise was triggered from an increase in Greenfield investments from $1.1 billion to $1.4 billion, said the CBE in a statement posted on its website, adding that oil sector investments’ net inflow also hiked to $1.2 billion, up from $957.8 million.
The Egypt Economic Development Conference (EEDC) resulted in anticipated investments of $72.5 billion, Prime Minister Ibrahim Mahlab announced at the conclusion of the three-day conference held in Sharm el-Sheikh March 13-15.
Agreements of $36.2 billion in investment have been signed; privately-financed projects have reached $18.6 billion at EEDC, according to Mahlab.
Gulf countries, namely Saudi Arabia, the UAE, Kuwait and Oman, promised a total of $12.5 billion, in investments as well as deposits in the central bank.
Egypt is expected to receive financial deposits pledged by Gulf States’ leaders at the investment conference “in the coming days,” CBE’s governor Hisham Ramez told MENA last week.
“The deposits will help bolster Egypt’s foreign currency reserves and ease pressure on its local currency,” added Ramez.
Egypt’s foreign reserves rose by $26 million to $15.45 billion at February-end, after noting a sharp slip at the end of 2014, on the back of repaying a $700 million six-month premium on foreign debt owed to the Paris Club in December, a month after paying back a $2.5 billion deposit to Qatar, following an official request from Doha.