Foreign direct investment into Egypt is rising even though Arab countries are contributing less.
In the nine months ending in June, $4.8 billion was invested in the country, a rise of 11% compared with the corresponding period a year earlier, according to official figures.
Yet the proportion contributed by Arab countries has declined, with the UAE’s share falling to 5% in the three-month period ending in June, down from 17% in the same quarter in 2016.
The UK remained the biggest source of Egypt’s foreign direct investment, accounting for 55% of the total in the quarter.
“Aside from oil and gas – historically Egypt’s largest recipient of foreign direct investment – we believe commercial real estate could be likely to see a greater impact from continued foreign interest, given Egypt’s limited mall space and low penetration of modern retail,” said Renaissance Capital, which examined the figures in a research note.
“Banking could also present interesting opportunities, given what we see as scope for consolidation,” said the company.
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