According to global management consultancy Kearney’s FDI Confidence Index 2023, Egypt ranks 14th among emerging markets in terms of investor confidence, Hence, almost a third of respondents surveyed said they were optimistic about Egypt’s investment outlook, while 18% were skeptical.
Countries are evaluated based on replies from global business executives to questions regarding the likelihood of investing during the next three years.
Egypt has been accelerating efforts to attract fresh FDI as it looks to increase FX inflows and end the ongoing currency crisis. The Madbouly government last week unveiled a fresh package of pro-business regulatory reforms aimed at boosting investments and improving the country’s investment climate
Egypt ranked fourth in the MENA region:
Egypt ranked below the UAE, Saudi Arabia and Qatar, which all made the list of the top 25 FDI destinations in the world. Among EMs, China, India and the UAE made up the top three.
Confidence is global: Some 82% of companies said they plan to increase FDI over the next three years and 63% voiced optimism about the global economy, despite the ongoing headwinds caused by rising interest rates and the war in Ukraine.
When making an investment, investors look for transparency of government regulations, technological capabilities, and tax rates and ease of tax payments. Investors may also look at EMs instead of their developed counterparts due to their wide availability of raw materials, although political instability, an unfavorable regulatory environment, and poor infrastructure quality will keep the risk-averse away.
Investors are expecting an increase in globalization:
More than half of the surveyed investors said they expect an increase in globalization over the coming three years, suggesting that “globalization is and will remain a central force in foreign direct investment in the years ahead.”
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