OECD Investment Policy Reviews: Egypt 2020

image of OECD Investment Policy Reviews: Egypt 2020

This review uses the OECD Policy Framework for Investment to provide an assessment of the investment climate in Egypt and to discuss the challenges and opportunities faced by the government of Egypt in its reform efforts. The review examines trends in foreign investment and their socio-economic benefits, the country’s wider regulatory framework on investors’ entry and expansion, its legal framework for investment, and its strategy for investment promotion and facilitation. It also looks at Egypt’s zone-based policies, tax policy and investment incentives, its strategies to promote responsible business conduct, and progress in infrastructure connectivity.


Executive summary

Egypt is implementing ambitious reforms to stabilise its economy, attract investors, and spur durable economic growth. These efforts are having a positive effect. Since 2013, GDP growth has doubled, reaching 5.5% in 2019, the highest level in almost a decade. Foreign investment inflows have been steadily increasing since 2011, and despite more modest inflows over the past two years, in 2018 Egypt was the largest recipient of FDI in Africa and the second highest in the MENA region. Both the budget and current account deficit have narrowed in the past couple of years, and unemployment is decreasing. These positive gains will be tested in the near- to medium-term. Initial projections on the economic effects of the coronavirus pandemic portend declines in FDI in all economies for the coming year at least, along with disruptions to global value chains. A global recession appears likely. The steps the Egyptian government has taken to address its economic challenges, in recent years and in response to the pandemic, may help it weather some of the negative impacts of the current crisis. The new outlook makes continuing to advance Egypt’s reform agenda all the more imperative.


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