Foreign Direct Investment in Egypt

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Foreign Direct Investment in Egypt

Foreign Direct Investment in Egypt

 

Foreign Direct Investment (FDI) is “the category of international investment made by an entity, resident in one economy, to acquire a lasting interest in an enterprise operating in another economy” (Eurostat, 2011).

Foreign Direct Investment in Egypt

The International Monetary Fund emphasizes recognition of a ten-percent minimum foreign shareholding so that the direct investor can exercise significant control in the enterprise. Egypt’s inward DFI rose to US$ 11.1 billion in 2007 from US$6.1 in 2006.

Foreign Direct Investment in Egypt

This growth placed Egypt second only to South Africa in receiving foreign investment (Achcar, 2009). However, due to the global economic recession in 2009, it fell to US$ 8.1 billion (African Economic Outlook, 2011).  With favorable trade environment that has been enabled by the government Egypt is favorable for direct foreign investment.