New sectors attract FDI investments
Egypt, Economics, 2/19/2002

A report by the UN Conference on Trade and Development (UNCTAD) said the industry of pharmaceuticals, software, electronics and tourism are all considered as new sectors for luring more Foreign Direct Investments (FDI) to Egypt in the coming period.

The report, issued under the rubrics of "Investment Policy in Egypt", attributed the increase of foreign capital flows to the Egyptian market over the past years to the government's keenness to improve the economic climate.

This is addition to applying a comprehensive reform programme which resulted in a drop of the inflation rate to around one per cent, an increase of five per cent in the growth rate, reducing the rate of general expenditure and enhancing the private sector's role in the field of investment projects.

Exports play an important role in the movement of economic development, the report said, referring to the role of construction, building and tourism sectors in attracting more investments.

Egypt enjoys many potentialities that enable it to be one of the most important African developing countries in luring FDI in respect to the enormous capacity of the Egyptian market, the presence of a wide industrial base and high qualified labour.

This in addition to its distinguished position as a regional centre in the Middle East area, the UNCTAD report said, noting that all these potentialities allowed Egypt to merge into the global economy.

Moreover, the government's efforts in realizing economic reform managed to enhance the foreign and local investors' confidence in the Egyptian market, the report said.

This was also bolstered by the government's liberalization of some FDI rules, striking trade agreements between Egypt and a number of countries, besides Egypt's signing of the Association Agreement with the KU, the report added.

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