Egypt plans to establish eight to nine new investment zones over the next two to three years as part of efforts to attract domestic and foreign investment, Investment and Foreign Trade Minister Mohamed Farid said. This came during a meeting with a delegation from S&P Global Ratings headed by Director and Lead Analyst Ravi Bhatia.
The Minister said that Egypt is implementing structural and institutional reforms aimed at simplifying business procedures, increasing private-sector participation and attracting new investment. He added that the ministry is working with around 90 government bodies and institutions to launch an Economic Entities Platform, which will provide a single digital window for establishing companies and obtaining licenses and approvals.
Farid explained that the planned investment zones are intended to attract businesses, create jobs across the governorates and encourage investment outside traditional business centers. He also noted that it has prepared a foreign direct investment strategy in cooperation with the World Bank that identifies 12 sectors with potential to attract new investment flows.
"The government is preparing investment opportunities in healthcare, tourism, housing and energy that can be offered to investors," Farid said. He also discussed plans to improve the collection and disclosure of economic data through electronic links between the foreign direct investment reporting system and relevant government bodies.
Farid, who also chairs the Sovereign Fund of Egypt, stated that the fund has launched an industrial investment sub-fund with authorized capital of EGP 10 billion and paid-up capital of EGP 500 million, alongside a financial services and insurance fund. He added that Egypt is continuing economic reforms as it seeks to maintain macroeconomic stability and increase investor confidence.
Meanwhile, Bhatia said that Egypt has significant investment potential due to the size of its market, geographical position and infrastructure. He also stressed the importance of continued institutional and digital reforms, simpler procedures, transparency and access to economic data.