Egypt attracted foreign direct investment (FDI) projects worth more than $12.6 billion in 2025, maintaining its position as the leading Arab destination for greenfield foreign investment projects over the past 23 years, according to the Arab Investment and Export Credit Guarantee Corporation (Dhaman).
In its 41st Annual Investment Climate Report 2026, launched Wednesday from its headquarters in Kuwait City, Dhaman said Egypt has remained the largest recipient of foreign investment projects in the Arab world between 2003 and 2025, with cumulative project costs exceeding $462 billion.
The report added that Egypt ranked as the third-largest Arab destination for FDI inflows in 2025, attracting $15.4 billion, equivalent to 13 percent of total FDI inflows to Arab countries. Egypt also maintained its position as the third-largest recipient of cumulative FDI stock in the Arab region, reaching nearly $220 billion by the end of 2025.
The report noted that Egypt ranked 10th among Arab countries and 100th globally in Dhaman's Composite Investment Climate Index for 2025. On the political and security front, Dhaman stressed the importance of intensifying peaceful efforts to resolve conflicts, strengthening regional coordination to combat terrorism, organized crime and external interference, while modernizing security systems, containing civil unrest and reinforcing the rule of law.
Regarding the institutional, legislative and procedural environment, the report called for updating and simplifying investment-related legislation, accelerating digital transformation of government services, enhancing governance and regulatory frameworks, and strengthening judicial systems to safeguard investors' rights through domestic legislation, international agreements and advanced arbitration services.
It also highlighted the importance of providing political and commercial risk insurance through specialized institutions, foremost among them Dhaman. On the economic front, the report recommended adopting policies to curb inflation, stabilize currencies, reform tax and customs systems, upgrade infrastructure and logistics, empower the private sector and diversify economic activities through additional incentives for targeted sectors.
The report also underscored the need to develop human capital, bridge skills gaps through education and training, improve labor market flexibility, facilitate access to industrial and service land, diversify financing channels and strengthen the role of banks and financial institutions.
It further called for promoting knowledge localization, encouraging research and development in productive and service sectors, and securing local supply chains and intermediate inputs. Dhaman urged Arab countries to benefit from successful international experiences in improving investment climates, prioritize practical and high-impact reforms, expand digital government services and tailor reform programs to each country's resources and development challenges.