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VIEWPOINT
INVESTING IN THE FUTURE
Attracting investment from abroad is critical to strong economic development in any country. A healthy level of foreign investment is vital to the creation of projects that generate growth, wealth and jobs. In terms of attracting these essential economic flows, Egypt has performed remarkably well over the past several years.
On the back of significant proactive efforts to institute economic reforms and create an environment favorable to doing business, foreign investment has flourished here. Efforts to further increase Egypt’s attractiveness as an investment destination are continual and ongoing – and the country has reaped major gains as a result.
While net foreign direct investment (FDI) was only $3.9 billion in FY 2004-05, in FY 2007-08 this figure reached $13.2 billion. But last fiscal year – with the global economy in disarray and other factors at play – net FDI fell to the provisional figure of $8.1 billion, according to Egypt’s central bank.
In moving forward, the government has set an arguably ambitious target of $10 billion in FDI for this fiscal year. But achieving this figure may prove to be a difficult task. Reportedly, FDI in the first half of the current fiscal year was only approximately $2.6 billion.
In working to attract FDI, Egypt in some ways is in an advantageous position. With a strong record of reform, a solid foundation for attracting further FDI already exists, and improving global economic conditions will likely help to stimulate additional foreign investment here. We can also expect the government to continue serious efforts to bring foreign investment into the country.
But clearly, the Egyptian business community also has a critical role to play in terms of promoting foreign investment here. As one of Egypt’s leading private sector organizations, the Chamber has been exceedingly active on this front, and we will continue to move forward.
Educating foreign investors about the positives of doing business in Egypt is essential to boosting FDI – and it is a task that AmCham takes very seriously. The Chamber is constantly working to expand awareness of the benefits of investment in Egypt, providing resources such as “The Guide to Doing Business in Egypt,” available on the AmCham website. We also undertake activities such as the annual DoorKnock mission, working to inform influential players in the US about economic conditions in Egypt.
Additionally, the Chamber runs the Business Matchmaking Service, where companies can advertise investment opportunities.
But we can certainly do more – and in light of the slacking FDI figures, indeed, we have to do more. In working to continue to attract FDI, the Chamber has the potential to serve as a forum for discussing potential investment opportunities in less traditional areas for foreign investment, such as agriculture, using committees as mediums for discussing these areas and inviting relevant speakers.
In light of today’s economic conditions, the exploration and promotion of non-traditional investment opportunities in Egypt has taken on a new importance. In the process, no stone should be left unturned.
M. GAMAL MOHARAM
President, AmCham Egypt
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