Egypt Property Investment News

Egypt becoming a more investment-friendly nation

The Egyptian government has released a report showing that the country’s economic growth reached 7.1% during the fiscal year 2006 – 2007 (ending June 30th), up from 6.8% in the previous year. This comes shortly after the announcement that Egypt had become the first African and the first Arab country to sign a declaration citing its commitment to encourage investment to the country – the Organisation for Economic Cooperation and Development (OECD) Declaration on International Investment and Multinational Enterprises.

By signing the declaration, Egypt is committing to creating a more attractive climate for investment, and in particular encouraging multinational companies. Such developments are positive news for property investors in Egypt, as rising corporate investment and economic growth are often reflected in an expanding population with increased purchasing power. Corporate investment into Egypt will also widen the focus of property investors from the traditionally popular tourist resorts to include urban areas.

According to Mahmoud Mohieldin, the Egyptian Minister for Investment, the fact that Egypt was invited to sign the declaration was a reflection of improvements the country has made to its business climate. Dr. Mohieldin said the declaration was a commitment by governments to “improving their investment climates, ensuring equal treatment for foreign and domestic investors and encouraging the positive contribution that multinational companies can bring to economic and social progress.”

The latest report to be released by the OECD on Egypt is the ‘Investment Policy Review of Egypt 2007’. It draws attention to the increase in foreign direct investment (FDI) experienced by the country in recent years. The report claims that the FDI levels increased from $500 million to $6.1 billion between 2001 and 2006 - a twelve-fold increase.

According to Dr. Mohieldin, FDI into Egypt in 2007 is likely to reach at least $10 billion.