Foreign direct investment (FDI) from Arab countries into Egypt surged to $41.5 billion during the fiscal year 2023/24 — a 470% increase over the previous year, according to figures released Saturday by Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS).

UAE leads

The dramatic spike was driven primarily by the UAE’s $35 billion agreement to develop the Ras El Hekma coastal area, signed in February 2024. The deal, regarded as one of the largest foreign investments in Egypt’s history, has significantly bolstered the country’s foreign currency reserves and offered crucial support amid ongoing economic reforms.

The UAE contributed $38.9 billion of the total Arab FDI inflows, with the Ras El Hekma project accounting for the vast majority of that figure. Saudi Arabia followed with $775.5 million in investments, while Qatar invested $618.5 million and Kuwait contributed $547.7 million. Bahrain and Jordan provided $457.9 million and $307.9 million, respectively. In contrast, total Arab FDI for the previous fiscal year stood at only $7.3 billion, highlighting the significance of this year’s leap.

Egypt’s investments

Outbound Egyptian investments to Arab countries also saw growth, rising to $4.2 billion in 2023/24 from $3.2 billion the year before — a year-over-year increase of 31.25%. Algeria was the top destination for Egyptian investment, receiving $1.5 billion, followed by Libya at $1.1 billion. Egypt also invested $628.4 million in Saudi Arabia, $382.5 million in Sudan, and $371.2 million in the UAE.

Arab remittances and trade

Remittances from Egyptians working across Arab countries amounted to $24.2 billion during the fiscal year 2023/24. Saudi Arabia was the largest source, contributing $9.7 billion. This was followed by Kuwait with $4.6 billion, the UAE with $4 billion, Qatar with $1.5 billion, and Jordan with $1.2 billion.

Egyptian exports to Arab countries totaled $13.8 billion for the year. Libya ranked as Egypt’s top Arab export market, accounting for $2.1 billion in trade. Saudi Arabia was close behind at $2 billion, followed by the UAE with $1.9 billion, Sudan with $1.4 billion, and Jordan with $1 billion.

Outlook

The sharp rise in Arab FDI, particularly from the Gulf, reflects renewed regional confidence in Egypt’s economic trajectory and strategic value. The Ras El Hekma agreement serves not only as a financial milestone but also as a potential model for future Gulf-Egypt partnerships in infrastructure, tourism, and real estate.

While the short-term boost is undeniable, economists emphasize that sustained impact will depend on how effectively Egypt can maintain macroeconomic stability, streamline investment regulations, and execute megaprojects with transparency and efficiency.