Egypt registered 5,022 newly established foreign companies during the first half of 2026, up 33.7% from 3,757 in the same period a year earlier, according to an infographic published by the Cabinet’s Media Center on September 16.

The issued capital of newly established foreign companies also increased by 20.9% to EGP 21.4 billion ($412.07 million), compared with EGP 17.7 billion in H1 2025.

The Cabinet’s Media Center attributed the increase to government efforts to improve the investment climate, simplify procedures, and attract international capital.

Company formation and FDI

The increase in foreign company registrations is an indicator of investor activity, but the EGP 21.4 billion figure should not be confused with foreign direct investment (FDI) inflows.

Issued capital represents the capital of foreign companies incorporated during the period, while FDI is a broader measure that includes equity investment, reinvested earnings, and other cross-border investment.

Egypt attracted approximately $15.5 billion in FDI in 2025, according to UN Trade and Development’s World Investment Report 2026. Egypt remained Africa’s largest FDI recipient for a fourth consecutive year, although inflows fell sharply from the exceptional $46.6 billion recorded in 2024, when the Ras El-Hekma investment transaction significantly boosted the annual total.

UNCTAD said investment into Africa declined from the exceptional levels recorded in 2024, with capital increasingly directed toward infrastructure, energy, manufacturing, logistics, and technology.

Investment reforms

The rise in company formation comes as Egypt continues to implement measures aimed at reducing barriers to investment.

The Organization for Economic Co-operation and Development (OECD) said in its 2025 FDI Qualities Review of Egypt that the country has introduced reforms covering the legal and regulatory framework, private-sector participation, licensing procedures, and digital investor services.

Among the measures is an electronic platform operated through the General Authority for Investment and Free Zones (GAFI) for establishing, operating, and liquidating projects. GAFI also provides integrated electronic services for company incorporation and investor procedures.

The government has also expanded the use of the Golden Licence, which allows qualifying projects to obtain a single approval covering the licences and permits required for establishment and operation. GAFI reported that 57 companies had obtained Golden Licences through June 2026.

The OECD has said the reforms could help reduce administrative barriers, while noting that their effectiveness will depend on implementation, transparency, and coordination among government agencies.

Private investment remains a focus

The increase in foreign company formation comes alongside broader efforts to increase private-sector investment.

In May 2026, the World Bank Group approved $1 billion in development financing to support Egypt’s efforts to increase private-sector-led job creation, strengthen macroeconomic and fiscal resilience, and advance a greener economy.

The financing includes measures aimed at reducing barriers to private investment, strengthening the governance of state-owned enterprises, and improving competition.

For Egypt, the increase in foreign company registrations provides an indicator of growing investor participation in the market. The longer-term economic impact will depend on how effectively new investments translate into business activity, employment, exports, technology transfer, and stronger links with local companies.