Hossam Heibah, President of the General Authority for Investment and Free Zone (GAFI), signed a Memorandum of Understanding (MOU) with Todd Wilcox, Deputy Chairman and CEO of HSBC Bank Egypt, aimed at supporting the authority’s strategy of attracting foreign direct investment (FDI) to Egypt.
Attracting FDI
Under the pact, HSBC will facilitate the introduction of more international investors to Egypt’s growing business opportunities through closer cooperation with the Authority, Heibah noted. He added that this cooperation reflects Egypt’s commitment to enhancing the private sector’s role in the economy.
GAFI will provide HSBC Egypt with information regarding investment opportunities in the North African country, focusing on targeted priority sectors aligned with the government’s plan.
Heibah emphasized GAFI’s commitment to collaborating with HSBC to attract investors globally, leveraging the bank’s strong international network spanning Asia, Europe, and the Middle East. He highlighted Egypt’s diversified economy, strategic location, large consumer market, and national projects, including the Suez Canal Economic Zone, as key factors underpinning the country’s long-term potential.
“We believe that these strategic collaborations and agreements serve as catalysts for fostering investment across diverse sectors and segments. By synergizing our strengths and leveraging the extensive network of financial institutions, we aim to create a robust ecosystem that propels sustainable economic growth and unlocks new avenues for investors nationwide,” explained Heibah.
HSBC’s Wilcox commented, “The strength of the government’s ambition is demonstrated by its goal of doubling the private sector’s share in the economy over the next four years. This agreement demonstrates HSBC’s commitment to working with GAFI on this progressive strategy to attract foreign investment and transform Egypt into a strategic international trade hub”.
The agreement follows GAFI’s successful 2023 mission with HSBC to Singapore and China, highlighting investors’ positive perception of opportunities in Egypt.
Egypt’s FDI
Egypt aims to attract $12 billion in FDI inflows during the current FY2023/2024, ending in June, with an annual growth rate of 20%, as stated by Heibah in January.
In FY2022/2023, FDI inflows into Egypt rose by 10% year-on-year recording $10 billion, up from $8.9 billion in FY2021/2022, according to GAF’s data.
Egypt ranked first in North Africa for FDI inflows in 2022, receiving $11.4 billion, the highest since 2017, according to the latest data published by the United Nations Conference on Trade and Development (UNCTAD).
