Net foreign direct investment in Egypt rose to 1.664 billion dollars during the first quarter of the current fiscal year (July/September 2021), compared to 1.605 billion dollars in the same quarter of the previous fiscal year, an increase of 3.7%.
The balance of payments report issued by the Central Bank, today, Wednesday, showed that foreign direct investments in the non-oil sectors increased by 473.7 million dollars during the first quarter of the fiscal year, recording a net inflow of about 2.2 billion dollars.
The report attributed the rise in foreign direct investments in the non-oil sectors to the increase in net retained earnings and the surplus in credit balances by 24.7% to reach about 1.5 billion dollars, and the increase in net transfers received to purchase real estate in Egypt with the knowledge of non-residents by 103.2 million dollars to record 231.1 million dollars.
Non-oil foreign investments also increased as a result of the increase in proceeds from the sale of companies and production assets to non-residents by $32.2 million to record $56.7 million, in addition to the increase in net inflows for the purpose of establishing new companies or increasing capital by $38.3 million to record $351.6 million (of which 87.1 million Dollars (amounts received for the establishment of new companies).
According to the report, the net outflow of investments in the petroleum sector increased to $489.2 million in the first quarter of the current fiscal year, compared to $75.3 million during the same period last year.
The report attributed this to the decrease in the total inflow to be limited to about 1.2 billion dollars, compared to about 1.56 billion dollars in the first quarter of last year, which represents new investments by foreign oil companies.
According to the report, the remittances of companies investing in the field of oil abroad rose to about $1.7 billion in the first quarter of the current fiscal year, compared to about $1.63 billion, which represents the recovery of costs borne by foreign partners during previous periods in research, development and operation.
Net foreign direct investment in Egypt recorded $5.2 billion last fiscal year, compared to $7.5 billion in 2019-2020, a decline of 30.6%.