New Report Places Egypt among the Three Largest Recipients of FDI in MENA

Economic Development and Prospects  2007 MENA Economic Developments  2006 Economic Development  Oil Booms and Revenue Management 2005 Economic Prospects   2008 Global Economic Prospects  Sites Web Ministry of Finance Ministry of Investment

Saudi Arabia, Egypt and the United Arab Emirates are now the three largest FDI recipients in the region, accounting for more than half of inward FDI flows.

FDI continued to flow in MENA at high levels, some $45 billion, down moderately from the record $52 billion recorded in 2006. In contrast with 2000-2004, when FDI flows were more evenly distributed, three countries attracted the bulk of flows from 2005 forward.

According to the report, Egypt and Morocco have enjoyed the strongest growth in tourism revenues over the last years, in part as investment in improved tourism infrastructure is increasingly in place (much tied to FDI from the Gulf countries), and economic growth in Europe gained firmer footing.

Egypt’s efforts to diversify the tourism base, appealing to residents of the GCC, as well as new markets in Central Europe and the former Soviet Union have paid handsome dividends.,

During Egypt’s FY07, tourist arrivals burgeoned by 12.6 percent, with earnings up 14 percent to $8.2 billion (6.5 percent of GDP). The UAE invested €6 billion ($7.6 billion) in Egypt in 2006 in transport infrastructure, tourism, real estate and telecoms. Egypt also received €1.4 billion ($1.8 billion) from Kuwait, flowing mainly into public works, transport and tourism.

Tourism revenues in the MENA region grew by 12 percent in 2007 to reach $29.2 billion.
Tourism revenues form a significant portion of external receipts and account for a sizeable share of GDP for a number of countries in the MENA region. This is especially the case for countries including Morocco, Tunisia, Jordan, Lebanon and Egypt.

“2008 MENA Economic Developments and Prospects:  Regional Integration for Global Competitiveness” is the fourth report in a series of annual overviews of the region. MENA 2008 Economic Developments and Prospects, like its predecessors, reports on key macroeconomic developments from the regional perspective as well as progress with structural reforms.

For the fifth year in a row, the MENA region experienced growth at a rate higher than 5 percent (5.7% for 2007), exceeding levels reached in the 1990s and early 2000s- according to the findings of the report.