Highlights
At the time of the review, Egypt had the potential to attract foreign direct investment (FDI) of higher quantity and quality, commensurate with the fundamental strengths and opportunities that its economy offered. These strengths included a large domestic market, a wide industrial base, a skilled and competitively priced workforce and a strategic location in the region. The IPR recognized the efforts that the Government of Egypt had made to establish an adequate investment regulatory framework and improve the business environment. However, while current FDI inflows had been meeting the objectives of job creation and output expansion, most industrial projects had so far failed to boost exports. The IPR concluded that overcoming the limited involvement of TNCs in manufacturing sectors with export potential such as food, garments and electronics, would require a policy emphasis on the following:
- Infrastructure investments relating to the physical, technological and educational infrastructure.
- Specific sectors to promote clusters of related enterprises and self-sustaining development.
Follow-up activities
Since the publication of the IPR, UNCTAD has assisted the government in the following ways:
- It has trained diplomats on investment trends, policies and promotion.
- It has trained government staff on FDI statistics
- At the request of the government, and five years after the IPR was published, it produced a report on the extent to which the IPR´s recommendations had been implemented.
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