GCC Firms Lead Foreign Investments In Egypt in 2024
GCC emerged as top investors in Egypt as the country has attracted Foreign Direct Investment (FDI) in various sectors boosting its economy with global companies committing to park their funds in the country throughout 2024.
Among the GCC member states, the UAE investment firm ADQ has made the biggest investment in Egypt by committing $35 billion to develop the Ras El Hekma agreement besides in clean energy projects during this year creating thousands of jobs for the locals.
ADQ paid $24 billion for the development rights to Ras El Hekma and converted some $11 billion worth of UAE deposits at the Central Bank of Egypt into money to be invested.
Dubai’s state-owned port operator DP World is also exploring the possibility of developing a public free zone in the new capital. The proposed project will span 518.92 acres, owned by New Administrative Capital for Urban Development, will focus on key industrial sectors, including electronics, automotive, fast-moving consumer goods, garments, and footwear.
Even the UAE’s clean energy company Masdar is planning to set up a floating solar plant in Lake Nasser and a solar plant in Nag Hammadi. AD Ports could set up a renewables-focused industrial zone in East Port Said and UAE’s Global South Utilities, China’s Weiheng, alongside the Industry Ministry will set up a $12 million battery storage factory, a report from Enterprise said.
Saudi Arabia, which is another economic power house in the GCC region has also said that the state-owned sovereign wealth fund –Public Investment Fund (PIF) – will invest $5 billion in Egypt as part of the “first phase” of a larger program.
As part of bilateral investments, the Kingdom and Egypt has signed two agreements is expected to bring in upwards of $10 billion in bilateral investments over the next three years.
PIF is also working to acquire CIRA Education and use it as a regional platform as the Saudi Egyptian Investment Company, a wholly-owned subsidiary of the PIF, said that it would buy into CIRA majority shareholder Social Impact Capital (SIC), which has used the cash injection to launch its mandatory tender offer for the rest of CIRA’s shares — the offer got the green light from the Financial Regulatory Authority earlier this month.
Qatar is the third country in the GCC region which is working on a very important real estate project on the North Coast of Egypt and both countries are working to implement it quickly. The country is also looking into investments into the North Coast’s tourism and hospitality sectors and has expressed interest in making logistic zone and port investments, with discussion on the topic currently ongoing.
Turkiye and China
Besides investors from the GCC region, companies from Turkiye and China are also in the race to implement various projects.
Egyptian Group for Multipurpose Terminals and Turkish firm Doguş Construction and Trade signed a Memorandum of Understanding (MOU) to establish a $7 billion logistics hub in Gargoub on Egypt’s northwest coast. The project, which will include a commercial port and free zones, is expected to launch operations in 2026.
Turkish ready-made garment maker Şirikcioglu received approval to set up a $700 million denim factory in Port Said while Turkiye’s Erciyas Holding also announced plans to set up a $60 million factory for oil, gas and water pipes, with 60% of production directed towards exports.
Apparel company Denim Rise will set up a garment factory in Qantara West, with investments of $8.8 million while snack maker Saray Biskuvi will invest $8 millionin a food factory, targeting global exports. Turkish clothing manufacturer Eroglu Holding also broke ground on a new garments factory in Qantara West this year in November to bring its total investments to $51 million.
Coming to China, the dragon nation is ramping up its presence in Egypt as steelmaker Wu’an Xin Feng planning a $1.7 billion industrial complex in the SCZone, with nine factories producing automotive brake components, household appliance parts, standard fasteners, hot-rolled steel coils, and more. Textile manufacturer Kelida will set up a $30 million home textiles plant in the Qantara West Industrial Zone. And Elite Solar is building a $150 million solar cell factory in Ain Sokhna, the report added.
