What are some good ways to invest in Egypt?
According to official data, Egypt ranked 9th globally and 1st in Africa in terms of FDI inflows in the 2023/2024 fiscal year, with approximately USD 46.1 billion. These rankings reflect strong investment inflows but not necessarily overall investment climate. There are a lot of opportunities in different sectors and investors are finding them due to the continuous economic reforms and strategic initiatives by the government. It is a complete list of the best investments in Egypt.
Real estate investment: The leading opportunity
Real estate continues to be one of the key investment sectors in Egypt, offering strong potential for long-term gains, although returns can vary depending on location, project type, and economic conditions. Key areas include:
Prime investment locations:
- New Administrative Capital developments
- Coastal resort properties along the Mediterranean and Red Sea
- Commercial properties in Cairo and Alexandria
- Residential developments in emerging suburbs
The sector benefits from government mega-projects and increasing urbanization, making it attractive for both domestic and international investors.
Stock market investment
The Egyptian Exchange (EGX) presents growth potential, particularly through blue-chip companies in the banking, telecommunications, and industrial sectors. However, investors should remain mindful of market volatility and macroeconomic risks. The market has been resilient to the challenges within the region and many Egyptian firms are going regional.
Renewable energy sector
Egypt has significant potential in renewable energy, especially in wind and solar power. The country is also developing green hydrogen projects for future export, though most are still in early or pilot stages. The government has set a target for renewable energy to contribute around 42% of total electricity capacity by 2030. As of 2023, renewable energy accounted for about 11–12% of total power generation.
- Solar power projects in the Western Desert
- Wind energy installations along the Red Sea coast
- Green hydrogen production facilities
- Energy storage solutions
Technology and fintech
Egypt is well-positioned to continue its economic expansion, with strong growth in sectors like fintech, renewable energy, e-commerce, and real estate. The digital transformation has accelerated, creating opportunities in:
- Mobile payment solutions
- E-commerce platforms
- Digital banking services
- Educational technology
Tourism and hospitality
With significant government investment in tourism infrastructure, including the multi-billion dollar UAE-backed Ras El Hekma development project on the Mediterranean coast, which includes tourism, real estate, and infrastructure components. Investment opportunities include:
- Hotel and resort developments
- Tourism service companies
- Entertainment and leisure facilities
- Heritage site restoration projects
Manufacturing and industrial development
Egypt's strategic location between Africa, Asia, and Europe makes it an ideal manufacturing hub. Key opportunities exist in:
- Textile and garment production
- Food processing and agriculture
- Automotive assembly
- Pharmaceutical manufacturing
Banking and financial services
Fixed deposits remain popular among conservative investors seeking local-currency returns, though real returns can fluctuate due to inflation and exchange rate volatility. Banking has become more robust and significant and larger banks are extending their services and online products and services.
Key investment considerations
- Government support: Authorities have pledged to streamline licensing and permitting for investment projects, aiming to shorten approval timelines and simplify administrative procedures.
- Economic stability: Annual inflation peaked at around 38% in September 2023 and, while it has moderated since then, price pressures remain high. The Central Bank continues to implement monetary reforms to stabilize the exchange rate and control inflation.
- International alliances: Over 1,800 American companies already have presence in the country, and in the last 20 years, have invested over 47 billion dollars showing that the international community is making bets on the market.
Conclusion
Egypt has a wide range of opportunities to invest in various sectors with the traditional real estate as well as the emerging renewable energy projects. Strategic reforms, which have enhanced the economic metrics, and government incentives in encouraging foreign investment are some of the factors that make the country more appealing to short-term and long-term investors. The key to success is to do proper market research, learn the local rules and collaborate with the experienced local advisors to have a good time navigating the investment environment. While Egypt offers a range of promising opportunities across various sectors, investors should conduct thorough due diligence and consider currency, regulatory, and political risks when making long-term commitments