Egypt targets $4bn annual inflow for investment zones

Egypt is seeking investments of up to $4 billion per year in seven new investment zones as part of its drive to attract global finance.

The total investments targeted stand at EGP4.1 trillion ($78 billion) over 20 years for the zones currently under construction, the cabinet said in a statement, quoting investment and foreign trade minister Mohamed Farid Saleh.

Ras El Hekma investment zone accounts for nearly 93 percent of the total targeted investments distributed across three governorates, Asharq Business reported, quoting an investment ministry document.

In February 2024, Abu Dhabi’s sovereign wealth fund ADQ unveiled plans to invest $35 billion to build the “largest new city” in Egypt to promote tourism and drive economic growth.

Ras El Hekma, located 350km northwest of Cairo, is being designed as a fully integrated, smart, sustainable and inclusive urban community.

Egypt has 12 investment zones across six provinces, with total investments reaching EGP66 billion. The 1,277 projects in these zones will provide 77,500 jobs, the statement said. Saleh expects the potential investments to create 1.2 million jobs.

Earlier this month, the government secured $1 billion in financing from the World Bank to support its private sector in strengthening the economy.

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Cairo is advancing an ambitious reform agenda to unlock private investment, create jobs and protect households in a challenging context, said Stéphane Guimbert, World Bank division director for Egypt, Yemen and Djibouti.

In April, finance minister Ahmed Kouchouk said Egypt was banking on higher public revenues from exports and the sale of government enterprises to slash its foreign debt by $1 billion to $2 billion in its 2026-2027 budget.

He said the 2026-2027 budget, which takes effect on July 1, targets a deficit of 4.9 percent of GDP, reducing the total debt-to-GDP ratio to 78 percent in June 2027, down from 87 percent in the previous year.