Foreign direct investments (FDI) registered $2.8bn in the first half of the 2013/2014 fiscal year (FY), chairman of the General Authority for Investment and Free Zones (GAFI) Hassan Fahmy said Sunday. The number represents a positive economic outlook when compared to $3bn FDI in FY 2012/2013, he added.

Fahmy made the statement during his speech at the “Business Climate Reforms in Egypt” conference, which was organised by the MENA-Organisation for Economic Cooperation and Development’s (OECD) Investment Programme, aimed at discussing methods of stimulating local and foreign investments.

There are several indications pointing to a better economic and investment situation in Egypt despite the current challenges, Fahmy said, mentioning that more than 8,900 companies have been established in FY 2012/2013, compared to 2,890 in FY 2000/2001.

Fahmy noted that the number of companies founded every month ranges from 750 to 800.

Speaking at the conference, Chairman of the Confederation of European Egyptian Business Associations (CEEBA) Nader Riad stressed the importance of streamlining government procedures in order to boost investments.

During his speech, European Union (EU) Ambassador to Egypt James Moran said the recently approved Investment Law, which prevents third parties from challenging contracts between the government and investors, would encourage European investors to come to Egypt.

Moran pointed out that the volume of trade between Egypt and EU countries amounts to €24bn.

Egypt decided to follow an expansionary fiscal policy in 2013/2014 and to adopt pro-investment policies, in order to unlock investment challenges, said Deputy Minister of Industry, Foreign Trade and Investment Nevine Al-Shafei.

The conference was organised in partnership with Ministry of Industry, Foreign Trade and Investment, GAFI and the European Union delegation to Egypt, and in cooperation with the Federation of Egyptian Chambers of Commerce (FEDCOC), the Federation of Egyptian Industries and the CEEBA.