By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Egypt to issue new bonds for climate, social goals
    Egypt to issue new bonds for climate, social goals
    September 27, 2023
    Saudi Public Investment Fund eyes stake in Palm Hills Development
    Saudi Public Investment Fund eyes stake in Palm Hills Development
    September 27, 2023
    UNDP, MBRF launch online learning initiative for Arab countries
    UNDP, MBRF launch online learning initiative for Arab countries
    September 27, 2023
    Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services
    Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services
    September 27, 2023
    GAFI to grant 45 more golden licences to boost investment
    GAFI to grant 45 more golden licences to boost investment
    September 27, 2023
  • Politics
    PoliticsShow More
    Egypt’s Irrigation Minister highlights climate challenges for water sector
    Egypt’s Irrigation Minister highlights climate challenges for water sector
    September 27, 2023
    CCCPA, Senghor University join forces for African peace, development
    CCCPA, Senghor University join forces for African peace, development
    September 27, 2023
    Arab League chief urges more funding, investment for food security
    Arab League chief urges more funding, investment for food security
    September 27, 2023
    Egypt denounces Houthi attack on Bahraini forces in Saudi Arabia
    Egypt denounces Houthi attack on Bahraini forces in Saudi Arabia
    September 27, 2023
    vPalestine urges international action to end Israeli occupation, crimes
    Palestine urges international action to end Israeli occupation, crimes
    September 26, 2023
  • Interviews
    InterviewsShow More
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    September 18, 2023
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    September 14, 2023
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    September 12, 2023
    India welcomes Egypt's BRICS membership: Boosting trade, investment, and access to strategic commodities
    India welcomes Egypt’s BRICS membership: Boosting trade, investment, and access to strategic commodities
    September 11, 2023
    The box office is not a measure of success: Basma Hassan
    The box office is not a measure of success: Basma
    September 6, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: FDI rises to highest level since January 25 Revolution
Share
Notification
Latest News
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Science
Earthworms contribute to 6.5% of global grain production, says new research
Earthworms contribute to 6.5% of global grain production, says new research
Science
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Science
Egypt to issue new bonds for climate, social goals
Egypt to issue new bonds for climate, social goals
Business
Saudi Public Investment Fund eyes stake in Palm Hills Development
Saudi Public Investment Fund eyes stake in Palm Hills Development
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > FDI rises to highest level since January 25 Revolution
Business

FDI rises to highest level since January 25 Revolution

Mohamed Samir
Last updated: 2017/06/10 at 4:40 PM
By Mohamed Samir 4 Min Read
Share
SHARE

Minister of Investment and International Cooperation Sahar Nasr announced on Thursday that foreign direct investment (FDI) has reached $6.8bn since the beginning of the year. The announcement didn’t specify whether this relates to the start of the fiscal year (FY) in July 2016 or the calendar year in January 2017. FDI in the first half (H1) FY 16/17 registered at $4.3bn, according to the Central Bank of Egypt (CBE) data.

Annual FDI was $11.1bn in FY 06/07, reaching a historic peak of  $13.2bn in FY 07/08, then dropped to a low of $2.1bn in FY 10/11 due to the 25 January Revolution in 2011. FDI has gone on a steady recovering path, with rising energy investments reaching $6.8bn in FY 15/16.

According to Arqaam Capital, if the media release is for the period January to April 2017, then the FY 16/17 totals $11.1bn. This FY would be the highest since FY 07/08. If the release relates to the first ten months of FY 16/17, then this would still be significantly positive. The full year FDI would exceed the previous year’s level, being the highest since the 25 January Revolution.

On the other hand, headline inflation slowed from 31.5% in April to 29.7% in May. Inflation is still likely to increase back to the 30%+ around the summer due to seasonal factors and fiscal reforms, according to Arqaam Capital’s report.

The report cites that interest rate cuts are only likely when monthly inflation shows inflationary pressures have sufficiently subsided and the earliest possibility is around early 2018, adding that the rate hike of 200bps is unlikely to curb inflation in the next few months.

While monthly inflation stabilised, registered at 1.66% in May, marking its lowest level since the monetary and fiscal shocks in November 2016. Monthly inflation had peaked at 4.9% in November as a result of the currency flotation and the increase in energy prices.

Arqaam Capital forecast annual headline inflation to remain elevated until early Q4 2017. In summer, the second round of fiscal reforms is expected to take place (energy price hike, annual electricity repricing, and a 1% increment in VAT), coupled with the usual seasonal summer effect.

Consequently, headline inflation will remain in the 30%+ range in the summer and is expected to drop to the high 20% around November 2017, registering high teens in 2018 and declining in 2019, breaking the single digit level in late 2019/early 2020.

Moreover, the report cites that the annual change in core inflation, computed by the CBE’s Monetary Policy Dept, declined to 30.6% in May, from 32.1% April, while the monthly change increased to 1.99% in May, compared to 1.1% in April.

Arqaam Capital indicated in their inflation note issued on Thursday, that while the annual urban headline inflation rate had declined, the monthly change still reflected some inflationary pressures from the reforms pass through and increased consumption growth ahead of Ramadan.

You Might Also Like

Egypt to issue new bonds for climate, social goals

Saudi Public Investment Fund eyes stake in Palm Hills Development

UNDP, MBRF launch online learning initiative for Arab countries

Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services

GAFI to grant 45 more golden licences to boost investment

TAGGED: FDI, Foreign Direct Investment, Minister of Investment and International Cooperation, Sahar Nasr
Share this Article
Facebook Twitter Email Print
By Mohamed Samir
Mohamed Samir Khedr is an economic and political journalist, and analyst specialising in geopolitical conflicts in the Middle East, Africa and the Eastern Mediterranean. Over the past decade, he covered Egypt's and the MENA region's financial, business, and geopolitical updates. He is currently the Executive Editor of the Daily News Egypt. Twitter: https://twitter.com/Moh_S_Khedr LinkedIn: https://www.linkedin.com/in/mohamed-samir-khedr/
Previous Article Al-Sisi, Trump follow up of anti-terrorism agenda
Next Article Court postpones verdict in former prosecutor assassination case
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Science
Earthworms contribute to 6.5% of global grain production, says new research
Earthworms contribute to 6.5% of global grain production, says new research
Science
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Science
Egypt to issue new bonds for climate, social goals
Egypt to issue new bonds for climate, social goals
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?