The latest data from Egypt’s Central Agency for Mobilization and Statistics (CAPMAS) reveals a sharp decline in investments from BRICS countries during the fiscal year 2022/2023. This marks a significant departure from the previous year, which witnessed a substantial influx of BRICS capital into Egypt.
A Drastic Drop in BRICS Investments
In the fiscal year 2022/2023, BRICS countries’ investments in Egypt plummeted to $4.4 billion, a far cry from the $19.5 billion recorded in the previous year. This dramatic decline can be attributed to a confluence of factors, including global economic uncertainties, geopolitical tensions, and specific challenges within Egypt’s investment landscape.
Saudi Arabia and the UAE Remain Key Investors
Despite the overall decline, Saudi Arabia and the United Arab Emirates (UAE) continued to be the leading BRICS investors in Egypt. Saudi Arabia contributed $1.8 billion, while the UAE invested $1.5 billion. These figures highlight the enduring interest of these two countries in Egypt’s economy, even amidst the broader downturn.
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China’s Investment Slowdown
China, another prominent member of the BRICS group, saw a significant reduction in its investments in Egypt. The country’s contribution fell to $750 million in 2022/2023, compared to a higher figure in the previous year. This slowdown may be attributed to various factors, such as shifts in China’s global investment strategy or specific challenges faced by Chinese investors in Egypt.
India and Russia’s Limited Presence
India and Russia, while members of the BRICS group, had a relatively limited presence in Egypt’s investment landscape during the fiscal year 2022/2023. India’s investments amounted to $154.4 million, while Russia contributed $125.9 million. These figures suggest that these countries may have prioritized other investment destinations or faced specific constraints in their engagement with Egypt.
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Reciprocal Investments: A Decline on Both Sides
It’s worth noting that not only did BRICS countries reduce their investments in Egypt, but Egypt’s investments in BRICS countries also declined. In 2022/2023, Egypt invested $17.3 billion in BRICS nations, down from $22 billion in the previous year. Saudi Arabia remained the primary destination for Egyptian investments within the BRICS group, receiving $7.8 billion.
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Conclusion
The substantial decline in BRICS investments in Egypt during the fiscal year 2022/2023 is a notable development. While Saudi Arabia and the UAE continued to be significant contributors, the overall reduction highlights the challenges and uncertainties facing foreign investment in Egypt. Understanding the factors driving this decline is crucial for policymakers and investors alike, as it can inform future strategies and efforts to attract foreign capital.
