The Ministry of Investment and Foreign Trade and the Ministry of Planning and Economic Development, in cooperation with the Organisation for Economic Co-operation and Development (OECD), have launched the report titled “FDI Qualities Review of Egypt.” The report focuses on how to maximize the developmental impact of foreign direct investment (FDI) by strengthening linkages between multinational enterprises and small and medium-sized enterprises (SMEs).
The report serves as an analytical reference to support dialogue between the government, the private sector, and international partners on practical priorities for enhancing the developmental returns of FDI, linking these efforts to job creation, productivity growth, and improving the competitiveness of the Egyptian economy.
The report reviews the main trends in FDI inflows to Egypt in recent years, highlighting the country’s continued ability to attract investment, while underscoring the importance of directing further efforts toward deepening local value addition, increasing knowledge and technology transfer, and expanding integration into global value chains.
It further confirms that foreign companies operating in Egypt demonstrate high levels of productivity and rely significantly on inputs from the domestic market, reflecting a promising foundation for strengthening local linkages and developing supply chains.
The report also highlights those new investments have contributed to the creation of direct employment opportunities over the past decade, while noting the need to increase job intensity and improve skills alignment with the requirements of emerging sectors, particularly in the context of digital and green transitions.
In addition, the report presents a package of practical recommendations to maximize the developmental impact of FDI, foremost among them: enhancing coordination among entities responsible for investment promotion and SME development; improving governance and transparency; strengthening intellectual property rights; and developing effective monitoring and evaluation tools for incentives and related programs.
The report further calls for the completion of the national FDI strategy for the period 2025–2030, aligned with Egypt Vision 2030, including clearly defined sectoral priorities and measurable performance indicators.
It places particular emphasis on supplier development programs and matchmaking services between foreign investors and domestic firms, which would reduce search and contracting costs while improving the readiness of local suppliers in terms of quality standards, accreditation, and technical certification.
The report also highlights the importance of expanding industrial clusters and supply chain programs to include higher value-added, knowledge-intensive activities, as well as strengthening partnerships between multinational companies, research institutions, universities, and the private sector to enhance technology transfer and capacity building.
To access the full report: https://share.google/52L0UEdSmFugJgQJU
Dr. Mohamed Farid Saleh, Minister of Investment and Foreign Trade, stated that the launch of the OECD review on measuring the quality of foreign direct investment in Egypt (FDI Qualities Review of Egypt – 2025) represents a pivotal step in advancing Egypt’s investment agenda, shifting the focus from the volume of inflows to the quality of investment and its developmental impact.
He affirmed that the review reflects the depth of the partnership between Egypt and the OECD and highlights the state’s approach based on integrated government action and institutional coordination, supporting productivity growth, technology transfer, innovation, decent job creation, and skills development, ultimately leading to more inclusive and sustainable growth.
The Minister added that the review commends Egypt’s progress in areas such as competitive neutrality, transparency, public procurement reform, and the development of digital investment services. He stressed that the challenge is no longer limited to attracting FDI, but extends to maximizing its sustainable returns and long-term impact.
He further explained that this requires directing investments toward high-impact, innovation-driven, and green sectors, while deepening linkages between multinational enterprises and SMEs through the expansion of supplier development programs, enhancing digital readiness, and supporting compliance with standards and certification requirements. This would facilitate their integration into value chains and improve overall economic competitiveness, alongside continued legislative and digital reforms to enhance procedural efficiency and predictability.
The Minister also noted that the importance of FDI lies in its spillover effects, including employment generation and quality, as well as the transfer of expertise needed to sustain investment inflows through improved supporting services.
On his part, Dr. Ahmed Rostom, Minister of Planning and Economic Development, stated that the launch of the “FDI Qualities Review of Egypt” report represents a cornerstone in the state’s shift toward evidence-based development policies that go beyond capital attraction to focus on the developmental impact of investment flows.
He explained that the report provides a roadmap for maximizing returns from foreign investment by linking it to sustainable development goals and Egypt Vision 2030, particularly through integrating SMEs into the global value chains of major corporations, thereby ensuring that economic growth is accompanied by tangible improvements in domestic productive capacities.
Dr. Rostom added that the report’s recommendations support the state’s efforts to enhance labour market efficiency and align skills with the requirements of modern sectors, particularly in technology and green transformation. He noted that the Ministry is working in coordination with all stakeholders to translate these insights into actionable plans that enhance the competitiveness of the Egyptian economy, create productive and decent job opportunities, ensure equitable distribution of development gains, improve citizens’ quality of life, and support long-term macroeconomic stability and growth.
