Pumping New Investments in October 2017 Scoring EGP 6.8 Billion Reflecting 185.9% Increase than Last September
Pumping New Investments in October 2017 Scoring EGP 6.8 Billion Reflecting 185.9% Increase than Last September
Source : Ministry of Investment and International Cooperation
10-Nov-2017
Total Increase in Incorporated Companies: 2812 Newly Incorporated Companies in November Reflecting 119.9% Increase and Creating 10.9 Thousand Job Opportunities.
Issues Brought before the Ministerial Committee for Investment Disputes Resolution Since February 26, 2017 Until October 1, 2017: 269 Issues at an Estimated Value of EGP 5.6 Billion.
Total Funding and Grants: USD 25.5 Billion.
Total Withdrawals as of June 30, 2017: USD 16.5 Billion.
The Ministry of Investment and International Cooperation ("MIIC") stated that October 2017 witnessed an increased volume of new investments at a rate of 191.1% of total new investments (capitals paid in respect of newly incorporated and expansions) scoring EGP 6.8 billion increase than the EGP 2.3 billion of October 2016), and reflecting a 185.9% increase than that of September 2017.
In its October 2017 bulletin, MIIC reported that the total number of companies incorporated during October 2017 increased by 119.9% to reach 2,812 companies (2456 newly incorporated companies and 256 expansion ones) compared to 1279 companies in October 2016. October 2017 witnessed 73.4% (EGP 534 million) increase in companies paid capitals, compared to the EGP 38 million increase of October 2016. Exported capitals scored EGP 11.5 billion increase, compared to EGP 5.1 billion pounds in October 2016. The industrial sector had the lion's share comprising 56.4% of the newly incorporated companies; the services sector ranked second to the former and then was followed by the construction and building; communications; agriculture; and tourism sectors.
MIIC added that the newly incorporated companies in October 2017 are expected to create around 10.9 thousand job opportunities, compared to 4.4 thousand jobs in September. Net foreign direct investments ("FDIs") during the fourth quarter of the fiscal year (2016 – 2017) increased by 29% to reach USD 1.35 billion compared to USD 1.05 billion during the same period in the fiscal year (2015 – 2016). This led net FDIs to increase during the fiscal year (2016 – 2017) by 14.5% amounting USD 7.9 billion compared to USD 6.9 billion during the fiscal year (2015– 2016).
MIIC pointed out that the number of issues brought before the Ministerial Committee for Investment Disputes Resolution since its 20th session on February 26, 2017 until the 27th session on October 1, 2017 was 269 disputes amounting to EGP 5.6 billion.
The October monthly bulletin confirmed that in respect of procedural simplification and facilitation as to investors, October 2017 witnessed the enactment of the Executive Regulations of the Investment Law, by H.E. Sherif Ismail, the Prime Minister, as a step in a series of reform measures carried out by MIIC to provide and promote a more favorable investment environment. Moreover, the Board of Directors of the General Authority for Investment and Free Zones approved the establishment of new three investment zones in Cairo, Qaliobiya and The Sixth of October City.
In course of promoting and attracting more domestic, Arab and foreign investments, Dr. Sahar Nasr, the Minister of Investment and International Cooperation, inaugurated the Uber Center for Excellence in Cairo. The Center is considered unprecedented in the Middle East and has an estimated investment cost of USD 20 million. In addition, the Minister inaugurated the Women's Economic Empowerment Forum in MENA under the title "Bridging Gender Gap to Promote Competitiveness", and has officially assumed the chair of the 2018 African Caucus at the World Bank Annual Meetings.
In terms of non-bank financial services, the EGX20 index increased during October 2017 to close at 14342 points scoring a 3.3% increase, MIIC reported. The total value of trading during October 2017 amounted to EGP 31.9 billion approximately. The real estate sector reached the highest positive return 11.7%, while Egyptian investors trading recorded 77.7% of total trading of the Exchange. Non-Arab foreign investors scored 13.9% and Arabs 8.4%. Non-Arab foreigners scored net purchase of EGP 177.8 million, while Arabs recorded a purchase of EGP 228.1 million. Financial leasing activity increased during the period from January to August 2017 by 26% scoring EGP 17.3 billion approximately. Factoring activity, during the first half of 2017, increased by 45% around EGP 3.5 billion.
In respect of development and international cooperation, total funding and grants reached USD 25.5 billion, while withdrawals as of June 30, 2017 were around EGP 16.5 billion.