Egypt was the largest recipient of FDI in the MEA last year and the second largest recipient globally, according to fDi Insights’ 2023 report (pdf) on global greenfield investment trends. Egypt drew around USD 107 bn of FDI in 2022, which went towards 148 projects — more than double the number of projects that received foreign investment in 2021.

Thank green hydrogen: The increase in FDI projects was “fuelled by several mega projects being announced in renewable hydrogen,” the report said, pointing at the 19 green hydrogen mega projects, most of which are expected to be established in the SCZone. These projects accounted for 97% of all of Egypt’s total inbound FDI, and made Egypt the “world’s top destination for mega projects in terms of capital investment in 2022.” The new investment meant that Egypt accounted for 41% of FDI in the Middle East and Africa.

Is it FDI if it’s all talk? No final investment decisions have been made by the raft of companies that signed MoUs and framework agreements last year to establish green hydrogen plants.

Tags: