The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:
Openness to, and Restrictions upon, Foreign Investment,
Investment and Taxation Treaties,
Legal Regime,
Industrial Policies,
Protection of Property Rights,
Financial Sector,
State-owned Enterprises,
Corruption,
Labor Policies and Practices,
Political and Security Environment, and
U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs
Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad. These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors.
To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.
Executive Summary - Egypt
Egypt is recovering from an economic crisis in 2022-23 that drove inflation above 25 percent and led to the approval of a larger $8 billion, 46-month Extended Fund Facility (EFF) with the International Monetary Fund (IMF) in March 2024. Although the inflation rate dropped below 15 percent in April 2025, Egypt continues to face a domestic energy shortage it is managing through the import of liquefied natural gas (LNG), and the ongoing conflict in Gaza and Houthi threats in the Red Sea continue to negatively affect Egypt’s foreign currency revenues. Egypt has successfully completed four of the eight reviews for its IMF program and is expected to complete the program by June 2026. Additionally, the IMF has approved a $1.3 billion arrangement under the Resilience and Sustainability Facility (RSF) for Egypt, aimed at supporting long-term economic resilience and sustainability initiatives. To secure the increased financing, Egypt adopted a flexible exchange rate, tightened its monetary policy, and agreed to continue its privatization efforts and undertake business climate reforms to increase foreign direct investment (FDI) and generate private sector-led sustainable growth.
The Government of Egypt is increasingly focused on attracting FDI and has stated its intention to create a more conducive business and investment environment. However, investors continue to face obstacles, including:
- excessive bureaucracy,
- lack of transparency,
- uneven enforcement of laws and regulations,
- a shortage of skilled labor,
- cumbersome customs procedures,
- corruption, and
- intellectual property rights issues.
In Fiscal Year 2023/2024, Egypt’s FDI inflows surged to a record $46.1 billion, largely driven by the United Arab Emirates’ $35 billion purchase of Ras El Hekma on Egypt’s North Coast, the largest foreign investment in Egypt’s history. Egypt is a party to more than 100 bilateral investment treaties, including with the United States. It is a member of the:
- World Trade Organization (WTO),
- African Continental Free Trade Agreement (AfCFTA), and
- Greater Arab Free Trade Area (GAFTA).
View the U.S. Department of State’s Egypt Investment Climate Statement.
For background information on the political and economic environment of the country, please click on the link to the U.S. Department of State Countries & Areas website.