Egypt sees 34% jump in new foreign companies in first half of 2026

Egypt recorded a sharp increase in newly established foreign companies in the first half of 2026, signaling growing investor activity as the government steps up efforts to improve the business environment and expand private-sector participation.

The number of newly established foreign companies rose 33.7% year on year to 5,022 between January and June, according to a Cabinet statement.

Capital inflows into these companies also increased 20.9% to EGP 21.4 billion ($410.5 million) over the same period.

The figures come as Egypt seeks to increase the role of private investment in the economy. The government is targeting private investment to account for 64% of total investment by 2030, compared with 59% under the 2026/27 development plan.

Authorities are also aiming to raise the investment-to-GDP ratio to 20% by the 2029/30 fiscal year, from around 17% in 2026/27, as part of wider efforts to accelerate economic growth and reduce the state’s role in economic activity.

Foreign investment can deliver benefits beyond direct capital inflows, including job creation, stronger supply chains and knowledge transfer.

Foreign investment can also improve productivity and export competitiveness, helping create a cycle in which stronger economic performance attracts further investment.

The Egyptian government has attributed the latest increase in foreign company formation to measures aimed at simplifying procedures, improving the investment climate and facilitating business activity under its broader economic reform program.

The World Bank has also noted progress in Egypt’s reform agenda, which focuses on stimulating private investment and supporting job creation.

The latest company formation data follows signs of improvement in Egypt’s wider foreign direct investment flows.

FDI inflows increased by about one-third during the first nine months of the 2025/26 fiscal year, according to a recent government review of the country’s balance of payments.

Egypt’s balance-of-payments deficit also narrowed to around $1.8 billion between July and March, from approximately $1.9 billion a year earlier, supported by stronger FDI inflows and remittances.

The government is now seeking to build on that momentum by simplifying administrative procedures, improving access to investment information and strengthening coordination between public authorities.

Egypt’s accession to the World Trade Organization’s Investment Facilitation for Development Agreement is also expected to support those efforts by reducing procedural costs and improving transparency for international investors.