In the latest World Investment Report by the United Nations Conference on Trade and Development (UNCTAD), it was announced that Egypt held on firm to its position as the most attractive country for foreign direct investment (FDI) on the continent.
FDI for 2019 came in at a staggering US$8.5 billion, a 5% increase on the 2018 figure. The year-on-year increase in FDI was largely attributed to a well implemented package of economic reforms which greatly increased business and investor confidence.
Foreign investors were particularly attracted to investing in the telecom industry, real estate development, tourism, and Egypt’s growing gas and oil sector. Recent gas discoveries off the Egyptian coast in the Mediterranean Sea, have led to a number of large multinational companies investing in the industry. This has resulted in a surge in employment opportunities in oil and gas as well as Egypt becoming a net gas exporter as of last year.
THINK LIKE AN ECONOMIST!
Q1. What is meant by the term FDI?
Q2. With reference to the article above, explain why multinational companies increased investment in Egypt in 2019.
Q3. Analyse how this increase in FDI could benefit people in Egypt.
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