The Egyptian investment climate has turned green, and by “going green” economists are not talking about irrigation. They are referring to Egypt’s booming renewable energy industry and the massive global attention that it has received from foreign investors during the recent period. The financial implications of the energy transition no longer need to be a concern for Egypt, since it has proven that green and renewable energies have become the ultimate magnet for foreign investments. Working alongside the appeal and potential that oil and gas investment opportunities offer, renewable energy and energy transition projects have the potential to bolster the investment climate in Egypt by giving investors a diverse array of investment options that promise to support all aspects of the industry.
To improve the investment climate, the Egyptian government has sought to implement several reforms to attract more foreign investors to the country’s energy sector among many others, the most important of which is golden licenses, which are expected to boost foreign direct investment (FDI). These reforms will not only support the country’s investment attraction ambitions, but promise to boost the country’s scarce foreign currency reserves. For this reason, the state implementing strategies to achieve its goal of increasing annual foreign currency revenues to $300 billion by 2030, being an ambitious goal given that it currently stands at $100 billion.
The art of the deal has been the key factor behind unleashing the world’s massive wealth into projects that promise to change the energy landscape in Egypt and support the national economy.
