Kuwait city: Egypt has emerged as the leading Arab nation in attracting foreign direct investment (FDI) projects, with cumulative investments surpassing $462 billion over the past 23 years. In 2025 alone, Egypt attracted more than $12.6 billion in FDI projects, securing its position as the top destination for greenfield foreign investments in the Arab region.
According to State Information Service Egypt, the findings are part of the 41st Annual Investment Climate Report 2026 by the Arab Investment and Export Credit Guarantee Corporation (Dhaman). The report, released from Dhaman's headquarters in Kuwait City, highlights Egypt's role as the largest recipient of foreign investment projects in the Arab world from 2003 to 2025. In 2025, Egypt ranked third for FDI inflows in the Arab region, drawing $15.4 billion, which constitutes 13 percent of the total FDI inflows to Arab countries.
Egypt also holds the position of the third-largest recipient of cumulative FDI stock in the Arab region, with figures approaching $220 billion by the end of 2025. However, the nation ranked 10th among Arab countries and 100th globally in Dhaman's Composite Investment Climate Index for 2025.
On addressing political and security challenges, Dhaman emphasized the need for enhanced peaceful resolutions for conflicts, regional coordination to combat terrorism and organized crime, and the modernization of security systems to uphold the rule of law. The report also called for reforms in the institutional, legislative, and procedural environment, suggesting updates to investment legislation, acceleration of digital government services, and enhancement of governance to protect investors' rights.
Economically, the report proposed policies to stabilize currencies, reform tax and customs systems, and empower the private sector, along with diversifying economic activities. Human capital development, labor market flexibility, and improved infrastructure were also highlighted as crucial areas for growth.
The report further emphasized the importance of knowledge localization, research and development, and securing local supply chains. Dhaman urged Arab countries to draw lessons from successful international experiences, emphasizing high-impact reforms and digital government service expansion.
The Gulf Cooperation Council states, alongside Jordan and Morocco, were recognized for having the best investment climates in the Arab world, with the United Arab Emirates leading regionally and ranked 17th globally. Tunisia and Egypt were placed 95th and 100th globally, respectively.
Dhaman, established in 1974 and headquartered in Kuwait, reiterated its commitment to promoting investment flows in Arab countries by offering comprehensive insurance against political risks and supporting governments with advisory roles to enhance the investment climate across the region. The corporation is jointly owned by Arab states and four Arab financial institutions and is notable for being the first multilateral investment insurance agency globally, with an A+ credit rating from SandP Global Ratings.