The impact of the current global economic transformations on foreign direct investment flows to Egypt during the period 2004/2005 - 2013/2014

Investment represents in general, a major axe of the agricultural, industrial, commercial sectors of economic development. Countries seek to attract as much as possible of foreign direct investment (FDI) due to its abundant advantages such as boosting the economic development and trade flows. It also contributes to the development of employment opportunities, the integration in global markets, the reduction of poverty and the enhancement of standards of living in addition to its importance in the transfer of modern technological methods.
Egypt has provided several incentives for foreign direct investment by awarding benefits, facilities and exemptions. It exerted great efforts to create a suitable investment climate and develop the required infrastructure, in addition to the amendment of the laws, legislation and regulatory frameworks to encourage and attract foreign direct investment. However, recent events on the international, regional and local levels, which varied between the global economic crisis and regional and local political events, and the subsequent economic transformations affected in the macroeconomic variables, which in turn had a strong impact on FDI flows to Egypt.
Accordingly, the study concerned with the analysis of foreign direct investment flows in Egypt before and after these economic transformations and examined the impact of these changes on the net foreign direct investment flows of Egypt during the period from  2004/2005 to 2013/2014 by dividing this period into three periods based on the most important characteristics of each period, FDI flows to Egypt and its determinants were affected by the change in macro-economic variables which resulting from the current economic and political changes.
Foreign investment inflows to Egypt have been positively correlated with both political and economic stability, GDP growth, the decline in the rate of inflation, and vice versa, and it was found that foreign investment flows to Egypt were not as hoped and did not go to the targeted development sectors, but in light of the efforts currently being made, the new phase could be considered the beginning of the era to attract foreign direct investment to Egypt. the research recommended of the importance of working to achieve the political and economic stability of Egypt as the first pillars of attracting foreign direct investment and provide guarantees to prevent its escape, in addition to the importance of identifying the economic sectors that need FDI flows according to the requirements of the national economy and its developmental trends.