OECD Review of FDI Qualities in Egypt: From “volume of inflows” to “development impact” through deeper local linkages and better jobs & productivity

1) What is the report, and why now?

According to the government statement, the launch comes as a step to support a structured dialogue between government, the private sector, and international partners on practical priorities to maximize the development return of FDI—so that investment becomes:

• a tool to raise productivity, not merely a financial inflow,
• a channel for knowledge and technology transfer, not activity detached from the domestic economy,
• a lever to create decent jobs and improve skills alignment with the needs of promising sectors—especially in the context of digital and green transition.

2) The core “story” in the OECD report as reflected in the statement

The report (as cited in the statement, and consistent with the review’s themes) focuses on a central idea:

The report presents:

• Key trends of FDI inflows into Egypt in recent years, noting the country’s continued ability to attract investment.
• The need to direct additional efforts toward:
  • deepening domestic value added,
  • increasing knowledge and technology transfer,
  • expanding integration into global value chains.

3) Key quantitative signals (as presented in the OECD review) — with fixed definitions

A) Job creation intensity (Jobs per USD 1bn greenfield FDI)

B) Direct jobs from greenfield projects

• 2013–2023: 275,598 jobs
• The previous decade: 165,390 jobs

C) Innovation and R&D (as cited in the review)

• Share of inflows allocated to R&D/innovation activities (2013–2023): 0.2%
• Share of foreign firms reporting R&D spending: 5.5%

D) Productivity and local purchasing (Signals)

• Foreign firms are, on average, 1.5x more productive than domestic firms.
• Foreign firms tend to purchase about 63% of their inputs from the local market.

4) What does the government statement add? (Political-to-execution translation of the report’s results)

The government statement provides a direct execution-oriented framing of what the review’s results imply for the policy track, focusing on:

(A) Deepening local linkages and developing supply chains

• Emphasizing that foreign firms’ reliance on locally sourced inputs reflects a promising base to deepen linkages.
• Directing efforts toward supplier development programs and matchmaking services between foreign investors and domestic firms, in ways that:
  • reduce search and contracting costs,
  • raise local suppliers’ readiness in quality, accreditation, and technical certifications.

(B) Improving job creation intensity and skills alignment

• Noting the creation of direct jobs over the last decade, while emphasizing the need to maximize job creation intensity.
• Focusing on aligning skills with the needs of promising sectors, particularly under the umbrella of digital and green transition.

(C) Governance, transparency, and evaluation tools

• Calling for strengthened coordination among entities responsible for investment promotion and SME development.
• Improving governance and transparency, and supporting intellectual property rights.
• Developing effective monitoring and evaluation tools for incentives and related programs, so that incentives become tied to measurable results.

(D) The National FDI Strategy 2025–2030

• Emphasizing completion of the national FDI strategy for 2025–2030 and linking it to Egypt Vision 2030 objectives.
• Calling for:
  • clear sectoral priorities,
  • trackable results measurement mechanisms.

5) Ministers’ statements (as cited)

Minister of Investment and Foreign Trade (per the statement)

• Considered the launch of the OECD review a pivotal step to shift the debate from the volume of inflows to the quality of investment and its development impact.
• Noted that the review highlights an approach of institutional coordination and integrated government action to support:
  • higher productivity,
  • technology transfer,
  • strengthened innovation,
  • creation of decent jobs and skills development.
• Explained that the challenge is no longer only attracting investment, but maximizing its sustainable return through:
  • directing investment toward higher-impact sectors driven by innovation and green investment,
  • expanding supplier development programs,
  • raising digital readiness,
  • supporting compliance with standards and obtaining the required certifications,
  • completing legislative and digital reforms to enhance procedural efficiency and predictability.

Minister of Planning and Economic Development (per the statement)

• Affirmed that the report reflects the state’s direction toward evidence-based development policies, moving beyond capital attraction to focus on development impact.
• Noted that recommendations support improving labor market efficiency and aligning skills with the requirements of modern sectors, especially technology and green transition.
• Emphasized the pursuit of translating indicators into execution plans that enhance competitiveness, provide decent and productive jobs, and support a more equitable distribution of development gains.

6) What does this mean in practice? (A publication-to-execution roadmap ready for dialogue)

Based on the review and the statement, the “roadmap” can be summarized into five measurable operational pillars:

7) Rapid publishing box (for social pages / website)

• Core message: Investment quality and development impact matter more than inflow volume alone.
• Execution priority: Deepen linkages between multinationals and SMEs through supplier development, matchmaking, and reducing contracting/search costs.
• Labor-market pillar: Improve job creation intensity and align skills to future sectors (digital/green).
• Governance pillar: Evaluate incentives and programs and link them to trackable results.

Data notes & usage limitations (QC)

• Scope of figures: The quantitative signals above are reproduced as stated for the referenced periods (e.g., 2003–2023 and 2013–2023).
• Definitions: The definition of “job creation intensity” is fixed as stated: jobs per USD 1bn of greenfield FDI investment.
• Interpreting indicators: The figures are read as “signals” about linkages, productivity, and innovation, and should not be treated alone as causal proof without complementary analysis and impact-measurement design.

8) Source and reference link

International source: OECD — FDI Qualities Review of Egypt: Connecting Foreign and Domestic Firms for Productivity and Better Jobs (© OECD 2026).

Canonical DOI: https://doi.org/10.1787/04ed341a-en

Full report link (as cited in the government statement): https://share.google/52L0UEdSmFugJgQJU

OECD — FDI Qualities Review of Egypt: Connecting Foreign and Domestic Firms for Productivity and Better Jobs (© OECD 2026)
Canonical DOI: https://doi.org/10.1787/04ed341a-en
Full report link (as cited in the government statement): https://share.google/52L0UEdSmFugJgQJU