Measurements of foreign direct investment (FDI) in Egypt vary according to the source and the definitions employed to calculate the figure. The Ministry of Petroleum keeps statistics on investment in the oil and gas sector (which accounts for the bulk of FDI in Egypt), while the General Authority on Investment and Free Zones (GAFI) keeps statistics on all other investments. The Central Bank records figures on quarterly and annual investment flows, based on financial records, for Egypt's balance of payments statistics. There are wide disparities between the three sources, and none can be considered particularly reliable in assessing levels of foreign investment in keeping with any U.S. government definition.
GAFI's figures are calculated in Egyptian pounds at the historical value and rate of exchange, with no allowance for depreciation. They are cumulative figures with 1971 as the start date. GAFI statistics, as of June 30, 2003, showed that U.S. investors had FDI in 260 companies outside the oil/gas sector, with a total investment of LE 1.945 billion ($314 million at the current exchange rate). The United States ranked second after the United Kingdom, which had an FDI share in 242 companies with a total value of LE 4.025 billion ($650 million). Based on investment in the oil/gas sector, where both the UK and U.S. are very active, the overall investment rank is probably the same. The Ministry of Petroleum estimates that investment in the oil/gas sector has been $2-3 billion annually in recent years, largely associated with the expansion in gas exploration and production, and particularly with the construction of two major liquefied natural gas (LNG) plants on the Mediterranean (by Union Fenosa of Spain and British Gas). The Ministry's estimates include operating expenses and operations costs.
Based on information about foreign direct investment flows in recent years, the estimates total foreign direct investment in Egypt to be $15-20 billion.
Other major investing countries include France, Italy, and Arab countries. The Department of Commerce calculated the stock of U.S. FDI as of the end of 2003 at $3.533 billion, with Apache Corporation, a major independent oil company, the largest single U.S. investor. In addition to their major role in the energy sector, U.S. firms are active in banking and in a wide range of manufacturing industries, producing goods for the domestic and export markets. Examples of U.S. investors include American Express, AIG, American Standard, Bristol-Myers Squibb, Citibank, Coca Cola, Exxon Mobil, Eveready, General Motors, Guardian Industries, H.J. Heinz, Johnson and Johnson, Devon Energy, Procter and Gamble, Pfizer, PepsiCo, Pioneer, and Xerox. Leading investors from other countries include such companies as BG, ENI-AGIP, Shell, and Union Fenosa (in the oil/gas sector), Unilever, the M.A. Khorafi Group (Kuwait), and the Kingdom Development Company (Saudi Arabia)
