Egyptian economic experts today openly acknowledged that the political unrest in Egypt since the January 25 Revolution is the main reason for the considerable decline in direct foreign investment – a loss estimated to be U.S. $163 million. The experts, however, are optimistic about the future of Egypt after elections are held. “The monthly report of Egypt's Central Bank highlighted the drop in direct investment in the first quarter of the fiscal year,” reported the former Regional Manager of the al-Mashrek Bank. “The current political situation increased foreign investor anxieties,” he added. “The current crisis is political and has no economic roots.” “The suspension of the Egyptian stock market during the first quarter of the 2011 spooked many investors who subsequently fled the market,” he said. “Egypt will restore the production rate and investments after achieving political stability in the next elections.” “The decline in direct foreign investments was expected in light of the political events, which led to unprecedented instability in Egypt,” said Manager of the Arab African International Bank Ahmed Seleim.
