This report examines how foreign direct investment (FDI) contributes to productivity, innovation, job quality and skills development in Egypt. While foreign investment serves as a vital source of financing for Egypt, sustaining and deepening the current reform efforts is essential to ensure more equitably distributed benefits across society and to foster the growth of a knowledge-based economy. This report evaluates the country's policy and regulatory environment shaping technology transfer from foreign multinational enterprises (MNEs) to small and medium-sized enterprises (SMEs). It offers policy recommendations to promote and attract FDI with significant spillover potential, enhance the ability of Egyptian SMEs to absorb new knowledge, and strengthen Egypt's integration in global value chains.
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