This chapter examines private capital flows to Egypt to ascertain the country’s capacity to leverage foreign capital spillovers, focusing on Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) since the implementation of the 1970s’ open-door policy. Foreign capital is essential for economic growth, particularly for nations with insufficient domestic savings. It can address economic challenges such as low growth rates, high unemployment, current account imbalances, and foreign currency shortages, while facilitating knowledge and technology transfer. The chapter begins with a theoretical overview of economic growth models and the role of foreign capital in supporting growth. It reviews empirical studies on the benefits of foreign capital and then discusses trends in Egypt’s private capital inflows, considering economic and political factors. Finally, the chapter assesses Egypt’s absorptive capacity, including human capital, financial development, trade openness, institutional quality, and technological disparities.