The Impact of Country Image on Investment Intention in the Renewable Energy Sector in Egypt

Abstract Purpose: to identify the influence of country image and its both dimensions, the cognitive and the affective on investors’ intentions to invest or expand their existing investments in RE projects in Egypt. Design/methodology/approach: A quantitative method through a survey research strategy, collecting 39 valid responses from RE companies in 18 countries. The quantitative data were analyzed using Smart PLS v. 4.1.1.8. Findings: the results confirmed a significant positive effect of cognitive country image (CCI) and affective country image (ACI) on investment intentions (II), and a highly significant effect of the overall country image (CI) on investment intentions (II). The findings also revealed a greater impact of affective country image (ACI) on investment intentions (II) compared to cognitive country image (CCI). Practical implications: The research Provides policymakers, and government officials in Egypt with a clear overview of how country image can have a great influence on investors’ decisions when deciding on investment location or expansion. Thus, an investment promotion plan should take into consideration the improvement of Egypt’s country image not only from the cognitive dimension but also from the affective dimension that has a stronger impact. Paper type: Research paper Key words: Foreign Direct Investment, Country Image, Cognitive Country Image, Affective Country Image, Investment Intention.