Syed Al Hajjar (Abu Dhabi)
The Egyptian Prime Minister, Dr. Mostafa Madbouly, confirmed his country’s zeal for the presence of Emirati companies in Egypt in all areas, either by attracting new companies, or by expanding companies currently operating in the Egyptian market.
Madbouly said during his meeting in Abu Dhabi with the Emirates Council for Investors Abroad yesterday, with the participation of a number of CEOs of Emirati companies investing in Egypt, that the industrial sector is a first and top priority in Egypt, referring to his country’s eager to cooperate with the UAE within the framework of developing an integrated strategy between the UAE, Egypt and Jordan In the industrial sector, with the aim of creating strategic cooperation and industrial bases between the three countries.
Madbouly stressed that the crises the world has seen over the past two years, whether due to the “Covid-19” pandemic or the Russo-Ukrainian war, underscore the need for cooperation between the fraternal Arab countries to achieve adequate basic needs.
Madbouly said: The Egyptian state is completely open with all its institutions to encourage investment from the Emirati brothers, and our ambition is great to work with the sister emirates.
He explained that the industry occupies an advanced position in the Egyptian government’s priorities, especially in the fields of food industries, engineering industries, medicine and medical preparations, renewable energy, and others, and points to the existence of successful experiences related to to Emirati’s investments in Egypt in various areas, such as real estate development.
He pointed out that the agricultural sector has also seen remarkable developments in recent years, highlighting the importance of Emirati investments in Egypt in this sector, especially of the companies of Al Dahra, Al Canal Sugar, and others, and explains that the government’s current direction is focused on providing infrastructure in promising areas such as Toshka, East Oweinat, West Minya, New Delta and Sinai.
The meeting was attended by members of the official Egyptian delegation, HE Dr. Mohamed Shaker, Minister of Electricity and Renewable Energy, HE Hala Al-Saeed, Minister of Planning and Economic Development, HE El-Sayed Al-Qusair, Minister of Agriculture and Land Reclamation, HE Nevin Gamea, Minister of Trade and Industry, and Dr Tamer Essam, Chairman of the Board of Directors of the Government Al-Dawaa, the Egyptian ambassador, Sherif El-Badawi, the Arab Republic of Egypt’s ambassador to the country, adviser Mohamed Abdel-Wahab, CEO of the General Authority for Investment and Free Zones, and Engineer Mohamed El-Sewedy, Chairman of the Board of Directors of the Federation of Egyptian Industries.
The Emirati side included Jamal bin Saif Al Jarwan, Secretary General of the Emirates Council for Investors Abroad, Maryam Khalifa Al Kaabi, the country’s ambassador to the Arab Republic of Egypt, officials from a number of ministries and government and private institutions , and about 30 businessmen in various sectors.
Madbouly explained that the conditions that Egypt has seen over the past few years have required rapid action, through the implementation of many strategic and infrastructure projects. Aiming to create an attractive climate for investment, and then increasing the contribution of the private sector after providing a fertile environment for investment. He stated that the economic reform measures approved at the end of 2016 played an important role in supporting the stability and stability of the Egyptian economy, and instilled confidence and reassurance for investors, explaining that the current period is a new stage in the Egyptian economy’s path through openness with the private sector and the implementation of giant projects in partnership with the sector.The private. Madbouly explained that the Egyptian government intends to increase the share of the private sector in total investments within 5 years from 30% currently to 65%, and explains that the government intends to sell a large number of good state assets to the private sector to offer, to obtain. shares of them, contributing to the pumping of investments.Estimated at $ 40 billion over 4 years, averaging $ 10 billion per year.
Madbouly said the government is also facilitating investment procedures, either by attracting new investment or increasing existing investment, as key measures in the industrial, agricultural, communications and renewable energy sectors have been approved.
He pointed out that the government had made it clear that the allocation of industrial land would take place through the right of usufruct for a long period or ownership of the land based on the cost of utilities, and explained that within a few days the value of all industrial land in Egypt will be announced in all geographical areas, with payment facilities provided to those who want to own, as The government does not intend to benefit from the sale of industrial land, but to operate the factories.
He added that these factories will obtain the “golden license”, which will be issued by the Council of Ministers and the Industrial Development Authority, as it confirms that the investor is not obliged to obtain any approvals from other parties, and it will be issued are 20 days.
Madbouly pointed out that the Egyptian government has launched a set of additional incentives for specific industries in specific geographical areas, such as the green hydrogen and ammonia industries, and in promising areas such as El Alamein and the Administrative Capital.
He explained that in the context of facilitating business practices and getting rid of bureaucracy, the Sovereign Fund of Egypt was recently established, with the aim of providing more flexibility and speeding up work steps with other sovereign funds, or with investors working in major strategic projects work. .
In response to investors’ questions about the stability of the exchange rate in Egypt, Madbouly explained that during a specific stage large investments were expanded and a large percentage was dependent on the entry of foreigners into the local bond market, but with the conditions of the recent global crisis, has left a large part of these investments, pointing out that there are now no risks in Egypt due to the presence of these funds again, as they rely on sustainable resources, of which the main industry, exports, the Suez Canal, overpayments are. of Egyptians abroad and tourism.
He added: Our approach during the next phase is to rely on foreign direct investment, with an interest in increasing operating income and exports.
He explained that Egyptian exports increased by more than 20% last year, in addition to a 20% increase during the first three months of this year.
Incentives and benefits for investors
Egyptian Trade and Industry Minister Nevin Gamea has reviewed the new facilities and procedures approved by the Egyptian government to facilitate business and attract more foreign direct investment.
She reaffirmed the Egyptian government’s interest in attracting Emirati investments in all sectors, particularly the industrial sector, while providing more incentives and investment benefits to investors.