Cairo, Egypt (CNN) – Egypt on Tuesday signed 14 investment agreements with the Kingdom of Saudi Arabia, on the sidelines of Saudi Crown Prince Mohammed bin Salman’s visit to Cairo, worth $ 7.7 billion.
Egyptian businessmen see that Saudi investments have a great opportunity in Egypt in light of the large investments the government has made in infrastructure and legislation to facilitate the establishment of projects, and they have demanded the need to establish more partnerships so that the two countries benefit from the capabilities they enjoy.
The agreements signed between Egypt and Saudi Arabia included investment in the sectors of infrastructure, logistics, port management, food industries, the pharmaceutical industry, traditional energy, renewable energy, the electronic payment system and financial and information technology solutions.
Eng Fathallah Fawzy, a member of the Egyptian-Saudi Business Council and vice-president of the Egyptian Businessmen’s Association, said the investment agreements signed between Egypt and Saudi Arabia were helping to increase the latter’s investments in Cairo by 25%. , which has a positive effect on the increase in foreign exchange reserves and the attractiveness of foreign direct investment, in addition to the industry More employment.
According to official statements, the volume of Saudi investments in Egypt is more than $ 32 billion, by more than 6,800 Saudi companies, while the volume of Egyptian investments in Saudi Arabia is $ 5 billion by more than 802 Egyptian companies.
Fawzy added, in exclusive statements to CNN in Arabic, that the most prominent investment agreements focused on the production of new and renewable energy, the pharmaceutical industry and information technology, all of which are essential economic sectors that contribute to achieving economic integration, as the pharmaceutical and technology industry is one of the key agreements signed by Egypt’s need to increase industrial production to reduce the import bill and increase Egyptian exports to meet the state’s $ 100 billion worth of exports.
Engineer Mohamed Junaidi, a member of the Egyptian-Saudi Business Council and the Syndicate of General Industrial Investors, believes the investment agreements signed between Egypt and Saudi Arabia on the sidelines of the Saudi Crown Prince’s visit are good, but it does not fit with the historical relations between the two countries, which require that the number and value of the agreements be many times what has been signed compared to what Saudi Arabia expects with European countries and the United States of America, adding that ‘ an integrated industrial strategy must be developed to achieve an Arab economic renaissance, with the manufacture of basic products such as automobiles and electrical appliances.
In exclusive statements to CNN in Arabic, Junaidi indicated that Egypt has issued several measures and incentives during the recent period that Saudi investors can use to pump large investments in Egypt that contribute to achieving economic development for the two countries, and note on the need for the Egyptian government to complete its reform measures to facilitate the establishment of foreign investment.
Businessman Tamer Waguih, a member of the Egyptian-Saudi Business Council and chairman of the board of Prime Pharma for trade in industrial and medical supplies, said Prince Mohammed bin Salman’s visit to Egypt was of political importance as it indicates the continuation of cooperation and historical and strategic relations between Egypt and Saudi Arabia, in the light of the challenges facing Egypt.To face the Middle East and world wars, which require the need for a strong Arab alliance, and from an economic point of view, Egypt has surpassed many countries in the world by achieving a positive growth rate during the Corona pandemic and pumping large investments in infrastructure in recent years in a way that helps it attract foreign direct investment.
Waguih in exclusive statements to CNN in Arabic indicated that the investment agreements signed between Egypt and Saudi Arabia focused on several areas, particularly energy production and generation, as Egypt managed to address a shortage in electricity production. to shift a surplus. in a way that allows it to be exported abroad, and also includes agreements for industrial production.He added that Egypt is one of the most important countries in the world, which has 5 free trade agreements with many Arab and European markets, North Africa, South and East Africa and Latin American countries. These agreements help Egyptian products to enter many markets without customs duties, which is a competitive advantage that encourages the attraction of industrial investment.
Aquapower has signed an agreement to generate and transfer electricity from wind energy with the Electricity Holding Company for Electricity of Egypt to produce and generate clean energy from wind energy technology with an installed capacity of 1100 megawatts.
Tamer Waguih pointed to the incentives provided by the Egyptian government during the last period to facilitate the attraction of foreign investment in general and to support Saudi investment projects, including the granting of the gold license to companies establishing strategic projects. Foreigners have the same privileges as a local investor.