Egypt seeks increase in foreign investment to compensate for slowdown
Egypt is hoping to raise 25 billion Egyptian pounds in foreign investments over the next five years to help offset the economic slowdown it is experiencing. According to a recent report, investments will help finance improvements in infrastructure, as well as spur a projected seven percent growth rate.
Although Arab investments totaled nearly EP 14 billion last year, chairman of the Egyptian General Authority for Investments and Free Zones, Dr. Mohammed Al Ghamrawi, stated that the investment by Arab countries did not meet the country’s financial needs. Egypt has recently suffered a loss of Arab investments due to what some sources believe are a combination of fluctuating oil prices, Gulf budget deficits, and regional economic and political instability. Ghamrawi stressed that there were no Israeli investments in Cairo, with Israel’s only investment in Egypt being a 20 percent stake in an Alexandrian-based oil refinery.
The Egyptian government has recently privatized 185 companies and plans to privatize an additional 165. In another move to aid its economy, the government has opened information centers which provide data relevant to foreign investors about Egypt, as well as created a dispute settlement committee intended to solve investor problems.
According to Ghamrani, Egypt hopes to attract both Arab investments as well as U.S. and Japanese technology to the country. –(Albawaba-MEBG)
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