SHARM EL-SHEIKH: Gulf Arab allies pledged a further $12bn of investments and central bank deposits for Egypt at an international summit yesterday, a big boost to President Abdel Fattah Al Sisi as he tries to reform the economy after years of political upheaval.
Kuwait, Saudi Arabia and United Arab Emirates each offered $4bn to Egypt, which is grappling with Islamist insurgents as it seeks to improve the investment climate four years after a popular uprising that touched off protracted turmoil.
The UAE said it would deposit $2bn of its pledge in the Egyptian central bank, while Saudi Arabia said $1bn of its pledge would go to the bank. Oman said it would give Egypt $500mn in grants and investment over the next five years.
Egypt hopes the conference will project an image of stability and improve investor confidence hit by the political upheaval touched off by the fall of veteran ruler Hosni Mubarak.
Cairo wants to double foreign investment in this fiscal year to $8bn, despite an Islamist insurgency in northern Sinai and frequent militant attacks across the country.
“I’m expecting here to see $15-$20bn in agreements signed,” Investment Minister Ashraf Salman said earlier, adding that the deals would cover power plants, real estate and agricultural projects.
General Electric said it would invest $200mn in a manufacturing and training facility which it sees as part of an economic hub being built near the Suez Canal.
It also said it had delivered 34 gas turbines to Egypt as part of a $1.9bn power project.
Egypt also expected to sign several memoranda of understanding at the conference.
The conference shaped up as an important test of Egypt’s reform agenda under Sisi, a former army chief who wants to remove investment barriers to help turn around the ailing economy of the Arab world’s most populous country.
Sisi’s crackdown on Islamists and secular opponents has drawn fire from human rights groups. But he has won praise from foreign investors by implementing reforms.
He told the conference that his vision for Egypt’s economy centred on improving state finances and encouraging private sector investment through legislative reforms and respecting contracts in order to achieve growth rates of six percent over five years.REUTERS
SHARM EL-SHEIKH: Egypt plans to build a new administrative capital east of Cairo within five to seven years at a cost of $45bn, housing minister Mostafa Madbouli said yesterday.
Announcing the project at an international investment conference, Madbouli said the goal included creating 1.1 million housing units.
The new capital, planned to be the size of Singapore, will house government buildings, diplomatic missions and residential units in the area between Cairo, Suez City and Ain Sokhna.
The project will include an airport and 90 square kilometres of solar power fields.REUTERS
