CAIRO: Emirati interest in investing in Egypt was the underlying theme to the annual Global Trade Matters (GTM) conference on Egypt Emirates Trade and Investment held in Cairo Sunday.
“There is no trade without investment, no investment without trade, said GTM managing director Ashraf Mohamed Naguib.
According to the Ministry of Investment, the amount of Emirati investment in Egypt has totaled LE 56 billion since the beginning of 2006.
“There is certainly no shortage of investment opportunities for individuals or investment funds in Egypt, said Marawan El Araby, managing director of Citadel Capital.
In an effort to facilitate these investments, Mahmoud Attalah, Vice Chairman of the General Authority for Investment and Free Zones said: “When we’re talking about a decision to cut taxes from 43 percent to 20 percent, it’s a very brave move.
The conference looked into the types of UAE investment in Egypt, covering the sectors of capital markets, private equity, transport, communications and tourism.
El Araby said that participants at a private equity conference he attended in Dubai last month voted in a poll that Egypt is likely to be the “hottest market outside the GCC.
For his part, Naguib said that the GTM addresses bi-lateral and multi-lateral relations, an imperative in this era of globalization.
He added that “globalization has changed us, not just as private sector businessmen, but as people.
Beltone Director Aly El Tahry said that there are many things Egypt can learn from the UAE in their quest to continue and maintain economic growth.
“A characterization for the success of the UAE is that the institutions have had interactions that are pleasant, quick and efficient, and this is something Egypt can learn from, he said.
El Tahry also anecdotally recounted how much the airport experience may differ between Cairo and the UAE and how much that may impact potential investors wanting to come to Egypt.
“In Dubai airport, civilians are in passport control, not the military. This is less aggressive. The military is not to serve, but to protect. The civil service serves, he said.
Emirati investments in Egypt are found across the board. Major examples cited by the Ministry of Investment include Etisalat’s LE 16.7 billion bid for the establishment of the third mobile phone operator in Egypt last July.
Additionally there is construction firm Emaar’s contract for a mega tourism project in Cairo and the North Coast totaling LE 13 billion.
Other investments include Abraaj Capital’s 25 percent stake in the Egyptian Finance Company Hermes at LE 3 billion, and the United National Bank of Emirates’ acquisition of the Trade and Maritime Bank of Alexandria for LE 250 million.
