CAIRO: As Egypt strives to regain the confidence of foreign investors, members of the Turkish business community will convene with the Federation of Egyptian Chambers (FEC) on Saturday to discuss how the state can help facilitate their business.
Hussein Avni Botsali, Turkey’s ambassador to Egypt, will also attend the discussions, set to take place in the port city of Alexandria.
“Although people are saying in 2011, the Egyptian economy was paralyzed, Turkish- Egyptian trade relations expanded by around 30 percent,” Botsali told Daily News Egypt.
“We hope to discuss further investments at the upcoming meeting, this of course needs stability and encouragement from the new Egyptian government that will come,” the ambassador added.
Botsali pointed out that in 2011, Egyptian exports to turkey increased by 50 percent net, rising from $900 million dollars in 2010 to $1.5 billion in 2011, while Egyptian exports rose from $2.3 billion to $2.7 billion.
Egyptian officials said they are aiming for more economic cooperation with Turkey.
“We want to take care of our investor. There has been an absence of stability and security in Egypt, so we want to make sure their businesses are going well and let them know that we are here if they face any problems,” Ahmed El-Wakil, head of the FEC, told DNE.
Turkish companies have been seeing demands from workers who are striking or protesting for better working conditions and higher pay, El-Wakil said.
There are 100 Turkish factories that employ 52,000 Egyptian workers. Turkish investors have constantly voiced their concerns, hoping that the government heeds their calls.
Investors are frustrated with the paperwork and red-tape that come with licensing through Egypt’s infamously rigid bureaucratic institutions.
Starting with Turkey, Egyptian officials plan to hold similar meetings with foreign investors, country by country, according to Alaa Ezz, secretary general of the Federation of Egyptian Industries.
“This is our way of reaching out, and letting them know they can reach out to us,” El-Wakil added.
The move comes at a time when Egypt’s foreign reserves are rapidly declining at about $2 billion a month, currently at $16.1 billion, and foreign direct investment (FDI) along with tourism continue to be sluggish.
“Investments have drastically gone down, so we started focusing on our main sources of investment. Turkey is one of the main ones relocating at the moment,” said Ezz.
Turkish investors have always been strong partners for Egypt. After the Egyptian uprising, Turkey has sought to strengthen political and economic ties with its Mediterranean neighbor.
However, with Turkish industrial zones in Cairo, Alexandria and Giza, several Turkish businesses have faced problems in Egypt since the uprising, Ezz pointed out.
“One of the major problems, for example, is in Damietta, where Canadian company Agrium is located,” he said.
Since November, residents and activists have been protesting against the Agrium factory, which is built in the heart of a residential town in Damietta, one of Egypt’s most strategic port cities.
Protesters and residents in the city previously told DNE that the factory has polluted their city, emitting hazardous fumes that have been proven to cause cancer.
“Unfortunately, there is a major Turkish company and factory there stuck in the middle of the mess, and it is being affected by blocked roads due to strikes. We are trying to hear them out, and help them get over this problem,” said Ezz.
The company, which is currently looking to expand, has repeatedly voiced its concerns, along with several Turkish companies, triggering the FEC to hold the upcoming meetings in Alexandria.
“We are bringing in Turkish businesses from all over Egypt, and there will also be dozens of media coming in from Turkey because we want to send the message that things are not as bad as the media portrays,” Ezz added.
Turkish Prime Minister Recep Tayyip Erdogan last visited Egypt in September to discuss increasing bilateral investments with Egypt to $10 billion over the next four years.
Egypt’s government awarded Turkish Limak Construction with a $387 million contract to expand Cairo Airport’ss second terminal also in September.
Erdogan said on a number of occasions that the Egypt-Turkey relation is not just based on proximity and geography, but also history and cultural similarities.
Turkey’s current investments in Egypt are at about $1.5 billion. Egypt’s total exports to Turkey from 2010 to November 2011 were worth about $942.6 million, according to figures from Egypt’s trade ministry.
Egypt exports a wide range of projects to Turkey ranging from sugar, perishable goods to live animals and flowers.
