(AFP File Photo)
The total amount of Arab investments as capital in newly created companies since 2011 is approximately $4.3bn, according to Hassan Fahmy, Chairman of the General Authority for Investment and Free Zones (GAFI).
Daily News Egypt looked through the GAFI report, which reveals full details of total companies established by Arab countries between 2011 and February 2014. It showed that this reached 4,047 companies with foreign capital of over $13bn, only $4.3bn of which came from Arab countries. These covered several sectors, including industry, service, finance, agriculture, tourism, construction, and communications.
Qatar sits on the throne of the Arab country with most investments in Egypt at about $1.3bn in contributions to 47 companies
The report revealed Qatar to be the topmost Arab investor, and was involved in the establishment of 46 new companies between 2011 and February 2014. This included a capital contribution value in these companies estimated at about $1.3bn.
The amount of exported capital to these companies reached $2.04bn. The service sector dominated the biggest share of new Qatari companies at about 25 companies. This was followed by the construction sector with about seven companies, then the agricultural sector, the industrial sector, the communications sector, the tourism sector and the finance sector.
According to the report, Cairo received the biggest share of Qatari capital with about 28 Qatari companies. This was followed by Giza and the northern governorates, at the expense of Upper Egypt’s governorates, which did not get a share of these companies.
Cairo and Giza are the first destinations for Arab capital, at the expense of Upper Egypt
Cairo and Giza in addition to Alexandria dominated the biggest share of new companies established by 20 Arab countries at the expense of Upper Egypt and other governorates. According to GAFI’s report, Cairo’s share of the total 4,047 companies established is approximately 1,750, followed by Giza with about 1,006 companies. Upper Egypt, on the other hand, received nothing but a tiny number of companies, not exceeding 10 companies between Beni Suef, Minya, and Assiut.
Syria establishes 1,886 companies with capital of $12m and contributions of approximately $262m
In a real surprise, GAFI data revealed displaced Syrians in Egypt during the Syrian civil war established about 1,886 companies, most popularly in the industrial sector at almost 1,073 companies. Syrians also established 592 companies in the services sector, 79 companies in the construction sector, 70 companies on the communications sector, 41 companies in the agricultural sector and 13 companies in the sector of tourism with a total capital of $412m. Syrians have shared in the capitals of these companies at the amount of $262m.
“This number of companies is very logical, after the civil war, because Syrians escaped their home country to avoid an unknown destiny and death. Their presence in Egypt requires a source of income, so they established companies. The majority of these companies is specialised in textiles and are located in 10th of Ramadan city and 6th of October city. I expect the establishment of more companies,” said a Syrian citizen named Ayham.
Ayham added that investment in Egypt is still not expensive and safe, despite the rumour that Egypt is facing instability. According to a report, Syrians companies are distributed on the Egyptian map as follows: 983 companies in Cairo; 131 companies in Sharqeya; 202 companies in Qalyubeya; almost 385 companies in Giza; almost 385 in Menufiya; 70 in Alexandria; 16 in Ismailia; 13 in Damietta; only seven in Beni Suef; 20 in the Red Sea area; seven in Beheira; three in Daqahleya; only two in Fayoum; five in Gharbeya; two in Minya; only one in Assiut; one in Kafr El-Sheikh; and one in Port Said.
UAE comes in second place with $944m, Saudi Arabia comes in third with $925m
According to some reports, the UAE comes in the second place, thanks to a total capital share of 113 companies, with the amount of only $944m.
The UAE has funded several sectors like the service sector, which came in first position with almost 54 companies, followed by the construction sector with almost 16 companies, industrial sector with 15, agricultural sector with 14, sector of communications and information technology with 11, and the tourism sector with only three companies. According to the reports, the UAE did not establish companies in the funding sector. However, it contributed with capitals that reached $401m during this period, to help already established companies that belong to it.
The Saudi capitals were concentrated in Cairo. Thus 72 companies were based in the Egypt, 32 companies in Giza, 5 in Alexandria, one in Beheira, one in Damietta, as well as another one in Beni Suef. Thanks to the establishment of 608 new companies, with the total of capitals $5bn, Saudi Arabia came in third position, with $925m shared capital. The new Saudi companies were distributed among various sectors, where in the first position came the service sector with 230 companies, the industrial sector with 113 and in the third position came the construction sector with 107 companies.
The number of new Saudi Arabian companies in the communications sector is roughly 71 companies, followed by the agricultural sector with 61 companies, the tourism sector with 25 companies and the funding sector with only one company.
Cairo Governorate had the highest amount of Saudi capital, with 229 companies, followed by Giza with 207 companies, Alexandria with 29 companies and Suez with five companies, which indicates that the Arab capital always prefers to work in the main governorates, away from Upper Egypt.
Kuwait comes in 7th place with investments worth $225m following Syria, Lebanon and Bahrain
Kuwait came in 7th place after Syria, Lebanon and Bahrain, with only 132 companies and a total capital of $1.3bn. Its share in the capital of these companies is worth $225m. Lebanon, on the other hand, established 235 companies with a total capital at $952m, and its capital share is at $227m in these companies.
According to data, Bahrain’s companies amounted to 16 companies in total, with an exported capital roughly at $700m, and the state contributed to $241m of the companies’ capital. The report says that the sectors targeted by the new Kuwaiti capital varied between the service sector, with 52 companies, the construction sector with 33 companies, the industrial sector with 16 companies, the agricultural sector with 12 companies, the communications sector with 10 companies, the tourism sector with eight companies and in the last place came the funding sector with only one company.
Cairo took the biggest share of Kuwaiti capital through new companies, with 76 companies, followed by Giza with 39 companies, Alexandria with four companies and West Minya with two companies.
Algeria, Somalia, Djibouti and Mauritania have the least capital pumped in Egypt since 2011
According to the report, Algeria, Somalia, Djibouti and Mauritania were in the last places of Arab countries pumping capital to Egypt. Since 2011, Algerian companies established in Egypt were only 13 companies from 2011 until February 2014, with a total capital of no more than $8m. Algeria contributed to only $840,000 in this capital.
Algerian companies were in the sectors of industry, five companies, service, four companies, construction, two companies, and agricultural and communications, one company.
With Mauritania, there is only one company in the construction sector, with a capital of $50,000, and the state’s share is the whole amount of the capital.
Somali companies came in the place before last, with only four companies established during the same period, and with a total capital of $60,000. Somalis contribute to only $13,000 of the capital.
Djibouti, however, came in the last place, with only one established company in the communications and information technology sector, and a total capital of no more than $4,000, and the state only contributes with $1,000 in the capital of this company.
