Leaders to discuss trade, mid-east peace and budding economic ties
CAIRO: Underlining burgeoning economic ties and Egypt’s importance as a peace broker in the Middle East, President Hosni Mubarak is set to meet German Chancellor Angela Merkel this month – his third visit to Berlin this year.
The trip also preludes Germany’s ascension to the Presidency of the European Union in January, where it plans to make the Middle East peace process a key objective, according to Bernd Erbel, Germany’s Ambassador in Egypt.
“The last days have given us hope that the Middle East peace process might be revived, he says, referring to the shaky ceasefire between Israel and Palestinian forces.
“Egypt is for us an anchor of stability in the Middle East, he adds, highlighting reports earlier this week that Egypt’s intelligence Chief Omar Suleiman engaged with Israeli and Palestinian officials about a possible prisoner swap – a sticking point in the renewed dialogue between the two sides.
Erbel made the comments on Thursday during a press conference at the German Embassy, where he also commented on the growing economic relationship between the two countries.
In the first nine months of 2006, German investment in Egypt tripled to more than LE 790 million (?113 million).
“This is an enormous increase, but we’re not alone in this – foreign investment in Egypt is exploding, says Erbel.
Despite the thrust of Teutonic cash streaming in, the trade deficit between the two countries has drastically shrunk thanks to Egypt’s surging economy, he notes.
“The gap between the two sums is smaller, says Erbel. “This is very encouraging.
Last year Egyptian exports to Germany totaled more than LE 4.6 billion, whereas German exports to Egypt amounted to more than LE 11.6 billion.
However, in the first nine months of the year, Egyptian exports to Germany shot up by 24 percent while imports from Germany went up only by five percent.
Along with President Mubarak’s trip to Berlin, Industry and Trade Minister Rachid Mohamed Rachid will court German car manufacturers with the intention of establishing new manufacturing plants in Egypt for spare parts and other automotive components.
Erbel was quick to point out that the decision to do so ultimately lay with the private sector, not with the government.
Rachid’s plans to increase the manufacturing sector could be a match made in heaven. Currently, Mercedes-Benz assembles some of its E-class and C-class models in Egypt, and according to Erbel, “in quality standards, the Mercedes Benz [vehicles] made here in Egypt match their German counterparts.
Erbel also stressed Germany’s support in helping Egypt develop its renewable energy sector, which includes a joint project to develop windmills for both export and domestic purposes.
Education also came up in the discussion with reporters.
“Egypt has a very young population that needs jobs. The training should correspond to the needs of the economy, he says, pointing to a German language hotelier school in El Gouna.
Meanwhile, over one million German tourists flocked to Egypt in 2005 – a number which will surely increase as the Egyptian Tourism Ministry continues to market to colder countries in northern Europe.
“To many people, Egypt is a dream destination, says Erbel.
