CAIRO: Above all else, US-Egyptian commercial and trade relations are on the rise, with bilateral trade hitting a record of $6.3 billion by the end of 2006, making the US Egypt’s largest bilateral trading partner.
“US-Egyptian trade relations are higher than ever. . And we would like to make every effort to continue with the same growth of bilateral trade relations because we believe that trade does not only enhance investment but also relations on all levels, said Amer Kayani, counselor for commercial affairs at the US embassy.
Last year, US exports to Egypt increased by 30 percent while Egyptian exports to the US increased by 15 percent. “Specifically, the Qualified Industrial Zones (QIZ) exports have jumped tremendously, and we are looking at almost close to $600 million in exports from the QIZ to the US, Kayani added.
US exports to Egypt, which amounted to $4.1 billion in 2006, up from $3.16 billion in 2005, are mainly agricultural products (19 percent), transportation equipment (21 percent), IT and electronic products (10 percent), chemicals (6 percent) and fabricated metal products (5 percent). On the other hand, top Egyptian exports, totaling $2.2 billion, are textiles (34 percent), petroleum and related products (42 percent), and iron and steel (14 percent).
Being the largest single market in the Middle East with a natural gateway to the Middle East and North Africa (Mena) region, Egypt is a haven for giant US companies seeking to invest in a large consumer market with inexpensive labor and a stable currency.
“We commend Egypt for building its economy, mutually benefiting both countries. We see success everywhere in Egypt: in banking, in IT ., said Ambassador Francis Ricciardone.
The ambassador’s remarks were made after announcing the organization of the “Made in the USA exhibition and fair, the largest of its kind in the whole region, due to take place next January in Cairo. The exhibition seeks to further enhance bilateral trade and investment flows between both countries, particularly in sectors such as oil and gas, IT, petrochemicals, environmental equipment and services, franchising, cosmetics, and medical equipment.
The US tops the list of countries investing in Egypt. It is the largest petroleum and second largest non-petroleum foreign direct investor in the country. By the end of 2006, US total investment in Egypt crossed the $5.57 billion mark, constituting 10.8% of US foreign direct investment in the Mena region.
The US has a great deal of investment in the oil and gas sectors, IT, petrochemicals, franchising, and consumer goods. Some of the giant US corporations operating in Egypt are Apache, the largest oil foreign investor in the country, Google, HP, Microsoft, Cisco and Oracle in the field of IT, Procter and Gamble, PepsiCo and Coca-Cola in consumer goods, as well as Citibank.
“Money goes wherever investors find friendly recipients of it. If the environment remains warm and friendly, US investment will further increase, Kayani clarified.
Alternatively, the most prominent Egyptian investor in the US is Oriental Weavers, with several factories around the US, “A few Egyptian SMEs invest in the US as partners whether in real estate or small investment projects. And there is also a portfolio of Egyptian investment in the US Stock Exchange, he added.
“We want to see Egypt and the US prosper together, said the ambassador, pointing out that the US worked closely with Egypt on its economic growth.
“Over the last decade, the US invested over $28 billion in economic assistance alone to improve socio-economic conditions in Egypt. Last year alone, we incorporated $455 million in direct assistance in health and micro-finance as well as $30 billion in security and military assistance, he said.
The US has also made contributions to the Egyptian educational system by training around 250 teachers and students over the last few years. “By 2010, we will have trained 650 teachers, workers, and students, he added.
