INVESTOR CONFIDENCE AT ‘HIGHEST POINT IN YEARS’,PRESIDENT ABDEL FATTAH EL SISI TELLS OXFORD BUSINESS GROUP
Key partnerships sealed at the Egypt Economic Development Conference (EEDC), restoring macroeconomic stability and what the country hopes to achieve from the Suez Canal Area Development Project were just some of the issues explored at length in a wide-ranging interview that Egypt’s President Abdel Fattah El Sisi recently gave to Oxford Business Group (OBG).
El Sisi told the global publishing, research and consultancy firm that the EEDC, held earlier in the year, had proved to be “a remarkable milestone”, bringing a wider and more diverse range of investors to Egypt for its megaprojects. “A total of 20 contractual agreements were signed on the sidelines of the EEDC, valued at a total of $66.4bn,” he said. “More than half of the initial agreements signed at the EEDC are already being implemented, including $21bn in exploration deals with international oil companies and a $9bn gas and wind power project with Siemens.”
The full interview with El Sisi will appear in The Report: Egypt 2016, OBG’s forthcoming report on the country’s economy. The publication will contain a detailed, sector-by-sector guide for investors, alongside contributions from leading personalities.
El Sisi voiced his confidence that the list of labour-intensive projects scheduled for roll-out would help to create new jobs for Egypt’s younger workforce, which he described as the country’s “greatest resource” and its “engine of sustainable growth”.
Egypt’s dynamic population, together with its strategic location, will play a pivotal part in helping the country take its competitive advantage to another level when it launches its Suez Canal Area Development Project, he added. The economic zone initiative forms a key component of the Suez Canal expansion.
“The Suez Canal Area Development Project will transform 76,000 square kilometres along one of the world’s most important trading routes into an international logistics and commercial hub that will support more than 1m new jobs and 2m new residents,” the president told OBG. “When complete, this innovative, integrated, value-added services centre will connect over 1.6bn consumers across Europe, Asia, Africa and the Arab region.”
El Sisi said the national focus on gradual fiscal consolidation and restoring macroeconomic stability, balanced with better-targeted social programmes, was gaining pace. Phasing out fuel subsidies and restructuring taxation indicated a commitment to the strategy, he added, and sat well with investors.
“…our initial reform of energy subsidies in July 2014 yielded nearly 2% of GDP in savings that we intend to reinvest in pursuit of our ambitious health and education goals,” he told OBG. “Our economy is growing steadily and investor confidence is at its highest point in years.”
OBG’s Managing Director for Africa Karine Loehman said the interview with President Abdel Fattah El Sisi, which was carried out by the Group’s Country Director Floriane Froc and Editorial Manager Joshua Blair, had resulted in a “frank conversation” that provided a fascinating insight into the leadership’s achievements, in line with Egypt’s economic vision, and the challenges that remained.
“This is exactly what international investors need to hear, given their keen interest in the market,” she said. “Rising levels of interest amongst investors, combined with the president’s bold plans, have convinced us that now is the opportune time to invest in Egypt.”
The Report: Egypt 2016 will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. The publication will be produced in partnership with the American Chamber of Commerce in Egypt (AmCham), General Authority for Investment and Free Zones (GAFI) under the Ministry of Investment, and the Egyptian Businessmen’s Association (EBA). The report will be available in print or online.
About Oxford Business Group
Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of the Middle East, Africa, Asia and Latin America and the Caribbean. Through its range of print and online products, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms.
The critically acclaimed economic and business reports have become the leading source of business intelligence on developing countries in the regions they cover. OBG's online economic briefings provide up-to-date in-depth analysis on the issues that matter for tens of thousands of subscribers worldwide. OBG's consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.
