26/01/1996
Al-Mosaour Magazine 1996/JANUARY /26
New decisions based on the demands of investors and businessmen were accepted encouraging capitalists and investors to invest their money in Egypt. Demands such as preferential interest rates, cancelling sales tax and other charges, slashing energy prices and streamlining export procedures were included in the discussion. Businessmen were criticized for investing in real estate and for making investments outside of Egypt. Legislations must be refined to provide fair protection for Egyptian industry and to keep them on equal footing with competing foreign producers in all markets. The fear generated from the control agencies chasing capital with outdated, tough measures is dangerous for the investment climate, provoking Egyptian and foreign capital to flee Egypt. Europe was well aware of what its interests were when it offered partnership to Egypt. They understand that if Egypt manages to make technological and industrial progress it will become a threat.(Available in Arabic – German in PDF )
New decisions based on the demands of investors and businessmen were accepted encouraging capitalists and investors to invest their money in Egypt. This should develop the national economy through creating new jobs and boosting export opportunities. Demands include preferential interest rates for industrial loans, cancelling sales tax and charges imposed on equipment, cutting energy prices and streamlining export procedures. Economic legislations need to be refined to provide fair protection for Egyptian industries and for them to receive just treatment in partnership agreements with Europe. Businessmen were criticized for investing in real estate and for making investments outside of Egypt. The alarming increase in share transactions and an increase in real estate profits prompted some to transfer part of their profits into real estate investments. Egypt’s industry makes up 17% of the GDP compared with other countries that are at approximately 35%. This is due to the insufficient chances of industrial investment. Egypt today is facing a problem: shifting from manufacturing for the local market to the open market amid a global system of free trade. Most industries have not reached their optimum production rate and there is a demand to export products. Egypt needs to be placed on equal footing with the competing foreign producer in all markets. The implementation of financial and monetary structural reform policies placed huge burdens on businessmen and Egyptian people as most businessmen were relying on the local market. Industry in Egypt is based on Egyptian-Arab-Foreign investment with Egyptian investment making up 85%. Arab and foreign investment in Egypt is restricted to real estate, hotels and banks. Egyptians themselves are shouldering the burden of industry. Europe was well aware of what its interests were when it offered partnership to Egypt. It is in the best interest for Egypt to participate but it must be on equal terms with Europe. Germany, France and Italy all have interests in Egypt but none have helped with upgrading or developing Egyptian industry. Europe understands that if Egypt manages to make technological and industrial progress it will become a threat. It is difficult for Egyptian industry to enter the European market involving engineering or medical industries as these areas are subject to close scrutiny.