06/07/1999
Al-Ahram Newspaper 1999/JULY /06
Mergers could provide Egypt with advanced technology, better administrative skills and with the knowledge of the principals of marketing and exportation processes. Mergers are not free of risks and might keep the Egyptian economy from investing its local savings into new projects and also could lead to the exodus of Egyptian capital abroad. Egypt is striving hard to attract foreign investments but is still suffering due to the deficit in its balance of payments(Available in Arabic – German in PDF )
Egypt is striving hard to attract foreign investments but is still suffering due to the deficit in its balance of payments. The merger of Egyptian companies with international companies still must be evaluated. Some foreign partners of Egyptian companies are holding on to the secrets of research and technology and only giving fragments to their Egyptian partners. The Egyptian company’s purchase of a foreign company should allow them to open the black box which contains these secrets. This is the way to transfer and establish advanced technology in Egypt. The principals of marketing and exportation processes are owned by foreign partners. This enables the Egyptian experts and staff to study the marketing methods of the company. Administrative skills can also be acquired from companies to benefit Egyptian ones. Mergers will open the window wide for Egyptians to be aware of the processes of transfer and adaptation of advanced technology. Egypt needs to possess technology not just import and consume. Mergers are not free of risk as this trend keeps the Egyptian economy from investing its local savings into new projects also leading to the exodus of Egyptian capital abroad.