24/02/2012
Al-Masry Al-Youm Newspaper 2012/FEBRUARY /24
In his article titled “Market Mechanisms Have Top Priority”, Dr Nader Riad noted that Egyptian industry is just like all industries. It is sometimes strong and other times weak. This depends on its ability to successfully build its competitive capacity, manage the value added system and the element of time without winking at the importance of the coming and flying cash inflows and preserving their balance. The article touched upon a number of drawbacks that that should be put right as soon as possible with a view to facing this growing danger that might negatively affect the performance of the Egyptian economy.(Available in Arabic – German in PDF)
The article emphasized that the Egyptian economy is facing a great danger that represent in the retreat of sales, and thus the industrial production by some 30% to 40 %. This coincided with a price rise of imported raw materials and components used for production, in addition to the tendency to raising the prices of energy allocated for industrial purposes. On the level of internal investments, most projects have frozen their future expansions. The article called for encouraging banks to urgently facilitate funding new industries so that they would, along with the current industries, got out of the bottleneck. This can be achieved by rescheduling the banking commitments of these industries so that they would not be subject to an increasing wave of bankruptcy and insolvency. It also noted that the state should set customs and non-customs rules to limit the importation of commodities that have equivalents in the Egyptian market through stiffening check and conformity measures and confronting the calls launched by some importers that the state should renounce some of the Egyptian standard specifications, which would lead to flooding the Egyptian market with low-standard goods and turn it into a dump of technical garbage.