Arab Finance: I witnessed Egyptian Gulf economic relationsNoticeable development during the recent period, and the visit of President Abdel Fattah El -Sisi to Qatar and Kuwait, and his meeting with leaders and senior officials to build and consolidate relations with Egypt.
President Abdel Fattah El -Sisi and Sheikh Tamim bin Hamad Al Thani agreed to a package Qatari investments Directly to Egypt with a value of $ 7.5 billion, will be implemented during the next stage, in a way that contributes to achieving sustainable economic development, according to a joint statement.
This package comes in conjunction with a Gulf tour of President Abdel Fattah El -Sisi that includes the countries of Qatar and Kuwait, aimed at enhancing economic and investment cooperation, discussing regional developments, and the efforts of the ceasefire in Gaza, according to a statement issued by the Presidency of the Republic.
According to the data of the Central Bank of Egypt, the Qatari investments in Egypt amounted to 618.5 million dollars during the fiscal year 2023-2024 compared to 548.2 million dollars a year ago, while the value of Egyptian investments in Qatar amounted to 171.5 million dollars during 2023-2024 compared to 86.8 million dollars a year ago.
The trade exchange between Egypt and Qatar last year amounted to about 151 million dollars, while direct Qatari investments in Egypt during the past three years are estimated at about 1.3 billion dollars, according to the data of the Central Bank of Egypt.
The effect of Gulf investments on the Egyptian economy
For his part, Dr. Sharif Al -Jabali, a member of the House of Representatives, and Chairman of the Board of Directors of the Chamber of Chemical Industries of the Federation of Egyptian Industries, said in exclusive statements to Arab Finance that the direct Gulf investments directed at Egypt affect a major positive impact on the stability of the foreign currency in the country, which represents a major challenge in the country, as well as the role of these investments in employing employment, and providing job opportunities in the country.
Al -Jabali added that such Gulf investments addressed to Egypt have a role in localizing some industries within the country, and supporting the national industry, noting that these investments are expected to be exploited in tourism and agricultural investment, as well as investing in the sectors of industry, technology and energy, in a way that serves economic relations between the two countries.
Al -Jabali stressed that President Abdel Fattah El -Sisi’s visit to Qatar and Kuwait is very successful, especially as it supports economic relations between the two countries, and allows pumping equivalent to $ 7.5 billion as a direct Qatari investment in Egypt, as well as about 6.5 billion dollars in Kuwaiti direct investments in Egypt.
Features of Qatari investment in Egypt
While Dr. Wael Al -Nahhas, Professor of Finance and Investment and the Economist, said that the features and type of Qatari investment directed to Egypt during the coming period are not yet clear, but he stressed the need for the Egyptian economic negotiator to take into account Qatar with the international economic circumstance and what the world is going through currently from a commercial war related to the imposition of American tariffs, which has harmed many investors in the Gulf, who have investments in America, and that Egypt provides reports and facilities An investment for investors in the Gulf, especially Qatar, Kuwait and the Sultanate of Oman, and they are among the most prestigious investors in terms of awareness and economic openness to the world.
Al -Nahhas explained that the visit of President Abdel Fattah El -Sisi succeeded, and it came at a very important timing, noting that the most important sectors in which the coming investments must be directed to Egypt during the coming period are the sectors of tourism, communications, energy, food security, agricultural and livestock, which are very vital sectors stressing the need to secure food products and other products to reduce import and reduce the import bill while increasing exports.
Al -Nahhas pointed out that the Egyptian divide, which will complete the negotiations related to Gulf investments in Egypt after President Sisi's visit can negotiate to pump more investments into the vital sectors with the possibility of reducing debts and their benefits due to these countries.
Gulf investments provide more job opportunities in Egypt
For his part, Eng. Fathallah Fawzi, Vice -Chairman of the Egyptian Businessmen Association, said that Saudi investments in Egypt exceeded 35 billion dollars represented in about 7,000 companies inside Egypt, noting that the Gulf funds that will be pumped into the arteries of the Egyptian economy will contribute to providing more job opportunities for Egyptians as well as their contribution to the stability of the foreign exchange market.
Fawzi stressed that President Abdel Fattah El -Sisi's visit to Qatar and Kuwait was a message of reassurance to investors there, especially transferring financial returns from Egypt outside it and easy, which will encourage to attract many investments to Egypt and allow the availability of foreign exchange.
The size of Gulf investments in Egypt
The data of the Central Agency for Public Mobilization and Statistics revealed that the value of the trade exchange between Egypt and Kuwait reached 1.2 billion dollars during the year 2024 compared to $ 2.6 billion during the year 2023.
According to the statement of the Central Agency for Mobilization and Statistics, the value of Egyptian exports to Kuwait amounted to 273 million dollars during 2024 compared to 316 million dollars during the year 2023, while the value of Egyptian imports from Kuwait reached 947 million dollars during 2024 compared to $ 2.3 billion during 2023.
The value of Kuwaiti investments in Egypt was $ 547.7 million during the fiscal year 2023/2024 compared to 632.6 million dollars during the fiscal year 2022/2023, while the value of Egyptian investments in Kuwait recorded $ 194.2 million during the fiscal year 2023/2024 compared to 221.2 million dollars during the fiscal year 2022/2023.
While the total Saudi investment in Egypt recorded about 2.4 billion dollars in the past fiscal year, an increase of 491.6 million dollars during the comparison period, an increase of about $ 1.9 billion, an increase of about 474%.
The foreign trade report issued by the Central Agency for Public Mobilization and Statistics indicated that the value of Qatari investments in Egypt amounted to 618.5 million dollars during the fiscal year 2023/2024 compared to 548.2 million dollars during the fiscal year 2022/2023. While the value of Egyptian investments in Qatar amounted to 171.5 million dollars during the fiscal year 2023/2024 compared to 86.8 million dollars during the fiscal year 2022/2023
The Central Bank of Egypt revealed the growth of foreign direct investment flows in Egypt at about 22.4 billion dollars during the fourth quarter of last fiscal year, to jump net foreign direct investment flows to 46.1 billion dollars during the fiscal year ending in June 2024.
The net direct investment flows of Egypt in the industrial sector recorded $ 2.5 billion during the past fiscal year, while the agricultural sector investments amounted to about 90.3 million dollars.
Egypt attracted investments in the service sector by about 6.9 billion dollars during the past fiscal year.
While the volume of foreign direct investments in Egypt recorded about 46.6 billion dollars during 2024, and this jump came from the signing of a deal to develop the Ras Al -Hikma area of ​​an Emirati sovereign fund for 24 billion dollars.
Last February, Egypt and the UAE signed a real estate investment deal, according to which “ADQ” company (ADQ) has the rights to develop the “Ras Al -Hikma” project for 24 billion dollars with the aim of developing the region, as well as transferring 11 billion dollars of Emirati deposits with the Central Bank of Egypt to be used to invest in major projects throughout the country, and Egypt has already received the first and second batches of the Ras Al -Hikma deal, which strengthened the dollar resources to the country.
The Egyptian government aims to attract foreign direct investments of $ 30 billion in the fiscal year 2024-2025 that started last July, according to the general report of the Plan and Budget Committee in the House of Representatives.
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