Egyptian Economists Laud Qatar's Support

Doha, September 10 (QNA) - Qatari-Egyptian relations will reach an all-time high after HH the Emir Sheikh Hamad bin Khalifa Al Thani and HH the Heir Apparent Sheikh Tamim bin Hamad Al Thani said there will be "no limits" to cooperation and investment in Egypt, Egyptian economists told Qatar News Agency (QNA). The latest evidence of the ever-growing Qatari-Egyptian relations was the visit of HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor Al Thani to Egypt. HE the Prime Minister carried a message from HH the Emir to President Morsy. The visit also aimed to show Qatar's full-fledged support to Egypt to overcome the current economic crisis. This support was reflected in HE the Prime Minister's announcement that Qatar will invest up to $18 billion in Egypt in the coming 5 years. Some $8 billion of which will go to establishing new electricity and LNG power plants. The remaining $10 billion will go towards establishing a new tourist spot in the North Coast as well as other real estate projects across Egypt. Last month, Qatar deposited $500 million at the Egyptian Central Bank and pledged to deposit $1.5 billion more in the next three months. The Egyptian stock market met the news with making its biggest rise in 14 months. A number of Egyptian economists who spoke exclusively to QNA said that Qatar's investment announcement helped in reducing the fear of investing in Egypt. Spokesman for the Economic Committee the Freedom and Justice Party (FJP), Egypt's ruling party Dr. Mohammed Gouda, said that the party values highly the contribution that the State of Qatar has already made to the Egyptian economy. He especially thanked HH the Emir for his latest visit to Egypt, which Gouda said reflected HH the Emir's keenness to stand by the new Egyptian administration. He expressed his hope that the steps taken will be the beginning of a long and fruitful bilateral cooperation. He also praised the State of Qatar for its strong support to the Egyptian revolution from the off. Gouda also said that the continuous visits of Qatari officials helped dismiss fears of the collapse of the Egyptian foreign cash reserve. The economist highlighted Qatar $2 billion deposit in the Central Bank of Egypt as a key factor in that regard. He said that his party was currently working on new legislation to reform investment laws to make them investment-friendly. He told QNA that the FJP just finished preparing eight new investment-related draft laws; they were concerned with government-private sector partnerships, issuing Islamic bonds, protecting competition, banning monopoly as well as another draft law concerning the Central Bank. Gouda also said that the new government will look to Arab investments to develop Sinai. He stressed that Arab investors will be treated equally to Egyptian ones. In a statement to QNA, Banking affairs consultant at Al Baraka Islamic Bank, Passant Fahmi expressed gratitude to His Excellency Prime Minister and Foreign Minister's recent visit to Egypt which was highly praised at levels. She highlighted the vital role of the direct investments in Egypt, which in turn, will help reduce unemployment rates in the country. She said Egypt is best known for its low-cost investments compared to Europe, in addition to the abundance of the work force factor there and its one-off locations to carry out various projects. Fahmi mentioned that there will soon be some adjustments made to the law regulating foreign investment process in Egypt, easing the process to all Arab investors in the country. She also praised Qatar's move of investing $18 billion to carry out huge projects in Egypt, adding that such a move is highly respected indeed. Meanwhile, Fahmi recommended all Qataris seeking investment in Egypt to opt for Eastern Suez projects, which holds key future projects in the country. Ahmed Adam, a banking analyst, told QNA that Qatar-Egypt economic relations are expected to prosper in the coming future especially with possible huge Qatari investments coming to the Egyptian market. Adam said Qatar's $18 billion investment move, saved Egypt from falling into a crevasse of emergency fund shortage. He reiterated HH the Emir's notes that Egypt-Qatar cooperation will have no boundaries, mentioning, in the meantime, the favorable outcomes of HE the Prime Minister and Foreign Minister's visit to Egypt that aimed at reinforcing tourism industry in Egypt. Talking of Qatar's initiative of backing Egyptian work force in Qatar, Adam said that the workforce's remittances are now the second source of US dollars in Egypt following the exports revenues, which in turn helped cover the low tourism sector profits. Adam believed that Qatar's investment in Egypt came "at the right time" and paved the way to all other foreign investors to carry out investments in Egypt. He said the direct investments are now on their way to bloom after the newly elected President Mohammad Mursi took office. Dr. Ibrahim Almenzlawi, another economist talking to QNA, lauded Qatar's role in support of the Egyptian revolution and all Arab spring states, and praised the ties and relations that bind the two countries. Dr Almenzlawi also commended HE the Prime Minister and Foreign Minister's announcement allowing more Egyptian laborers in the Qatari market, as well as his announcement of pumping a package of Qatari investments worth $18 billion over the next five years, saying that this sends a reassuring message to all investors, and indicates that Egypt is an attractive country for investment, and has a safe investment climate. Talking about Qatari deposit, Dr Almenzlawi said that it helped to a great extent Egypt's foreign cash reserves, pointing out that the cash reserves were on the verge of collapse. On the projects announced by HE the Prime Minister and Foreign Minister, Almenzlawi said HE Sheikh Hamad bin Jassim knows exactly what Egypt needs and what is its top priorities, particularly by highlighting energy and liquefied natural gas projects. The announcement of pumping $ 8 billion in these two sectors and pumping $ 10 billion in big tourism projects as well as housing projects in different parts of Egypt is very important and these projects are the ones that need huge funds, he added. "This is why we appreciate the State of Qatar's support," Dr Almenzlawi said. (END)