Egypt on track to regain foreign investors' trust

Despite the current political and economic challenges, financial experts and investors believe that Egypt appears to be on the right track to regain foreign investors ' trust and maintain its position as the largest market in the Middle East.

"Many Arab and foreign investors have already started large businesses in Egypt in recent months," Saudi Arabian investment advisor Hamza Awon told Xinhua. "I believe that Egypt will return as a key investment hub for foreign and regional investors."

More than 1,000 investors from Arab countries have participated Sunday and Monday in the 16th Conference of Arab Businessmen and Investors which was held in Cairo.

Awon believes the current stable security and political situation would help Egypt attract more Arab and foreign investors as many foreign companies ended or minimized their business in the country after the 2011 popular revolution which toppled Western- backed president Hosni Mubarak.

The recent large investments of Saudi Arabia and the United Arab Emirates in Egypt would encourage foreign and Arab investors to follow their steps, Awon said.

Since the ouster of Islamist president Mohammed Morsi last year, Saudi Arabia and the UAE have backed Egypt's economy with around 20 billion U.S dollars in the form of loans and grants.

Saudi Arabia has also called for a major economic conference to support Egypt's ailing economy after the election of Abdel Fatah al-Sisi as president in June.

Egyptian Prime Minister Ibrahim Mahalab said on Saturday that conference will be held in Egypt in March 2015.

Mahlab also said that the summit, titled Egypt Economic Development Conference, will witness the launch of a four-year development and investment program that will put the economy on a path towards inclusive and sustainable growth.

The conference will also highlight the extensive reforms the Egyptian government has implemented to restore fiscal stability, drive growth, attract investment and improve social welfare of Egypt.

However, Aown believes that Egypt needs to amend its investment- related laws, organize business activities and implement infrastructure projects as soon as possible in order to attract investment.

"The Egyptian government said it would repair its investment legislation. This is a good sign and if this really is going to happen, Egypt will definitely attract more investors," said Awon.

Despite the fact that the economic and political atmosphere in Egypt is not fully stable yet, the country is still a place of attraction for many investors.

MEED Projects, the region's most renowned projects tracker, has tracked more than 200 active projects in Egypt worth over 134 billion U.S dollars in the construction, oil, gas, power, water and other sectors from early stages.

Aown said that one of the reasons why Egypt is important for foreign investors is its location and the low prices of the labor force and raw materials.

"The fact that Egypt is a strong country is also a source of relief for investors," he added.

"Egypt is a unique place for investment. Some say it is dangerous to invest in Egypt, but as a businessman I know that risks are always there regardless of places," said Fahad al- Gergawi, chief executive officer of the UAE's Dubai Investment development Agency.

Al-Gergawi, whose agency is already investing in Egypt in many sectors, said there is an intention to enlarge their business in Egypt, noting that the Dubai Development Fund has set plans to convince more businessmen and firms to start in investing in Egypt.

"Investment in Egypt is great. The market is strong and the government provides us with all the facilities we need," said Ziad Khair Allah, a businessman from the UAE who has been investing in Egypt in the industrial sector.

The new Egyptian plans to reform its investment legal environment as well as the unlimited support from the Saudi Arabia and the UAE have also encouraged European investors to give investment in Egypt a try.

Germany-based GATCON trading and consulting company has started its own business in Egypt just recently.

The company, whose main focus is on the export of chemical products and automotive accessories, is willing to expand its business in partnership with Egyptian companies after it has made good profits.

"My business is positive because I have Egyptian partners. At the moment I'm not worried about the security situation, at least not in the Cairo area. I'm feeling comfortable to have business in Egypt, this is why I'm here," Said Alexander Zoder of GATCON. Enditem