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Al-Ahram Weekly 18 - 24 February 1999 Issue No. 417 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 18 - 24 February 1999 Issue No. 417
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Special Travel Living Sports People Time Out Chronicles Cartoons Letters UK-Egypt 'connect'
By Mona El-Fiqi
"Excellent current opportunities with even better future prospects" was how Brian Wilson, British minister at the Department of Trade and Industry, described the Egyptian market. "Coupled with its strategic location as a major regional hub, Egypt provides a unique entry into the markets of the Middle East and South Africa," Wilson told reporters at a press conference last Sunday. The British minister underscored the importance of "building a new trade partnership between Egypt and the United Kingdom which attaches great importance to the strong trade and investment relationship [already existing] between our two countries. It was with this in mind that we launched the 'Connect Egypt' trade promotion campaign last November," Wilson added.
Ambassador David Blatherwick speaking to Al-Ahram Weekly's correspondentAccording to Wilson, the British businessmen's Mission 100 which visited Cairo last December has resulted in "over £4 million worth of new business, with much more expected in the coming weeks."
During his visit, Wilson met with Egyptian Prime Minister Kamal El-Ganzouri and other cabinet members. He also attended the opening ceremony of the Middle East Power Exhibition and visited a number of British companies operating in Egypt.
Wilson promised that his department will support "a further eight trade missions during the next 12 months," adding that, as part of the Connect Egypt campaign, the UK-Egypt Partnership Project will be expanded so as to encourage British and Egyptian small enterprises to set up joint ventures.
"The partnership project has already resulted in the identification of more than 40 projects in Egypt which are seeking UK partners," said Wilson.
Last week, a high-powered delegation representing 22 British companies came to Cairo to scout opportunities for investment. The visit was organised by the International Trade and Investment Missions (ITIM) -- a private British company -- and, under the motto "Share in Egypt's Future", was aimed at providing British businesses with the opportunity to meet with their Egyptian counterparts as well as government officials.
The delegation was headed by Lord Denman, deputy chairman of the Committee for Middle East Trade (COMET), an independent advisory group which provides the British government with information on trade prospects worldwide. Lord Denman said that there are "numerous reasons" why British firms should explore Egypt's economic potential. Topping the list is the fact that Egypt, with a population of 60 million that is growing by an additional 800,000 a year, is the biggest market in the Middle East.
"Egypt is a leading example of a sophisticated economy which will be one of the great stars of the future," said Jeremy Hanley, chairman of ITIM and co-leader of the British delegation. "It is a place which British businesses must not ignore," added Hanley, saying that the mission aims at forging strong relations with Egyptian businessmen which would "last for years", rather than merely until contracts are concluded.
"Egypt has an exciting market and a stable economy which is extremely well run, but it also has to increase its growth rate so as to keep up with the population surge," said Hanley.
An ITIM report revealed that investors have been attracted to Egypt due to commendations by the International Monetary Fund (IMF) of the economy's achievements that include slashing inflation from 20 per cent in the early 1990's to the current 3.6 per cent, boosting foreign reserves from $11 billion in 1992 to over $20 billion at present, cutting the fiscal deficit to 1 per cent of GDP, as well as the ongoing privatisation of state assets.
The report pointed out that the Egyptian government has also put together attractive investment packages for companies setting up in the fast-growing new cities and tax-free zones.
Hanley said that although incidents like the 1997 Luxor terrorist attack might harm Egypt's tourism, he believes that they do not affect its economic relations with other countries.
In the course of the visit, the British delegation met with members of the Federation of Egyptian Industries (FEI). The two sides discussed means of promoting Egyptian-British commercial relations and FEI members delivered a presentation on the Egyptian economy, as well as a briefing on the country's legal system.
British Ambassador to Cairo David Blatherwick said that direct investment is increasing across a range of sectors in the Egyptian economy, a good portion of it from Britain. With its stock market taking off, attracting major international investments, Egypt has become an "ideal base for those looking to the Middle East region," said Blatherwick. "I believe that the potential for further business is enormous. I hope to see a growing British engagement with the Egyptian market," he said.
Blatherwick told Al-Ahram Weekly that Britain has been a long-standing investor in Egypt, with more than 180 operating British companies, LE5.5 billion worth of investments and a volume of trade between both countries which reached £1 billion in 1998.
British exports to Egypt are currently estimated at £500 million, making the UK the second largest non-Arab trade partner in Egypt after the United States.
Moreover, Egypt has been identified by the UK's Department of Trade and Industry's Export Forum as one of 10 key world markets for British firms.
According to Blatherwick, British businesses are attracted to Egypt for a number of reasons which include the fact that British firms find the Egyptian people "good performers and hard workers". Egypt's geographic location and economic and political stability also provide a positive atmosphere for investment.
However, British investors in Egypt complain of lengthy administrative procedures, said Blatherwick. "It is not terrible, but things should be made easier so as to attract more investors."
Blatherwick said that another complaint sounded by foreign investors is that some public sector companies offered for sale as part of the privatisation process "have been valued by the government at a ridiculous price."
Another investment-scouting delegation representing 42 British companies is scheduled to visit Egypt next week.
