Dr Mohieldin Inaugurates "Investment Zones in Egypt" Conference

The Minister of Investment, Dr. Mahmoud Mohieldin, inaugurated the "Investment Zones in Egypt" Conference organized by the Ministry of Investment in association with the International Finance Corporation (IFC) / World Bank.

The conference aims to discuss existing zones in Egypt, including investment zones, free zones, the North-West Suez Gulf Economic Zone (SEZone), as well as industrial and commercial zones; in addition to means of employing such zones in attracting more investments.

A workshop, on the sidelines of the conference, will discuss the legislative, regulatory and administrative aspects associated with the development of investment zones; particularly special economic zones.

Dr. Mohieldin states that, "the multiform investment zones will contribute effectively in pushing businesses and employment further. This helps create more jobs."

"Such investment systems' merit's are that they offer administrative and regulatory facilitations to existing projects. Reports on investment performance have shown that getting more administrative and regulatory facilitations tops investors' demands during this current stage," Dr. Mohieldin added.

Minister Mohieldin also reviewed the status of Egypt's 12 investment zones; with total investments of EGP 73 billion and 344,000 job opportunities.

These zones are located all over the country; in governorates such as Cairo, the 6th of October, Sharqiya, Alexandria, Qalyubiya and Fayyoum.

Dr. Mohieldin continued that, "the target is to build 21 new investment zones in the upcoming period in various investment fields."

He also added that the foundation stone would be laid for the Meet Ghamr investment zone; which is planned to include over 25 projects in metal forming and woodworks, in addition to a services zone.

Another investment zone has been also planned on As-Saf land – a plot of land formerly owned by El Nasr Refractories & Ceramics Co. in the Giza governorate. It would be allocated for the same industry.

Moreover, there are plans to set up an investment zone in Banha, within an area of 100 acres, for food and ready-made clothing industries.

Dr. Mohieldin said, "Three criteria should be met to approve projects under the free zones system: (1) the project should be connected with ports services, (2) be labor intensive, or (3) be of a high value added nature."

In this regard, the minister said that the number of special or public projects launched under the free zones system reached 1,127 projects by the end of March 2010.

The conference was attended by chairman of the General Authority for Investment (GAFI), Mr. Osama Saleh; SEZONE chairman, Mr. Ahmed Amin; chairman of the Industrial Development Authority (IDA); Mr. Amr Assal and chairman of Internal Trade Development Authority, Mr. Amr Talaat.

“The SEZone, a promising area for attracting international investments, will attract major investment projects after the completion of development works,” Minister Mohieldin said.

The zone currently contains around 92 projects with a total issued capital of some EGP 12 billion, and more than 25,000 employees.

"Egypt has great potential enabling it to make use of opportunities available after the global financial crisis, especially after the balance of trade and investment became closely in favor of Asia and the East. This will enable Egypt to become a link between the East and the West. There should be continued efforts to develop Egyptian human resources in order to cope with the requirements of international investors," he added.

Dr. Mohieldin also referred to some of the measures taken by the Ministry of Investment to develop and boost investments. GAFI established a mutual fund at a capital of EGP 1 billion to support small and medium-sized enterprises (SMEs), which account for more than 90% of Egyptian projects.

“Moreover, the Ministry of Investment is developing the legislative framework governing the work of firms, in addition to other pieces of legislation that primarily aim at facilitating investment activities”, Dr. Mohieldin concluded.