Mohieldin, China's CIC Meet on Investment Cooperation

The Minister of Investment, Dr. Mahmoud Mohieldin, met in Cairo with China Investment Corporation (CIC) Chairman, Mr. Lou Jiwei, and his delegation, upon an invitation from the Ministry of Investment for an update on the investment opportunities available in Egypt and means to boost bilateral cooperation.

The meeting comes within the framework of following up on the results of Dr. Mohieldin's meeting with CIC officials in Beijing in September 2009.

The meeting emphasized the importance of boosting broader bilateral investment cooperation and nonstop efforts to promote and attract Chinese investments.

Investment opportunities on tap in the Delta and Upper Egyptian governorates and the North-West Suez Gulf Economic Zone (SEZONE) were presented.

Dr. Mohieldin stressed the importance of enhancing strong investment ties with China in highly feasible, labor-intensive projects that are vital for the Egyptian national economy.

China is a unique provider of sophisticated technology that is suitable for the needs of developing countries.

The minister also highlighted the rise of new establishments with Chinese contributions in Egypt. Their number hit 1078 companies, of which 86 percent were founded in the past six years alone.

The meeting was attended by Chinese Ambassador to Egypt, Wu Chunhua, SEZONE General Authority chairman, Ahmed Amin, the General Authority for Investment and Free Zones (GAFI) deputy chairman, Nivin Ashafie and the Insurance Holding Company chairman, Mahmoud Abdullah.

It was also attended by the Upper Egypt-Red Sea Company for Investment & Development chairman, Mohamed Hosni, and chairpersons of various Egyptian financial institutions and investment banks, in addition to some officials from the Ministry of Investment, GAFI and the Chinese Embassy in Cairo.

Dr. Mohieldin reviewed the main pillars of investment cooperation between the two sides, including investment in infrastructure of transport-related projects, recycling of solid waste, and new and renewable energy.

Opportunities for cooperation in the area of indirect investment at the Egyptian Exchange (EGX), and the key developments in the Nile Exchange (Nilex), were also reviewed.

"This market provides an exit mechanism for direct investments and, accordingly, encourages direct investment funds to increase their investments in such companies," Minister Mohieldin said.

He also reviewed the efforts made to develop the Egyptian bond market, such as streamlining the procedures for issuance of bonds by companies, organizing bond issuance by corporate bodies and regional institutions, as well as organizing bonds in batches.

CIC is keen to strengthen investment ties with Egypt, its chairman said, adding that his visit was aimed primarily at identifying the available investment opportunities in order to meet the requirements of development in the Egyptian market.

"According to the CIC studies, Egypt is attractive for investments, in light of the high economic growth rates experienced by the Egyptian economy in recent years as a result of economic reforms pursued by the Egyptian government. Indeed, this encourages Chinese investors to invest in Egypt and a further influx of Chinese capital," the Chinese official noted.

The CIC, China's sovereign wealth fund, was established in 2007 with a capital of approximately $220 billion. It aims to increase Chinese investments in markets with high growth rates.

The Chinese investment delegation will meet with officials of several ministries interested in infrastructure, some Egyptian companies, in addition to investment banks and institutions.