Dubai Debt Crisis Not to Affect UAE Investments in Egypt

Egypt is closely following the Dubai debt crisis, Rasheed Mohamed Rasheed, the Minister of Trade and Industry said Friday 4/12/2009, assuring that current UAE investments in Egypt will not be affected.

Rasheed said the debt crisis could, however, have an impact on new investments in the country.

Regional investments will be affected because bank funding will dip in the coming stage; the minister said expecting an increased flow of foreign investments into Egypt.

On the other hand, Rasheed said that the global financial crisis is still continuing, adding its implications to the world economy could last for the coming 18 months.

He expected that world demand on different commodities and services would backtrack during the coming year, adding stimulus programs must be maintained in the economic sectors which have been hurt by the crisis such as industry and exports in order to avoid the risks of stagnation.

At his meeting with the Chairmen of Export Councils, Rasheed said exportation companies will be exposed to heavy pressures and sharp competition in the foreign markets stressing the significance of the government to support exportation.

He said non-oil exports have declined by 27 per cent according to the figures given by the Central Bank.

Rasheed said the Ministry has drafted an ambitious plan for doubling exports and bringing their value to LE 200 billion within four years. He called on the Chairman of Export Councils to launch a plan for doubling exports within four years, adding this plan depends on enhancing competitiveness, production capacity, to enhance quality of production and to cut down profit margin.