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UAE major foreign investor in Egypt

“Egypt is the largest Arab market and the UAE is the largest foreign investor in that country,” said Sultan Ahmed bin Sulayem, Chairman, DP World.

Bin Sulayem, who is also a Chairman of Dubai World, sees potential of growth in Egypt and expressed his hope that Dubai World companies will explore investment opportunities in the country.

Trade and investments in Egypt are likely to record a significant boost in coming years due to its steady economic growth in past couple of years. The country is on course to beat last year’s 7.1 per cent economic growth despite indications of an international slowdown.

“We see considerable potential for other Dubai World companies to invest in Egypt, including those that can offer value adding supply chain services, such as business parks associated with the port as well as real estate, tourism development and others,” he said.

Prime focus: Dubai-based companies have already been executing projects worth billions of dollars in Egypt. Prime focus of investment is on real sector followed by telecommunications, transport and maritime industry.

Emaar Misr, the Egyptian unit of Emaar Properties, led the UAE investment in real estate sector of Egypt. Its current projects in Egypt are estimated at 43 billion Egyptian pounds. The projects entail construction of houses, hotels, resorts, shopping malls and mixed-use developments. Uptown Cairo, Marassi, Cairo Gate and New Cairo City are the main projects.

Sama Properties, the investment arm of Dubai Holding, is also developing four projects in Cairo.

The projects in real estate and hospitality sectors are estimated to generate four million job opportunities in the country.

In telecommunications sector, the Egyptian unit of Emirates Telecommunications Corporation (Etisalat) launched its operations in May last. It is investing up to $1.4 billion by 2010 to build up state-of-the-art telecom infrastructure in Egypt. Etisalat holds a 66 per cent stake in Etisalat Egypt.

In maritime sector, DP World made a foray into the Egyptian market by acquiring Sokhna Port for $670 million last week. Dubai-based global marine terminal operator plans to invest $1.3 billion on various expansion projects at the port in coming years.

Gulf investment: Moreover, Egypt expects investment from other Gulf Arab states will also increase in coming years as their capacity to invest is higher with oil prices at almost $100 a barrel.

Gulf investors almost doubled their spending on overseas acquisitions in 2007 to over $70 billion as oil prices soared about 58 per cent last year.

Egypt, which recorded 6.8 and 7.1 per cent economic growth in the last two financial years, looks set to maintain its growth momentum this year.

The consistent economic growth paves the way to attract sizeable investment from GCC investors in real estate, hotels, construction and industries. About a third of Egypt’s inward investment comes from the Gulf in which UAE companies have major share.