Egypt Expects ‘Remarkable’ Increase in Direct Investment

Hossam Haiba, CEO of the General Authority for Investment and Free Zones (GAFI), and other officials during a ceremony granting a golden license to establish a home appliances factory. (Asharq Al-Awsat)
Hossam Haiba, CEO of the General Authority for Investment and Free Zones (GAFI), and other officials during a ceremony granting a golden license to establish a home appliances factory. (Asharq Al-Awsat)
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Egypt Expects ‘Remarkable’ Increase in Direct Investment

Hossam Haiba, CEO of the General Authority for Investment and Free Zones (GAFI), and other officials during a ceremony granting a golden license to establish a home appliances factory. (Asharq Al-Awsat)
Hossam Haiba, CEO of the General Authority for Investment and Free Zones (GAFI), and other officials during a ceremony granting a golden license to establish a home appliances factory. (Asharq Al-Awsat)

Hossam Haiba, CEO of the General Authority for Investment and Free Zones (GAFI), expected the Egyptian market to achieve a remarkable increase in direct investment in the coming period, following the huge presidential and governmental support to investment.

Haiba handed over two golden licenses to two manufacturers specializing in the production of home appliances and durable goods on the 10th of Ramadan City, bringing the total number of companies that obtained the golden license to 15 so far.

GAFI CEO emphasized that the future goal is that all investors obtain the golden license, to start pumping investments and establishing factories in the shortest time possible.

A statement issued by the GAFI revealed that the first golden license was received by Umit Günel, General Manager of Beko LLC. According to the license, Beko will establish a factory for the manufacture and assembly of durable consumer goods and electrical appliances.

The second license was received by Luis Alvarez, CEO of BSH Home Appliances, Egypt, and the owner of the trademark (Bosch), with the aim of establishing a factory for cookers and refrigerators.

Beko Egypt plans to complete the first phase of the factory by the end of this year, at an investment cost of USD 107 million. The factory will provide 1,300 direct job opportunities.

BSH Egypt will complete the first phase of its industrial project in the last quarter of next year, at an investment cost of 50 million euros ($53.5 million), creating 500 jobs.

The golden license is an all-inclusive approval whereby an enterprise can establish, operate and manage its project. It encompasses many permits including building permits and permits to allocate the necessary real estate for the project.

It is granted by a decree of the government to companies that establish strategic or national projects contributing to Egypt’s development.

During the past fiscal year 2021/2022, GAFI facilitated the procedures for establishing about 31,000 companies, in addition to facilitating the procedures for increasing the capital of another 2,000, with an increase of 9.4 percent in the number of firms.

Haiba added that the main factors that contributed to the decision to grant the golden license to the two companies are their plans to localize the technology of manufacturing home appliances in the Egyptian market and the target to export a large part of the products to foreign markets.

Such factors are consistent with Egypt's Vision 2030 and boost the Egyptian economy, he added.



Oil Prices Reset as Supply Uncertainty Reigns

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Reset as Supply Uncertainty Reigns

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil lost early gains on Tuesday and prices were back near their previous close in the face of uncertainty over how supply will be affected by Ukraine-Russia peace talks, international trade tariffs and OPEC+ crude output.

Brent crude futures were up only 1 cent at $75.23 per barrel by 1242 GMT, retreating from $76.07 earlier in the session.

US West Texas Intermediate crude futures were up 51 cents from Friday's close to $71.25 a barrel. There was no settlement for WTI on Monday because of the US Presidents' Day holiday, Reuters reported.

"Each rally seems to find willing sellers, whether or not it is because of neighbouring technical numbers that keep movement trapped or notions of a war settlement topped with tariffs is hard to tell," said John Evans of oil broker PVM.

"Day trading and short-term flows are ruling the fate of oil prices at present."

US and Russian officials held more than four hours of talks in Riyadh on Tuesday, their first on ending the war in Ukraine. But Moscow made a new demand: that NATO cancel its 2008 promise on Ukraine membership.

Ukraine was not at the talks and has said that no peace deals can be made on its behalf.

If a deal is reached, Washington and its allies could abandon sanctions throttling the supply of Russian oil to the world.

Oil prices were bolstered on Tuesday by a Ukrainian drone attack on a Russian pipeline that pumps about 1% of global crude supply.

The damage could reduce oil transit volumes from Kazakhstan by about 30% and take up to two months to repair, Russian oil transport company Transneft said.

Another question hanging over oil markets is whether OPEC+ is considering a delay to monthly supply increases scheduled in April.

Russian state media said the group's members were not looking to hold off from the increases after Bloomberg News reported that OPEC+ members were exploring a possible delay.