In a sign of the strengthening of bilateral trade and investment relations between Egypt and Qatar, Egypt's Minister of Trade and Industry, Rashid Mohamed Rashid, concluded an official visit to Doha, which included meetings with Sheikh Hamad Bin Khalifa Al-Thani, Emir of Qatar, and other high-level public decision makers. The minister's visit to Qatar was aimed at promoting trade and investment ties between the two countries, with a particular emphasis on attracting Qatari investment into the newly planned Qatari Industrial Zone in Egypt, the first of its kind ever to be built in the North African country. Rashid said a significant “shift in emphasis” was now underway in the bilateral relationship between Qatar and Egypt. “As the rise of this new industrial zone suggests, our relationship is becoming increasingly focused on economics and mutual investment opportunities.” He added: “Egypt today has more to offer Gulf investors than at any other time in the past. After years of aggressive economic reforms, Egypt is successfully transforming itself into a regional export and investment hub. In 2007 alone, our economy grew at 7.5 percent, while export growth stood at 45 percent. Egypt successfully attracted $11 billion in foreign direct investment in the same period, up from less than $1 billion four years ago. Those are remarkable statistics, by any standards, and Gulf-based investors are playing a significant role in Egypt's ongoing fiscal renaissance, as they identify investment opportunities close to home.” During his visit, the minister showcased investment opportunities in Egypt's growing industrial sectors, such as textiles and readymade garments, food processing, petrochemicals and engineering products. He highlighted that, in the World Bank Group's recent Doing Business 2008 Report, which compares regulatory environments in 178 economies worldwide, Egypt was ranked first in the world in terms of economic reform. Egypt's investment proposition is clear: Gulf investors in Egypt can take advantage of a deregulated local business environment; the most competitively priced manufacturing environment in the region in terms of land, labor and energy; the largest skilled workforce in the region; and a strategic geographic location at the crossroads between the European, Asian and African continents. Investors in Egypt also enjoy duty-free access to the world's largest consumer markets, through Egypt's unique basket of preferential trade agreements with the United States, Europe, Africa, the Middle East and Turkey. Last year, Egypt signed a memorandum of understanding with Qatari Diar Real Estate Investment Company to begin technical preparations for the establishment of the first-ever Qatari-financed industrial zone in Egypt. The zone, which will be located in Borg El-Arab, on Egypt's Mediterranean coastal region, will cover 8.81 million square meters and is expected to generate production of around LE 55 billion (QR37 billion), attract LE 16 billion (QR10.7 billion) of investment and create 133,000 jobs in Egypt over the next 10 years. This would make the zone the first and largest Qatari investment ever in Egyptian industry. Currently, Qatar ranks as the second-largest Arab investor in Egypt after Saudi Arabia, and before Kuwait. Qatari investments in Egypt in 2007 were concentrated in sectors such as construction (LE981 million; QR660 million) and financial services (LE77 million; QR52 million). The new Qatar industrial zone will make Egypt's industrial sector one of the largest recipient of Qatari investment in Egypt, overtaking other sectors. In addition to Qatari Diar, other significant Gulf-based investors in Egypt today include, from the UAE alone: Emaar Properties, Etisalat, Abraaj Capital, Mubadala, Dubai Ports World and Tamweel, among others. __
