German Arab economic conference opens wider vistas of investments
Regional-Germany, Economics, 10/30/2001

On the occasion marking the golden jubilee of the German-Arab Chamber of Industry and Commerce (GACIC), Prime Minister Atef Ebeid inaugurated on October 21 the meetings of the economic conference with 400 Egyptian, Arab and German businessmen attending as well as 14 ministers.

Addressing the gathering, Ebeid stressed the importance of providing human resources with the necessary skills as well as developing bilateral economic cooperation via partnership rather than donations and loans. Ebeid pointed out that Egypt cited favourable conditions and privileges to attract foreign businessmen especially Germany, key-partner to Egypt's development as Germany has offered about 20 billion Deutsche Marks to promote Egypt's development plan.

Peter Goopfrich, GACIC General Manager indicated that holding the conference on time, despite the cancelling of many conferences worldwide in the aftermath of the September 11 attacks in the USA, confirms Egypt's stability and favourable investment climate.

The Conference urged the establishment of permanent strategy for promoting German tourism in Egypt and the Arab world as well as introducing most sophisticated technology to Mubarak-Kohl project for technical education.

The Conference also tackled means of promoting banking technology, ensuring credit censorship and developing money markets as well as upgrading regular financial data of the Arab banks.

Further IT projects invested in Egypt Minister of Communications and IT Ahmed Nazif urged the German IT companies to invest in Egypt, being the most important economic sector in terms of growth rate in the Arab and Middle East region. Addressing m-miners of an IT workshop, held on the sidelines of the Conference, Nazif said that his ministry is pledged to offer assistances and facilities to r German IT companies operating in Egypt.

Nazif hailed the presence of a major German IT companies in Egypt Siemens - established 100 years ago - that helped in establishing the infrastructures of IT and communications sectors, providing jobs for skilled Egyptian technicians as well as establishing infrastructures of major power stations in Upper Egypt. Executive Manager of Siemens Egypt said that Egypt plays an important role in the Middle East, pointing out that the Company has spent LE 140 million in value of several training and services programmes. Most of the companies' projects executed in Egypt and the Middle East e.g. Sudan, Libya and Syria depends on Egyptian expertise and local resources. Meantime, Siemens will inaugurate soon a plant for producing antibiotics by the use of local raw materials.

Wider vistas of German investments in Egypt

On the sidelines of the Conference, Ebeid stressed the signing ceremony for establishing a plant for producing synthetic fiber and polyester threads in cooperation with German expertise. The new factory, located in the Suez industrial zone, will have a production capacity of 160,000 tons annually with investment coats worth L.E. 180 million. The new project will save about LE 650 million in value of the production, previously imported from abroad. The German side contributes by 25 per cent, the Arab Investments Company 10 per cent and the Egyptian companies by 65 per cent.

Moreover, a joint German-Egyptian Marketing Company was set up recently in cooperation with the Principal Bank for Development and Agricultural credit.

Salem, Executive Manager of the Egyptian Export Development Center said that the Company will promote Egyptian exports from textiles, garments and agriculture products to world countries.

The German side also has set up a permanent fair in Berlin for Egyptian products over an area of 80 square meters. The Egyptian companies will display their products for free in the first six months.

Meantime, Ebeid laid down the foundation stone of the German University in the 5th district in Cairo, a sign which reflects the strong Egyptian-German relations. The German University will be set up by a group of German and Egyptian businessmen focusing on technological and special skills required by the Egyptian market.

GACIC Egypt is the oldest over 70 German chambers of commerce worldwide. The Chamber has played a pivotal role in promoting Egypt-German trade ties, opening new markets for industries' exports, providing businessmen of both countries with data as well as sharing the building of major projects since the 1960s in Egypt e.g. High Dam, Kima Fertilizers Company in Aswan, Edfina for foodstuff and Suez Canal navigation.

Latest Statistics showed a remarkable surge in volume of German-Egyptian trade exchange. Egyptian exports to Germany reached 255.8 million Euros mainly from textiles, cotton, petroleum, aluminum, garments and agricultural products. German exports to Egypt reached 1,508 billion Euros, including machines equipment and iron products. Moreover, volume of joint Egyptian-German investments reached 156 projects with total issued capital of LE 3,595 billion and investment costs estimated at LE 4.88 billion.

The German side contributes by L.E. 646 million, at a rate of 18 per cent of the total capital. The German investments in :1l Egypt covered yarns and textiles, foodstuff and chemicals sectors besides engineering industries, autos, construction materials, pharmaceuticals, tourism as well as banking and services activities.

In the field of petroleum, volume of German investments reached more than $ 2.5 billion over the past 25 years. The German companies have the right in two concession areas in the Suez Gulf and El-Zeit Gulf producing about 500 million barrels of crude oil. Furthermore, a new well was explored recently by the German companies in Assiut with a total estimated capital of $ 500 million. On another plane, German tourists ranked first among foreign tourists visiting Egypt reaching 786,000 in year 2000 as their expenditure hit 745 million Deutsche Mark.

Previous Stories:
  Arab- German economic relations in a conference   (7/31/2001)
  Cairo to host int'l economic forum   (7/28/2001)
  Third Arab - German economic forum discuss economic partnership   (6/16/2000)

Please add a link on your webiste pointing to ArabicNews.com and bookmark ArabicNews.com & subscribe to our daily email news bulletin.

Search