British investments in Egypt's oil sector increases $ five billion

British Ambassador in Cairo Graham Boyce said that the British oil companies working in Egypt decided to pump more $ 5 billion in prospecting for oil and natural gas within the coming 5 years.

He played down the pullout of a major British investor from Egypt, dismissing suggestions that Egypt's investment climate had turned sour.

The Ambassador said yesterday that the decision of British supermarket gain Sainsbury's to pull the plug on its Egypt operations followed the company's miscalculated expansion in Egypt.

"The company miscalculated when it opened many stores simultaneously without accurately assessing the market," Boyce said.

He added that the British firm reconsidered its operations in Egypt, and opted to concentrate on its operations at home instead.

Boyce expressed confidence in the local investment climate. He cited many successful examples of British companies operating in Egypt, including British Gas, Glaxo-Wellcome and Blue Circle.

Speaking to reporters at the press syndicate about the "Connect Egypt" trade mission, which ceased its activities earlier this year, Boyce explained that the mission did not achieve its targets in increasing Egyptian exports.

He highlighted three important elements for boosting local exports: aggressive marketing, high-quality production, and the removal of bureaucratic legislation.

"Egypt enjoys a strategic geographic location and high potential that enables it to attract foreign investment," he added.