$ 60 million in US investments to be injected into Suez Gulf company

In a key step reflecting the significant improvement of business conditions in Egypt, one of the US industrial corporations has recently announced injecting $ 60 million into an export-oriented industrial scheme north west of the Suez Gulf.

The new US channeled investments into the Egyptian Company for Fertilizers reflect the success achieved by the project which represents an example for fruitful cooperation between the private and public business sectors, according to Head of the Company Adel El-Mozi.

"The project is the first of its kind in the north west of Suez Gulf, whose total production will be designated for exportation after one year of its establishment," he added. "In its first year, the overall exports hit $ 70 million, while the total scheme's investments reached $ 287 million in its initial phase," Mozi noted.

"The new US investments will thus contribute to doubling the project's capital to $ 200 million, increasing the volume of new investments to $ 2700 million," he said.

Accordingly, the exports are expected to double to $ 140 million (equivalent to L.E. 750 million).

The new US investments confirm the great development which took place in the business conditions of the Egyptian market, according to Naguib Sawires, representative of the private sector in the project.

"The US is seeking to develop its economic relations with Egypt over the coming ten years to become one of the major examples not only in the regional but at the international level as well," said US Ambassador to Egypt, David Welch.

"Since Egypt is regarded as the economic bridge for the African and Middle Eastern markets, the US sees no cause, in light of the globalization era, to prevent the US corporations from manufacturing products in Egypt and selling them in Asia and Europe," he added.

"Thus, we believe that Egypt possesses great potentials for furthering bilateral cooperation," he said. Welch hopes to activate the framework agreement for trade and investment as a starting point to set up the aspired free trade agreement between Egypt and the US.

Accordingly, the US Ambassador said that the projected visit of US Trade Representative Robert Zoellick to Egypt in June, mainly aims at maintaining talks on the said accord.

"Moreover, contacts are under way between the Foreign Trade Ministry and the US Department of Commerce to finalize the new make-up of the Egyptian-US President's Council, which is expected to hold its first meeting in June," he added.

President Hosni Mubarak and US President George Bush agreed in March to set up the new formation of the Council, under their sponsorship, to ease up difficulties impeding further trade exchange between the two sides. The Council will involve 15 members from each side.

Meanwhile, American businessmen expressed keenness to increase volume of US investments in Egypt, said Bobette Orr, Commercial Counselor at the US Embassy in Cairo.

Addressing the conference on Information Technology held in Alexandria early in the week, she pointed out that volume of US investments in Egypt increased by 25 percent in 1999/2000, mostly in the fields of petroleum and natural gas. Volume of American direct investments reached $ 2.1 billion in the year 2000.

Meanwhile, volume of American exports to Egypt in 2001 reached $ 3.7 billion with an increase of 13 percent, whereas volume of Egyptian exports to the USA reached $ 879 million in the year 2001.