Trade volume between the GCC and Egypt exceeded $34 billion last year, according to His Excellency Jasem Mohammed Al-Budaiwi, secretary general of the Gulf Cooperation Council (GCC).
Meanwhile, the volume of intra-trade investments reached $33 billion dollars. Moreover, the number of tourists arriving from the Gulf countries to Egypt reached 2 million. These are just some of the economic data revealed by Al-Budaiwi at the inauguration of the first Gulf-Egyptian Business Forum, which was held at the Federation of Egyptian Chambers of Commerce (FEDCOC). The forum was hosted in cooperation with FEDCOC with the support of the General Secretariat of the GCC and the Egyptian Ministry of Trade and Industry. The event was held under the patronage of Egyptian President Abdel Fattah El-Sisi.
Platform for exchanging experiences
Engineer Ahmed Samir, Egyptian minister of Trade and Industry, stressed that the forum is an important platform for exchanging ideas and experiences.
Egypt and the GCC countries are synergizing efforts to develop economic cooperation in various fields. These include joint manufacturing, encouraging investments, developing intra-regional trade, agriculture and food processing, and transportation and logistics among others. The trade partners aim to link their tourism, electricity, oil and gas networks and benefit from their respective national capabilities.
The minister highlighted the great opportunity Gulf companies have in Egypt following the implementation of the state ownership policy. Egypt will exit many sectors in the next three years and will offer state equity in various companies through multiple channels. In addition, companies will benefit from the opportunities to invest in other sectors. This will lead to a flow of Arab and foreign investment without competition from the state. Over and above these, other opportunities lie in the projects and assets offered by the Sovereign Fund of Egypt.
Rebuilding and construction
Samir highlighted the importance of rebuilding and construction, with the participation of GCC companies, to advance infrastructure in Egypt. Some of these projects could include power generation, roads, ports, and public facilities. Egypt is also establishing fourth-gen cities as well as industrial zones and major projects, including the Suez Canal axis. Additionally, it is partnering with countries like Iraq and Libya in reconstruction projects.
Linking industrial zones and logistics centers is a basic necessity for joint industrialization and the development of joint Arab exports. The Arab market exceeds 3 billion consumers and has preferential advantages for the countries with which Egypt has free trade agreements.
About 40 percent of Egypt’s trade is with the European Union, Africa, South America, and the Arab markets. Therefore, there is a need for trade exchange between Arab countries not to be limited to finished goods. Trade needs to include industrial integration processes and production components and requirements. That will help address the disruption of global supply chains and raise the proportion of local companies having access to Arab, African, and international markets.
Read: Egypt’s banking sector still faces operating challenges, says Fitch
Holding regular annual meetingsÂ
For his part, Qais bin Muhammad Al-Yousef, Omani minister of Commerce, Industry and Investment stressed the depth of strategic relations between Egypt and the GCC. He highlighted the necessity of holding a regular annual meeting for the forum.
This will help implement the recommendations put forth in the forum, search for technical solutions, and establish a platform to facilitate exchanges between Arab chambers of commerce.
Al-Youssef also pointed to the positive indicators of various international institutions that expected positive growth rates in Egypt.
Establishing flexible production entities
Samir Abdullah Nass, president of the Union of Arab Chambers as well as of the Bahrain Chamber of Commerce and Industry, affirmed the union’s support for the GCC countries.
This will come in the form of establishing flexible production entities to address the challenges resulting from various global economic crises. It supports the development of interconnected visions to achieve sustainable development and joint cooperation in various fields.
In turn, Hassan Al-Huwaizi, chairman of the Federation of Saudi Chambers of Commerce and Industry emphasized the broad prospects for strengthening economic ties and relations between Arab countries. That is especially true in light of the availability of promising investment opportunities in various fields. He indicated the keenness of the GCC to advance and enhance joint investments with their Arab counterparts. He stressed the importance of investing in agriculture, real estate, health care, water, and education, among other sectors.
For more news on the economy, click here.
