Egyptian economy is actually recovering, the Suez Canal Corridor changes Egypt’s image for the future generations

The project includes expansion, dual paths of the Canal and provision of logistics to the crossing vessels

Positive responses after announcing the new project, considering the issuance of euro and dollar investment certificates to meet the Egyptians’ demands abroad

The government economic policies focus on overall development, growth, employment to eradicate poverty

Minister of Finance, Mr. Hany Kadry Dimian disclosed that the investment certificates subscription to fund the development, expansion and dual paths of the Suez Canal Waterway shall be offered without limits. The Minister noted that certain Egyptian companies shall participate according to specific rules determined by the certificate regulation that currently being drafted and shall be announced within few days.

In his press releases, the Minister said that the proceeds from the investment certificates shall be paid from revenues of the Suez Canal Authority which is expected to gradually increase from $ 5.5 Billion to more than $ 13 Billion during the next four years due to expansion and deepening of the Canal Waterway, attracting giant container vessels, as well as the provision of logistics to the crossing ships.

The Minister added that the government considers issuance of euro and dollar investment certificates to meet the demands of the Egyptians working abroad. He noted that as soon as the project and its funding mechanisms were announced, the government received positive and broad responses welcoming the giant national project that will change the Egyptian economy’s image and add new potentials, and its positive effects shall continue for the future generations.

The Minister disclosed that the Canal expansion project is within the Canal Corridor development project package including establishment of tens of new industrial and service zones and urban settlements on both sides of the Canal that would require attracting large investments from Arab and foreign countries as well as local investment.

In response to inquiries regarding restricting subscription to the Egyptian individuals and some companies that fully owned by Egyptians to fund the Suez Canal Dual Paths project, the Minister said that the Suez Canal has a private stature by the Egyptian people that would not allow the existence or participation of a foreign activity. He noted that Arab and foreign investors shall have the opportunity to participate in the Suez Canal Corridor development project as well as Egypt’s other national projects such as the million feddans reclamation project, completion of Toshka project along with constructing 3.000 km. of strategic roads, establishment of new cities with population exceeds million inhabitants out of the narrow valley and food security projects.

The Minister indicated that the government and the Suez Canal Authority examined the best means to finance the new Suez Canal project. Upon evaluating all the available finance alternatives, it has been found that the best two instruments are investment certificates and syndicated loans from the Egyptian national banking system. The Suez Canal Corridor development project requires a number of major basic projects such as the expansion and deepening of the waterway, construction of tens of ports and industrial & logistic zones at total cost ranges from 58 to 60 Billion EGP.

The Minister pointed out that the government decided that offering investment certificates in the first stage provides the opportunity to each citizen to actually participate in the project funding, noting that the said certificates will be an instrument that attracts investment monies outside the banking system, not only due to the high interest rate but also due to the project’s high prestige and addressing the patriotism of the Egyptians.

The Minister stressed that the Egyptian economic situation is actually improving given the Egyptian economy’s potentials and the diversity of its growth resources, noting that it emerges out of the crises experienced through the last three years as the recorded growth rates were much lower than its maximum potentials.

He said that this improvement is associated with the steps taken by the government on both political and economic levels, as the first two phases of the future road map, i.e. the constitution and the presidential elections, are achieved; the third phase, the parliamentary elections, is in the way. Along with the government has taken a number of procedures to restore confidence in the national economy on medium and long term, of which programs and policies of social protection, other programs for improving life standards of the Egyptian citizen, explaining that the government is going meanwhile on both economic and social aspects.

He added that all the reform measures taken by the government, including increase of energy prices, rationalizing subsidy and reform of bread and supply commodities subsidy target the increase of the capability of the Egyptian economy to generate job opportunities and employment as it is the first line of defense against poverty, noting that the government has developed a new economic vision focus on achieving overall development not merely an economic growth for the favor of specific class.

He explained that development and growth are related policies that control the government and the country’s work as they determine the Egyptian economic approach, which are meanwhile the most important challenges faced by the government to restore confidence of the Arab and the international business community. The Minister pointed to the government’s keenness to abide by the trends of the free market economy and social protection policies to improve life standards of the Egyptian citizen.

He confirmed that the government is going in the reform measures of both economic and social levels as each one is integral to the other.

The Minister called on the Egyptian, Arab and foreign investors to rapidly invest in Egypt, betting on the Egyptian potential future, to take advantage of the several investment opportunities available in the Egyptian market, pointing out that the economy was going back in the previous period; however we are strongly pushing it forward.