Egyptian political parties propose reforms to boost investment attractiveness



Tue, 23 May 2023 - 03:18 GMT


Tue, 23 May 2023 - 03:18 GMT

FILE – National Dialogue

FILE – National Dialogue

CAIRO – 23 May 2023: The fifth day of the National Dialogue included four sessions, so as two were held under the theme “Reasons Behind Decline of Industrial Contribution in GDP,” while the others had as topic "Analysis of Investment Climate between Reality, Opportunities, and Challenges."  


The moderator of one of the sessions said that the share of the manufacturing sector in the GDP dropped to 16 percent, which is quite low, as the percentage in modern states must be at least 3 percent.


Member of Homeland Guardians Party Ahmed Bahaa El Din Shalaby said that the emphasis now is mostly on the availability and procurement of raw materials necessary for different industries.


Participant in National Dialogue session on manufacturing stressed the necessity of offering lands for mining as that would help with extracting raw material needed in many industries reducing imports of such goods


Representative of the Conservatives Party Nedal al-Said argued that there is a gap between decision making and implementation, demanding a reassessment of investment laws. He also urged appointing an investment minister, reducing taxes and fees, and setting a clear strategy that draws the line between the role of each of the state and the private sector.


Said also underscored the importance of evaluating the digital infrastructure, as well as relevant laws and regulations, especially those pertaining to intellectual property and electronic signature among others.


Chair of Sadat Democratic Party Efat al-Sadat said that the focus should not just be on incentives but also on legislative stability, which he estimates would take 10 years to happen.


Sadat also stipulated the importance of enhancing the mechanisms of settling business disputes, activating the state ownership document restricting government investments to precise economic areas, establishing credibility, and encouraging local investors as they are essential to attracting foreign investors.


Representative of the People Democratic Party Khaled Fouad Hafez proposed establishing an industry ministry that is separate from the trade one, noting that Egypt has 152 industrial zones. Yet, the size of investments does not meet ambitions and targets.


Member of the National Dialogue Board Gouda Abdel Khaleq asserted that it had become mandatory to set an industrial strategy that includes clear goals and ways to achieve them.


Chairman of the African Business Association Yossry al-Sharqawy said that Egypt's infrastructure had become a key factor in attracting investment, asserting that investment promotion agencies must give more care to studying competitiveness to better formulate short-term and long-term plans.


Head of the Trade Representation at the Ministry of Trade and Industry Yehia Al Watheq Bellah stated that, out of his experience with investors, they need stability of laws, skilled labor, incentives in certain sectors such as automotive and ICT, industrial lands, easiness with profit repatriation, clear exchange policy, and encouraging innovation.



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