General Authority for Investment transferred to direct supervision of Ministerial Council; welcomes new Intel Corporation investment

Cairo, Egypt, 22 March 2011: In a move to prioritise the Egyptian economy and for Prime Minister Essam Sharaf to directly oversee developments in both local and foreign direct investments (FDI), Egypt's General Authority for Investment (GAFI) now reports directly to the Council of Ministers.

Mr. Osama Saleh, Chairman of GAFI, said this is a very positive move and will have an almost immediate impact on the relationship with both current and prospective investors. "For this Council of ministers, it is clear that the economy comes first. The Prime Minister is demonstrating a clear commitment to investors by becoming directly involved with GAFI's strategy and operations."

Mr. Saleh added: "We have seen in recent weeks that foreign investors are committed to the market, and we have been cooperating with them to show continued support for their business in Egypt. We have also reaffirmed that Egypt is committed to all its trade agreements and economic reforms. In his first address Prime Minister Essam Sharaf confirmed that Egypt's economy is a free economy, but within the framework of social justice. He made a very clear promise that the economy will come back stronger than it was before."

Last week Intel Corporation, through its standalone business entity Intel Mobile Communications, announced that it has acquired most of the assets of SySDSoft, a privately held software company based in Cairo and hired approximately 100 of the company's electrical engineers and computer scientists. "The acquisition of engineering and design talent from an Egypt-based company in the field of cutting-edge wireless and communication technology is the first of its kind for Intel in the Middle East," said Arvind Sodhani, president, Intel Capital and executive vice president, Intel. "The acquisition shows Intel's continued long-term strategic commitment to the region and its appreciation of its young, growing talent pool."

Moreover, a group of Saudi entrepreneurs announced their decision to set up an investment development bank in Egypt to launch investments, the value of which is projected at US$16.9 billion. Chairman of the Egyptian Businessmen Society and GAFI Board member Engineer Hussein Sabbour highly praised the Saudi initiative to boost the national economy.

In 2010, Egypt had attracted US$6.8 billion in FDI across many sectors including infrastructure, manufacturing, real estate and renewable energy. In January 2011, Nestle unveiled plans to invest more than US$160 million in its existing factories and distribution centers in Egypt over the next three years.

In its Global Economic Prospects in 2050 report, Citibank said it was "optimistic about the prospects for Egypt." 

Writing for the Oil & Gas Financial Review, Mr. Tammer Qaddumi, private equity analyst in Abu Dhabi said: "I have hope that the inevitable scale-down of Egypt's industrial oligarchy will result in a similarly positive economic force. Egypt has a young, educated, wired-in and, as we've all seen, empowered population. And it's big. Moreover, Egypt still has its incredible assets: strategic geographic location, the Nile, the Suez Canal, unparalleled tourist attractions. The field is now wide open for new businesses to stake their claim, developing and marketing innovative products and services which will ultimately enhance the lives of Egyptians."

James Bond, chief operating officer of the Multilateral Investment Guarantee Agency told Reuters in a statement: "We're seeing in countries like Egypt investors are considering returning, putting their toes back in the water, interested what the investment environment will look like going forward." He said economies across the region have long underperformed and opening them up to foreign direct investment would not only boost growth but also create much needed jobs."

GAFI's message to the global business community is that Egypt will continue to be a safe and attractive investment destination offering not only the already existing growth drivers that it has always enjoyed, but further augmented by a free and democratic platform where the rule of law prevails giving added assurance and protection for all investors in an open market economy. 

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About GAFI
The General Authority for Investment Is the principal governmental authority concerned with regulating and facilitating investment, and stands ready to assist investors worldwide. GAFI broadened its scope from the traditional regulatory framework into a more effective and proactive investment promotion agency through its Research and Market Intelligence, Promotion and Facilitation and Investor Aftercare bodies. GAFI also represents Egypt's sole "One Stop Shop" for investment, which aims at easing the way for investors worldwide to take advantage of the opportunities in Egypt's promising emerging market.

For more information, please contact
Lamia Mokhtar
Head of Corporate Communications
General Authority for Investment, Egypt
Tel & Fax: +2 02 22633524
Email: l.mokhtar@gafinet.org

Press Release 2011