CAIRO: Kuwaiti KGL Logistics Company expressed its willingness to invest in the Egyptian market in the upcoming period, especially with the last development in political and economic actions.
Over the past few years, the company was willing to invest in the Egyptian market but the fluctuated political and economic situations in Egypt halted any process, KGL Logistics company board chairman Saed Dashty said in an interview with CNBC Sunday evening.
“Over the last development in political actions – the presidency elections and constitution referendum – the company is seeking to invest in Egypt especially with the promised opportunities of investment,” Dashty said.
Despite the past political unrest and public turmoil, Egypt has potential opportunities, which attracts more investment not only from the Kuwaiti investors but also of all Arab countries, he predicted; “Especially gulf countries.”
The company seeks to increase its profits, expand its investment in the Arab countries, and to create more job opportunities by investing in Egypt.
The Egyptian market became ready to receive new investments, especially with the last development in the roadmap, economics professor at the Sadat Academy for Management Sciences Abdel Mottalib Abdel Hamid told the Cairo Post.
“Investment climate, the expected profits, and the allowable means of investments are considered the main pillars for attracting new investment in every country,” he said and all of these factors exists Egypt with potential opportunities for investment.
The promised opportunities are represented in qualified workers, low rates of wages, large market, growing demands on goods, and low interest of transportations, Abdel Hamid said.
As for Gulf and Arab countries aid and investments, Hamid said the upcoming period will witness a coming of large capitals represented in direct investments, “not aid or grants” since direct investments are considered the worthiest factor to achieve growth.
“No one can accurately predict the total volume of investment or the upcoming capitals. But with the past situations in Arab countries such as Kuwait, Saudi Arabia, and the U.A.E, the upcoming period will witness large increase of investments’ rate,” he said.
KGL Logistics is playing a core rule in the Logistics market, in which it offers major warehousing for goods and provide unique services for transport and stevedoring, according to the company’s official home page.
Besides its headquarters in Kuwait, KGL Logistics has branches in Qatar and the U.A.E along with strategic partners in many countries around the world.
In the field of mutual cooperation, Egyptian Minister of Foreign Affairs Ashraf Al-Araby proposed seven new projects in the petroleum sector. Investments up to $7.4 billion to the Egyptian-Kuwaiti committee were assigned to make a list of projects to be funded by Kuwait, Al-Mal daily business newspaper reported mid-May.
After the June 30 Demonstrations that toppled Islamist President Mohammed Morsi, Kuwait announced it would grant Egypt $4 billion in aid, of which $2 billion was deposited in the Central Bank of Egypt; $1 billion was delivered in oil cargos and the remaining $1 billion is scheduled to be granted in the upcoming months.
Kuwait is the second largest Arab investor in Egypt, with about 11.5 billion EGP spread across 532 joint companies, for which the capital market amounts to 28 billion EGP ($3.9 billion), according to State Information Services.