CAIRO: Egypt is expected to receive $50 billion from leaders of Arab and Islamic countries that will participate in the donor conference, planned to be held by November, CNBC Arabia Channel reported.
Official sources told CNBC Arabia Channel on Tuesday that the donor conference will be one of the biggest investment conferences Egypt has witnessed since June 30.
“It will be attended by more than 35 Arab and foreign countries headed by Saudi Arabia, the United Arab Emirates and Kuwait,” CNBC Arabia quoted the sources, adding that the expected investments that Egypt may receive could reach $50 billion.
Minister of Planning Ashraf al-Araby announced that there is a committee formed consisting of four ministries to set the agenda of the conference, adding that next November is the proposed date and not the final date, CNBC Arabia channel reported.
Minister of Industry Mounir Fakhry Abdel Nour announced last Friday that the proposed donor conference to support Egypt’s economy is scheduled to be held in November or early 2015 as a maximum, Saudi newspaper Okaz reported Friday.
Following the announcement of Egypt’s High Presidential Elections Committee (HPEC) that Abdel Fatah al-Sisi had won the presidential election, Saudi King Abdullah bin Abdul Aziz called on leaders of Arab and Muslim countries to hold this conference in order to raise funds for Egypt’s battered economy.
In a congratulatory gesture to Sisi, published by Saudi state-owned news agency SPA, King Abdullah said “I call upon all of Egypt’s brothers and friends to organize a donor conference to assist the country overcome its economic crisis.”
Head of the Saudi-Egyptian Businessmen Association (SEBA) Ahmed Sabry asserted that Saudi businessmen are eager for this conference due to its importance as many Arab companies’ owners will be present.
In previous statements, economic experts expected that Egypt may receive more than $20 billion from leaders of Arab and Islamic countries who will participate in the conference.
Investments in the sectors of real estate and energy along with infrastructure projects come in as the priority of the Investment Ministry’s list.
The conference aims at demonstrating the government’s economic vision and legislative reforms and ways to encourage foreign investments during the coming phase, said Abdel Nour.
Saudi Arabia and UAE are expected to give Egypt about $8 billion economic aid, economic expert Ahmed Adam told Al-Madina on June 14.
The Egyptian government needs in the coming fiscal year 2014/2015 about $20 billion to cover the budget deficit, sources told al-Mal last June.
Early July, the Ministry of Finance (MOF) revealed in a report that Egypt’s budget deficit recorded 163.3 billion EGP ($22 billion) during 10 months of the current 2013/14 fiscal year, down from 183 billion EGP in the same period in 2013.
After the ouster of former President Hosni Mubarak, following the January 25 revolution, the economic stance in Egypt has been unstable. Egypt has received several loans and grants from several countries to boost Egypt’s economy.
According to the World Bank, “economic growth [in Egypt] remains weak with a high fiscal deficit and gross public debt (domestic and external) rising to nearly 100% of GDP at the end of June 2013.”