CAIRO: Total Emirati investment in Egypt has reached $5.2 billion distributed over 659 companies, according to statistics held by the Egyptian Investment Authority, the head of the Egyptian Center for Economic Studies Abdel Moneim al-Sayed told CNBC channel Monday.
Al-Sayed said the United Arab Emirates rank second after Saudi Arabia in investing in Egypt.
The total investments of 48 Emirati companies and institutions in Egypt’s financial sector reached 1.45 billion EGP (U.S. $200 million), an official source at Egypt’s Ministry of Investment told al-Bayan newspaper Tuesday.
Since the ouster of former President Mohamed Morsi, many Gulf countries, including the UAE, have supported Egypt and granted it several loans, amounting to a total of $12 billion.
The finance sector is considered one of the biggest Emirati investments in Egypt, ranking second after the information communication technology, where investment has exceeded $2 billion, sources added.
According to the Ministry of Investment, the UAE was one of the first to invest in Egypt in the wake of the June 30 protests. Most of the Emirati aid in the last year has come in the form of investment instead of aids and financial grants, CNBC Arabia Channel reported Monday.
“The UAE will play an essential role in reclaiming and cultivating more than 4 million acres in the western desert,” al-Sayyed added.
Last March, President Abdel Fatah al-Sisi met with Hassan Abdullah Smeek, managing director of the Emrati Arabtec Construction, to sign an agreement on the construction of one million housing units for low-income citizens within 5 years.
Arabtec announced last June that it would construct the units at the beginning of 2014 with a total investment of $40 billion in cooperation with the Military Engineering Authority. The project is expected to be completed in 2020.
The UAE-based company will launch its subsidiary in Egypt to develop the project in collaboration with Egypt’s Armed Forces, the company announced last June.
Arabtec is considering establishing the company in foreign currency to avoid potential losses from currency exchange rates, the company told CNBC Arabia. The Commercial International Bank (CIB) is set to carry out the arrangement of the domestic funds, added the company.