A recent study on promising sectors for European investment in Egypt has been described as "revealing" by Tarek Tawfik, Deputy Chairman of the Egyptian Industries Federation. The study highlights that Egypt's share of European investments is less than 0.5%, despite having several attractive qualities that could draw in more investment. The European Union has approximately 9.3 trillion euros in foreign investments.
Tawfik presented his views at a seminar organized by the Egyptian Center for Economic Studies in collaboration with the European Union to showcase the study's findings. He emphasized that Egypt has several advantages that could support its efforts to attract more European investments. These advantages include its geographical proximity to European markets, free trade agreements, available labor and energy, and its status as a strategic partner for the European Union.
Additionally, Egypt has a 1.8 billion euro European support package to facilitate investment. However, Tawfik noted that the main obstacle is the perception of Egypt among European companies, particularly small and medium-sized enterprises. He stressed the importance of continuing and integrating reforms into a comprehensive government policy to improve the competitiveness of the investment environment.
Tawfik acknowledged that Egypt has made impressive reforms in the past two to three years, particularly in taxation, licensing, and land allocation. However, he believes that these efforts are still insufficient compared to competing countries. To attract more European investments, especially from small and medium-sized enterprises, Egypt needs to build on its existing reforms and enhance investor confidence.
Egypt has a competitive advantage in human capital, with around 800,000 graduates annually, including 270,000 in science, technology, engineering, and mathematics. This provides a pool of skilled workers that can support the expansion of industrial and technological investments. Tawfik emphasized that this advantage must be linked to a sustainable national policy for technical education and vocational training.
The Egyptian Industries Federation Deputy Chairman also highlighted the importance of completing the ongoing reforms to enhance the country's investment climate. This includes addressing the concerns of European companies and providing them with a favorable business environment. By doing so, Egypt can increase its share of European investments and promote sustainable economic growth.
The study's findings and Tawfik's comments underscore the need for Egypt to improve its investment climate and increase its attractiveness to European investors. By leveraging its advantages and addressing its challenges, Egypt can work towards achieving a larger share of European investments and promoting economic development.
Key points
- Egypt's share of European investments is less than 0.5% despite having attractive investment opportunities.
- The main obstacle to attracting European investments is the perception of Egypt among European companies.
- Egypt has a competitive advantage in human capital with a large pool of skilled workers.
