Sharm-el-Sheikh: Gulf Arab allies pledged a further USD 12 billion of investments and central bank deposits for Egypt at an international summit on Friday, a big boost to President Abdel Fattah al-Sisi as he tries to reform the economy after years of political upheaval.
Kuwait, Saudi Arabia and United Arab Emirates each offered USD 4 billion to Egypt, which is grappling with Islamist insurgents as it seeks to improve the investment climate four years after a popular uprising that touched off protracted turmoil.
The UAE said it would deposit USD 2 billion of its pledge in the Egyptian central bank, while Saudi Arabia said USD 1 billion of its pledge would go to the bank. Oman said it would give Egypt USD 500 million in grants and investment over the next five years.
Egypt hopes the conference will project an image of stability and improve investor confidence hit by the political upheaval touched off by the fall of veteran ruler Hosni Mubarak.
Cairo wants to double foreign investment in this fiscal year to $8 billion, despite an Islamist insurgency in northern Sinai and frequent militant attacks across the country.
"I`m expecting here to see USD 15-USD 20 billion in agreements signed," Investment Minister Ashraf Salman told Reuters earlier, adding that the deals would cover power plants, real estate and agricultural projects.
General Electric said it would invest USD 200 million in a manufacturing and training facility which it sees as part of an economic hub being built near the Suez Canal.
It also said it had delivered 34 gas turbines to Egypt as part of a USD 1.9 billion power project.
Egypt also expected to sign several memoranda of understanding at the conference, including one for the construction of a new administrative capital.
Housing Minister Mostafa Madbouli said the new city east of the teeming capital Cairo would be built in 5-7 years at a cost of USD 45 billion and house government buildings, diplomatic missions and more than a million residential units.
"We are talking about a world capital," he said.
