Minister of Finance Panel
- The minister stated that it has been a tough year because of the inflation and EGP devaluation. Moreover, USD 23 billion leaving the country in hot money.
- The oil prices surge as a result of the Russo-Ukrainian war and global inflation affected the world and led to the barrel to go from USD 60 to USD 140.
- On the bright side, the Suez Canal revenues increased from 5.5 billion dollars to 7 billion, and we hope that it will reach 8 billion dollars. We hope things will get better in 2023.
- The negative effects on Egypt’s economy were going to happen even without the war in Ukraine, especially after the Covid-19 pandemic.
- It will take a long time for the economy to recover due to the negative impact of the war in Ukraine and the Covid-19 pandemic. The global Inflation surged as a result of the Russo-Ukrainian war.
- The supply chain was heavily disrupted by the Covid-19 pandemic, the war in Ukraine and the EGP devaluation which lead to a big impact on the global economies across different sectors
- The trade war between US and China generated a trade tension between Europe and China as well, are importantly considered as some of the main factors for the global inflation.
- Egypt is an attractive place to attract more foreign direct investments as it offers a great opportunity for cheaper labor, existing infrastructure and the easing of restrictions for foreign investors.
- Egypt is moving towards green energy and taking the lead by preparing its infrastructure to be more attractive for investors.
- Goldman Sachs expected and forecasted that Egypt will be among the top 10 global economies by 2075.
- We have very good relations with our brothers in the GCC region. The GCC perceive Egypt as a high potential investment country.
- Egypt hopes to achieve USD 10 billion every year through foreign direct investments.
- Egypt wants to promote the message of macroeconomic stability in the country.
- Egypt achieved USD 600 million in natural gas exports, we hope that it will reach USD 1 billion by next year. We also need to nationalize our imports to control the currency situation.
- Egypt undertook several procedures to supports the Egyptian population by supporting families through some initiatives such as Takafol W Karama , the initiative included an additional 1 million families during this year.
- Moreover, the country increased pensions by EGP 300 per month and increased in the minimum wage for the public sector
- Egypt is subsidizing EGP 6 billion of electricity, and has exempted the industrial sector from the real estate tax for 5 years, equivalent to 4.5 billion EGP.
- Egypt is in a good position to turn green and sustainable, it has the needed resources to develop the necessary infrastructure. The future is green energy, and we’ve taken the lead in this aspect. We hope that by 2030-2035 that 50% of our energy will be renewable and green.
- If Egypt takes quick steps, it will put the country in a position to be a leader in this region as producers of green hydrogen and exporting it.
- We import 120 million barrels of oil every year. Relying on the green energy will decrease this number that will accordingly help our economy and currency.
- When the minister was asked where he sees Egypt in the global capital market?
- He said that it is an attractive place for the investors and foreign direct investment. Over 2022, the economic situation was not as we wanted, we hope 2023 will be better. We try to access financial markets in an untraditional way. We received many creative financial strategies that we are currently studying so we can implement the best strategy.
