Egyptian banker expects more investment from China

An Egyptian senior banking executive said on Thursday more Chinese companies are welcome to invest in Egypt as the country has great advantages.

"The cost of production is much lower in Egypt and transportation is very convenient," said Yasser El Negouly, chief representative of the National Bank of Egypt (NBE) Shanghai Representative Office, adding the Suez Canal, one of the busiest waterways in the world, is also an advantage.

The 170-km-long Suez Canal, running north to south across the Isthmus of Suez in northern Egypt, was opened in 1869 after 10 years of work. The canal connects the Mediterranean Sea with the Red Sea, providing a shortcut for ships operating between European and Asian ports.

"Egypt has signed free trade agreements with Europe and goods produced in Egypt can go to European markets at a much lower cost, " he said, citing textile industry as a good choice for Chinese companies.

Chinese companies are also welcome to invest in electricity, natural gas and IT industry, he said.

According to statistics from the Chinese embassy in Egypt, bilateral trade reached 3.19 billion U.S. dollars in 2006, up 48.8 percent year on year.

By the end of 2006, China has invested 300 million U.S. dollars in oil, telecommunications and other industries in Egypt, creating about 6,000 job opportunities.

"This is not a big sum, but I believe China will be one of Egypt's three major trade partners by 2010," Negouly said.

Trade volume between Egypt and its two main trade partners, the European Union and the United States, each exceeded 10 billion U.S. dollars in 2005, according to a report released on May 13 by the African Development Bank (ADB) and the Organization for Economic Cooperation and Development (OECD).

The NBE Shanghai representative office, established in 1999, provides financial services for 65 percent of the trade between China and Egypt.

Source: Xinhua