Page 17 - Issue 60

Vol.1 Issue 60 OCTOBER 2023 ELITE

Sawiris mOVES to Abu Dhabi

Abdelrahman Sakr- Second year- Economics- English section

In last June the government announced that it and the one to blame, as the Egyptian media
aims to increase foreign direct investment by has portrayed him, take a look at the
10% every year for the next 3 years. Easier said business and investment environment in
than done, however. Egypt still cannot attract UAE and Egypt and you might reconsider.
foreign investors, nor can it keep local ones. Credendo Group provides business and
Nassef Sawiris, the richest man in Egypt, economic data for 200 countries. It has
announced the transfer of the Sawiris’s family classified country risk under different
office to Abu Dhabi, which is a bad signal for indicators like political risk short term,
foreign investors, just 6 months after the political risk medium/long term, special
statements of the government. Though his move transactions risk, transfer risk, expropriation
created a lot of fuss, given his status, he is not risk, and political violence risk; under each
the first nor will he be the last. Just one month of these indicators, countries are classified
before the government announcement, Samih into seven categories: from 1 (low risk) to 7
Sawiris, Mr. Nassef’s brother, said that he is not (high risk); the last three are related to direct

planning to start any new projects in Egypt. He investments. Transfer risk measure refers to
mainly blamed the fixed-exchange-rate policy, the inability to convert and transfer out of
which led to uncertainty regarding prices, the the host country any funds related to the
ability to convert and transfer out funds, and investment. Egypt scores 6 at it while
importing raw materials. He also pointed out Emirates scores 3. In the second indicator,
that even if the state did not compete with the the risk of expropriation, which encompasses
private sector anymore and reformed the law, all discriminatory measures taken by a host
little would change if the exchange-rate policy government which deprive the investor of its
does not change. His words seem to have fallen investment without any adequate
on deaf ears. The USD is now traded at 51 EGP
in the black market, compared to 31 in the
official one. If you feel that Mr. Nassef is selfish

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