Page 18 - Issue 60

Vol.1 Issue 60 OCTOBER 2023 ELITE

compensation; and also includes events of the embargo, change of (legal) regime and denial of
justice, and the probability of a negative change in attitude towards foreign investments,
Egypt’s score is 4 while UAE’s score is 2. In the last indicator, Political violence, which
includes all violent act(s) undertaken with a political objective; and includes terrorism
(political, religious, and ideological objectives) and political violence damage (damage to
material assets as a result of political violence); business interruption as a result of political
violence damage, Egypt has a score of 5 while Emirates has a score of 3. Another well known

index is the index of economic freedom, founded by the Heritage foundation and wall street
journal. The index measures 4 broad categories: Rule of law; Government size; Regulatory
efficiency; Market openness. The highest score is 100 while the lowest is 0. Egypt’s overall
score is 49.6, ranking 151st globally and 11th on the region. On the other hand, UAE score is
70.9 and is ranked the 24th globally and 1st regionally, surpassing the USA, the UK, and
Japan. If the government is serious about attracting foreign investors, it should listen to the
problems and the requests of the local ones. The current foreign currency crisis is choking the
economy more than it already choked. And the more we wait the higher the costs will be.
Egypt does not need a new devaluation. Egypt needs to adopt a free exchange rate in order to
assure stability in prices and seriousness in its willingness to make serious economic reforms.

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