Business council to discuss investments in Egypt, Saudi Arabia and Africa

rown Prince Mohammed bin Salman and his delegation get a warm welcome on their arrival in Cairo on Nov. 26, 2018. (SPA)
Updated 28 November 2018
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Business council to discuss investments in Egypt, Saudi Arabia and Africa

  • The number of Saudi projects in Egypt has reached more than 2,900
  • Egyptian projects in Saudi Arabia have grown to 1,300, with investments exceeding $2.5 billion

CAIRO: On Tuesday, an important economic meeting headed by the Egyptian-Saudi Business Council will be held in Egypt to coincide with the visit of Saudi Crown Prince Mohammed bin Salman. 

Ahmed Al-Wakil, chairman of the Federation of Egyptian Chambers of Commerce, said in a statement that the meeting will discuss the development of economic relations at a bilateral level, as well as the launching of tripartite cooperation for joint projects in Africa.

Dr. Alaa Ezz, secretary-general of the Federation of Egyptian Chambers of Commerce, told Arab News that Saudi Arabia ranks first in terms of Arab investments in Egypt. Trade exchange has increased and exceeds $6.2 billion. 

The number of Saudi projects in Egypt has reached more than 2,900. They are worth more than $27 billion, with Saudi contributions exceeding $5.7 billion. 

Ezz added that Egyptian projects in Saudi Arabia have grown to 1,300, with investments exceeding $2.5 billion, of which 1,000 are 100 percent Egyptian capital projects exceeding $1.1 billion.

Dr. Adel Amer, vice president of the Egyptian Center for Political, Legal and Economic Studies, said that Saudi-Egyptian relations cannot be shaken. “Egypt would never delay in helping Saudi Arabia, and vice versa.”

Saudi tourism accounts for more than 20 percent of Arab tourism, and the number of Egyptians working in the Kingdom is 1.8 million, not including family members.

Dr. Sami Al-Obaidi, chairman of the Council of Saudi Chambers, said in a statement that the frequent visits between the Kingdom and Egypt are “a sign of the deep relations between the two brotherly countries led by the Custodian of the Two Holy Mosques, King Salman bin Abdul Aziz Al-Saud, and his Crown Prince Mohammed bin Salman, and the President of Egypt, Abdel Fattah El-Sisi.”


Foreign investors hope India dials back policy shocks after Modi win

Updated 24 May 2019
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Foreign investors hope India dials back policy shocks after Modi win

  • Modi’s pro-business image and India’s youthful population have lured foreign investors
  • After Modi’s win, about a dozen officials of foreign companies in India and their advisers said they hoped he would ease his stance and dilute some of the policies

NEW DELHI: Foreign companies in India have welcomed Prime Minister Narendra Modi’s election victory for the political stability it brings, but now they need to see him soften a protectionist stance adopted in the past year.
Modi’s pro-business image and India’s youthful population have lured foreign investors, with US firms such as Amazon.com , Walmart and Mastercard committing billions of dollars in investments and ramping up hiring.
India is also the biggest market by users for firms such as Facebook Inc, and its subsidiary, WhatsApp.
But from around 2017, critics say, the Hindu nationalist leader took a harder, protectionist line on sectors such as e-commerce and technology, crafting some policies that appeared to aim at whipping up patriotic fervor ahead of elections.

Opinion

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“I hope he’s now back to wooing businesses,” said Prasanto Roy, a technology policy analyst based in New Delhi, who advises global tech firms.
“Global firms remain deeply concerned about the lack of policy stability or predictability, this has sent a worrying message to global investors.”
India stuck to its policies despite protests and aggressive lobbying by the United States government, US-India trade bodies and companies themselves.
Small hurdles
Modi was set to hold talks on Friday to form a new cabinet after election panel data showed his Bharatiya Janata Party had won 302 of the 542 seats at stake and was leading in one more, up from the 282 it won in 2014.
After Modi’s win, about a dozen officials of foreign companies in India and their advisers told Reuters they hoped he would ease his stance and dilute some of the policies.
Other investors hope the government will avoid sudden policy changes on investment and regulation that catch them off guard and prove very costly, urging instead industry-wide consultation that permits time to prepare.
Protectionism concerns “are small hurdles you have to go through,” however, said Prem Watsa, the chairman of Canadian diversified investment firm Fairfax Financial, which has investments of $5 billion in India.
“There will be more business-friendly policies and more private enterprise coming into India,” he told Reuters in an interview.
Tech, healthcare and beyond
Among the firms looking for more friendly steps are global payments companies that had benefited since 2016 from Modi’s push for electronic payments instead of cash.
Last year, however, firms such as Mastercard and Visa were asked to store more of their data in India, to allow “unfettered supervisory access,” a change that prompted WhatsApp to delay plans for a payments service.
Modi’s government has also drafted a law to clamp similar stringent data norms on the entire sector.
But abrupt changes to rules on foreign investment in e-commerce stoked alarm at firms such as Amazon, which saw India operations disrupted briefly in February, and Walmart, just months after it invested $16 billion in India’s Flipkart.
Policy changes also hurt foreign players in the $5-billion medical device industry, such as Abbott Laboratories, Boston Scientific and Johnson & Johnson, following 2017 price caps on products such as heart stents and knee implants.
Modi’s government said the move aimed to help poor patients and curb profiteering, but the US government and lobby groups said it harmed innovation, profits and investment plans.
“If foreign companies see their future in this country on a long-term basis...they will have to look at the interests of the people,” Ashwani MaHajjan, an official of a nationalist group that pushed for some of the measures, told Reuters.
That view was echoed this week by two policymakers who said government policies will focus on strengthening India’s own companies, while providing foreign players with adequate opportunities for growth.
Such comments worry foreign executives who fear Modi is not about to change his protectionist stance in a hurry, with one offical of a US tech firm saying, “I’d rather be more worried than be optimistic.”