JEDDAH, 17 April — Egypt is considering abolition of sales tax in its bid to attract foreign investments, particularly from Saudi Arabia.
Addressing a gathering of businessmen at the Jeddah Chamber of Commerce and Industry yesterday, Egyptian Prime Minister Atef Obaid said his country was determined to remove every hurdle in the way of increasing Saudi investments in the country and boosting mutual trade. He said moves were under way to set up a free trade zone.
In a press briefing following the meeting at the JCCI, Obaid said he held detailed discussions with Saudi officials and businessmen about the establishment of a free trade zone. The discussions also included increased investments in both service sectors and the IT industry.
Obaid noted that Saudi investment accounted for 30 percent of all Arab investments in Egypt. Saudis are welcome to invest in such sectors as natural gas, oil refining and tourism as well as construction which requires about $100 billion investment in near future.
The prime minister assured the businessmen that the fluctuations in the value of Egyptian pound would not affect foreign investors as the country’s foreign exchange reserve was very strong. Obaid left for Kuwait yesterday on the second leg of a Gulf tour.
