Two major events gave a much needed boost to Egypt’s economy in 2015; first, was the Sharm el Sheikh economic summit, in March. Attended by world leaders, it attracted over 100 billion dollars in signed contracts and MOUs. This was followed by the opening of the new Suez canal project in August. An enlarged waterway to enhance international trade, adjacent to a new industrial zone, planned to be a trade hub for the region.
“Through those two events, Egypt was presenting to the world, the promising investment opportunities whether projects or industrial zones. Egypt also showed off its new investment law, which is more fair and favourable to the Arab and foreign businessmen. It facilitates procedures for establishing businesses. But what’s more important, is that Egypt was showing to the world that it has become politically stable and is now a safe country to invest” Ahmed El Naggar, Chairman, Ahram Newspaper
But those strides were met with a major setback in October. The downing of a Russian passenger jet over sinai, dealt a major blow to Egypt’s main industry, tourism. The plane was carrying tourists on the way back from sharm el sheikh to St petersbourg. Fears of a terrorist attack led to an evacuation of tourists and a flight ban on the Sharm el sheikh resort city. Hotel occupancy dropped from 75% to 15% in a week. And Many businesses are on the brink of closure.
” More than 2 million work in tourism and they support around 7 or 8 million family members . It’s not an easy situation but we are still working. Occupancy is up to 20% in our hotel. We have ukranian tourists and more egyptian visitors now. We will continue operating. We will not give up” Mohamed Abdel Hady, Chief Concierge, Siva Sharm Hotel
However, The year is ending on a positive note. In November, Egypt signed with Russia ,the long awaited deal, to build it’s first nuclear reactor. It also guaranteed billions of dollars from the world bank, African Development bank and Saudi Arabia to support its reform plans.
” We used to borrow, not to fund factories or industrial projects, but to cover the foreign reserves and infrastructure projects that bring no revenue. We will use these loans to establish projects that create income so that we can repay the loans and increase exports to improve our balance of trade” Ahmed El Naggar, Chairman, Ahram Newspaper
It’s been a mixed year for the economy in 2015 But If all goes well, 2016 could be the final breakthrough for Egypt’s economy, after 5 years of turmoil and recession.
