North and South Sinai Governorates possess much potential for attracting investments including the availability of laborers and cultivable lands in addition to natural resources such as white sand, gypsum, manganese and palms, the Minister of Investment, Dr. Mahmoud Mohieldin told the “Investment in Sinai" Conference.
The Holding Company for Chemical Industries is going to implement a sodium carbonate project in Sinai with investments of LE 800 million, Dr. Mohieldin disclosed.
Investments in this projects total LE 800 million and the project will be implemented in 30 months and will create 500 direct jobs and 1,000 indirect jobs, Dr. Mohieldin added.
The Ministry of Transport announced that the railway line between Ismailia-Bear El Abd up to El Arish will be completed. The first stage of this project from Ismailia to Bear El Abd has been finalized for 100 kilometers and has been operated to serve passengers.
A plan has been prepared to impalement two further stages. The first is to be extended from Bear El Abd to El Arish for 77 kilometers for a cost of LE 284 million. With this distance completed, the line could be linked to El Arish port. The second stage is from El Arish to Rafah for 59 kilometers for a cost of LE 221 million.
The Ministry of Transport is exerting efforts to develop some ports and roads including El Arish port. According to the Ministry, a comprehensive plan has been prepared to develop the port and was offered to the private sector to finance and implement it.
Another plan was designed to develop Nuwebaa port. The plan includes El Qantara-El Arish-Rafah Road, Which was doubled within two stages; the first is from El Qantar to El Arish for 140 kilometers costing LE 90 million and the second stage is from El Arish to Rafah for 41 kilometers costing LE 25 million. A doubled ring road is being built around El Arish for 30 kilometers costing LE 66 million and is expected to be completed on 30 November 2008.
The Minister of Investment explained that other projects will be implemented in coordination with the Ministry of Irrigation include El Salam Canal Project which is aimed at to reclaim 600,000 acres including 220,000 acres west of the Canal (first stage). The infrastructure of this stage has been completed. The General Authority for Construction and Agricultural Development is implementing the internal structure works and land allocation. Some 180,000 acres has been planted in this area. Dr. Mohieldin added that the Ministry of Irrigation will offer other projects to investors including the implementation of public irrigation networks of the intakes in Rabea and Bear El Abd (establishment of a pumping station and pipelines for each intake).
The number of intakes is 13 and will cost LE 960 million. Other projects to be offered by the Ministry of Irrigation include the establishment of a water transfer system in El Ser and El Qwariri area in addition to works of infrastructure for irrigation, drainage, agriculture and reclamation over an area of 118.5 acres.
The Minister of Investment noted that the General Authority for Investment and Free Zones (GAFI) is offering a number of projects to the investment community in different sectors. These include the establishment of investment zones in wide sand based-industries (glass and crystal), gypsum, marble and granite based industries, production of building materials, the establishment of agricultural investment zones, extraction projects to extract minerals from black sand, table salt based project, chlorine production, soda production and other projects based on white cement and bricks.
Projects offered by GAFI include food industries most notably the renewal of palm wealth. Studies indicated the importance of planting palms in North Sinai. Palm is a main source of many industries (oils, palm leaves, wood industries and dates).
Fish projects include the development of fisheries and the establishment of fishing companies. Tourist projects include the establishment of resorts, Bedouin centers, marina, conference centers and beach sport centers and malls.
The Minister of Investment reviewed the companies established in North and South Sinai since the liberation of Sinai amounting to 704 companies with issued capitals of LE 17 billion. The tourism sector accounts for 85 percent of total issued capital during the period from 1970 to 2008 followed by the industry sector which accounts for 6 percent of total issued capital, and then construction sector, finance services and services sector.
The period from July 2004 to May 2008 saw an investment zone in Sinai Peninsula with some 132 companies established, accounting for 18.8 percent of total companies established in North and South Sinai with an issued capital of LE 5.2 billion, accounting for 30 percent of total capital issued during the period from 1970 to May 2008.
Existing investments include metallurgical industries and salt production, which is to be extended from 300,000 tons to one million tons per year during the first stage of expansions. The target is to increase production to 1.3 million tons per year by the second year during the coming two years.
The Minister of Investment explained that Egyptian private investments increased by 40 percent per year while FDI amounted to USD 11.1 billion. FDI structure in Egypt has changed over the past three years.
FDI in non-petroleum sectors increased from USD 407 million (20 percent) in the fiscal year 2003/04 to USD 8 billion (more than 73 percent) of FDI during the fiscal year 2006/07, increasing twenty times over the fiscal year 2003/04.
Net FDI amounted to USD 11.3 billion during the first nine months of the fiscal year 2007/08, which is more than the whole past fiscal year. The fiscal year 2007/08 is expected to see more FDI inflows than the past year, Dr. Mohieldin.
The conference was attended by the Minister of Local Development, Mr. Mohammed El Mahgob; the Governor of North Sinai, Mr. Mohammed Shosha and the Governor of South Sinai. Mr. Mohamed Hani as well as a number of members of parliament and investors.
Source: Ministry of Investment.
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