Showcasing Egypt in Asia TESTAMENT to Egypt's growing shift towards Asia and the East, the Euromoney Egypt Investors Conference is scheduled to take place next week in Hong Kong. For the past five years the conference had been held regularly in London. The conference will showcase Egypt as a destination for direct and institutional investment and as a low-cost manufacturing base. "Egypt presents an excellent opportunity for Asian investors across many asset classes. While investor interest has intensified in Europe, related financial support has waned in light of the global downturn," Richard Banks, director for the Middle East of Euromoney, has been quoted as saying. "Alternatively, Asian markets have rebounded more quickly and are looking to capitalise on the continued economic growth and relative stability of the Egyptian market." The Egypt's Capital Day Conference will also take place next week in Singapore. Mixed signals FIGURES from the Central Bank of Egypt released this week show a narrowing in the current account (CA) deficit and a surplus in the balance of payments (BoP) during the first half (1H) of fiscal year 2009/10. A 17 per cent year-on-year (YoY) drop in imports outweighed the decline in exports, bringing the CA deficit down from $2.5 billion in 1H08/09 to $1.3 billion in 1H2009/10. Tourism also helped with a five per cent YoY increase in revenues, increasing to $6 billion this year compared to $5.7 billion for the same period last year. Suez Canal receipts also improved. In the second quarter of 2009/10, the canal registered receipts of $3.4 billion compared to $1.2 billion in the second quarter of 2008/09. The BoP shifted to a surplus of $2.7 billion compared to a deficit of $0.5 billion in the same period one year ago on the back of a net portfolio investment inflow of $1.6 billion compared to a net outflow of $7.4 billion in the same period last year. However, figures also showed an alarming drop in foreign direct investment (FDI) to $0.9 billion in the second quarter of 2009/10 compared to $1.7 billion in the first quarter. According to CI Capital Holding, "Given the huge decline it is becoming increasingly difficult for the government of Egypt to achieve its FDI target of $10 billion for the fiscal year 2009/10." New housing units SOME 6,000 new low-income housing units are set to be built in Beni Sweif, the Red Sea, Al-Wadi Al-Gadid, Fayoum, and Aswan governorates according to a protocol signed between the Mortgage Finance Support and Guarantee Fund and the respective governorates. By virtue of the protocol, benefactors will receive LE25,000 in assistance from the fund to finance their purchase of units. The units are scheduled to be delivered by 2012.
