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Egypt's GB Auto sees opportunity in mid-East turmoil Egypt's GB Auto sees any regime change in Libya and Syria offering potentially lucrative business opportunities in the largely untapped Arab markets
As political turmoil engulfs Libya and Syria, investors are holding back until the political future is clearer. But some say business opportunities could surface if both countries bow to public demand for an end to their autocratic regimes. "With all that's happening across the region, we are on alert, waiting for opportunities," GB Auto Chief Executive Raouf Ghabbour told Reuters in an interview. "It's an opportunity for Egyptian businesspeople to expand regionally, and we are waiting for the change to happen ... I am assuming aggressive change in Syria, which is a big market, and the turmoil is creating opportunities." Syria's economy underwent heavy nationalisation after the ruling Baath Party took power in 1963, keeping the authoritarian system largely intact. U.S. sanctions, imposed on Syria in 2004, have discouraged foreign investors from doing business. Ghabbour said he expected the political unrest in Egypt to fizzle out after the detention of several former officials and businessmen connected to the Mubarak administration, which would in turn allow for businesses to proceed normally. "I am optimistic because these are tough times and only well-positioned companies with no political problems will survive." The firm said political turmoil in Egypt, where mass protests erupted on January 25, would hits sales in the first half of 2011, especially commercial vehicles sales, but it saw a rebound later in the year. Egypt's economy nearly ground to a halt during weeks of protests that toppled President Hosni Mubarak, and some of its main sources of foreign exchange, including tourism and foreign investment, have collapsed. Despite the economic challenges in Egypt, Ghabbour cites growth in GB Auto's 2011 earnings, mainly boosted by growth in Iraq sales, which he said would grow 50 percent in 2011. GB Auto began operations in Iraq in February 2010. "2011 will still show growth both in the top line and bottom line compared to 2010," he said, without providing figures. GB Auto manufactures, assembles, imports and distributes vehicles for Hyundai Motor Co, Bajaj Auto Ltd, Mitsubishi Motors Corp, Volvo AB and Mazda Motor Corp. It is also looking into partnering with Chinese auto manufacturers. The firm started this year to export buses to the Middle East and North Africa (MENA) region and began with exports to Yemen, Kuwait and Saudi Arabia. It plans to export buses to other parts of Africa, as well as eastern and western Europe over the next three years. "In 2012, we plan to export to black Africa, 2013 to Eastern Europe including Turkey, and 2014 we are looking at Western Europe," Ghabbour said.
