Minister of Investment Mahmoud Mohieddin has outlined a host of investment-friendly measures adopted by the government, reports Sherine Nasr "It takes two to tango. The government and the private sector need to establish who should do what and why," Minister of Investment Mahmoud Mohieddin told a seminar organised last week by Al-Ahram Regional Press Institute . "Concepts such as strategic industries and sectors no longer carry weight with the government," Mohieddin continued. The government, he added, is more convinced than ever that regulating the market -- and not providing goods and services -- should be its top priority. In the last 16 months, radical steps have been taken to underline the government's commitment to more investment-friendly practices. The latest of these is the Freedom of Information Act, due to be debated by the People's Assembly during its upcoming session. "Once approved the new law will form the cornerstone for the free exchange of information across all sectors, creating greater flexibility and transparency," said Mohieddin, who noted that Egypt had been repeatedly criticised for a lack of transparency, particularly in the investment sector. The impact of the law will be reinforced when specialised courts are established to mediate commercial disputes. "Quick and efficient settlement of business matters is as vital as free access to information," Mohieddin added. Investors, long hampered by excessive bureaucracy, can now complete all the initial paperwork in one go. The one stop shop, enacted this year, has proven a big success. "To establish a company in Egypt takes just 72 hours now. No contact with the different authorities is needed and paying royalties is out of question," said Mohieddin. In an attempt to boost the manufacturing sector an industry development authority is currently in the making. In addition to promoting industrial activity across Egypt a major part of the authority's mandate will be to facilitate access to industrial zones already equipped with utilities at reasonable prices. "No more manufacturing plants will be established on fully-equipped lands allocated for construction purposes," said Mohieddin. A few months ago the government approved a 40 per cent decrease in the price of land allocated for industrial use as part of a package to encourage manufacturing industry. In Egypt 72 zones are currently earmarked for industrial use of which only 22 are active. The raft of new initiatives follows a series of drastic reform measures that have shaken up Egypt's financial sector. The new tax law is now in effect and a new sales tax law is in the making. A more flexible customs regime is currently being enforced and the government has signalled its intention of pursuing aggressive reforms within the banking sector. "These measures are now reaping tangible results," commented Mohieddin. Direct foreign investment to Egypt increased to $1.3 billion in 2005 compared to $408 million in 2004, while investment in the oil sector increased by $1 billion to register $2.6 billion compared to $1.6 billion last year. The number of start up companies has more than doubled. Foreign investment in the Egyptian stock exchange hiked by $800 million this year. The investment appeal of traded securities increased by 67 per cent this year compared to 39 per cent last year.
