Expanding QIZs MINISTER of Foreign Trade and Industry (MFTI) Rachid Mohamed Rachid announced this week that the number of Qualified Industrial Zones (QIZs) had risen to four and that the geographical boundaries of two of the existing three areas will be expanded. This was made possible following marathon negotiations with the US. The protocol, signed in December 2004, allows Egyptian products to enter the US tariff-free, provided the product has a minimum of 11.7 per cent of Israeli input. Before signing the agreement, Egypt had wanted to establish QIZs in various locations but the US agreed to only three: the Greater Cairo area, Alexandria and the Suez Canal. Now a fourth zone in the central Delta will be added. It will include the industrial areas of Al-Mahalla Al-Kobra, Shebin Al-Kom, Qowesna, Damietta and Sadat City. Existing areas will also be expanded to include Badr City, 6 October, Al-Obour, Giza and Qalioub. The agreement enables 4,500 factories employing some 350,000 people to benefit from the protocol. Although the protocol has been in effect since only February, its most immediate effect was to help Egyptian textile and garment manufacturers maintain their position in the US market following the lifting of the quota system in January 2005. Moreover, according to an MFTI report, a number of foreign investors have expressed interest in Egypt, particularly textile and garment manufacturers in Turkey, Taiwan and India. So far, 464 companies have registered to export within the framework of the protocol. Sixty-seven have exported at a value of $116 million. Facilitating investment ZIAD Bahaaeddin, chairman of the General Authority for Investment and Free Zones, announced last week that the authority would establish an investment dispute settlement centre in an attempt to streamline contacts between investors and concerned administrative authorities and to settle disputes between both sides. Commercial arbitration mechanisms -- a long-stranding demand of investors who complain of the time taken to process cases in civil courts -- will be developed in tandem with the centre. Bahaaeddin also announced that a non-financial support fund would be set up to provide small and medium-sized enterprises with technical support. An investment indicator map covering projects throughout the country and a central archive of currently operating Egyptian companies is being established to promote information exchange and better investment opportunities. In addition to improving the investment climate, the authority is also reviewing the terms of bilateral investment agreements between Egypt and other countries to ensure that the benefits they offer are being fully exploited. Middle East initiative LAST week saw the launch of the Intel Digital Transformation Initiative for the Middle East, a comprehensive, multi-year programme that will expand Intel's economic, educational and technology-related support throughout the region. As part of the programme Intel will increase its investment in four key areas -- local entrepreneurship, education, digital accessibility and specialised technical competencies -- to help promote technology skills, knowledge transfer and job creation in the Middle East, Turkey, and North Africa. "Intel is committed to help bring the full benefits of digital technology to the region, spurring economic development and meaningful improvement in the quality of people's lives," said Brian Harrison, Intel vice-president and general manager for Europe, Middle East, and Africa. "We anticipate enhanced support for regional software developers, more investment in education and greater efforts to make the latest information and communication technology, including the wireless Internet, more widely accessible." Intel currently works with several local governments, educational institutions, businesses, NGOs and programme developers to expand the use and understanding of technology. Intel undertakes high-tech research, often in conjunction with educational institutions, at several centres in the region, with the aim of building technology competency within key industries. "We expect that these investments will accelerate the development and adoption of technology and contribute to the improvement of the regional economy," said Harrison.
