Although suspicions surround the recent pledges of Qatari investment, Egypt is in dire need of these monies, writes Nesma Nowar Qatar will invest some $18 billion in Egypt over the coming five years, the Qatari prime minister, Hamad Bin Jassim, announced recently. The investment projects will include $8 billion for electricity, natural gas and steel projects at the northern entrance to the Suez Canal and $10 billion for a giant tourist resort on the country's Mediterranean coast. In a joint press conference with Bin Jassim shortly after his meeting with President Mohamed Mursi, Egyptian Prime Minister Hisham Qandil stated that the two countries have agreed to increase the number of flights going both ways and to facilitate travel procedures. They have further agreed on resolving all problems standing in the way of Qatari investors in Egypt. Qandil added that Egypt is set to receive the remaining $1.5 billion of the Qatari deposit over the coming three months. In early August, Qatar vowed to deposit $2 billion with the Central Bank of Egypt (CBE) in an attempt to ease the country's balance of payments deficit. $500 million has already been deposited with the CBE. The promise was made following a visit by the emir of Qatar to Egypt in August, where he met with President Mursi. For his part, Bin Jassim stated that the pledged Qatari investment comes in light of his county's bid to shore up Egypt in a critical time, stressing that Qatar puts no conditions on its assistance to Egypt. However, the generous Qatari economic pledges have drawn much suspicion regarding the small Gulf country's real intentions towards Egypt. A recent report by the Regional Centre for Strategic Studies, a Cairo-based research centre, states that Qatar consistently uses economic tools to realise political goals. This does not happen only in Egypt, but in other countries that witnessed uprisings and in which political Islamist movements have come to power. The report stated that Qatar is seeking to support these movements as a channel to contain change in these countries. Qatar has injected investment into Tunisia and Libya following uprisings in both countries. The report pointed out the influx of the Qatari investment in Egypt, Libya and Tunisia has been related to the level of stability in each country and the influence Qatar enjoys within the new power schemes. "Part of the Qatari investment in Egypt is related to supporting Egypt and another part is related to shoring up the Muslim Brotherhood in the country," chairman of the Ibn Khaldun Centre for Development Studies and AUC professor Saadeddin Ibrahim told Al-Ahram Weekly. Ibrahim attributed Qatar's support for the Muslim Brotherhood to the fact that it hosts many Brotherhood members, including key figures of the group. Moreover, he stated that the Qatari pledged investment in Egypt is part of Qatar's bid "to enhance its global influence and prestige". Ibrahim said that Qatar uses its huge surplus of money, coming from revenues of natural gas and petroleum sales, to invest in the world at large, including Arab countries, Europe, the United States and East Asia. Following the 25 January Revolution, Qatar pledged economic assistance to Egypt. However, this assistance started to materialise only during the last couple of months. Ibrahim ascribed the delay to the instability Egypt witnessed during the past year and half. Regardless of any political intentions this investment might harbour, Ibrahim believes that Egypt should welcome the investment as the country is in dire need of assistance and relief at this delicate juncture. He denied the fact that Qatar could use the investment as a tool to dictate certain political actions. "The Qataris love Egypt, where many of them have lived and studied," he said. Ibrahim added that Qatar is among many states that are seeking to help a large and important country such as Egypt. "The power and stability of Egypt mean stability for the Arab world." Others are less concerned with motives. Head of the Egyptian-Qatari Business Council, Moharram Hilal, denounced the rumours revolving around the Qatari investment and denied any political intentions behind the move. He said that Egypt welcomes the investment, which is set to help the Egyptian economy. He added that Qatar would also benefit through healthy profits. "It is a win-win situation," Hilal told the Weekly. Hilal pointed out that although Qatar is one of the world's richest countries, its investments in Egypt stand at only LE500 billion. The business council would work on boosting investment between the countries and resolving problems faced by Qatari investors in Egypt. Qatari investment in Egypt, noted Hilal, would target the fields of real estate, steel manufacturing, ports and tourist resorts. A recent report by the CBE showed that Qatar's investment from January to March 2012 amounted to $13.2 million. According to government figures, Qatari investments in Egypt amounted to LE1.7 billion in the period from January 1970 to August 2008. The investments were channelled into 112 companies in the fields of tourism, industry, agriculture, and communication and information technology. In another move from the Qatari side this month, the Qatar National Bank (QNB) has shown interest in buying Société Générale's 77.2 per cent stake in the National Société Générale Bank (NSGB), one of Egypt's largest private lenders with a market value of $2.3 billion.
