Initiatives to put Upper Egypt on the investment map are broadening. Sherine Nasr investigates the opportunities Of all the governorates in Upper Egypt, Assiut can rightfully be called the capital city of the South. Lying 375km south of Cairo, the once terrorism hotbed is rapidly turning into a magnet for national and foreign investments. This is the result of a firm belief by the government that developing Upper Egypt is the sole path to attract more investment and achieve higher growth rates. For its part, the government is implementing an integrated plan for developing Upper Egypt. A one-stop-shop was inaugurated in Assiut last year to provide integrated services to investors. Other facilities include the completion of the Upper Egypt-Red Sea highway, doubling the width of the western road in Assiut, extending the gas network to Upper Egyptian governorates, as well as improving Assiut's airport. And efforts are beginning to bear fruit; Delta Rasmala Securities and Investments last week chose Assiut as the location to open one of its largest branches in Egypt. Delta Rasmala is the Egyptian arm of Rasmala Investments, a regional investment bank with operations in the United Arab Emirates, Saudi Arabia, Oman and the United Kingdom. In October 2007, Delta Rasmala was formed through the acquisition of a 51 per cent stake of the Delta Financial Group of companies by Rasmala Investments Holdings. "The merger was created to leverage the synergy of Delta and Rasmala," stated Nevine El-Tahri, founder of Delta Financial Group and co-chair of Delta Rasmala. "The company now offers world-class investment banking opportunities which include brokerage, asset management, corporate finance, research and Islamic finance." El-Tahri noted that the Gulf region has a surplus in capital which seeks investment opportunities in regions with good potentials. "Assiut, in particular, is the candidate city to receive these foreign investments," she said. El-Tahri added that her company has been studying development opportunities in Assiut over the past three years, and there has been a consensus that this city is the right place to open their new company. "We are positive that the company will be a success and it will develop further," asserted El-Tahri, adding that other specialised investment funds will soon be established to invest in a variety of sectors in Assiut. These include real estate and financial leasing, as well as tourism. According to governor Nabil Azab, Assiut hosts six industrial zones which house 682 industrial projects, providing some 150,000 job opportunities. "Of these projects, some 590 worth LE900 million in investments have already started production," stated Azab. He proudly referred to his governorate as the first to facilitate business procedures and improve the investment climate, according to a World Bank report issued in January. While a good beginning, the opening of an Egyptian-Emirates joint venture in Assiut was preceded by other measures which opened the gate for investment overhaul in Assiut. Less than one year ago, the Upper Egypt Investment Company (UEICO) was established to promote private investments in the region by obtaining licences for companies and providing feasibility studies to investors. A joint venture between Banque Misr, the National Bank of Egypt, the Holding Company for Tourism, Misr Insurance and the General Authority for Investment and Free Zones (GAFI), UEICO is based in Assiut and has branches in Cairo, as well as the southern governorates of Sohag and Qena. According to Ziad Bahaaeddin, chairman of UEICO and a board member of GAFI, diversifying financial tools is one of the best ways to attract more investment into Upper Egypt. "In the past, banks were the sole agents to seek finance, but this is not the case anymore," stated Bahaaeddin. "More agents and more tools can now tailor solutions to cover different investor needs." He asserted that UEICO has given a kickstart to investment in Assiut in particular. Under the umbrella of UEICO, a number of tourist and industrial projects will soon be established. Two Nile cruisers and a three-star, 100-room hotel will be built to serve investors in the city and help promote one-day tourism to Assiut; a major fertiliser company is waiting for technical studies by the Ministry of Environment to start operation; a new cement factory at a cost of LE1.5 billion is being established, while a new production line of the existing Cemex company is being constructed. Other projects include an Egyptian-Chinese LE80 million joint venture to produce light transport vehicles, a construction material company, a medical centre and a financial leasing company. "More than LE3.5 billion will be pumped into the city to launch these projects," explained Bahaaeddin, which is double the volume of existing investments in the city. By the end of this year, a marketing company for the products of Upper Egypt will have been operating, he added.
