Egypt has become a magnet for Scottish business, reports Gamal Essam El-Din A visit by a Scottish trade mission to Cairo and Alexandria resulted in an unprecedented strategic business partnership agreement last week. The mission included representatives from 26 businesses and education institutions in Scotland, and aimed to support strong business links between Egypt and Scotland. The mission's one-week visit which began on 9 February was organised by Scottish Development International (SDI), the international economic development arm of the government of Scotland, in coordination with the British Embassy in Cairo. According to Abdel-Hadi Fawzi, an Egyptian Scottish national who is executive chairman of SDI's Middle East and Africa Energy and Engineering Department, the mission's visit was a huge success by culminating in the signing of a strategic business partnership which focuses on two vital sectors, namely energy and education. Fawzi explained that Scotland chose Egypt as the most favoured nation (MFN) in the Middle East for SDI and Scottish investments in the coming period. "The robust growth rate, cheap labour, large market and strategic location were all magnets for British businesses to choose Egypt as their MFN," he stated. According to Fawzi, the energy industry -- including oil and gas, power generation and renewable energy -- plays a vital role in contributing to the economic prosperity of Scotland by accounting for 17.33 per cent of Scotland's GDP. On the other hand, he added, Egypt has great potential for investment in the oil and education sectors. "Egypt is aware that its oil reserves are depleting and that the time is now ripe to boost cooperation with world energy leaders, such as Scotland, to tap its huge deepwater and offshore oil reserves," he reasoned. The SDI mission in cooperation with the Ministry of Petroleum organised "a sub-sea workshop" on 10 February, which indicated SDI's interest in expanding its oil investments in Egypt and other Mediterranean centres, such as Libya and Turkey. It also highlighted Egypt's interest in tapping its deepwater oil reserves. The workshop placed special emphasis on sub-sea technologies and oil exploration in the deepwater of the Mediterranean and Red seas, explained Fawzi. "There is great potential that Egypt has huge oil reserves in the deepwater of its offshore seas," he added. "But the fact that it lacks the required experience and skills stands against fully tapping these reserves." Hence, the Ministry of Petroleum and SDI concluded a strategic partnership aiming at boosting Egyptian-Scottish cooperation in such unique areas as sub-sea and deepwater oil exploration; horizontal drilling and downhole tools; reservoir management and recovery; software for drilling, training, education and competency, health, safety and environment; and offshore decommissioning. The investments of giant Scottish sub-sea companies around the world are estimated at 4 billion sterling, employing 4,000 workers. Giant companies such as Aramark Ltd, Crescent Engineering, ODS-Petrodata Ltd, Subsea 7, Subsea UK, Cormon Ltd, Des Operations and Fugro Rovtech Ltd participated in workshop, revealed Fawzi, to draw up the future sub-sea oil exploration map of Egypt. Minister of Petroleum Sameh Fahmi indicated that 80 per cent of new oil exploration activities in Egypt in the last decade were conducted in offshore, sub-sea and deepwater areas (or with sub-sea depth ranging from 300 to 600 metres). This fact, noted Fahmi, explains why the main focus in Egypt has shifted from exploring oil in the desert to deepwater in the Mediterranean and Red seas. "The seas of Egypt promise to be a main source of huge oil and natural gas reserves," asserted Fahmi, emphasising that the partnership with SDI and Scottish oil exploration companies will revolutionise oil and natural gas discoveries in Egypt. He further assured that oil and natural gas reserves are particularly abundant in the Mediterranean Sea. Fawzi expects Abu Kir bay and Al-Max in Alexandria will soon be the first test areas for the implementation of the Egypt-Scotland partnership. Other than oil, the strategic agreement offers education and training for Egyptians in the health and agriculture sectors. "The mission included representatives from such great Scottish universities as Aberdeen, Glasgow, and Strathclyde," stated Fawzi, noting that research and academic ties between Egypt and Scotland go back to 1923. "Cooperation in education is really the barometer of a relationship between two countries," reasoned Fawzi. A number of Scottish academic institutions, especially Stirling University, will offer training for nurses. Meanwhile, the Glasgow School of English will design and deliver special English language programmes such as Young Learners in Egypt. The Egypt-Scotland strategic partnership will also extend to include aquaculture activities. Fawzi revealed that an agreement was reached with the Governor of Damietta Fathi El-Baradie through which SDI will help establish a number of model fish farms in this Delta governorate.
