CAIRO: A United States trade promotion agency has said it will invest upwards of $455 million in five separate private equity funds in the Middle East and North Africa. It is part of what the Overseas Private Investment Corporation (OPIC) said is American President Barack Obama's attempt to work closer with the Muslim world through cultural and trade and economic ties. According to Stephen Everhart, the former managing director of OPIC, said via telephone that OPIC has already approved a $150 million fund to be run via Kuwait Projects CO., Kuwait's largest investment firm and another $150 million fund to be managed by Dubai-based Abraaj Capital. He argues that each project and investment aimed at boosting trade with the United States “must be commercially viable and not cost the American taxpayer a penny. This is the business model that OPIC works on.” The Kuwaiti company said in a company press statement last November that it currently expects around $700 million in debts to mature in 2011, which will give it the ability to invest “far and wide” in the region. The company operates in 20 countries. Egyptian analysts said that they are optimistic about the $100 million fund investment in the Egyptian private equity firm Citadel Capital. According to Ashraf Naguib, the Managing Director of Global Trade Matters – a for-profit think tank based in Cairo – this amount of money should not be underestimated in what it can do for the country. “We have seen much smaller investments come into Egypt in recent years and have major impacts. If done properly, and I believe Citadel Capital has the ability to do so, dozens of companies who trade with the United States will be able to bolster and improve their current business strategies for the growing world economy,” he said. Despite not using American taxpayer money to finance such projects, OPIC is an American governmental agency aimed at encouraging economic growth and development in emerging markets. The overall aim is to help American business invest overseas and increase their trade with foreign governments and corporations. It, along with partners USAID, is part of the Global Entrepreneurship program Obama launched this past April in Washington. Entrepreneurship in Egypt, North Africa and the Middle East is on the cusp of making a major impact, Endeavor Egypt's communications officer Danielle van de Kemenade told Bikya Masr earlier this year. She believes that these types of investment will enable local companies to get a “foothold in the international market and help provide a base for foreign companies to work with local enterprises to grow.” In June 2009, Obama said at his Cairo speech that entrepreneurship and fostering local commerce between American businesses would be a top priority in his attempt to create jobs in the Middle East and North Africa. “We expect a lot of efforts to continue in the post-April conference optimism and this is certainly heading in the right direction,” added van de Kemenade. “The importance of this investment is that it is targeting a number of countries and should have a broad reach in where the money ends up.” OPIC also said it will establish a $30 million fund run by the Ramallah-based Siraj Fund Management Company, whose goal will be to help start-ups and small businesses in the Palestinian territories. BM
