CAIRO: Foreign Direct Investment (FDI) has soared to $9.45 billion and is expected to amount to $10 billion by the end of this year, Minister of Investment Mahmoud Mohieddin said yesterday. "During the past three years, the country managed to pull in FDI worth $20 billion, stated the minister. "The total size of private investments poured into the country has also been on the rise climbing to 67 percent [this year], which constitutes two thirds of the country's total investments. These investments spread across an array of sectors including oil and gas, tourism, financial and banking services, IT, construction and real estate, as well as agriculture. Mohieddin's remarks were made after announcing the appointment of Assem Ragab as the new chairman of the General Authority for Investment and Free Zones (Gafi). He will succeed Ziad Bahaa El-Din, who chaired the authority for three consecutive years, as of September 6 "Under Bahaa El-Din's leadership, Gafi was able to register on average 5,000 companies per year and helped open up the country to private investment - be it domestic, regional, or international, Mohieddin explained. He referred specifically to Gafi's unprecedented efforts to eliminate bureaucracy as well as facilitate and speed up processes required to register an enterprise in Egypt. "Through Gafi's One-Stop Shops, for example, investors can now register a company with relative ease in a few days rather than several months, he added. Starting 2004, Gafi has embarked on establishing One-Stop Shops throughout Egypt, beginning with Cairo, then Ismailia, Assiut, and Alexandria. This brought around 20 government entities together under one roof, merging all necessary procedures needed to incorporate an enterprise - such as building permits, industrial registration, operating licenses, and tax registration. "Gafi also managed to amend the Investment Decree and optimize use of Free Zones in boosting investment in the country, Mohieddin said. He continued saying that Gafi's new leadership would continue building on this success and would pay special attention to investment in governorates in Suez and underdeveloped areas in Upper Egypt. Moreover, Gafi will create incentives for companies investing in these areas - such as tax exemptions - and will help solve problems that might arise between investors and financial institutions. "Gafi will maximize its role as a facilitator of investment in Egypt and will promote Egypt as a hub for investment, domestic and foreign alike, said Ragab. Ragab joined Gafi two months ago as deputy chairman. He has ample experience in the banking and financial sectors. He was previously director of regional affairs in Barclay's Bank and deputy chairman of the National Bank of Egypt. Bahaa El Din will become the chairman of the Council of Trustees, responsible for evaluating the country's investment environment by proposing solutions to investment obstacles.
