CAIRO, April 11 Egypt has approved investment
incentives that will simplify procedures for new industrial
projects and make it easier to set up franchises, the head of
the General Authority for Investment (GAFI) was quoted as saying
An uprising that led to the ousting of President Hosni
Mubarak and continued political turmoil have dampened Egypt's
economic prospects and the country's appeal as an investment
destination, prompting the interim government to act to try and
attract foreign investment.
Projects would no longer need the initial approval of the
Industrial Development Authority and foreign firms establishing
franchises can register in three days, instead of the previous
four to six months, the al-Mal daily newspaper quoted Osama
Saleh as saying.
Export and import licences would also be valid for three to
five years, instead of the previous six months to a year, Saleh
Egypt's Finance Minister Samir Radwan forecasts foreign
direct investment to Egypt will fall to $4.1 billion in the
2010/11 financial year ending on June 30, from $6.8 billion in
the previous financial year, the paper said.
Radwan also said private investment would contribute 15
percent of gross domestic product (GDP) in 2010/11, growing to
25 percent in the 2011/12.
Radwan has said Egyptian GDP would grow by only 2.5 to 3
percent in the 2010/1. Before political unrest broke out in
January, the government had been predicting growth of around 6
percent. [ID:nWEB4465] [ID:nLDE62O0UN]
(Reporting by Dina Zayed; Editing by Susan Fenton)