Shanghai,March 20,2007-TheGeneral Auchority for Investmentand Free zones(GAFI)recentlyannounced its initiation about buildingindustrial parks in Egypt for Chineseenterprises. Through this agreement,GAFI intend to foster the further devel-opment of Chinese enterprises investingin manufacturing in Egypt.
China and Egypt have conducteda long term good relationship inpolitical,economic and cultural areas.Increasing investments and developmentby Chinese enterprises in Egypt havepositively contributed to Egypt's eco-nomic development.Rachid Mohamed,Industry,disclosed that Egyptian of-ficials have been conducting dialogueswith Chinese officials on an agreement tobuild a Chinese industrial park.According to the Minister,Egypt possessescheap labor and energy costs,as well as an excellentgeographical location.Furthermore Egypt has also signedpreferential trade pacts with Europe,the U.S.and other Africannations.
As the export center of Europe,Africa and the Middle East,Egypt isan ideal place for cluster industries.Minister Rachid expresses his hopes ofexpanding trade and investments with China."We are not yet at the stage of discussingdetails (on the Chinese industry park),but the general agreement in principle." He added,"The Chinese government will support enterprises to invest in Egypt.We have also agreedon certain industries to be invlved including car spare parts,leisure jproducts;textileproducts and electronic products." Minister Rachid once indicated that within eight yearsChina will overtake U.S.to become Egypt's biggest trading partner.
With China being a major trading partner,Egypt is focused on maintaining a long-termpartnership relationship with China,According to figures released by the Commercial Departmentof the Chinese Embassy in Egypt,Sino-Egyptian trade in 2006 had reached a new level.Totaltrade was RS$3.193 billion,a growth of 48.9%.Chinese exports to Egypt amounted to US$2.976billion,and her imports from Egypt were worth of US$217 million,respectively an increase of53.9% and 2.8%.In October 2006,there were277 wholly-owned or joint-ventrue enterprises establishedby Chinese enterprises or individuals in Egypt,investing around US$300 million.As such GAFI's longtermgoal was to leverage on the excellent relationship between China and Egypt to exploit undeveloped economicpotential.