Tag Archives: Egypt

Egypt’s Economy: Is It On The Rebound?

Egypt is home to more than 89 million people which makes it the 15th most populated country in the world but did you know 60% of the population lives below the poverty line? This means that millions of its citizens are struggling to make ends meet and the Egyptian government is seeking ways to turn that around. But that also means there needs to be a change in the economic climate as a whole where industries need enhancement and development. With that being said, nearby countries are lending a helping hand by supplementing their economy with a vast number of investments.

Ever since the unseating of the Muslim Brotherhood government in 2013, new waves of economic opportunity have been knocking on the door where expansion and construction has begun to reshape the financial status of country as a whole. Specifically, the United Arab Emirates has come to the aid of the other Arab nation in the time of change with investments that are sparking a financial turn-around.

One of the many investments coming from Abu Dhabi, is worth millions of dollars which is the coal-fired plant from Al Nowais Investments. The coal-fired plant is set to be 70% funded by the investment firm, according to chairman Hussain Al Nowais, where job openings will help reduce the amount of citizens that are unemployed. Another coal-fired plant was signed with a memorandum of understanding between the Egyptian government and two companies: Abu Dhabi’s International Petroleum Investment Company and Cario-based Orascom Construction Industries, respectively.

These investments are geared to present a number of financing prospects for Egypt’s commercial banking sector that’ll reverse the low loan-to-deposit ratio they currently are subjected to. It’ll give the banks the chance to capitalize on interest-based lending to strengthen the sector in general. Additionally, investment banking will see some benefits as well because there will be work needed for the arrangement of bonds and other financing aspects. If the investments thrive in Egypt, the banking sector could expand 10% to 15% just with project financing.