Interview: Egypt's market offers chances, challenges to Chinese investors: chief of key China firm

Egypt offers both opportunities and challenges for Chinese investors, as its strategic geographic location makes the country a marketplace of great potential and influence in the Middle East, Chen Xiaohua, chairman of China Gezhouba Group Corporation (CGGC) International Company Ltd., told Xinhua in an interview on Monday.

Egypt is going to see rising number of manufacturing and infrastructure projects, and that has provided huge opportunities for Chinese companies, said the chairman of the leading Chinese corporation.

"That is why we are going to make the newly-opened CGGC office in Cairo our main regional headquarters in the Arab world and Africa," Chen said.

In his meeting with Egyptian Prime Minister Ibrahim Mahlab on Sunday, Chen made a presentation of projects soon to be launched in the North African nation, including a 1,330-megawatt power station in the Red Sea's Hamraween village, the maintenance project of a main cross-province highway and sanitation projects in Minufiya and Gharbiya provinces.

In late May, the Egyptian Housing Ministry and Gezhouba Group signed on a memorandum of understanding to provide sanitation for 260 villages in four Egyptian provinces. The project will start soon.

"The Egyptian government attaches great importance to cooperation with Chinese companies, especially in infrastructure projects, echoing China's 'Belt and Road' initiative," Chen said.

The "Belt and Road" initiative refers to the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, which was proposed by Chinese President Xi Jinping in 2013. It aims at reviving the ancient trade route between Asia and Europe, a network that threads through more than 60 countries and regions, with a total population of 4.4 billion.

Over the past two years, Egypt, the most populous Arab country, has seen growing presence of Chinese companies working with the government in various projects.

With regards to investment environment in Egypt, the CGGC chief told Xinhua that his corporation views Egypt as a "unique" country where only globally-competitive companies can be successful.

"Here in Egypt, we have to compete with foreign companies from the Gulf States, Europe and the United States, which is very challenging," Chen said.

During his official visit to Beijing late December last year, Egyptian President Abdel-Fattah al-Sisi signed a joint agreement with his Chinese counterpart Xi Jinping to elevate the bilateral ties to the level of "comprehensive strategic partnership."

Sisi has always confirmed that his country is ready to be part of the "Belt and Road" initiative proposed by President Xi, especially when the country will soon inaugurate the huge national project of the New Suez Canal, which will provide massive investment opportunities.

"Thanks to the 'Belt and Road' strategy, China and Egypt together are promoting bilateral cooperation in various fields, which has opened a time window for Chinese companies to tap into the Egyptian market," Chen told Xinhua. Endit