News Analysis: Egypt seeks stimulus from investors to spur economy

Egypt is seeking stimulus from foreign investors to boost economic growth and President Sisi has approved to set up a special council for absorbing overseas investments.

"This council is an executive body, not a consulting one. It must have the authority to make decisions," professor Fakhry al-Feqy at Cairo University told Xinhua in an interview.

He said that the council should be composed of representatives from the ministries of finance, investment, commerce, industry, tourism, agriculture, transportation, environment, defense and other governmental and non-governmental bodies and authorities.

On Saturday, Sisi accepted a governmental suggestion to establish a Higher Council for Investment. It is expected that Sisi will chair the new council.

"Such a council will help solve of problems faced by investors in Egypt, especially those who filed cases or sought international arbitration to end their disputes with the government," the expert said.

According to Egypt's new investment law, the council is chaired by the president who issues a decree to form it, with the membership of the prime minister and the governor of the Central Bank of Egypt.

The council will also include the ministers of defense, interior, investment, industry, trade, finance, planning, international cooperation, and environment.

The council will also include the chairpersons of the General Authority for Investment, the Federation of Egyptian Chambers Of Commerce, the Federation of Egyptian Industries, and no more than five senior representatives from the private sector.

For his part, professor Rashad Abdu, head of the Egyptian Forum for Economic Studies, said that the ability of the council to attract investors depends on the authorities given to it.

"The council will be responsible for setting the policies of the ministry of investment as well as the other related state bodies," he said. "The council should hold periodical meetings under the chairmanship of the president."

Meanwhile, Mohamed Youssef, executive director for Egyptian Businessmen Association, told Xinhua that forming the council will push the wheel of Egypt's economy forward and will encourage more investors to invest more in Egypt.

"This council, under president Sisi, is a message to the whole world that he pays special attention to investment and all obstructions facing investors in Egypt will vanish," he said.

Since 2011, Egypt has been suffering from the outcomes of revolutions that led to the overthrow of two heads of state. The mass protests have negatively led to difficult economic problems that have been far from being solved soon.

Egypt has set its total investment target for the fiscal year of 2016/17 at EGP 531 billion (59.76 billion U.S. dollars), representing 16-16.5 percent of Gross Domestic Product (GDP). Endit