By Marwa Yahia
Analysts expected an "investment boom" in Egypt following the country's intensified efforts to attract foreign investments as a way out of its economic crisis.
"An influx of economic delegations' visits to Cairo reflected optimistic outlook for Egypt's economy due to the restoring stability in political conditions, and improvement in security status," said the analysts.
The budget deficit is likely to continue to be Egypt's toughest challenge in the coming years.
It has reached 22.13 billion U.S. dollars, and the state resources can only cover 74 percent of the government's expenses.
The Finance Ministry reports said the government's debts grew by 3 billion U.S. dollars from July 1 to Sept. 12, which have stirred a panic and fears that it would take years for the economy to revive, Hamdy Abdel Azeim, professor of economic at Sadat Academy told Xinhua.
However, Abdel Azeim expects an influx of investments, from Arab or other countries, to come in the coming years.
Recently, Egyptian President Mohamed Morsi met several foreign delegations, led by officials and heads of mega companies, to attract more investments.
Morsi received officials from British Gas Company which announced to inject Egypt with investments ranged from 3 to 5 billion U.S. dollars.
Also, Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani announced that Qatar will pump 18 billion U.S. dollars in forms of investment into Egypt in the next five years.
Meanwhile, other meetings with foreign ministers from United Arab Emirates, Saudi Arabia, Spain and Britain have focused on promoting bilateral investment and economic cooperation.
Egyptian Prime Minister Hesham Qandil said "the government has set the target for this year at 4.4 percent in growth rate," which requires 45.2 billion U.S. dollars worth of investments in national private sector or foreign investments.
Moreover, on Saturday, Turkey will provide Egypt with a 2- billion-U.S.-dollar package to help Egypt boost its foreign currency reserves and fund its infrastructure projects, Egyptian Finance Minister Momtaz al-Saeid said.
"If the donor countries and the international leaders are true to their initiatives, Egypt may receive around 50 billion U.S. dollars over the coming five years," said Mohsen Adel, chief of the Egyptian Association for Investments and Funding Studies.
Several visits by investment delegations explored the opportunities to invest in Egypt and tried to study the new government's policy to see whether it grants incentives to investors or puts restrictions on investment in certain fields, like tourism and banking, added Abdel Azeim.
He reiterated the investors bet on Egypt as it boosts 90 million consumers, cheap labors and raw materials which form a good base for establishing projects needed in Egypt, especially in agriculture, animal production, petrochemicals, gas, cement and iron and steel.
Abdel Azeim praised the promotional visits by Morsi to China, the European Union and Italy, which will lead to more investments coming in Egypt.
He added political reasons stayed behind the Gulf initiative to invest Egypt, saying "The investments will increase as long as the Muslim Brotherhood does not export the unrest to its lands."
"Qatari investments in Egypt mean more influence as it searches for a political role in the region," added Abdel Azeim.
Sharing Abdel Azeim's optimism, Adel said "visits aimed at making investment in Egypt will positively influence its economy, but there is a need for tangible indications which can confirm a favorable environment for investments after the turmoil."
He asserted Egypt needs to diversify its investments and consider the foreign investment as an essential help for the national economy to achieve high growth rates.
Egypt should maximize the benefits from visits of businessmen because they will be considered as a good indication for the Asian and European countries of good opportunities in Egypt, which has passed its transition period after the unrest, Adel said.
He added the Egyptian economy is likely to make progress in light of the newly-formed democratic political system.
Meanwhile, Farag Abdel Fatah, professor of economics at Cairo University, said investors always look for stable political atmosphere and economic environment of low inflation, in addition to educated manpower.
However, in Egypt, there is a political uncertainty, especially the constitution has not been drafted, said Fatah, noting "we don' t know if there will be a new presidential election after referring the constitution to public referendum."
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