Allies promise Egypt $12B
El-Sissi outlines his recovery plan for his country’s ailing economy
Egypt’s Gulf Arab allies promised it $12 billion in new investment and aid on Friday, as President Abdel-Fattah el-Sissi opened an international conference to promote an ambitious recovery plan for his country’s ailing economy.
Speaking to an assembly of businessmen, royals, heads of state and international officials, el-Sissi depicted Egypt as vital to regional stability and a bulwark against Islamic militancy, making his case that his country needed international backing to rebuild an economy devastated by four years of turmoil that followed the ouster in 2011 of longtime autocrat Hosni Mubarak.
He said his recovery plan aims to achieve at least six per cent annual GDP growth within the next five years, up from a projected two per cent currently, and reduce inflation to about 10 per cent. He also promised fair taxation and lower inflation.
The three-day conference, held in Egypt’s Red Sea resort of Sharm el-Sheik, is also part of an effort by el-Sissi to push back onto the international political stage, putting behind him criticism over the military’s 2013 ouster of the elected president, Islamist Mohammed Morsi, and the subsequent crackdown on Morsi’s Muslim Brotherhood.
U.S. Secretary of State John Kerry, attending the conference, gave a show of support, saying the U.S., whose companies invested $2 billion in Egypt last year, stood ready to help. (All figures are in U.S. dollars.)
“This part of the world is blessed with a stunning amount of commercial potential,” Kerry said at an American Chamber of Commerce event.
But the U.S. still cannot restore partially suspended military aid to Egypt, as el-Sissi has sought, because the Obama administration is undecided about whether to affirm Egypt’s progress on democracy and human rights or issue a national security waiver. It must do one or other under the 2015 federal budget to unblock hundreds of millions of dollars in military aid for Egypt.
The conference kicked off with a swift series of pledges from Saudi Arabia, Kuwait and the United Arab Emirates, continuing a flood of largesse they have provided since el-Sissi — then military chief — led the ouster of Morsi.
Kuwait’s Emir Sheik Sabah Al Ahmad Al Sabah announced that his oil-rich nation would invest $4 billion in Egypt. Next at the podium was the crown prince of Saudi Arabia, Prince Muqrin, who announced another $4 billion in aid to Egypt.
The prime minister of the United Arab Emirates and ruler of Dubai, Shaikh Mohammed bin Rashid Al Maktoum, announced $4 billion in aid, including a $2-billion deposit in the central bank.
“To stand by Egypt is to breathe life into the future of the (Arab) nation,” he said. Even before the new pledge, he said, his country has given Egypt $14 billion in the past two years, part of some $30 billion it, Saudi Arabia and Kuwait have already given to keep Egypt’s economy afloat. Oman also pledged $500 million, half aid and half investment, over the next five years.
El-Sissi, elected last year in a landslide victory, used the gathering to emphasize what he called Egypt’s uncompromising stand against Islamic militancy and terrorism as well its non-aggressive foreign policy and respect for its neighbour.
“Egypt offers an example of Arab and Islamic civilization, a nation that abhors violence, terrorism and militancy, a nation that reinforces regional stability and security and respects its neighbours,” he said.
“Egypt has and will always be the first line of defence against the dangers faced by the region,” said the Egyptian leader, wearing a dark suit and a purple tie. He was repeatedly interrupted with applause.
“You will find Egypt, as well as the entire region, safe and secure,” el-Sissi told the delegates, alluding to his government’s ongoing battle against a burgeoning Islamic insurgency.
Lately, militants have shifted focus to a campaign of small bombings targeting local and foreign business interests in Cairo and other cities.
Among those targets were branches of an American fast food chain, a branch of an Emirati bank and a branch of Carrefour, the French supermarket chain, as well as the two foreign mobile phone companies, the Emirati Etesalat and France’s Mobinil.