Over the last few years, Egypt’s economy has been struggling to keep a stable financial climate and prosperous market ventures. With high unemployment rates, millions below the poverty line and many fighting to make ends meet, Egypt has faced an onslaught of difficulties. However, with recent investments stemming from Abu Dhabi, Egypt is on the brink of economic change for the better. Many investment firms are pouring money into the economically distressed country because it’s providing the opportunity for massive gains in the years to come.
Of the Abu Dhabi-based firms investing in Egypt, Al Nowais Investments, signed a deal last September to construct a coal-fired plant where chairman, Hussain Al Nowais, said his firm will provide 70% of the capital of the building. This deal is proposed to bring major financial opportunities to Egypt’s commercial banks which will fuel the sector to grow and have a domino effect on other industries. Additionally, a Cario-based contractor along with Abu Dhabi’s International Petroleum Investment Company signed an agreement to make the coal-fired power plant at $2.5 billion to $3 billon USD.
Just a few months ago, Egypt held a conference that invited key global players to make investments in Egypt because the direction of the economy outlook seemed promising – attracting more investments from other foreign investors. With a large portion of other investments stemming from the United Arab Emirates, some are wondering how the UAE is capitalizing on the situation. The UAE has undergone a massive push towards global opportunities that diversify capital gains away from crude oil production. This leaves the country in a prime place to make such investments.
Additionally, since the Arab Spring turmoil that removed Hosni Mubarak from power about four years ago, Egypt has seen about 2% gains each year with a 3.8% increase the most recent fiscal year that ended on June 30th, 2015. As the outside investments continue to enhance Egypt’s financial game, the country will have good prospects of economic fruition.