EMEA News
Egypt Plans Multi-Billion-Dollar Development Along Suez
A new plan by the Egyptian government aims to build a trading and industrial centre around the Suez Canal that could generate billions of dollars in new economic activity, Reuters reports.
The plan, which represents a revision of project plans first proposed in the late 1990s, includes creating a single authority for development in the area.
The government says it hopes to achieve an annual revenue stream of $100 billion from the canal in several years through new projects and the expansion of existing ones.
"We dream that the whole of Egypt might become a logistics centre," said Walid Abdelghaffar, a government coordinator for the project.
Support for the project will come mainly from the private sector and foreign governments, including Qatar, which has already pledged to spend $8 billion over the next five years for gas, power, and iron and steel plants at the canal's northern end.
"All the investor wants is an authority he can deal with, clear laws, protection of his rights, and that he knows his responsibilities," Abdelghaffar said.
"You might be surprised by this, but we aren't suffering at all for finance."
The projects in the works include a zone between East Port Said and Sokhna Port designed to attract high-tech industries and a university to the middle section of the canal, and a high-speed train to connect Port Said and Suez with Cairo is also planned.
Ten percent of the world's total shipped goods, $1.6 trillion a year, pass through the canal, according to Ashraf Dowidar, a consultant who has been studying the project.
Egyptian President Mohammed Mursi, who took office in June after being backed by the Muslim Brotherhood, has faced challenges in his first 100 days in office, according to BBC News.
The nation is seeking a $4.8 billion loan from the International Monetary Fund, but critics say that Mursi's government is focusing on pleasing wealthy investors instead of helping ordinary Egyptians.
