Global Arab Network | Egypt to double the industrial zones to boost economic growth

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Egypt to double the industrial zones to boost economic growth

Global Arab Network - - Adam Turner

Wednesday, 29 April 2009 10:59

Egypt needs to more than double the expansion rate of its industrial areas to boost economic growth and create enough jobs for its youthful population and graduates, the egyptian trade minister.
Rachid Mohamed Rachid said 700,000 new jobs needed to be created each year in Egypt, a country of roughly 80 million people where a fifth live on less than $1 a day.

Rachid, speaking at the launch of an industrial zone backed by an Egyptian-Spanish venture, said Egypt had commitments by private business to develop 18 million square metres for industry in the next five to seven years and was working to add another 10 million square metres.(Reuters)

Egypt, Spain venture to launch new industrial zone

Spanish firm Consorci de la zona is partnering with Egypt's Pyramids Industry Parks to build an industrial zone worth $250 million.

The zone is expected to attract investors to Egypt.

Officials at the Ministry of Trade and Industry said the investment augured well for the country amid hard times caused by the world financial downturn.

The zone, situated in Ramadan city, could create 20,000 jobs and is expected to draw European companies once complete.

Simon Kitchen, vice president for research and economics at investment bank EFG-Hermes, said it was a positive signal amid the financial crisis but said the impact would be long term.

'It is money coming in -- in particular at a difficult time -- but I expect we will feel the impact of this over five to 10 years rather than immediately,' he said.

Egypt used to promote free trade zones that offered tax breaks and other benefits, but Kitchen said it was now trying to attract investors without such breaks but with a low corporate tax rate of 20 percent, reduced bureaucracy and improved infrastructure.(Reuters) (ADF)

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