Investors are reluctant to invest in Egypt
Cairo - Mohamed Saleh
Chairman of the Investors Association of Badr, Alaa Alsoktai, has revealed that 400 factories in the city are facing bankruptcy.
Speaking to Arabstoday, he confirmed that the Association has asked President Mohamed Morsi, and Investment Minister Osama Saleh for urgent licenses in a bid to gain investments of up to 5bn Egyptian pounds for the completion of outstanding projects.
Alsoktai said that the volatile security situation has lead to the suspension of these investments, meaning that banks no longer provided investors with the financial facilities in the form of loans to complete their projects.
He added that a large part of these investments is waiting for the green light from the state to facilitate the procedures of issuing these licenses by the competent authorities, such as the Urban Communities Authority and the Industrial Development Authority.
He pointed out that all of these investments is serving rich, productive and labour-intensive sectors, such as the "spinning, weaving, engineering industries, along with the chemical industry," where it is possible to provide nearly 30,000 new jobs for young people and to contribute in solving the unemployment problem.
A large number of Egyptian and foreign investors suspended their investments in the wake of the events of the revolution on January 25. The breakdown of the political and security situation has had a direct impact on the industrial city of Badr.