{"id":547484,"date":"2022-06-23T04:37:46","date_gmt":"2022-06-23T04:37:46","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/23\/prioritize-fdi-exports-over-hot-money-says-maait\/"},"modified":"2022-06-23T04:37:46","modified_gmt":"2022-06-23T04:37:46","slug":"prioritize-fdi-exports-over-hot-money-says-maait","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/23\/prioritize-fdi-exports-over-hot-money-says-maait\/","title":{"rendered":"Prioritize FDI + exports over hot money, says Maait"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>FinMin wants to cut reliance on hot money: <\/strong>Egypt needs to focus less on attracting portfolio flows and more on foreign direct investment and export growth, Finance Minister Mohamed Maait said on the sidelines of the Qatar Economic Forum this week, according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-22\/egypt-s-maait-says-time-to-turn-the-page-on-carry-trade-reliance?srnd=premium-middle-east#xj4y7vzkg\">Bloomberg<\/a>.<\/p>\n<p><strong>\u201cThe majority\u201d of portfolio flows have left the country,<\/strong> Maait told Bloomberg TV earlier this week (<a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2022-06-21\/egypt-s-finance-minister-we-are-not-in-a-recession-video\">watch, runtime: 10:02<\/a>). \u201cNow it\u2019s the time for Egypt to concentrate more on the increase of exports and foreign direct investments rather than the carry trade.\u201d Egypt has suffered three waves of outflows in the past four years, during the emerging-market crisis in 2018, the pandemic shock in 2020, and this year following Russia\u2019s invasion of Ukraine, Maait said. \u201cWe have gotten used to [handling] with it.\u201d<\/p>\n<p><strong>Maait isn\u2019t the only minister to have flagged this in recent weeks:<\/strong> Planning Minister Hala El Said <a href=\"https:\/\/bit.ly\/3LUJbla\">said last month<\/a> that the government would look to prioritize FDI over hot money, which she said had put pressure on the exchange rate.<\/p>\n<p><strong>FDI is the new priority \u2060\u2014 and things are looking up<\/strong> after Gulf states pledged more than <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ce28f2c9-69b3-4c78-b2ab-1eb5d194e101\">USD 22 bn<\/a> in fresh investment and central bank deposits in a bid to support our economy through the global rough patch. We expect more where that came from as the government pushes ahead with plans to <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/158188ff-65a9-4146-adc1-5f53c1a3f6e5\">attract USD 40 bn<\/a> in private investment by selling off state-owned assets over the next four years and increase exports to USD 100 bn a year within five years. This all comes after a disappointing 2021 for FDI, when inflows <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7b9283eb-95ea-474e-9d4a-8cdd9ab331b6\">fell 12%<\/a> despite much of the world rebounding from the covid shock the year before.<\/p>\n<p><strong>Fresh IMF assistance will likely come in the form of a new extended fund facility: <\/strong>Maait said talks with the IMF on a fresh loan program are now focused on a four-year <a href=\"https:\/\/www.imf.org\/en\/About\/Factsheets\/Sheets\/2016\/08\/01\/20\/56\/Extended-Fund-Facility\">extended fund facility (EFF)<\/a>. That\u2019s the same kind of support the IMF gave us back in 2016 under <a href=\"https:\/\/enterprise.press\/stories\/2016\/08\/14\/egypt-reaches-usd-12-bn-imf-staff-level-agreement\/\">a USD 12 bn, three-year program<\/a>.<\/p>\n<p><strong>But don\u2019t rule out other forms of support: <\/strong>Also still on the table is another SBA, or a <a href=\"https:\/\/www.imf.org\/en\/About\/Factsheets\/Sheets\/2017\/07\/25\/policy-coordination-instrument\">policy coordination agreement (PCI)<\/a>, Maait said.<\/p>\n<p><strong>Background: <\/strong>We\u2019ve been in talks with the Fund for several months on a new assistance program to help us mitigate the fiscal strain and balance of payments pressure caused by spillover effects from the war in Ukraine. PM Moustafa Madbouly said <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/532345ba-efbd-4843-ad86-99ca11b4000a\">last month<\/a> he hopes Egypt finalizes the program with the IMF \u201cwithin two months\u201d. CBE governor Tarek Amer has said we will only receive <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5ac83b64-39ec-4a4d-9127-30c5818f81c2\">\u201climited\u201d funding<\/a> this time around due to already exceeding our quota.<\/p>\n<p><strong>ALSO FROM THE QATAR ECONOMIC FORUM- <\/strong><\/p>\n<p><strong>Maait moves on a double taxation <\/strong><strong>treaty with Qatar: <\/strong>Maait and his Qatari counterpart Ali bin Ahmed Al Kuwari signed an MoU agreeing to work on a treaty to prevent double taxation between their two countries, according to a Finance Ministry <a href=\"https:\/\/bit.ly\/3nb9KbC\">statement<\/a>. Doha has <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c734fc23-c0c0-4322-bf5d-ce3c400e707a\">pledged bns of USD<\/a> along with the KSA and the UAE to help us overcome the repercussions of the global crisis triggered by the war in Ukraine, as last decade\u2019s rift between Qatar and some of its neighbors in the region <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/385f8cb8-4b97-4f11-b5dc-3e1263b91ad9\">fades into memory<\/a>. Trade and Industry Minister Nevine Gamea just this week <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/fe5bc403-5093-4d4c-89f4-e6604446a767\">invited Qatari companies<\/a> to visit Egypt to discuss potential investments after reviving a joint business council suspended since 2014.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FinMin wants to cut reliance on hot money: Egypt needs to focus less on attracting portfolio flows and more on foreign direct investment and export growth, Finance Minister Mohamed Maait said on the sidelines of the Qatar Economic Forum this week, according to Bloomberg. \u201cThe majority\u201d of portfolio flows have left the country, Maait told [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":547485,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[2082,104,72,103,276,125,277],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-547484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-carry-trade","tag-economy","tag-enterpriseam","tag-fdi","tag-finance-ministry","tag-investment-watch","tag-mohamed-maait","wpautop","entry"],"acf":{"mongo_id":"55d004cc-aecf-4c66-80e3-5e677f18f682","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/6\/281.jpg","photo_position":"above","related_issue":[547480],"teaser":"","voice_url":""},"yoast_head":"<!-- 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expects to see more FDI and more funding inflows, including from the Gulf and \u201cother sources,\u201d after reaching a staff-level agreement with the IMF for a USD 3 bn, 46-month loan, Finance Minister Mohamed Maait told Bloomberg on Thursday (watch,\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/11\/195.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":548240,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/01\/govt-has-ambitious-fdi-export-targets-this-year\/","url_meta":{"origin":547484,"position":1},"title":"Gov\u2019t has ambitious FDI + export targets this year","author":"enterpriseam admin","date":"1 August 2022","format":false,"excerpt":"Egypt wants to attract USD 10 bn of foreign direct investment during the current fiscal year, Planning Minister Hala El Said said last week, according to a statement.This would be a significant step up: FDI has averaged USD 7.3 bn a year over the past five years, according to our\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/8\/98.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593659,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/10\/07\/egypts-non-loan-imf-program-still-under-consideration-maait-tells-bloomberg\/","url_meta":{"origin":547484,"position":2},"title":"Egypt\u2019s non-loan IMF program still \u201cunder consideration,\u201d Maait tells Bloomberg","author":"enterpriseam admin","date":"7 October 2019","format":false,"excerpt":"Non-loan IMF program still under consideration but nothing conclusive yet -Maait: Egypt is still looking at securing a non-loan program with the IMF, but future cooperation with the fund could also continue \u201cunder any form,\u201d Finance Minister Mohamed Maait told Bloomberg TV on Thursday (watch, runtime: 2:47). The minister said\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/10\/262.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":575551,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/19\/egypts-finance-minister-maait-talks-economy-in-imf-world-bank-meetings\/","url_meta":{"origin":547484,"position":3},"title":"Egypt\u2019s Finance Minister Maait talks economy in IMF, World Bank meetings","author":"enterpriseam admin","date":"19 October 2020","format":false,"excerpt":"INVESTMENT WATCH- FinMin pitches investment strategy, improving economic landscape to investors: Egypt is prioritizing investments in the transport, oil and gas, renewable energy, and manufacturing sectors, Finance Minister Mohamed Maait said in separate meetings with senior representatives from HSBC and Standard Chartered and unnamed foreign investors, according to a ministry\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":625692,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/08\/13\/carry-traders-are-back-on-so-is-the-turkey-crisis-proving-to-be-positive-for-egypt\/","url_meta":{"origin":547484,"position":4},"title":"Carry traders are back on. So is the Turkey crisis proving to be positive for Egypt?","author":"enterpriseam admin","date":"13 August 2018","format":false,"excerpt":"EXCLUSIVE- Carry traders are back on. So is the Turkey crisis proving to be positive for Egypt? Egypt\u2019s government is taking a very positive outlook on the Turkish economic fiasco which is currently wreaking havoc on emerging markets. Foreign investments in Egypt\u2019s debt rose last week thanks largely to the\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":599363,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/26\/egypt-hopes-to-reach-a-non-loan-program-agreement-with-imf-before-october\/","url_meta":{"origin":547484,"position":5},"title":"Egypt hopes to reach a non-loan program agreement with IMF before October","author":"enterpriseam admin","date":"26 June 2019","format":false,"excerpt":"Egypt is in talks with the IMF for a non-loan program and hopes to reach an agreement by October, Finance Minister Mohamed Maait told Bloomberg TV yesterday (watch, runtime: 4:59). \u201cWe started discussing with the IMF, first of all, what are the options Egypt is eligible to and after that\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1125.jpeg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/547484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=547484"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/547484\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/547480"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/547485"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=547484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=547484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=547484"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=547484"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=547484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}