WASHINGTON — The Egyptian government government is ready with a stimulus package that will provide the equivalent of $4.87 billion for the country’s economy, with most money coming from the United Arab Emirates, officials from Egypt’s Finance Ministry told the U.S. Chamber of Commerce Tuesday.
American investment in this stimulus will help establish a relationship with the new Egyptian leadership, said Khush Chosky, the Chamber of Commerce’s vice president for Turkey and Middle Eastern Affairs. Chosky said that American investment will result in “opportunities and incentives” for the United States.
The plan is similar in size to a stimulus proposed in August. Since then, the Egyptian economy has improved. The Egyptian stock market achieved a three-year high and projected GDP growth rates are the highest since 2010, according to the World Bank’s Global Economics Prospects Report.
Egyptian Minister of Trade and Industry Mounir Fakhry Abdel Nour provided details of the stimulus to the audience of business executives and trade experts, saying one-third of the money will be used to improve social programs, including minimum wage; the rest will go toward construction and development projects. Nour wants the stimulus to reduce unemployment and gain back the trust of investors.
The United States, as the largest single trade partner, serves as a large influence on Egyptian economy. Egypt receives about 30 percent of U.S. investment in Africa, according the to the Department of Commerce.
Nour recognized the United States government’s influence on Egyptian business. He also said that the American trade is integral to Egyptian economy.