Business | Economy
Arab cash finds new regions as dollar falls
The weakening dollar is having a strong impact in shifting the relative weight of Arab trade and investments, officials and experts claim.
- By Ahmed A. Elewa, Staff Reporter
- Published: 23:31 December 12, 2007
Abu Dhabi: The weakening dollar is having a strong impact in shifting the relative weight of Arab trade and investments, officials and experts claim.
With the greenback falling to record lows, dragging the value of the pegged currencies of the GCC countries down with it, investing in Europe or Asia has become more expensive in terms of local currencies, relative to opportunities within the GCC or in the US.
"The weaker dollar encourages investments between Arab countries, especially for Egyptian companies seeking to expand its activities and looking for new markets," said Mahmoud Mohie Al Din, Egyptian Minister of Investment.
Egypt is still looking to further privatise more entities in the fields of financial services, IT, and manufacturing.
"The UAE is among the top 20 countries investing in Egypt, along with Saudi Arabia and Kuwait, while 46 per cent of the foreign direct investment (FDI) flowing to Egypt comes from Arab countries, based on the issued capital accumulated since 1970," Al Din said.
"As for commodities, already some of our exports have shifted towards European and Asian markets, yet commodities that enjoy strong competitive advantage are still having a strong foothold in the US markets, especially ready-made garments," he added.
The growth rate of Egypt's non-oil exports touched 35 per cent according to the latest data announced by the Egyptian ministry of finance, and the figure is still growing.
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