Egyptian economists: Qatar's deposits give strong boost to Egypt's economy

January 10, 2013 - 2:19:39 pm

DOHA: A number of Egyptian economists have praised the State of Qatar's support to Egypt, noting to the latest announcement of raising the Qatari deposit in Egypt's Central Bank to US$4 billion and US$1 billion dollars as a grant.

Raising the value of the Qatari economic assistance to Egypt represents a great leap in the path of cooperation relations between the two countries in various fields, and contributes to push Egypt's economy forward to get out of the current crisis, especially after Egypt's foreign reserves fell to reach $15.014 billion in last December, and the Egyptian pound declined against the US dollar.

In a statement to Qatar News Agency (QNA)n spokesman for the Freedom and Justice Party (FJP)'s Economic Committee Dr. Mohamed Gouda said that they highly appreciate this step in supporting the Egyptian economy during the current phase.

The generous initiative by HH the Emir Sheikh Hamad bin Khalifa Al Thani will have a significant impact in supporting the Egyptian economy and in supporting cash reserves, he said, expressing hope to push forward the bilateral economic cooperation during the next phase.

Dr. Gouda noted to Qatar's direction during the next period to investment in the Egyptian economy, saying that this will significantly contribute in pushing the Egyptian economy forward.

He also predicted that these investments will rise growth rates in Egypt during the upcoming period and will limit the phenomenon of unemployment, appreciating at the same time Qatar's position in supporting the Egyptian revolution. (MORE)

For his part, Vice President of Nile University Dr. Hamdy Abdel Azim, who is also an economic expert, told QNA that raising Qatar's deposits represents a good and encouraging gesture by the State of Qatar to assist the Egyptian economy to recover, expressing hope to use these deposits for development investment projects and not for budget deficit financing.

The economic expert emphasised that the Qatari Future investments, estimated of $18 billion over the next five years in the Egyptian market, should focus on food security projects and livestock production, fisheries, and everything related to the fields of food processing and natural resources, rather than exported raw materials, such as cement, iron and ceramics.

He also stressed the importance of the Qatari investments in major projects, including petrochemicals, instead of exporting crude oil, as well as the raw natural gas.

In his remarks to QNA, economic expert Ahmed Adam said that raisin the Qatari deposit in Egypt's Central Bank significantly contributed to the reduction of the large declines in the value of the pound against the dollar, and expected that the coming period would witness a relative lull in the exchange market.

He expressed his happiness for Qatar's step to raise its deposit in the Central Bank of Egypt, saying that deposits generally are much better than loans, because the latter have conditions that should be provided by the borrowed country either from international institutions or international funds.

This step made by the State of Qatar in Egypt can be considered a great moral support to the Egyptian people, Dr. Adam said. (MORE)

In a similar statement, banking expert Dr. Mohsen Al-Khudairi praised Qatar's positive step, saying that the current circumstances of the Egyptian economy require support from the brotherly Arab countries to get out of its collapse.

He added, raising the value of the Qatari deposit to $4 billion is not new from the State of Qatar, noting to the great support for the 25 January revolution.

Dr. Al-Khudairi stressed that the timing of raising the value of this deposit is an important issue, especially in this stage, due to the erosion of the value of foreign exchange reserves which reached $15 billion.

The Central Bank of Egypt has announced a slightly decline in the foreign cash reserves in December last year by about $21 million to reach $15.014 billion, compared to $15.035 billion by the end of last November.

It is expected that the Egyptian government will take measures to stimulate the economy on one hand and to maintain foreign exchange reserves and the rationalization of its uses on the other hand. (QNA)