On Wednesday, the Egyptian government announced several decisions related to the Ras El Hekma project on the northern coast in Matrouh Governorate, including the establishment of a private free zone and an investment zone, which ‘ giving them a golden permit, as well as the establishment of an international tourist. port.
Some economic experts believe that the government’s help for the investment project is in the interest of the Emirati investor at the expense of the state, which could have a negative impact on the economic situation in Egypt, while others see them as incentives to investors and effort. to bypass the Egyptian bureaucracy to ensure the rapid development of the project.
The government said in a statement, “The Cabinet’s draft decision to establish a free private sector under the name (Ras El Hekma Urban Development Project Company), an Egyptian joint-stock company in the city of Ras El Hekma, was approved , as well as permission. of the Prime Minister’s draft decision to establish an investment zone in the city of Ras El Hekma.”
The decisions included “approving the Cabinet’s draft decision granting a single permit (golden permit) to the Ras Al-Hekma Urban Development Project Company for both investment zone and private zone projects in free of charge, as well as permission to create a draft decision of the Prime Minister. Ras Al-Hekma Investment Zone Management Board.”
The decisions in this regard also included approval for the Ras Al-Hekma Urban Development Project Company to establish a special international tourist port in the new city of Ras Al-Hekma.
The freedom zone … fear and warnings
The economic expert, Karim Abu Al-Fadl, told the Al-Hurra website that the main crisis related to Ras Al-Hikma is that the government failed to announce the details and conditions of the project. the clear and detailed way since he signed the contract, so every new decision will be a subject of controversy, social debate, and doubts as well.
He said, “Establishing a free zone means that you will not be subject to Egyptian customs and the ever-increasing and unstable taxes due to their link to the price of the dollar.”
He continued, “This means that investors in this sector will be able to export and import at international prices without complex conditions or restrictions, as is the case with any investor others operating in Egypt outside of the Ras El Hekma area. “
The economic expert explained that “Everything that the investor or this project needs in terms of raw materials and goods will not be taken out of the Egyptian market, but will be brought in immediately at lower prices than the local supply. “
Abu Al-Fadl warned of the dangers of using these facilities, saying, “We do not want to repeat the experience of the free zone in Port Said, which was one of the main reasons for eliminating the product and the local industry, simply. because this area will provide raw materials and products at cheaper prices than those offered locally, and then manufacture and export them again.” To gain benefits, so the rest will be punished, especially with the sharp increase in goods and commodities that the markets are witnessing.”
He said, “For example, we will find in this free zone a greater demand for imported cars at lower prices than the Egyptian market because they are free from customs. These cars have special plates and allow their owner to drive them outside of this. zone.”
The economic expert spoke about protecting the local industry, and said, “It is possible that the local industry and the local product will be damaged as a result of such decisions if they are not linked to other decisions, that is to set controls on what is exported. and introduced in a way that does not conflict with the needs of the local market and so that inflation rates do not worsen.”
He said, “It is good for the government to encourage the investor by offering incentives, and this is what economists have been asking for for years, but the crisis is in the lack of equality and clarity in decisions, meaning why these resources exist. it does not apply to the rest of the investors and other businessmen.”
Abu Al-Fadl touched on the suffering of the local investor, saying, “It is not fair or logical for the owner of any business or investment to face the large number of problems facing his operation, starting with the difficulty of obtaining foreign currency from banks, through the difficult restrictions in customs on imports and exports, to the increase in the prices of the customs dollar, which caused an increase in the prices of the wholesale some goods and materials.”
Egypt received $5 billion in late February, and another five billion dollars in early March, the first batch of rights sales to develop the Ras El Hekma project on the Mediterranean coast to Abu Dhabi as part of a deal that will reach $ 35 last. one billion.
Egypt is expected to receive $ 20 billion, early next May, which is the second installment of the overall contract, which is divided between $ 24 billion in direct income, and $ 11 billion from abandoning their deposits in the Central Bank of Egypt.
The free range … to encourage investment, but with conditions
The economic expert, Alaa Abdel Halim, told the Al-Hurra website, “There is not much information available about the project, for example, news came out recently about the construction of an airport on two area of land, but the reason for its construction and its feasibility was not clarified, and on that basis those lands were selected.”
He said, “The golden permit exists and is available to any company or investor, granted by the Investment Authority to facilitate the procedures to start and operate the project, within a framework get rid of the Egyptian bureaucracy. “
He continued, “The free zone means allowing goods and products to enter without customs, except in this zone, and they cannot be exported to the local market. “
In order to protect the local market, he said, “The government (counting the inside and the outside) has to do what they say, that is, set controls and conditions regarding the amount of the need market for various goods and materials and decide what quantities were imported based on quantity. on those needs.”
Therefore, he believes that “the government needs to implement a good investigation so that smuggling activities do not appear outside the free zone, as was happening in Port Said. “
To ensure that the goods do not go out and are not smuggled into local markets, Abdel Halim said, “This can be applied by all importers submitting proof of the value of the load it takes in, and then relate it to the quantities it takes out. and exports, and puts the value of the shipments he exports in foreign currency as a deposit with customs, while he gets them back after the end of the export process.
The economist believes that “from the liberalization of customs and even the elimination of business taxes for this project, the state will receive many times more profits later indirectly through the creation of job opportunities, increasing production and manufacturing, and encouraging more investment and tourism.”
This opinion was agreed by the economic expert, Khaled Al-Shafi’i, who told the website “Al-Hurra” that Egypt’s profits from the Ras Al-Hikma project reach 35% , meaning that he will indirectly receive any profits achieved by this project.”
He said, “The investment law in Egypt gives a golden license to all large and national projects to facilitate bureaucratic procedures that meet investors, so it is natural for the Ras El Hekma project to receive such a license.” .
He explained, “Although the company that owns the Ras El Hekma project is Emirati, many of the other companies working within the project are Egyptian, such as Talaat Mostafa and others, and this ‘ means that the profits will not go only to the foreign investor. .”
Regarding the promotion of national industry, Al-Shafi’i said, “It is known that the product of Egypt is not completely comparable to its foreign counterpart, so it does not make sense to force the investor to be depends on the local market only because this could. harm the project as a whole, which is supposed to be very effective. “
2024-04-25 16:40:23
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