Cairo, Egypt – In a landmark move aimed at bolstering economic ties, Qatar’s Al Mana Group has revealed plans to inject over $60 million into Egypt, with a primary focus on the automotive sector. The announcement was made by the firm’s Executive Director, Abdulaziz Hamad Al-Mana, during the Egyptian-Qatari Economic Investment Forum held in Cairo.
Al-Mana disclosed that a significant portion of the investment would be directed towards establishing a state-of-the-art car assembly plant in Egypt. While the specific brand remains undisclosed, he affirmed that the vehicles produced would be of Chinese origin, aligning with the preferences of the local market.
This strategic move underscores Al Mana Group’s commitment to meeting the demands of the Egyptian automotive sector, reflecting a broader trend of Chinese cars gaining popularity in the region.
The investment forum, attended by business officials from both nations, showcased the warming relations between Qatar and Egypt following the resolution of a three-year diplomatic rift in 2021. The historic Al-Ula Declaration signed at the Gulf Cooperation Council summit marked the end of a bitter dispute between Qatar and a coalition comprising Saudi Arabia, the United Arab Emirates, and Bahrain.
Qatar’s Minister of Commerce and Industry, Mohammed bin Qassim, highlighted the Gulf state’s substantial contributions to Egypt’s economic landscape, surpassing $5.5 billion across diverse sectors, including finance, real estate, and energy.
While the automotive sector takes center stage in Al Mana Group’s investment, the company is actively exploring additional opportunities within the promising Suez Canal Economic Zone. This move aligns with Qatar’s broader strategy to diversify its investments in Egypt.
The growing economic collaboration between Qatar and Egypt was further evidenced by a spike in trade exchange, surging by 76.2% within the first 11 months of 2022. Qatar now stands as the third-largest Arab investor in Egypt, with 160 Qatari companies contributing nearly $2 billion to Cairo’s thriving economy.
Moreover, the energy sector is witnessing increased collaboration, with Egypt’s EGAS recently awarding QatarEnergy a new offshore exploration block in a competitive bidding round. QatarEnergy, in a consortium with Italy’s ENI and the United Kingdom’s BP, is set to explore the East Port Said block, expanding its footprint in Egypt’s Mediterranean coast.
As Qatar continues to strengthen its economic presence in Egypt, the collaborative efforts between the two nations are poised to drive mutual prosperity, marking a new chapter in their diplomatic and economic relations.
(Source: Asmahan Qarjouli | Doha News)
