19 September 2018 11:06 PM

Economic Relations

Tuesday، 17 October 2017 12:00 AM

Egypt-Kuwait economic relations have witnessed significant growth. Cumulative joint investment between the two countries exceeded $ 16 billion over the past four decades with an average of $ 400 million a year. Inter-trade reached $3 billion a year. The volume of tourist expenditure hit more than $2 billion annually, beside the Kuwaiti aid and loans to Egypt.

Investment between the two countries

 

Kuwait's investments in Egypt

According to GAFI statistics, Kuwait ranks fourth in the list of countries investing in Egypt (the third on the Arab scale), with total contributions to  the incoming capital hitting about $ 2.8 billion during the period from 1970 - 31 October 2013, reflecting the activity of 902 companies, prevalent in most of the Egyptian governorates. The Kuwaiti investments in Egypt are forwarded to sectors of: services, construction, industry, agriculture and finance (Source: Ministry of Foreign Affairs - Egyptian Embassy in Kuwait)

 

Egyptian investments in Kuwait

According to the Chamber of Commerce and Industry in Kuwait, the number of companies in which the Egyptian capital gave a share in until the end of 2012 is about 2736 companies, mostly small and medium-sized companies, with a share rate below 51% according to Kuwaiti law. The most important Egyptian investments in Kuwait is those of the “Arab Contractors Company” in Kuwait.

The most important projects ongoing recently in Kuwait are the $ 1.2 billion Jaber Al-Ahmad Hospital which is the largest project won by “Arab Contractors” along its history, and the $ 917 million Al Jahra Road Development Project.

 Source: Ministry of  Foreign Affairs - The Egyptian Embassy in Kuwait

 

On the level of cumulative direct and indirect Kuwaiti investments in Egypt, they exceed $ 15 billion. They include about $ 3 billion of direct Kuwaiti accumulated investments according to the investment law implemented through the General Authority for Investment and Free Zones, where about 930 Kuwaiti companies work in several sectors. In addition, there are Kuwaiti investments in Egyptian companies through partnerships and other legal frameworks in the fields of tourism, petroleum and others, as well as indirect investments in companies listed on the Egyptian stock exchange, in addition to large investments in the real estate sector by individuals and institutions.

 

With regard to intra-trade, the volume of trade exchange between Egypt and Kuwait has grown by about $ 3 billion in 2013/2014, according to the Central Bank of Egypt, compared with $ 2.9 billion in 2012/2013.

On June 30, 2013, Kuwait's economic assistance to Egypt has included about $ 4 billion, including $ 2 billion as deposits in the Central Bank of Egypt to support Egyptian international reserves, $ 1 billion as petroleum aid and $ 1 billion as a non-refundable grant. The Kuwait Fund for Arab Economic Development spent about $ 2.4 billion since its establishment to finance Egyptian projects in various sectors.

 

Trade exchange

 

The volume of trade exchange between the two countries in 2012 (excluding oil and its derivatives) reached $ 339.3 million. The volume of Egyptian exports to Kuwait in 2012 reached $ 291.8 million. The volume of Egyptian imports from Kuwait in 2012 reached 47.5 million dollars.  The volume of trade exchange between the two countries in 2012 - with the calculation of petroleum and its derivatives – hit about $ 3.2 billion.

(Source: Ministry of Foreign Affairs - Egyptian Embassy in Kuwait)

 

 The main Egyptian exports to Kuwait are electrical cables, food products, dairy products, ready-made garments, marble, granite and coal. The main Egyptian imports from Kuwait are polymers, polyethylene, polypropylene, shuttle buses, clothes and parts of car supplies.

Source: The Egyptian Embassy in Kuwait

 
On June 3, 2016, a joint memorandum of understanding was signed with KPC to facilitate the transit of Kuwaiti oil tankers through the Canal

 

In 2016/4/5, Egypt and Kuwait signed two financing agreements worth 110 million Kuwaiti dinars in the fields of irrigation, agriculture and electricity, signed by Egypt  Sahar Nasr, Minister of International Cooperation and Kuwait Abdul Latif Al-Hamad, Director General of the Arab Fund for Economic and Social Development.

 

- The first agreement is worth 50 million Kuwaiti Dinars to contribute to the financing of the water saving project and the development of the agriculture system in the Sinai Peninsula as part of the Sinai Peninsula Development Project.

 
The second agreement includes financing of 60 million Kuwaiti Dinars to contribute to financing the Damanhour power generation project with a combined cycle (1800 MW).

 
 On 22/11/2015 . Prime Minister Sherif Ismail signed an agreement with the Kuwait Fund for Arab Economic Development (KFAED) on the financing of the project of the electric link between Egypt and Saudi Arabia (the Egyptian part) worth 30 million Kuwaiti Dinars.

 
 On 7/10/2014, the second meeting of the Group of Experts from Egypt and Kuwait to complete the discussions of the terms of the agreement, which includes cooperation in the field of attracting and encouraging joint investments and exhibitions and trade missions and training in addition to the establishment of a joint trade committee between the two countries. The meeting also dealt with a number of investment projects in which the Kuwaiti side could participate with the Egyptian side. It was agreed to submit feasibility studies for some of the proposed projects in preparation for discussing them during the meeting of the two trade ministers. Minister of Industry Fakhry Abdel Nour, said that a memo of understanding is currently being prepared in the field of trade and industrial cooperation between the two countries.

Economic support

Since June 30, 2013, Kuwait's economic assistance to Egypt has included about $ 4 billion, $ 2 billion of which was placed as a deposit in the Central Bank of Egypt to back Egyptian international reserves, $ 1 billion as petroleum aid and $ 1 billion as a non-refundable grant. Kuwait Fund for Arab Economic Development (KFAED), has provided Egypt, since its establishment, about $2.4 billion to finance Egyptian projects in the various sectors.


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