The Minister of Investment, Dr. Mahmoud Mohieldin, reported that a bill on public business sector asset management is in the pipeline, which will help increase the scope of ownership in public business companies while the majority interest will continue to be held by the holding companies.

 

For this purpose, stocks at these companies would be partially put up for sale in a public subscription exclusively for Egyptians at the Stock Exchange.

 

Furthermore, the bill is to facilitate establishing a fund for the coming generations to protect their rights.

 
A portion of the capital of companies that will be put up for sale within the framework of the public business sector asset management program will be earmarked for the fund, in addition to other resources from the State.

 

Dr. Mohieldin stressed the importance of investing in infrastructure projects, particularly in Upper Egypt. He said his ministry has constructed the largest infrastructure network in Upper Egypt with its financing of the Upper Egypt-Red Sea Road, which connects Upper Egyptian governorates to the Red Sea ports, opens new great investment horizons and provides job opportunities.

 

The Ministry of Investment has been promoting investment projects in Upper Egypt, said Minister Mohieldin, noting, "There are some indicators indicating a private sector positive response to the State's investment stimulation endeavors, after developing infrastructure projects and supplying governorates' with natural gas."

 

Dr. Mohieldin also gave remarks on the status of private investments in Egypt. He said 75 percent of private investments in Egypt are domestic, 14 percent are owned by Arabs and 11 percent by foreigners.

 

He stressed that 90 percent of Egyptian companies are small and medium enterprises (SMEs).

He also said the climate of investment witnessed a great development in recent years. At the world level, Egypt advanced from the 126th position in 2007 to the 24th in 2010 on the Doing Business Report.

 

Egypt also advanced 85 positions on the "access to credit" indicator and 60 positions on the "registering property" indicator.

Dr. Mohieldin expected an increase in private investments in the FY 2009/10. They stood at EGP 114 billion in FY 2008/09 and reached around EGP 107 billion during the first nine months of FY 2009/10.