Bright new dawn attracts major FDI

Africa's third-largest economy embarks on massive infrastructure investment program

Six decades of positive Sino-Egyptian diplomatic relations received a fresh boost in January 2016 when the leaders of the two economic powerhouses signed investment and aid deals worth $15 billion in a move that underlined the continental giants' mutual respect.

Chinese President Xi Jinping said the 21 landmark agreements and fiscal packages for a string of major power generation, infrastructure and transport projects would provide "a new impetus to the economic development of Egypt" and further tighten the strong bonds between the pair.

"China supports Egypt's efforts to maintain stability, develop the economy and improve livelihoods, and ... play an even greater role in international and regional affairs," Xi said during the visit to Cairo in January.

During the signing ceremony, Xi said 32 Chinese companies and their combined investment of $400 million were currently involved in the new Suez Canal economic zone, and the next stage of the project would see those figures climb to 100 firms and $2.5 billion.

His Egyptian counterpart Abdel Fattah El Sisi hailed the substantial investment program as the "best evidence of the two countries' determination to improve their levels of cooperation", adding the deals included a $1-billion financing agreement for the central bank and a $700 million loan to State-owned National Bank of Egypt.

The massive investment package underlined the high regard in which each republic holds for the other and will further improve foreign confidence in the Egyptian economy, which has yet to reach top gear despite greater political and economic stability under the current administration.

Bilateral trade between Egypt and China totals almost $12 billion per year, 90 percent of which involves imports from China. More than 1,200 Chinese enterprises operate in Egypt, mainly in the construction, financial and commercial arenas.

Ahead of his first overseas visit of 2016 to Cairo, Xi wrote a long article in the local press in which he underlined just how important Egypt is for China's political, economic and trade ties in the region. Under the headline "Let China-Arab friendship surge forward like the Nile", Xi wrote: "Since late 2014, I have had two meetings with President El Sisi in Beijing. Our agreement to elevate China-Egypt relations to a comprehensive strategic partnership led bilateral relations onto a fast track.

"Over the past six decades, China-Egypt relations have stood the test of changing international and regional landscapes and have moved forward steadily. The two sides have treated each other with mutual understanding, respect, trust and support. China supports the government of Egypt in restoring social stability and economic development. China supports Egypt in playing an active role in regional and international affairs.

"China will continue to view and develop its relations with Egypt from a strategic and long-term perspective. President El Sisi and I will work together to comprehensively deepen the political trust and strategic cooperation between our two countries, so that China and Egypt will achieve common development and progress and China-Egypt relations, already a shining example of South-South cooperation, will continue to play its exemplary role."

Xi continued: "China-Egypt interaction and cooperation over the years are guided by the principles of mutual trust, mutual assistance, mutual benefit and mutual prosperity. The two countries are indeed each other's good friend, good brother and good partner that can be counted on.

"I am convinced that with our joint efforts, the friendship between China and Egypt and between China and Arab countries as a whole will surge forward like the Nile and bring us to our desired destination of national renewal."

To mark the 60th anniversary of close cooperation in economic, social and diplomatic fields, Egypt and China have designated 2016 as Sino-Egyptian Culture Year.

The presidents of both countries marked the occasion by attending a concert at the Luxor Temple in late January.

With roots that stretch back to the birth of civilization, Egypt has long been a popular destination for foreign tourists seeking to step back in time and explore ancient wonders of the world such as the Lighthouse at Alexandria and the Great Pyramid of Giza. Combined with beautiful beaches, great climate, fine cuisine and the warm nature of Egyptians, it is clear to see why Chinese tourists are flocking to the cities and Red Sea resorts and taking advantage of its wonderful natural and cultural assets.

According to official data, Chinese tourist numbers nearly doubled year-on-year to 125,000 visitors last year and that total is expected to jump by at least a further 50 percent in 2016 as more than a dozen flights arrive at various international airports each week. However, sightseers from China still comprise a relatively small fraction of total visitor numbers as more than 12.2 million tourists arrived in Egypt in 2015, leaving with precious memories and having spent nearly $6.2 billion.

InFocus provided this story.