Saudi business tycoon Saleh Kamel declared that Josoor Company intends to invest in the Suez Canal Axis Development Project and they are awaiting the issuance of the executive regulations of the Economic Zones of a Special Nature Law, he said on the sidelines of an economic conference Wednesday.
The comany’s initial capital is EGP 3bn, expected to increase to EGP 30bn after starting operations, Mubasher Info reported.
In November 2014, a group of Saudi investors founded Josoor, a company backed by EGP 3bn in capital, which is aimed to increase to EGP 300bn within five years.
Kamel said Josoor is working to provide consultations for the Suez Canal project.
With the beginning of 2015, approximately 85% of the disputes involving Saudi companies operating in Egypt had been resolved in cooperation with the Ministry of Defence, according to the Saudi-Egyptian Businessmen Association (SEBA) Director-General Ahmed Darwish.
Following the 25 January Revolution, Egyptian courts had voided privatisation contracts for several companies, returning them to the state. These re-nationalisation decisions angered investors, who resorted to international arbitration centres to file cases against Egypt.
Egypt’s government formed the Dispute Settlement Committee in July 2014 to deal with all investment disputes pending international arbitration. Egypt has also undertaken various initiatives to reduce bureaucracy and ensure investors’ rights. This has included the development of new laws to regulate bids and investment.
Saudi Arabia has been a strong backer of Egypt’s economy after the turbulence following the ouster of former president Mohamed Morsi in July 2013. Saudi Arabia had provided $5bn in economic assistance in the form of grants, deposits, and petroleum products.
During the Egypt Economic Development Conference (EEDC) in March 2015, Saudi Arabia announced similar aid to Egypt with the value of $4bn in investments and deposits.