Minister of Planning and Economic Development Participates in Special Meeting of World Economic Forum in Riyadh
28 April 2024
H.E. Dr. Hala El Said, Minister of Planning and Economic Development, recently participated in the special meeting of the World Economic Forum held in Riyadh, Saudi Arabia, from April 28-29, under the theme “Global Cooperation, Growth, and Energy for Development,” attended by over 220 public figures representing approximately 60 countries. This participation is part of Dr. Hala El Said’s engagement and that of Egypt’s Governor to the Islamic Development Bank Group in the bank’s forty-ninth annual meeting in Saudi Arabia.
Dr. Hala El Said participated in a panel discussion titled “What Does Domestic Trade Economics Mean?” alongside Qatar’s Minister of Finance, Ali Ahmed Al-Kuwari, South Korea’s Minister of Trade, Industry, and Energy, Ahn Duk-geun, and Allok Lohia, CEO of Andurama Ventures Group.
During her speech, Dr. Hala El Said highlighted the successive global events that have led to delays in achieving sustainable development goals, as well as climate change, which is a vital issue requiring global concern as it affects the economies of nations.
El Said emphasized Egypt’s commitment to maintaining its position among the economies most inclined towards market orientation and openness to the world, while pushing to become a more business-friendly environment, citing the state’s measures to facilitate business operations and increase public-private partnerships within the framework of the state’s royal policy document.
Regarding technology and artificial intelligence, El Said stated that despite the numerous benefits of globalization, recent decades have seen its coupling with technological advancement, leading to an urgent need for proactive measures to address global disparities in emerging technologies. She highlighted the General Assembly’s approval in March of the first United Nations resolution on artificial intelligence, which garnered global support for international efforts to ensure that new technologies benefit all nations, respect human rights, and are “safe, secure, and trustworthy.”
El Said also discussed trade and exports, noting that Egyptian exports witnessed a significant surge in 2022, growing by 19.4%. The total value of exports increased to $52.1 billion, compared to $43.6 billion in the previous year, aligning with Egypt’s ambitious economic goals and reaffirming the country’s commitment to enhancing the export sector.
She continued to highlight Egypt’s growing competitive ability in global markets, stressing the success of various initiatives aimed at promoting trade and investment. Egypt plays a pivotal role in revitalizing international supply chains, with significant improvements underway in the country’s ports along the Red Sea and the Mediterranean, along with plans to build a series of dry ports integrated with road and rail links connecting maritime ports to inland destinations.
El Said emphasized that Egypt is equipped with the necessary infrastructure and expertise to facilitate the access of global companies to markets across Africa, the Middle East, and Europe, boasting stable legal and regulatory systems and a business-friendly environment. Egypt currently has 54 seaports, including 18 commercial ports along the Red Sea and the Mediterranean coasts, and is overseeing the implementation of 80 port projects, with total investments of 129 billion Egyptian pounds, in collaboration with 100 private sector companies.
She further explained that amidst the global challenges, there is a growing focus on exploring markets in emerging economies like Egypt, which offer untapped potential and alternative sourcing options, as well as access to new consumer markets. Diversifying sourcing can enhance innovation and quality by promoting competition among suppliers and encouraging continuous improvement.
El Said highlighted Egypt’s recent economic policies aimed at controlling inflation and stabilizing the value of the Egyptian pound through interest rate hikes and currency devaluation, strategically designed to attract foreign investment, stimulate trade, and facilitate sustainable economic development within the country.
Regarding Egypt’s divestment program, El Said stated that the program aims to bring about significant changes in the country’s economic landscape by offering stakes in 35 state-owned companies to strategic investors. The timeline for this endeavor is expected to conclude by the end of June 2024, according to the guidelines outlined in the state’s royal policy document.
El-Said elaborated on the “Decent Life” initiative during her speech, aiming to improve the lives of citizens in rural areas. She explained that the allocations for the first phase amounted to 350 billion Egyptian pounds to implement about 23,000 projects in 1,477 villages across 52 centers in 20 governorates, benefiting 18 million citizens. The average implementation rate for the first phase reached 85%, with Upper Egypt’s share of the allocations in the first phase reaching 68%, benefiting 11 million citizens, and 61% of the total beneficiaries.
She also mentioned the “Dignity and Solidarity” initiative, which represents the cornerstone of Egypt’s social protection system, aimed at supporting poor families. It is the largest conditional cash transfer program targeting poverty in the Middle East and North Africa. During 2022/2023, 31 billion pounds were provided as cash support for the program, compared to 3.4 billion pounds in 2015. The government has also expanded the program to include single mothers with adult children, impoverished youth, and the elderly without families, with the new groups comprising approximately 300,000 families.
The Minister of Planning highlighted Egypt’s advantages in terms of its strategic geographical location, noting that Egypt serves as a bridge connecting diverse markets, making it an indispensable link in the global supply chain network. She explained that the country has access to markets conveniently due to over 100 bilateral agreements, providing good business opportunities for companies.
She added that Egypt’s accession to the BRICS group provides opportunities for deeper cooperation in key areas such as infrastructure development, energy, agriculture, and technology transfer. By leveraging the collective experiences and resources of BRICS countries, Egypt can accelerate its economic development agenda, address infrastructure gaps, and enhance its competitiveness in global markets. She affirmed that Egypt’s new membership in the BRICS group indicates positive signs for diversification and opens exciting prospects for trade and cooperation among regional countries.
Regarding the green transition, El Said pointed out the integrated Sustainable Energy Strategy 2035, which is a cornerstone in Egypt’s plan to diversify energy sources. She noted an increase in the proportion of green projects in the plan to 50% during the next fiscal year and the issuance of sovereign green bonds in 2020, making Egypt the first country in the Middle East and North Africa to do so.
The Minister of Planning indicated that Egypt aims to produce 1.5 million tons of green hydrogen annually by 2030, rising to 5.8 million tons by 2040, explaining that the Economic Zone of the Suez Canal participates in green hydrogen production.
In conclusion, Dr. Hala El Said clarified that international trade is a driver of comprehensive economic growth, poverty reduction, and contributes to sustainable development, as affirmed by the United Nations Department of Economic and Social Affairs. She emphasized the need to ensure reliable and sustainable financial mechanisms such as foreign direct investment, enhancing trade routes, capacity building, and funded feasibility studies for investment projects to meet the needs of developing and least developed countries in terms of financing gaps for sustainable development goals.