As Egyptian President Abdel Fattah Sisi seeks to modernize the Middle East's most populous country, China is joining international rivals in Egypt's current boom in large-scale projects and infrastructure development, Al Jazeera reported on March 15.
Mohamed el-Dahshan, a researcher at chatham Institute and founder of the international development company OXCAN, told Al Jazeera: "Egypt has always loved big projects. Over the past few years, the Egyptian government has, to some extent, built alliances by signing certain economic agreements with different countries. ”
For example, the Egyptian government is rapidly building a megacity 35 kilometers east of Cairo that can accommodate 29 ministries, cabinets and more than 5 million residents. While China is not the only participant in the construction of the new administrative capital, it is one of the most notable.
Lucille Greer, a scholar at the Wilson Center in Washington, D.C., who studies China and the Middle East, told Al Jazeera that "China is an emerging market." Egypt is relatively stable compared to other countries in the region, and the Egyptian government's recent efforts to make it more attractive to foreign investment have attracted China.
China State Construction Engineering Corporation is building a central business district in Egypt's new administrative capital. The Chinese bank provided about 85 percent of the funding for the $3 billion project, which includes 20 towers, one of which will be 385 meters (1,263 feet) tall and will be the tallest building in Africa. Sun Degang, a professor of international studies at Fudan University in Shanghai, told Al Jazeera: "Egypt is the center of China's Middle East policy, especially in political and economic terms. ”
Zhang Chuchu, deputy director of the Middle East Research Center at Fudan University, said in an email exchange: "Egypt's market size is undoubtedly attractive to China. At the same time, the relatively stable and welcoming investment environment of international partners has made Egypt an important investment destination for China. ”
The report pointed out that at the political level, China-Egypt relations have a long history. Egypt was the first Middle Eastern and African country to recognize the People's Republic of China in 1956. "Relations between Egypt and China have developed rapidly in a short period of time," Dashan said. It's not about volume, it's about growth. ”
Egypt is the largest recipient of foreign direct investment in Africa. While countries such as the United Kingdom, the United States and the United Arab Emirates have overtaken China as the largest investors, China is catching up. Liao Liqiang, Chinese ambassador to Egypt, said in an interview that in 2019, China invested nearly $7 billion in Egypt, of which 90% was invested for up to 5 years.
Professor Sun Degang said: "Egyptians feel more comfortable working with China and regard China as equal and trustworthy brothers. China treats its Egyptian counterparts equally. China is Egypt's biggest trading partner. Egypt's young population of more than 100 million undoubtedly makes it a huge market for China in the Middle East.
Speaking about the West's views on China's business activities in countries like Egypt, Dashan said: "Many established (Western) partners don't want to see others compete with them in countries they consider their traditional homeland. One area between Beijing and Cairo that is barely controversial is meddling in each other's internal affairs. Because of China's policy of non-interference, China's approach to Egyptian affairs is unique.
The report finally mentioned that Beijing and Western countries will definitely have more development competition in Egypt. Egypt's population is expanding. Egypt's population is expected to grow by more than 30 million by 2030. It is estimated that Egypt needs to create between 700,000 and 1 million new jobs each year. Large-scale projects are seen in part as a way to cope with a rapidly growing workforce. As a result, the construction boom continues, and now China is also involved.
Text/GH