SPOTLIGHT ON: Reuters Middle East Investment Summit 2016

"We have to go around and tell people, come and see Egypt with your own eyes … we have a lot to offer," Tourism Minister Yehia Rashad tells Reuters. "Security at the airport has been stepped up very professionally,” he adds, noting that Egypt is looking to tap into new markets including China, Japan, Germany and Ukraine. The article says Rashad faces an “uphill battle” caused by the Metrojet flight, the Paris flight, the Cyprus flight, and the Mexican tourists incident have resulted in tourism receipts halving in FY2015-16 to USD 3.77 bn.

Egypt is expecting to cut its trade deficit by USD 11-12 bn in 2016 to ease the USD shortage and is encouraging domestic production to fill the void left by lower import levels, Trade and Industry Minister Tarek Kabil told Reuters. Egypt’s strategy aims to grow domestic industry by 8% over three years, he added. Domestic companies were producing substitutes primarily in food industries, but also building materials, chemicals, leather and furniture, he said. The USD shortage is exacerbated by a severe trade imbalance — Egypt imported USD 67 bn worth of goods in 2015 but exported just USD 18.5 bn, according to trade ministry data. The trade deficit had narrowed by USD 8 bn in the first nine months of this year, with imports falling USD 7 bn but exports rising by only USD 1 bn. Egypt has since launched a logistics center in Kenya, a country that has five immediate neighbours, and is looking to double the USD 4 bn in exports to Africa within five years, he added. To boost manufacturing, Egypt has increased the amount of industrial land available and will offer 10 mn sqm on 30-year-leases this year, he said. "We are looking for exports to be 50% of imports within three years," he added.

Saudi’s bid to develop its housing market and will be a primary growth driver for Al Rajhi Bank through 2020, CEO Steve Bertamini told Reuters. Saudi’s reform agenda includes tripling the government’s non-oil revenues by 2020 and raising the percentage of Saudis who own their own homes in the same timeframe to 52%. The bank announced it had agreed with the Ministry of Housing to become the first Saudi bank to participate in a new government scheme to increase homeownership by offering mortgages with the state funding part of the down-payment.