The Egyptian government needs to find a way to attract investments, Salah Diab, the founder of the Pico Group of companies, said in an interview with German media, covered by Al Masry Al Youm (the national daily his group owns). Egypt’s “economic identity” is not yet clear, and elements of the investment law and tax treatment are still undefined. “No investor will come to a country with a 42.5% tax rate,” he says in an apparent criticism to the tax treatment of oil and gas companies (the corporate tax rate is still 22.5% for other sectors). Egypt should also relax its grip on the currency and move towards a free float.

The government’s biggest success so far, Diab says, has been tapping the IMF for funding. “It is a sign we are seeking help from people with expertise on the issue,” he added. The state should step away from implementing megaprojects like the new administrative capital. They are a drain on state resources and are best left to the private sector, Diab explained. He added that he understands the “exceptional, emergency” role the military is playing in the economy now, given the institution’s unmatched ability to develop projects compared to other state arms. However, he says the military’s continuing in the market will reduce attractiveness as it does not signal that the market is operating on a level playing field. Diab also takes a swipe at the GCC’s financial support to Egypt (saying it had a negative effect on the economy and only delayed the inevitable launch of a reform program) and comes out in favour of making it possible to obtain Egyptian citizenship through investment.