Speech by Mr. Rehinhold Brender Charge'd' Affaires a.i. of the European Union Delegation to Egypt

Speech by Mr. Rehinhold Brender

Charge'd' Affaires a.i. of the European Union Delegation to Egypt

Kick Off Event of the EU-funded project

"Support to the Suez Canal Economic Zone:  Towards a Dynamic and Sustainable Economic Zone"

Project implemented by OECD

Your Excellency Dr. Ahmed Darwish, Chairman of Suez Canal Zone;

Distinguished representatives of the Suez Canal Zone Authority;

Distinguished representatives of the OECD;

Ladies and Gentlemen;

It is my honour and pleasure to participate this morning in the kick-off event of this new project financed by the European Union; through which the OECD will provide technical support to the Suez Canal Zone Authority. We have high hopes that this project will contribute to our shared ambition of making the Suez Canal Economic Zone a globally competitive and world class investment location.

The potential of the Suez Canal Economic Zone as an investment location is undeniable; as it is situated on the shores of the major trading route between Europe and Asia; close to important international markets and of course with a significant domestic market and a young and dynamic labour force. It has great potential to become a major logistical hub.

The project that the EU is financing will address a number of key elements that will further influence its attractiveness to investors:

Firstly; it will provide support on development of the regulatory framework that will apply in the Zone;an area where the Suez Canal Economic Zone has significant autonomy.

Secondly, it will provide assistance in considering different options for financing the infrastructure investments that are necessary.

And thirdly, it will provide support on ensuring that connectivity issues are fully addresses.

We see this project as a first step in a long-term cooperation; and an important element of this project is also to identify future areas of cooperation. To underline this strategic ambition, I can inform that the development of the Suez Canal Economic Zone is one of the areas of shared interest that will be included in the EU- Egypt Partnership Priorities; the joint document that will set out the strategic cooperation objectives for the EU-Egypt relations for the next few years; and that we foresee will be concluded shortly.

Egypt's economic development is important to the European Union.Generating inclusive economic growth and job opportunities are essential objectives for Egypt. Creating an attractive investment climate, for both domestic and foreign investment is a key vector in achieving this. The Suez Canal Economic Zone offers great potential for investors; and additionally it offers the opportunity of being a testing ground for regulatory reforms, that could be replicated in the whole of Egypt.

The EU is already the most important source of Foreign Direct Investment in Egypt; and we plan for this to remain so. Therefore we are happy to contribute with programmes that support the improvement of the investment climate in Egypt. This project is important in this perspective, but certainly not the only programme that we have.

Also with the OECD, we have recently launched a regional programme that will support investment promotion agencies in different Southern Mediterranean countries, including Egypt.

Last December, Minister Sahar Nasr and our vice-President Federica Mogherini signed an Agreement for a large EU financed- programme entitled "EU Facility for Inclusive Growth and Job Creation" which will support reforms to the business environment in areas such as taxation and customs; but that will also directly support Egyptian companies by providing more financing opportunities and access to business development services. The direct EU Contribution to this programme is EUR 50m; but the programme will help unleash additional financing from European Financian Institutions for companies of up to EUR 360m.

I think these recent new programmes are a clear indication of our strong and continued commitment to support Egypt in achieving its full economic potential.

I will conclude by giving a special thanks Mr Darwish and all the staff of the Suez Canal Economic Zone Authority for their active support in this project.I wishyou a productive seminar; and thank you for participating today in this event.