07 October 2013 15:58 [Source: ICIS news]
BERLIN (ICIS)--Demand for petrochemicals and investment into the sector is set to rise as Egypt’s political turmoil normalises and international confidence grows in the country, an industry executive from Cairo said on Monday.
“Petrochemical future is very bright for Egypt,” Maged Shafick, Managing Director, Life Chemical Group, - a leading petrochemical distributor in the country - told ICIS on the sidelines of the 47th annual European Petrochemical Association (EPCA) meeting.
“Tourists are back, which means confidence is returning. This will lead to investments,” Shafick said.
Egypt underwent a revolution in January 2011 resulting in the end of a near 30-year rule of president Hosni Mubarak.
Shafick said the petrochemical sector had suffered tremendously over the last couple of years because of political upheavals, protests, lack of security, infiltration of subversive elements in the country from neighbouring states, the escape of 25,000 prisoners and a complete breakdown of law and order.
However, things started improving after the military overthrew the government of Muslim Brotherhood President Mohamed Morsi in June this year in the form of a second revolution, Shafick said.
“They [the military] now have a plan to move Egypt forward,” he said, adding that the incumbent government wants to attract investments and normalise the currency, which has fallen by almost 30% against the US dollar in the last couple of years.
Factories were being restarted and the country was being rebuilt, he said.
“For the last five months things are moving in the right direction.”
Shafick’s business group also has plans to go into manufacturing in a joint venture with a state-owned holding company to make ethyl acetate but he said it was too early to give any details. “It is not a fixed plan,” he added.
The EPCA meeting is being held on 5-9 October in Berlin.
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