Suez Canal welcomes foreign investment, sovereignty protected - Chairman
Egypt's Suez Canal welcomes foreign investment but foreigners would have no control over the waterway or over a proposed fund that would help manage its resources, the head of the Suez Canal Authority (SCA) said on Thursday.
SCA Chairman Osama Rabie was speaking to reporters after legal amendments providing for the fund were discussed in parliament this week, triggering speculation they would open the door to selling stakes in the canal to foreigners.
The fund, under discussion for several years, was designed to guard the canal's resources for reinvestment, as well as to help face unexpected challenges or crises, Rabie told a press conference.
Keep updated, follow The Business Standard's Google news channel
The fund would be separate from the SCA, which already works with foreign companies to develop projects, Rabie said. "The investor will come in connection with the project that is being done, they will not come to the fund."
The fund's discussion in parliament comes as Egypt is trying to drum up foreign and private sector investment to help address a hard currency shortage that has hampered imports and slowed some economic activity.
The canal, the quickest sea route between Asia and Europe, is a key earner of foreign exchange for Egypt and is expecting revenues of $8 billion during the fiscal year that ends in June.
