Deeper cooperation on green efforts and technology benefits both sides: Minister

By XU WEIWEI and LI XIANG in Hong Kong | China Daily Global 

Egypt is looking forward to playing a bigger role by fostering a stronger relationship between China and Arab and Middle Eastern countries, and creating opportunities that will benefit both sides, said Egypt's Minister of Finance Mohamed Maait.

Egypt now has a "high-level and fast-growing collaboration" with China, thanks to the Belt and Road Initiative, Maait told China Daily at the 17th Asian Financial Forum held in Hong Kong on Jan 24-25.

"Egypt's location is very important because it's a point which can link Asia, Africa, Middle East and even Europe," he said, and "projects that are part of the BRI will be very important for Egypt and will represent opportunities for more investments, and also it can be a point of contact".

"We have to grab such opportunities at this particular time with regard to the BRI," he said, adding that Egypt is a part of the initiative.

Egypt was the first country in Africa and the Middle East to issue panda bonds in Chinese yuan in the Chinese financial market, he said.

The sustainable panda bonds, issued in October, were specifically allocated for green finance projects valued at around 3.5 billion yuan ($487 million) at a three-year yield of 3.5 percent.

"It is one of the biggest issuances in the Chinese market," Maait said.

China, as a leader in technology, is one of Egypt's biggest business partners. "I believe that our collaboration with China is at its highest," he said.

Maait said Chinese companies have been supporting Egypt in technology, and "renewables, electric cars … all of these can represent opportunities for more cooperation between China and Egypt".

Besides the Chinese and Egyptian companies working together, China and the Suez Canal Economic Zone as well as the Central Bank of Egypt and the Bank of China have also entered into a partnership.

Another way we can cooperate is through the "protection of investment" agreement between Egypt and China, including the Hong Kong Special Administrative Region, which can also facilitate more investment, he said.

Maait discussed the possibility of Egypt issuing bonds in local currency in Hong Kong, which can help connect Egyptian investors with the whole of China.

Fruitful outcomes

While his first visit to Hong Kong left him impressed with the city's vibrancy, the fruitful outcomes at the forum surpassed his expectations.

"In Asia, we look forward to cooperating with Hong Kong in the future on many aspects," he said, adding the first aspect is to benefit from Hong Kong's capacity and experience as a leading financial services center in Asia as well as in the world.

Maait said Cairo is looking forward to a double taxation treaty, which can benefit Hong Kong investors looking to invest in Egypt and Egyptians who want to work with Hong Kong.

The minister said he hopes a free-trade agreement can be achieved, the possibility of which needs to be further explored.

He noted that Financial Secretary of Hong Kong Paul Chan Mo-po was earlier considering more scholarships for Egyptian students to study at universities in Hong Kong. He also hopes to attract more Chinese tourists to Egypt.

"This will mean we have to facilitate this possibility, and number one is to have direct flights between Cairo and Hong Kong," he said.

During the forum, he told the audience the world was facing increasing geopolitical tensions and inadequate clarity about the future, affecting prospects for sustainable economic growth. Therefore, the world needs to gather all efforts to coordinate economic policies at a multilateral level to deal with global challenges, he added.

Hala El-Said, Egypt's minister for planning and economic development, who was also present at the forum, said the Egyptian government now stresses sustainable economic development.