Egyptian billionaire Naguib Sawiris has called for a reassessment of his country’s large-scale development projects, emphasizing its heavy reliance on foreign currency and the financial strain they impose.
“I will be polite and I would say we have an overambitious president who is doing mega projects that are requiring a lot of foreign currency and we should have a second look at these projects,” Sawiris said at a conference in Abu Dhabi on Wednesday.
Since Abdel Fattah al-Sisi took office in 2014, Egypt has embarked on an extensive infrastructure expansion.
Among the most prominent projects is a $58 billion new capital city, which Sisi argues is essential for economic growth and to accommodate the nation’s rapidly expanding population of 105 million.
The government is set to invest billions in further expanding the city, which is the largest of several ambitious developments championed by Sisi.
Designed as a high-tech, modern metropolis, the new capital is intended to alleviate congestion in Cairo. However, critics argue that such projects divert crucial resources and contribute to Egypt’s mounting debt crisis.
In addition to domestic economic challenges, Egypt has seen an increasing number of businesses relocate abroad.
Last year alone, 1,500 Egyptian companies moved their headquarters to Abu Dhabi, according to Sawiris.
Sawiris added that UAE stock exchanges should unite to encourage firms to list in the region and improve liquidity. The UAE has three stock exchanges, the Abu Dhabi Securities Exchange, Dubai Financial Market and Nasdaq Dubai.
