LG, Samsung to expand investments in Egypt
Korean Companies LG Electronics and Samsung Group announced their intentions to expand their investments in Egypt.
These announcements took place during their meeting with Egypt’s officials who travelled to the Korean capital Seoul on Feb. 24 to promote Egypt’s investment opportunities especially in Suez Canal Economic Zone.
"LG Electronics intends to pump new $15 million scalable investments in Egypt through the expansion of the company’s current production lines in the investment zone of 10th of Ramadan," Vice Chairman of LG Electronics Koo Bon-joon announced.
The vice chairman referred that the volume of investments of LG Electronics in Egypt hit $240 million, noting that the boom in investment’s infrastructure in Egypt pushes the company to grow in the Egyptian market.
“LG Electronics in Egypt marked exports of $200 million during 2018, which represents 75 percent of the company’s production,” he added.
This came during his meeting with Egypt’s Minister of Investment Sahar Nasr, and Finance Minister Mohamed Ma’it to discuss investment opportunities in Egypt in light of the reforms the country has been implementing lately to improve the investment climate.
Nasr expressed her ministry’s keenness to provide all support to activate the private sector's role and encourage Korean companies to double their investments in Egypt through offering them all incentives and guarantees.
For his part, Ma’it said that Egypt has set mechanisms to facilitate customs and tax procedures, in addition to improving and developing laws and regulations to support economic growth and boost investment.
Also, the ministers met with representatives of Samsung Group where they reviewed the group’s expansion in Egypt.
Nasr called on Samsung to establish a regional center in Suez Canal Economic Zone (SCZone) and benefit from the incentives that the investment law provides. She described SCZone as the hugest investment zone in Egypt which has the biggest tax incentive of 50 percent.
Samsung clarified that its investments in Egypt recorded $265 million and its exports hit around 70 percent of its production, adding that it first in terms of industrial exports in Egypt.
“The company pumped around $174 million during 2018, and intends to implement new production lines in Egypt,” Samsung added.
On Feb. 26, Nasr called on Korean companies to expand their investments in Egypt, clarifying that Korean investments do not reflect the distinguished level of political and economic relations between both countries.
Nasr elaborated that there are only 164 Korean companies in Egypt, most of which are distributed among the manufacturing, services and construction sectors.