Table of Contents
Key Points
- Billionaire Naguib Sawiris warns that large-scale infrastructure projects are straining Egypt’s foreign reserves and calls for a reassessment of priorities.
- Sawiris highlights business climate concerns as Egyptian companies relocate, emphasizing the need for reforms to retain investment.
- Despite challenges, he plans a $150 million luxury hotel investment near the Pyramids to boost Egypt’s tourism sector.
Egypt’s second-richest man, Naguib Sawiris, has urged the government of President Abdel Fattah al-Sisi to reconsider its large-scale infrastructure projects to reduce pressure on the country’s foreign currency reserves.
Speaking at a conference in Abu Dhabi on Wednesday, Feb. 26, Sawiris cautioned that the ambitious projects require substantial foreign currency, straining Egypt’s economy.
“I will be polite and say we have an overambitious president who is doing mega projects that require a lot of foreign currency, and we should have a second look at these projects,” Sawiris said.
Egypt’s economic shift raises business concerns
Since taking office in 2014, al-Sisi has overseen an infrastructure boom spearheaded by the military, including the construction of a new $58 billion capital city.
While the government argues that such investments are crucial for economic growth, critics point to their high costs and strain on foreign reserves.
Sawiris, Egypt’s second-richest man with a net worth of $7.31 billion, also noted that 1,500 Egyptian companies relocated their headquarters to Abu Dhabi last year, underscoring concerns about the country’s business climate.
He suggested that unifying the UAE’s three stock exchanges—the Abu Dhabi Securities Exchange, Dubai Financial Market, and Nasdaq Dubai—could encourage regional listings and improve liquidity.
Calls for economic reforms
Beyond mega-projects, Naguib Sawiris has been vocal about challenges in Egypt’s real estate sector, warning of a potential bubble. He has urged both developers and the government to be cautious, emphasizing the need for lower interest rates to ease financial strain.
With the Central Bank of Egypt’s lending rates at 30 percent, he argues that the high cost of borrowing is making it harder for businesses to stay afloat and complete projects on time.
Still, the billionaire sees promise in Egypt’s tourism industry. In December, he announced plans to invest $150 million in one or two luxury hotels near the Pyramids, aiming to address accommodation shortages and make the country more attractive to international visitors.
His push for policy changes comes as Egypt faces rising inflation, a weakening currency, and mounting debt—raising concerns about how long its ambitious infrastructure drive can be sustained.
