https://arab.news/6235a
RIYADH: Egypt will agree with investors on a case-by-case basis regarding the valuation of assets offered for sale to be in either US Dollars or Egyptian Pound, according to Bloomberg.
The choice of currency emerges as a huge barrier for Egypt as the country attempts to secure foreign exchange from its Gulf allies to support the economy that is heading toward crisis due to the Russian invasion of Ukraine.
Last week, the Kingdom halted talks with Egypt regarding the purchase of the United Bank in Cairo over discussions on how to value the deal due to the instability of the Egyptian Pound.
President of the Egyptian Sovereign Fund Hala Al-Saeed said in an interview in Qatar that there will be an agreement between the government and investors on the currency choice for each deal.
Al-Saeed was part of a delegation visiting Doha for a campaign to unlock potential investment opportunities from Gulf states.
Egypt and Qatar are planning to establish a joint investment fund with terms about the size and sectors it will focus on still to be agreed upon.
The two countries have also agreed to remove double taxation on income to increase investment in Egypt.
New levy on hotels, restaurants, and bazaars to support Tourism Fund
Egypt has imposed new fees on hotels, tourism companies, restaurants, and bazaars to finance the Tourism Support Fund that was established last year.
The Ministry of Tourism added one percent on individual hotel stays and safari boat cruises not less than 5 Egyptian Pounds ($0.16) and not more than 50 Egyptian Pounds.
Bazaars will pay an annual fee between 5,000 to 10,000 Egyptian Pounds while cafeterias and restaurants will pay an annual fee of 4,000 to 5,000 Egyptian Pounds which can increase by 3,000 to 5,000 Egyptian Pounds in the event they provide entertainment shows, alcohol, or shisha.
Payers will receive machines, digital transformation, and training services in return for the money they will contribute to the fund.
Egypt aims to increase tourism sector returns from $11 billion annually to over $30 billion a year over the next three years.