Cabinet announces second stimulus package for 2014

The Investment Ministry plans to pump LE24 billion into the economy in January 2014, reported the state-run Middle East News Agency (MENA).

Finance Minister Ahmed Galal had previously announced plans for a second stimulus package. The first was announced in August to the tune of LE30 billion.

“The current government is taking the proper measures to improve the investment climate,” Investment Minister Osama Saleh said, according to MENA.

He pointed to the upcoming referendum on the draft constitution, which he said should send a signal of confidence to investors as an indicator of stability, MENA reported.

Saleh said on Monday that prior to June 30, deposed President Mohamed Morsi’s Cabinet was hesitant to make the necessary decisions to stimulate the economy. The interim government is now working on a new legislation package, including a new unified industries law.

A large portion of the second stimulus package would go to funding the new minimum wage for the public sector, Galal added. The interim government recently announced that the minimum wage would be raised to LE1,200 starting in 2014.

Also on Monday, Prime Minister Hazem al-Beblawi met with Abdel Rahman al-Sharbatly, a major Saudi investor, to discuss boosting investment from his company into Egypt.

The German press agency Deutsche Presse-Agentur (DPA) reported that another Saudi company is planning to build 10 power and fertilizer plants in Egypt, with investments worth US$10 billion.

Local Development Minister Adel Labib did not name the company, but said the plants would produce a combined 450 MW of power daily, DPA reported, quoting an interview with Labib published in the Saudi Al-Riyadh newspaper.