Hatem Tageldin, Ambassador Of Egypt To India

There is more to Egypt than just mystical pharaohs and the Great Pyramid of Giza, and with the current flow of Indo-Egyptian trade crossing $5 billion, bright days are visible on the horizon for the Land of the Nile. In a freewheeling interaction with The Dollar Business, Hatem Tageldin, Ambassador of Arab Republic of Egypt to India, talks about the current state of affairs of Indo-Egyptian ties and reasons why the bilateral trade between the two is set to reach new highs.

Interview by Ahmad Shariq Khan | January 2016 Issue | The Dollar Business

TDB: India’s External Affairs Minister Sushma Swaraj recently visited Egypt. How do you see it further cementing the Indo-Egyptian bilateral trade?

Hatem Tageldin (HT): The visit by Sushma Swaraj was very fruitful for both the countries. Prior to her visit, Egypt had received two ministerial-level delegations from India. And we recently had a very constructive meeting between President Abdel Fattah Al-Sisi and PM Modi at the (third) India-Africa Forum Summit held in October this year in New Delhi. For us, the agenda of all these meets was to further enhance bilateral relations in various fields, mainly in the sphere of economic investment, trade and development, security and counter- terrorism.

We believe the recent endeavours by both the countries will go a long way in transforming the economic identity of both India and Egypt in days to come. I believe both countries are in the process of reforming their economic policies and making them more in sync with the global trade realities. And we are with India on this. In fact, last November, we had the joint trade committee meeting convened in New Delhi in which we had set ourselves a bilateral trade target of $8 billion by the end of 2016.

We strongly believe there is a huge potential for increasing bilateral trade volume and, increasingly, there is a lot of acceptance of Indian commodities in Egypt. I can say with certainty that Indian investment flow to Egypt is on the upswing. Today, I can gladly say that we have more than 50 Indian companies investing almost $3 billion in Egypt. Big names such as Hinduja, Birla, Mahindra and Tata – are all there.

TDB: Both India and Egypt are undergoing transformations at similar levels – both being developing economies, characterised by a large SME sector. How do you see this SME-SME association gaining further momentum in the days to come?

HT: As we understand, micro, small and medium enterprises (MSMEs) are an integral part of the India’s growth story. So while in India, it (India’s MSME sector) accounts for nearly 40% of exports and contributes significantly to economic prosperity by being a source of employment to nearly 80-100 million people, in Egypt, there are around 2.5 million MSMEs representing 75% of the total employed workforce and 99% of non-agricultural private sector establishments.

In Egypt, the MSME sector contributes around 25% of GDP and 85% of employment, this despite the fact that only 6% of MSMEs export. Currently, the Arab neighbouring countries are the preferred destinations, with a majority of SMEs exporting to them only. However, we would like to see more of our SMEs doing business with Indian companies.

TDB: Egypt is considered to be an entry-point to as many as 26 African countries. How do you foresee this channelising Indian investment into Egypt and other adjoining regions of Africa in the near future?

HT: Egypt is ideally located in Africa to facilitate trade to all its adjoining regions. Our geographic location makes us not just a hub for the Middle East countries, but also for Mediterranean countries and a large number of African countries. And now with our great development project – the new Suez Canal expansion project – we aim to be the gateway to the world for the African continent.

The inauguration of the new Suez Canal on August 6, 2015, has been followed by declaring the area adjacent to the canal as a special economic zone that provides lucrative incentives to investors wishing to establish or operate in different sectors. We invite India to set up its own Suez Canal Corridor, like that of China and Russia, in this special economic zone. We want a win-win proposition for both the countries.

Also, we have many free trade agreements (FTAs) with our neighbouring countries (including many Arab and African countries) which allow manufacturers and investors ease of access to a large market area. In June this year, we signed an agreement with 26 African countries. This landmark accord allows a company manufacturing in Egypt unrestricted market access to over 600 million inhabitants residing in these 26 countries. It’s a big business opportunity for Indian companies and investors.

TDB: India is the sixth largest trading partner of Egypt. Hence, with regards to future economic engagements, what key areas/sectors would you like to see India using its expertise in Egypt so that the two countries enjoy mutual benefit and get win-win results?

MT: In Egypt, of late, we have taken many bold and path-breaking economic investment-related decisions and we are committed to seriously push forward the reform agenda of the country.

In fact, several Indian firms are witnessing good growth in Egypt. One of the biggest names in the country is TCI Sanmar Group (in petrochemicals; India’s Sanmar Group acquired Egyptian Trust Chemical Industries in 2007). The company has already invested $1.1 billion in Egypt and it plans to up its investment to $1.45 billion in the near future. Uflex is another big Indian success story in Egypt which has invested around $180 million and is exporting its products to 45 countries from Egypt.

In order to facilitate trade, we give incentives to manufacturers and investors in many sectors, especially in sectors that have high chances of generating job opportunities for our fellow citizens. Currently, besides free land, we provide tax exemption for up to ten years for manufacturers choosing to set up their bases in Egypt. It’s a win-win situation for any foreign manufacturer as he gets tax exemption and, in turn, provides jobs to our citizens.

In all upcoming meets with India, we wish to focus on launching a trilateral cooperation model for Africa, comprising India, Egypt and the rest of Africa. This way, we wish to take along all African nations with us in our march towards development and economic prosperity.

TDB: What does Suez Canal expansion project mean to Egyptians?

HT: We believe the Suez Canal expansion programme is our gift to the world. Today, everyone praises how in one year we finished the first phase of development. Under the new plan, we drilled a new canal parallel to the old one.

And, instead of looking for foreign investors and donors, our President Abdel Fattah el-Sisi called upon the common Egyptian to contribute and that’s how we collected $8.5 billion in eight days – all from common Egyptians. That’s a record amount collected in record time in Egyptian history. To me, this shows the strength of the Egyptian pride and commitment. Ordinary Egyptian families, college students, the SME sector, all contributed for the mega project. Besides, Egyptian diaspora from every nook and corner of the world helped us meet our requirement.

TDB: Tourism is one area which has helped raise earnings of both countries. Tell us about your recent endeavours to strengthen this segment. Also, since, at present, EgyptAir only flies Mumbai-Cairo, are any more connectivity links, for instance Delhi-Cairo, in the pipeline?

HT: Tourism is one area which has great potential for both countries and we are taking several steps to attract more Indian tourists into our country. For example, currently, Indian tourist groups can get visa on arrival in Egypt. For individuals, we try to process the application in just 3 working days, provided all documents are in place and we don’t ask them to come in person. Everything is done via post. The most recent development for Indian nationals living in the Gulf is that if they have resident permit in the Gulf, then they can now get a visa on arrival in Egypt. Besides, we are also looking into the possibility of expanding the air connectivity from India. We wish to encourage Air India or any other private carrier to explore the possibility of Delhi-Cairo.

TDB: Cultural ties and people to people relations have always been a strength of Indo-Egyptian relations. How do you see these ties shaping up between the two nations in the near future?

HT: Speaking about culture, first and foremost, I would like to say that India is very colourful. Its size and scale mesmerises anyone who visits the country. I believe it’s indeed ‘Incredible India!’ I am amazed at how diversified, culturally rich yet democratic India is.

Cultural ties and people to people relations have always been the hallmark of Indo-Egyptian relations. Down the years, right from the times of Mahatma Gandhi, Jawaharlal Nehru and Egyptian leader Gamal Abdel Nasser – the co-founder of Nonaligned Movement (NAM) – the flow of culture between the two nations has not stopped.

The two countries have inked many cultural agreements to further boost the trend. Just yesterday (December 10, 2015), I was at the closing ceremony of the Delhi International Film Festival where three Egyptian directors showcased their work. ‘India by the Nile’, the cultural showcase event, sponsored by the Indian Embassy in Cairo is another hugely popular calendar event in Egypt. Last time, Amitabh Bachchan was the guest of honour at the event and I must tell you he is a legend in Egypt. In fact, today we have many Indian channels with Arabic subtitles. Also, of late, during weddings, Indian henna and saaris are becoming a rage in Egypt. Bollywood too is immensely popular in Egypt. I am myself a big Bollywood fan. Interestingly, long back, prior to taking up diplomatic responsibilities, I have worked in films and as such, greatly enjoy Indian cinema. I recently watched PK and Lunchbox and I must say, loved both of them. 

Passengers view the Suez Canal at Port Said. The canal was opened in 1869 and enabled shipping directly between Europe and Asia.

TDB: How do you view the Indian government’s ‘Make in India’ plan? Is there any Egyptian investment planned to gain most out of the initiative?

HT: We are truly inspired by India’s ‘Make in India’ campaign. We believe it’s a great step in the right direction as it will result in a more skilled Indian workforce. We are also learning from this unique concept.

Many Egyptian investment plans are currently on. Recently, I was in Bangalore to lay the foundation stone for KAPCI Coatings, which is a leading name in the paints business in Egypt. The company is investing $50 million in India and they plan to open five more factories in India in the near future. Instead of exporting from Egypt, they wish to join the Indian government’s call to Make in India and ultimately plan to make inroads into the ASEAN market. Dozens of Egyptian companies are now exploring business opportunities in India.

TDB: Today, terrorism and regional security are two integral components of the foreign policy of both nations. How do you see the future of collaborations in this area?

HT: Combating terrorism and enhancing regional security are important aspects of our foreign policy. In many instances, we have discussed these with our Indian counterparts. We expect that in the coming future there would be a more detailed and clear roadmap on this aspect. We believe, both India and Egypt face the same kind of challenges that require a collective effort by all countries. Egypt is a part of the coalition against ISIS. We have been recently elected as a non-permanent member to the United Nations Security Council and we believe this will further our cooperation with the international community including India.