Mubarek asks help from Algeria after Egypt exclusion from $286 billion projects

Egyptian President Hossni Mubarek is attempting to save tens of public and private companies in his country from bankruptcy following a football crisis between Algeria and Egypt over a World Cup playoff.

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• Mubarek seized the opportunity of his visit to Algeria to end tension between Cairo and Algiers in terms of economic and political relations. He was accompanied by a senior delegation to present an almost official apology for the Egyptian media’s fierce campaign against Algeria’s symbols.
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• The visit cover is presenting condolences to Algerian President Abdelaziz Bouteflika’s brother while its core is an attempt to fix what was spoilt by some people in Cairo. Egyptian companies have lost important shares in the Algerian market mainly in construction, public works, petrochemisty, hydrocarbons, electricity, desalination and telecommunication.
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• Egypt’s fears went up as its companies were excluded from Algeria’s five-year plan on public investment worth $286 billion. The government did not hesitate to invite European, American, Chinese and even Russian companies to invest in Algeria. On the other hand, the country showed less interest in Egyptian companies mostly owned by the Sawaris family and some people close to Mubarek’s family.
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• The Sawaris family gave up the Algerian cement company in favour of French group Lafarge in return for having a place in its board of directors. The Algerian government considered that as an insult from Sawaris who exploited fiscal easy measures in the country to build his empire and glory. He started selling his investments in Algeria to third companies without consulting the government.
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• Pressure on Egyptian companies has been on the rise for the last few months. Algeria’s Direction générale des Impôts (DGI) carried out a series of surveillance operations on the Egyptian companies.
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• The government is taking its time to grant deals to Orascom Construction Industries mainly fertilizer factories in the province of Oran (west of Algiers) with Algeria’s energy group Sonatrach. Those companies did not hesitate to show fears over the dismissal of energy minister Chakib Khelil especially the companies who employed Egyptian people in Algeria.
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• Egypt incurred losses because of the list of products banned from entering Algeria as part of the Arab Free Trade Zone.
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• Cairo did not hide its panic from Algeria’s diplomatic serious move which surrounded and put its Egyptian counterpart in an embarrassing situation.