Fahd bin Juma, an economist, stressed the vulnerability of Saudi investments in Egypt in the current climate, pointing out that these investments are spread over a large number of companies and most are physical assets.
"When any country experiences political turmoil, it reflects negatively on the economy because it reduces the market value of physical assets of any kind," he said.
He said the negative impact on Saudi investments in Egypt will continue until the political and economic situation stabilises, and he expected Saudi investors in Egypt to return to Saudi Arabia.
"With the change in the business environment, Saudi investors are concerned about what would happen in the case of a tax increase," Bin Juma said. "After what happened in Egypt politically and economically, it will take several years before stability returns, and the climate returns to being attractive for investments."
Saudi businesswoman Wedad al-Said said, "The current situation in Egypt worries all investors whether they are from Saudi Arabia or elsewhere. We look forward to the end of this crisis and for life to return to normal with the knowledge that some of the hotels in the capital have begun to operate again. The rate of sales and marketing of Saudi projects [in Egypt] has decreased, and some projects have been halted because of the crisis."
"When any country experiences political turmoil, it reflects negatively on the economy because it reduces the market value of physical assets of any kind," he said.
He said the negative impact on Saudi investments in Egypt will continue until the political and economic situation stabilises, and he expected Saudi investors in Egypt to return to Saudi Arabia.
"With the change in the business environment, Saudi investors are concerned about what would happen in the case of a tax increase," Bin Juma said. "After what happened in Egypt politically and economically, it will take several years before stability returns, and the climate returns to being attractive for investments."
Saudi businesswoman Wedad al-Said said, "The current situation in Egypt worries all investors whether they are from Saudi Arabia or elsewhere. We look forward to the end of this crisis and for life to return to normal with the knowledge that some of the hotels in the capital have begun to operate again. The rate of sales and marketing of Saudi projects [in Egypt] has decreased, and some projects have been halted because of the crisis."
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