http://azzasedky.typepad.com/egypt/2014/09/money-money-money.html >> Great article actually it said it all. Guess from my humble point of view, financially and economically for a project to be transferred from a pipe line phase to implementation, conducting a complete due diligence is a must to ensure the profitability of a project. Thus, a project with an estimated cost of EGP 60 Bn will definitely yield a multiple return of such figure, or else project will not be worthy financially. I am quite confident that Egyptian economy is a strong one and has a reputation of highly tolerating financial quakes and shocks stemmed from its strict applied fiscal and monetary policy that gives immediate warning signals towards any current / possible international or local economic malfunctions or crisis triggering a bundle of counter economic procedures / cautions that forms a protective layer around the economy’s main core.
That being said, I think Egypt’s economy did not collapse nor was suffering any signals of such phenomena during the past three years. Instead and as a reaction to the political turbulence that occurred and was accompanied by high level of doubts and uncertainties, economy was simply in a frozen or in hold modes. Most of the Egyptians whether ordinary / rich held to their money and savings but with different means and tools reflecting different financial cultures and backgrounds when dealing with money and its circulation cycle. Ordinary people were uncertain about the whole political and economic climates and ultimately its banking system fueled by negative rumors flying here and there over the past 3 years which lead many of them to hold back to their savings outside the normal course of the banking system lest the whole system might collapse and losing their money forever, nevertheless others cautiously opted to deposit minimum amount of their savings in the banks induced by enhanced savings rate imposed by different banks at different time intervals.
As for rich people, guess it was a complete different story stemmed from mainly two facts; first most of the international economic and financial rating agencies reflected the gloomy and uncertain financial climate in its negative unstable outlook towards Egypt’s economy. Secondly, some institutions based in Egypt requested their fees or expenses to be paid in US $. These two factors I assume triggered what is known economically by “dollarization” hiking the price of dollar to reach almost EGP 7 representing an increase of almost EGP 2 with 3 years period and devaluating the price of EGP as result of the gloomy uncertain political climate. Low interest on dollar saving accounts wasn’t economically the optimum choice by that time but it was the most cautious solution for many whom were designing an alternative plan of immigrating if things went wrong in Egypt.
Now, during the past three days and after the New Suez Canal Project succeeded in collecting almost EGP 30 Bn so far “according to official statements exactly talking about EGP 28 Bn as of Sep 9th “ , I assume this beloved country Egypt is still rich but another viable question seeking an answer, what enticed Egyptians to pour this huge amount of money with in this short time span?? Was it the charismatic leadership of Hon. POE Sissi and his deep belief in the Egyptians persistence, determination and capabilities if combined could truly be miraculous and conquer the impossible? Was it the patriosm of Egyptians and their passion of collective cooperation when it comes to their country while it is in need?? Was it the brilliant mechanism of pricing classifications that enabled all Egyptians with different economic capabilities from poor to rich to efficiently participate and have a lucrative return and at the same time having a sense of their importance and effectiveness in building their new country which they always dreamt about and aspired for, regardless and no matter of how few was their participation amount?? Was it the precise planning for the project and accurate booking for investment and investors by the early successful marketing campaign for the project through many road shows conducted by top niche officials incorporating the hon. POE??
Actually I highly think, reasons incorporate all of the aforementioned together. Guess Egyptians needed someone to unleash their patriotic capabilities and on top of all to believe in those capabilities and show them that by appropriate planning and determination, Egypt will move forward by the hands of all Egyptians regardless they are rich or poor.
Simply, Egypt needed someone to truly turn on the engine and launch its development and prosperity train and Hon. POE Sissi did so evidenced by launching this project and planning for many others, paying great attention to scientific thinking and research while designing decision making process through a specialized scientific consultancy council embarked few days ago, in addition to deciding to formulate several youth leadership and managerial lines in all country’s institutions, thus highly believing in Egyptian youth capabilities and talents as the true fuel for Egypt’s contemplated lucrative construction. My opinion if such spirit, support and encouragement continued, Egypt will be able to finalize successfully all of its contemplated projects and planned agenda for development transforming Egypt into a major economic tycoon within no time during the upcoming few years.