[ 2011-10-02 ]

Egypt 'committed to free market' after investor fears
CAIRO (AFP) - Egypt's deputy prime minister said
on Sunday that his country was committed to a free
market economy, after the ownership of three
companies was returned to the state, sparking
fears among investors.

"The government will not backtrack on a free
market economy," said Hazem al-Beblawi, who is
also the interim government's finance minister.

On September 21, the Cairo Administrative Court
suspended the privatisation contracts of three
companies, returning them to the public sector.

The sale of the companies -- Shebin Textile
Company, Tanta Linens and Al-Nasr for Steam
Boilers -- had been contested in court by the
Egyptian Centre for Economic and Social Rights
(ECESR).

The ECESR had argued that the companies were sold
illegally under the ousted regime of Hosni Mubarak
for prices far lower than their real value.

The September court ruling raised fears among
foreign investors that Egypt was heading towards a
policy of nationalisation.

Beblawi told reporters that the government
"respects all its previous agreements and
contracts with the private sector, as long as the
deals were conducted within the law."

He said that the January 25 uprising -- which
toppled Mubarak in February -- "worked to restore
Egypt as a country of law, so all the court
rulings will be implemented."

"This is the first step in restoring trust in
Egypt's investment climate," Beblawi said.

The country's political and economic outlook has
been mired in uncertainty since Mubarak was ousted
and power passed to the Supreme Council of the
Armed Forces (SCAF), which is led by Mubarak's
long-time defence minister.

Heightened frustration at the military rulers'
handling of the transition has led to protests,
strikes and sporadic clashes.

Last week SCAF laid out the timetable for the
first post-Mubarak parliamentary elections which
will start on November 28 and take place over four
months.

Source - AFP

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