Productive economic summit comes just in time for struggling Egypt

Hundreds took to the streets to celebrate, and the prime minister was in tears and the president led chants of “Long live Egypt!”

These scenes don’t describe a major policy achievement, nor do they refer to a sporting or military victory. Instead, this outpouring of emotion came after the Egypt Economic Development Conference, which took place in mid-March in the Red Sea resort town of Sharm El-Sheikh.

Much was made of the conference in the lead-up, and by all accounts it exceeded expectations. At the forum’s culmination, Prime Minister Ibrahim Mahlab announced $36.2 billion in signed investment agreements. The investment can be sourced both to Persian Gulf powers like the Saudi Arabia, Kuwait and the United Arab Emirates and also Western nations like the United States, France, Great Britain and Italy. It is an impressive haul from a variety of sources, as well as a tacit endorsement of President Abdel-Fattah el-Sissi, who took over power in a military coup back in 2013.

More than anything, though, this was a victory for a nation that has seen their economy crippled by violence and a rotating cast of leaders over the past five years. The birthplace of the Arab Spring has suffered many unforeseen consequences, and the announcement of so much foreign investment provided rare respite for a nation still wary of extremist violence.

El-Sissi was no doubt relieved at the conference’s success, since his presidency has hinged on returning Egypt to economic prosperity. Despite the fact El-Sissi ousted the Islamist Mohamed Morsi in 2013 and has hunted down his followers, the Muslim Brotherhood, ever since, world leaders, as well as international institutions like the World Bank and IMF, approve of the job he has been doing.

Richard Attias, whose consulting and event management firm Attias & Associates organized the conference, said that “with 22 heads of state and 3,500 delegates, it’s the largest summit of CEOs and world leaders I’ve ever seen.” High praise from a man who organizes the World Economic Forum in Davos, the New York Forum AFRICA, as well as many other summits across the globe.

The vast majority of the deals related in some way to energy, with a $10.5 billion contract with German company Siemens to update Egypt’s lagging electrical grids taking on special significance. There were also many smaller deals for renewable energy and solar power.

"We are behind, and those who are late must either speed-walk or run," el-Sissi said in his closing speech. “Never underestimate your capacities to work for the sake of your country."

For a conference that prioritized multinational private investment relationships, it’s no surprise that the overarching theme of the conference was privatization. Under the longtime autocrat Hosni Mubarak, Egypt succeeded in many ways economically, but much of the profits failed to reach the majority of the population. El-Sissi and the foreign influencers believe that with greater privatization comes greater “inclusive growth” and less bureaucratic barriers.