The Egypt Automotive Summit is a great annual opportunity to exchange ideas and views for the development of the automotive industry, said Hamdy Abdel Aziz, the chairperson of the Federation of Egyptian Industries’ (FEI) Chamber of Engineering Industries.
Ahead of the summit, Daily News Egypt sat down with Abdel Aziz to discuss his thoughts about the state of the automotive sector and its future.
What themes are most important when discussing the future of the automotive industry?
The automotive industry strategy is the most important theme that should be discussed among attendees of this year’s summit, given that the automotive sector has been absent in the government’s vision in recent years.
The increase in car prices is another topic that should be discussed, as it has resulted in a decline in the targeted segments and has decreased the market’s sales, which has also hit the automotive maintenance and services sector. This problem raises questions about how this sector will move forward given the effect of the pound’s devaluation on the import of spare parts.
What are your thoughts on this year’s summit?
The Egypt Automotive Summit is a great annual opportunity to exchange ideas and views for the development of the automotive industry. I think that the automotive industry strategy and the increase in car prices are of the most important topics to be discussed during this year’s summit.
What are the main challenges facing the automotive sector?
The most important matter facing the automotive sector is the much needed issuance of the automotive industry strategy.
What is your vision for investment opportunities in Suez Canal Economic Zone?
The existence of a government vision for the automotive sector will put pressure on automotive companies, whether local or global parent companies, to export cars and components. This aims to take advantage of trade agreements that remove customs barriers for participating countries, which will make the zone a premiere destination for companies.
The strategy will also provide investment opportunities for global companies awaiting an improved investment climate.
What do you think of the tax and customs systems and their impact on the automotive sector and feeder industry?
The strategy will certainly the reconstruct customs and tax systems.
What do you think of the Central Bank of Egypt’s (CBE) decision to float the Egyptian pound?
I believe that the CBE’s decision is long overdue to eliminate the existence of two prices for the currency, which has negatively affected the pricing process and created difficulty in providing foreign currencies.
The decision is expected to open the door to foreign investment, especially following the dissolution of the challenges that faced foreign investors.
This decision will reflect positively on Egyptian exports, as it would give local products a competitive price in the global markets.