MOU......What Does It Mean?
A MOU is an official document that describes the broad outlines of an agreement that two or more parties have reached. It is considered a framework of understanding to start joint work with the parties to the agreement, rather than a legal obligation. In other words, it is an alternative way to official agreements and contracts and can be amended later.
On Saturday, September 16, 2023, the General Authority for Investment and Free Zones (GAFI) announced the signing of MOU between Mr. Hossam Heiba, CEO of the GAFI, and Mr. Jimmy Chiang, Associate Director-General of Invest Hong Kong.
It is worth noting that this MOU was signed on the sidelines of the activities of the Eighth Belt and Road Summit in Hong Kong, which witnessed the presence of representatives of ministries and trade and investment promotion entities in East Asia and the Arab region, and a number of companies interested in investing in the Middle East. Mr. Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, also attended during signing the MOU.
What did the Two Parties agreed in the MOU?
It was agreed with InvestHK and the Hong Kong General Chamber of Commerce (HKGCC) in China to organize visits to Egypt for representatives of financial and industrial companies headquartered in Hong Kong to discover the investment opportunities available in Egypt and learn about the existing projects there.
Objectives
The MOU aims to strengthen the close relationship for the mutual benefit of Hong Kong in China and Egypt, and enhance their cooperation in promoting inward and outward investments in the two countries.
The MOU focuses on sharing information on the business environment, investment opportunities, and technical experiences in attracting foreign investments, as well as, encouraging interested local companies in setting up or expanding their businesses within the area of the other jurisdiction.
The Two Parties’ Speech
During the summit sessions, Mr. Hossam Heiba stated that the Egyptian government has taken decisive measures to improve the investment environment and attract many new investments, such as emerging, medium, and large projects in various economic sectors.
He completed his speech by saying that among the most important of these measures is the inclusion of the service sector in the activities benefiting from the private free zones and granting the golden license, which is a comprehensive license for all permits required to establish companies and factories and start work, to four companies: BLM & Africa for medical dressings, Red Sea for wind energy, Gennvax Egypt for vaccines, and Midea Electric Egypt, bringing the number of companies that obtained the golden license to 22.
He also pointed to the successful cooperation between the Egyptian and Chinese governments, which resulted in many projects implemented by the Chinese government within the framework of the Belt and Road Initiative, especially the Suez Economic and Trade Cooperation Zone project in the Suez Canal Economic Zone implemented by TEDA.
In addition, he stressed that this MOU will encourage economic cooperation between Egypt & Hong Kong, encourage bilateral investments from both countries and enhance mutual visits by business delegations to explore investment opportunities. He also called on Chinese companies to continue investing in Egypt, especially in the textile, household appliances, automobile components, and petrochemical industries.
Mr. Jimmy Chiang stated that Hong Kong, a strategic international hub of the Guangdong-Hong Kong-Macao Greater Bay Area, offers an efficient, reliable business platform, bringing the Mainland and the rest of the world together.
It is clear that this MOU will increase investment movement between Egypt and China and increase Chinese projects in Egypt, which will greatly affect the Egyptian economy and increase national income. To learn more about this MOU, click here or here.
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