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Instability causes delays in economic projects in Egypt

January 30, 2014 at 11:31 am

Beji Group for Oil and Gas announced on Monday that the political instability, which has been plaguing Egypt ever since the military coup on 3 July, has resulted in the delay of its projects, thus causing declines in its expected production for the next year.

According to the group, the delay of its projects in Egypt and Norway would result in a 30 million barrel decrease of its daily production throughout 2014. 

In light of the continuous protests in Egypt, a number of foreign companies have actually suspended their work and evacuated staff to their home countries. They said that they are currently observing the situation.

After the bloody dispersal of anti-coup protesters in the Rabaa Al-Adawiya and Al-Nahda Squares in the middle of last month, two French companies evacuated foreign employees and their families.

Dutch oil company Shell closed its offices in Egypt for several days, and Swedish company Electrolox, which manufactures household electrical kits and employs around 6,700 Egyptians, closed its factories in Cairo and the surrounding neighborhoods.

American General Motors, which employs around 1,400 Egyptians, followed the same step as Electrolox. French Orange for Communications took special security measures for the protection of its 6,000 employees.

An economic survey revealed a large decline in the Egyptian economy as a result of the bloody turmoil. By last August the economy appeared to be in state of severe stagnation.

Market indicators measured by HSBC witnessed the worst decline in August since last December. It was the third worst month since the start of the survey in April 2011.

The survey, which includes 350 companies in the private sector, calculates the dividing line between growth and contraction. Scores continue to remain below 50 points.