Investors: 40% of factories in Egypt closed due to dollar crisis

The increase in the value of the dollar, which has surpassed 13 Egyptian pounds, has forced factories to close and business owners to call on the government to stop this crisis.

Chairman of the Bilbes Industrial Assembly, Abdullah Al-Ghazali, said a majority of factories in the province have had to shut down, with only 190 of the 400 factories operating.

The remaining 210 factories have either shut down or are under construction, but work had to stop due to the difficult economic conditions and the high cost of the materials needed.

He pointed out that the facilities announced by the government to support small and medium enterprises are worthless in light of the failure to provide adequate funding and with the rising value of the dollar.

Head of the Sadat Investors Association, Arafat Rashid, said the ongoing rise in the value of foreign exchange against the Egyptian pound has led many factories to shut down.

“As many as 500 factories in the Sadat Industrial City operate at only 60 per cent of their maximum production capacity.”

Investors have warned that the crisis would force more factories to close.