South Korean electronics giant makes fresh Egypt commitment (Photo: Samsung)
South Korean electronics giant Samsung will invest LE1.7 billion ($279.3m) building its first Egyptian plant in Beni Suef in a move that will create 1,400 new jobs.
Samsung signed a contract with Egyptian officials at a Tuesday conference held by the General Authority for Investment (GAFI) in Cairo.
The company will eventually invest LE9 billion in a series of new factories in the governorate, just south of Cairo, Egypt's state-run MENA news agency reported.
Samsung's first factory in Egypt will also be its first in the Middle East and North Africa and is set to begin production in the first half of 2013. It will export locally assembled electronics devices to other Arab countries.
Lamia Ahmed, Beni Suef governorate's investment director, said the first factory would be built in three stages. The first and second would cost LE600 million each, and the third LE500 million.
It will create an estimated 1,400 jobs and a further 2,000 indirect opportunities.
Samsung saw sales for the Middle East and North Africa climb an annual 44 per cent in 2011, reaching $134 billion, a record-high for the firm.
Beni Suef governor Maher Bebars said during the conference that Samsung's investment showed its trust in Egypt's economy and stability.
Egypt has struggled to attain foreign investors since the early 2011 uprising prompted a wave of economic turmoil. President Morsi has said attracting overseas investment is one of his major long-term priorities.