This is the first time that an international company is producing water pumps and other equipment in Egypt, the trade minister noted.

The factory was established in partnership with an unspecified Egyptian company.

The new factory will produce products for the Egyptian market, with 50 percent of its production to be exported to foreign markets, especially the Middle East and Africa, the minister added.

The first phase covers 4,000 square metres and has a production capacity of 2,000-4,000 water pumps annually. When complete, the factory will cover a total area of 9,000 square metres.

The pumps will see use in irrigation, central heating and air conditioning systems, commercial building services, as well as other industrial applications.

Vincent Chirouze, Xylem’s regional director, said that the company’s more than 50 years of experience in the Egyptian market led it to open last year an office in Egypt to serve the local and North African markets.

Chirouze explained that Xylem’s experience in Egypt includes work on the sewage treatment plant in Abu Rawash, the Bank of the Mediterranean wastewater treatment plant, and the rehabilitation and development of the Alexandria sewage treatment plant.

Xylem has also done work on heating, air conditioning and water lifting units in the New Administrative Capital; water systems for New Alamein; and an irrigation project in the Toska area.

Attracting foreign investment

The Egyptian government is currently seeking to attract more foreign investments and increase the private sector's participation in public investments, providing a host of facilities to investors and businessmen.

Most recently, last week the Egyptian Supreme Council for Investment approved 22 decisions , including granting licenses and implementing a range of legal reforms.

The decisions aim to simplify the process of setting up a business by reducing costs, making approvals more straightforward, and shortening the amount of time it takes. Additionally, they seek to expand the scope of the Golden License programme.

The council has also introduced incentives for investors in different sectors and has prepared draft resolutions for changes to legislation. It is up to the government to create and present these resolutions to parliament for discussion and approval.