Sisi leaks threaten economic development conference

Leaked recordings of Egyptian President Abdel Fattah al-Sisi appearing to make offensive remarks about the wealth of Gulf Arab states will likely affect the upcoming Egyptian Economic Development Conference, local analysts report.

The conference is scheduled to be held in the coastal Sinai city of Sharm al-Sheikh in March.

Conference organisers already face a number of challenges including the deteriorating security situation in Egypt, delays to the proposed "Unified Investment Law" - which purportedly aims to boost investment in remote parts of the country - delayed parliamentary elections, a drop in oil prices, and poor planning all round.

Economist Abd al-Khaliq Farouq told al-Araby al-Jadeed Sisi's comments would damage relations with Gulf Arab donors, especially Saudi Arabia, the United Arab Emirates and Kuwait. It will also damage Egypt's attempts to reconcile with Qatar.

In the recordings Sisi describes Gulf countries as "half states".

Gulf countries may limit their participation in the conference because of a strong public reaction against the leaks.

Farouq explained that Gulf countries may limit their participation in the conference because of a strong public reaction against the leaks after they were spread on social media.

Economic expert Mukhtar al-Sharif told al-Araby that, if genuine, the leaks directly threatened the conference because Gulf Arab countries are the main players attending.

Abd al-Nabi Abd al-Muttalib, another economist, said the economic conference's chances of success were limited by the rapidly deteriorating security situation. Protesters, for example, have begun targeting the outlets of companies such as KFC and Mobinil, which is not encouraging for local or foreign investors.

The drop in oil prices will also affect Egypt's ability to secure the target $12 billion from the UAE, Saudi Arabia and Kuwait, due to their own budgetary constraints, said Abd al-Muttalib.

The death of Saudi King Abdullah bin Abdulaziz al-Saud might also lessen Saudi Arabia's interest in supporting Egypt economically, especially as the late king was the conference's official patron.

The Egyptian government has largely ignored the private sector in the planning and promotion of the conference, causing many to view the state as a competitor to the private sector rather than as trying to strengthen it.

This article is an edited translation from our Arabic edition.