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Egyptian-Kuwaiti relations
Privacy, Uniqueness, and a Register full of achievements
A summary of the dialogue carried out during the meeting between His Excellency Dr. Rasheed Hamad Al Hamad, Kuwait's Ambassador in Cairo, in his office at the embassy on Thursday, March 31, 2011, with the Oil and Gas World Magazine delegation represented by Mr. / Mohamed Hassan Abed Rabbo, the head of the Middle East Center for Energy Information and the Oil and Gas World Magazine. |
Our dialogue in this magazine issue is carried out with a man of a long and full history. He is the ambassador Dr. Rasheed Hamad Al Hamad, the modest scientist who graduated from Alexandria University in 1968 where he studied science, chemistry, and geology, then continued his postgraduate studies at Southampton University in the UK to obtain his PHD in the development of technical guidance and Sciences in 1989.
For years, Dr. Rashid Al-Hamad has worked in the education sector and the areas of teaching, guidance, planning and educational research, and continued his career until he held the offices of the Minister of Education and the Minister of Higher Education in Al – Kuwait within the period from 2003 till 2006. Dr. Rashid Al-Hamad, whom the close call him (Abu-Hamad) and the former Minister of Education and Higher Education in Al – Kuwait, is currently the Kuwaiti Ambassador in Egypt, and is also the non-resident Ambassador of Kuwait in the Republic of the Comoros.
Dr. Al Hamad has a full register regarding the membership of educational institutions and professional associations in Kuwait, the educational committees and councils in the Gulf region as well as the membership of the Higher Education Council Board of the Arab Gulf States in 1999. Besides, he participated in and chaired the committees of deciding the sciences curriculums and curriculum development in Kuwait. Moreover, he oversaw the development of science curriculums in the Gulf States. In addition to his numerous writings in the educational field, he is a main lecturer and participant in the international forums and conferences dealing with the educational and scientific areas.
He is the worthy son of the education sector in Kuwait, known for his expertise and rectitude and known for his simplicity, modesty and altruism. As he deals with people with politeness and open-door policy, he is meant by many in Egypt to solve their problems, and therefore he enjoys the love and respect of all who has dealt with or knew him.
His work as the ambassador of Kuwait in Egypt, the numerous visions concerning the Egyptian issues and the Egyptian street whether before or after the youth revolution of January 2011 became available to Dr. Rashid Al-Hamad. Besides, he has an opinion regarding the events that Egypt and the Arab region have witnessed recently in addition to having a vision about the course of events in the Arabian Gulf and the role of the Arab Gulf States Cooperation Council in supporting stability in the region. Moreover, he has a vision concerning the nature and course of relations between Egypt and Kuwait, the cooperation areas between the two countries and the role of Kuwait, the Kuwaiti investments and the Kuwaiti Fund to support the Egyptian economy and the Egyptian Stock Exchange and the oil sector. By virtue of his experience and friction with leaderships and decision-makers, he is optimistic about the economic future of Egypt.
The Oil and Gas World Magazine has tried to monitor the Ambassador's views regarding the above mentioned issues.. And it makes the following dialogue:
His Excellency the Ambassador Dr. Rashid Al-Hamad .. Within the context of your living through the conditions in Egypt, do you feel a difference between Egypt before and after the revolution?
Dr. Rashid Al-Hamad: I myself felt a significant change in the vision and dealing of people with various matters; I felt a change in the sense of the simple ordinary citizen of security. Moreover, during and after the revolution, a kind of political movement appeared where participation of all sects in the political matters is evident, and the circulation of any topic in all media means freely and without fear became possible, and the dialogues were all based on freedom of opinion and respect of the other opinion.
The revolution showed that the Egyptian people have a rare degree of awareness and knowledge of the happenings of political life, but people were busy with earning their livings for many years during which they forbore the hardships of living until they had the chance to change. Matters in Egypt have now become normal, and people run the country. It is wonderful to see matters in Egypt after the revolution go in an unparalleled normal and civilized way by the Egyptian people themselves. I am sure Egypt will emerge from these events stronger than it was, and regain leadership.
HE the Ambassador.. it may be useful to the readers of the magazine, who most of them are specialists in the fields of economy and energy, to clarify to us your vision of the nature and course of relations between Egypt and Kuwait together with the cooperation areas between the two countries.
Dr. Rashid Al-Hamad: the relationships between our countries are old and distinct, and have characteristics and properties that confirm the depth of the formal and popular correlation between the two countries. Over their long history, these relations have been characterized with the conformity of views on the vital issues of concern to Arab and Islamic nations and which are based on the stability of attitudes and clarity of visions. This is confirmed by the mutual visits between the two countries both at the official level and at the popular level. These relations gained a strong boost within the context of the conditions of the Iraqi aggression against Kuwait after Egypt had confirmed its rejection of aggression and its defending of the Kuwaiti right, exactly like the Kuwaiti stance with Egypt during the aggression in 1967 and the war in October 1973.
Perhaps the privacy that has characterized the relations of the two countries is what has helps them to grow fast and become stronger and stronger. The Joint Egyptian-Kuwaiti Committee – during its annual meetings in Kuwait and Egypt alternately – carries out an important role in the revitalization of the bilateral relations in all (security, economic, educational, cultural and political) aspects. Kuwait is engaged with various cooperation protocols between the institutions working in these areas and their counterparts in Egypt. In 1998, the High Joint Committee was established between the two countries to achieve the greatest possible mutual coordination and cooperation in numerous fields.
On the economic side, the two countries have signed their first agreement in April 1964 followed by several other agreements including the agreement signed between the Chambers of Commerce in June 1977, the Economic and Technical Cooperation Agreement in 1998 and the technical cooperation agreement in the fields of specifications, standards and quality control in the same year and the Kuwaiti investments in Egypt have occupied a main position. Kuwait is also considered a big market for Egyptian labor, a mall, and an important outlet for Egyptian exports.
There are various areas of cooperation between the two countries; at the economic level the Egyptian labor plays an important role in Kuwait. On the other hand, the Kuwaiti investments in Egypt play their role in turn since the fifties, and penetrated into most investment areas through the Kuwaiti shareholding in more than 500 companies in Egypt. The Kuwaiti companies including Al-Khorafi, Babtain, Mena and Al Louloua and other companies contribute in many and varied projects in Egypt and this applies to the areas of agriculture, food, tourism, oil, real estate and other areas.
- The Kuwaiti Fund for Economic and Social Development has an important role in supporting the economies of developing countries. Can you clarify to the reader the role of the Fund in supporting the Egyptian economy and thus guiding the relations between Egypt and Kuwait?
Dr. Rashid Al-Hamad: By the end of this year 2011, the Kuwaiti Fund for Development will have completed fifty years of continuous work regarding the assistance of the Arab countries and other developing countries in the development processes and improving the living standards. The Fund assistance involves more than a hundred developing countries, including 16 Arab countries of which Egypt comes in the forefront. This assistance came in the form of soft loans to finance important development projects as well as providing technical assistance related to these projects.
The Kuwaiti Fund for Development is considered a key focus of cooperation between the two countries where the Fund presents 32 loans which worth $ 1.7 billion to Egypt in order to finance various projects, as well as introducing technical aids and grants to support human development programs in Egypt. In its activities, the Fund focuses on sectors such as agriculture, water, education, health and financing the programs of local development banks and social funds, given their concrete positive effects on providing food, improving living standards, creating new job opportunities contributing to the reduction of unemployment and strengthening the achievement of the desired development goals. The Kuwaiti Fund continues to provide large-scale assistance to projects in Egypt. There are approximately forty projects contributed by the Kuwaiti Fund since the start of its work in Egypt.
The Fund has contributed to support many development projects in Egypt in a variety of areas, particularly the field of electricity in addition to natural gas, education, health, and drinking water as well as the Fund support for agriculture, industry, tourism and other fields. The Fund has a leading role in the project of deepening and developing the Suez Canal stream in order to allow the giant vessels to pass through the canal, in addition to the project of delivering the Nile water to Sinai passing through the Sheikh Jaber canal which helped to plant 400 thousand acres in the land of Sinai.
Given that the relations between our countries enjoy privacy and distinction, this privacy is reflected on the cooperation relations between the Kuwaiti Fund for Economic and Social Development and the successive Egyptian governments; this is clear from the Fund contributions in financing development projects in various fields in Egypt.
What about the role of Kuwait in Egypt after the revolution of January 25th, and are there any new directions in the near future that will support the relations between the two countries?
Dr. Rashid Al-Hamad: In fact, the areas of cooperation between Egypt and Kuwait are varied and renewable. In April 2011, a large delegation consisting of thirty persons including businessmen, the private sector and the Kuwaiti economists headed by Ali Thunayan Alghanim, the Chairman of the Kuwaiti Chamber of Commerce and Industry will come to Egypt. The Kuwaiti delegation will meet the Egyptian Prime Minister Dr. Essam Sharaf, a group of ministers and experts and the Egyptian Federation of Commerce and Industry Chambers. It is due that the Kuwaiti delegation will discuss with its counterparts from the Egyptians the new opportunities of investment in Egypt. We rely too much on this visit to support the cooperation between the two countries, and I expect that this visit will have great effect in supporting the Egyptian economy in the next phase.
On the other hand, the Field Marshal Hussein Tantawi has received a letter from the Deputy Prime Minister and the Foreign Minister Sheikh / Dr. Mohammad Sabah Al-Salem Al-Sabah from His Highness the Emir of Kuwait on the bilateral relations and the developments in the region. The letter emphasizes the necessity to communicate between the two countries in various fields and in all cases due to the status enjoyed by Egypt in its Arab medium and its fundamental role in supporting the region issues. The Marshal thanked Kuwait and its Prince for this initiative and stressed that Egypt would keep its stance towards its Arab brothers, despite the critical internal conditions.
HE the Ambassador Dr. Rashid Al-Hamad, the former Minister of Education and Higher Education in Kuwait.. How do you see the future of cooperation between Egypt and Kuwait in the field of education, does it go forward or backward?
Dr. Rashid Al-Hamad: The educational and cultural cooperation occupies a privileged position in the bilateral relations, there are more than 12 thousand Kuwaiti students studying in Egyptian universities. Besides, there are cultural exchange agreements between the two countries as well as the old cultural cooperation between them. Therefore, the Kuwaiti role in Egypt is growing continuously. In this regard I would like to say, for example, that in the field of education, there were rumors about Kuwait dispensing with Egyptian teachers. I emphasize that these rumors are not true, and that Kuwait will continue to employ Egyptian teachers, and a committee was formed for the selection of Egyptian teachers because we have strong relations with Egypt in all fields, including education. There are thousands of Egyptian teachers, who work in Kuwait, and there are about 12 thousand Kuwaiti students studying in Egypt and they resumed their studies in Egypt after the end of the revolution.
For many years Egypt and Kuwait have strong relationships in the cultural, media, technical, and educational fields. The relations between our two countries, in both formal and popular terms together with the feelings of friendship and mutual respect represent a living example of what the relations between the states should be.
Concerns were predominating the Egyptian Stock Exchange forecasts because of the being closed for a long time. How do you see the beginnings of work in the Egyptian stock exchange, and how can it serve as a means to strengthen cooperation between Egypt and Kuwait?
Dr. Rashid Al-Hamad: There were many fears of the Egyptian stock exchange collapse, but thank God this did not happen; we in Kuwait are fully aware of what is meant by stock market crises and we have our previous experiences in this area. On the basis of our experiences and awareness of the situation, Kuwait was keen on saving the Egyptian stock exchange, encouraging investments and extending a helping hand in the crisis caused by the events of the revolution.
I myself have followed the re-opening of the Egyptian stock exchange and went there to meet the invitation of its Director Mr. Mohamed Abdel-Salam in the second trading day after the re-opening to encourage people there to continue the trading activities and to reassure the Kuwaiti support to Egypt and its support to all efforts aiming at strengthening the Egyptian economy, and I participated in hitting the bell indicating the beginning of trading. In its second day, the stock exchange was in a better situation compared to the first day, and the future looked promising. The beginnings were strong despite the fears that overwhelmed the dealers because of the long period of closure of the stock exchange and the potential impacts on the general climate of investments in Egypt.
Protests spread in many countries of the region, and recently in some Gulf countries, including Kuwait, Bahrain, Saudi Arabia and Oman. What is the role of the Gulf Cooperation Council in supporting stability in the region?
Dr. Rashid Al-Hamad: In fact, the GCC is considered a large system with a significant positive role in confirming stability and cooperation between the Member States and with the neighboring countries. The Cooperation Council for the Arab Gulf States is essentially an Arab regional organization consisting of six member countries overlooking the Arabian Gulf which are Saudi Arabia, UAE, Kuwait, Qatar and the Sultanate of Oman and the Kingdom of Bahrain. The Council aims at achieving coordination, integration and interdependence among the Member States in economic, political, educational, and military areas, thus achieving their unity.
The Joint Peninsula Shield forces consist of a set of military forces aiming at protecting the system of the Gulf Cooperation Council countries, and keeping stability in the region. The Peninsula Shield forces had recently met the Bahraini invitation concerning the presence in its territories to protect the citizens, properties and strategic constructions as it took part in the liberation of Kuwait operations in the past. These forces have been established upon the decision of the Supreme Council of the Cooperation Council at its third session in Manama in November 1982 and are headquartered in the province of Hafr El Batin in Saudi Arabia in King Khalid Military City near the Kuwaiti - Iraqi borders.
As the GCC is seeking stability maintenance in the region regarding security and political aspects, it also seeks to maintain the economic stability in the Gulf region, and in order to achieve this target, it supports all that would maintain stability in global energy markets, which severely affect the economies of Gulf countries. This stems from its long-term outlook that takes into account the interests of all parties and as a guarantee of energy security from a strategic perspective. The figures indicate that the Council States have allocated more than $100 billion to develop oil projects during the period from 2010 to 2015 in a way that guarantees the meeting of the rising oil demand at the global level, which thus means the achievement of strategic energy balance between supply and needs.
What is your opinion on the nature and future of the cooperation relations between Egypt and Kuwait in the fields of oil and natural gas? Will Kuwait participate in the upcoming "Enter Gas 6" conference to be held in Cairo in May 2011?
Dr. Rashid Al-Hamad: In fact, the role of Kuwait continues in this sector as is the case for the rest of economic sectors, and the interviews with officials and their counterparts are persistent in order to facilitate the entry procedures of Kuwaiti companies to Egypt to work in the oil sector. There is a large sector of investors working in the sector in a good and regular way, especially that Egypt enjoys a strategic location as it is safe passage area for oil and gas shipments and has promising oil and gas discoveries.
In general, Kuwaiti investments primarily goes towards the industrial field, followed by tourism then the financing field then communication and information followed by construction and finally service areas. In the energy sector, there are two agreements and a project to help finance the project of natural gas distribution networks expansion in the governorates of Cairo and Giza in Egypt. In the oil and gas sector, there are many Kuwaiti companies with branches and activities in Egypt with the Kuwaiti Foreign Petroleum Exploration Company (KUFPEC) and Kuwait Energy Company in the forefront.
The Kuwaiti Foreign Petroleum Exploration Company (KUFPEC) is a subsidiary of the Kuwaiti Petroleum Corporation. KUFPEC carries out oil exploration and production operations outside Kuwait, and is currently conducting exploration operations in many areas of Africa, the Middle East and the Far East. KUFPEC has started its operations in Egypt in 1985 in Al Amal field in the Gulf of Suez, and was able to achieve gas discoveries in the Nile Delta. Kuwait Energy Company also works in Egypt and is seeking to produce large quantities of oil and gas from different regions of the world focusing mainly on the Middle East. In Egypt, Kuwait Energy Company have oil projects in the Western Desert of Egypt.
As for the upcoming EnterGas 6 Conference, which will be held in the conference hall in Cairo from 10th to 12th May 2011 and will be inaugurated by the Egyptian Oil Minister Dr. Abdullah Ghorab, I am personally keen on attending the inauguration of this conference, which will also be attended by Kuwaiti companies including the Kuwaiti Foreign Petroleum Exploration Company (KUFPEC), and Kuwait Energy Company which is considered a founding sponsor of the conference.
Therefore the mentioned conference is a great opportunity for Egypt and the oil companies to meet Arab and international oil and gas companies; a chance to open up new investment prospects as the conference will include topics will include exploration, production and transportation in the oil and gas field and petrochemical products, and will be attended by large global companies such as Shell, Schlumberger and Baker Hughes, as well as the fact that many local and international oil experts will review and discuss specialized researches and studies of the conference. I hope that during this conference, the Egyptian companies can gain new opportunities for investment in oil and gas sector to help the Egyptian economy to overcome this transitional phase after the revolution of January 25th.