Posts Tagged ‘Egypt’

Foreign Business Flees Egypt

Tuesday, February 1st, 2011

cars-burnt-cairo.jpg
credit: Tom_El_Runi

The people have taken over the streets in Egypt and demanded change… but the change they’re getting is a military presence and a complete shutdown of Internet and mobile networks. What will all of this mean for the country’s economy?

  • Foreign companies are evacuating employees and shutting down plants in Cairo and around Egypt. They’re losing money every day, buy no one is sure when they’ll reopen.
  • Moody’s – a credit rating agency that tells investors which companies and countries seem safe to invest in – downgraded Egyptian bonds by 1 notch and changed its official country outlook to “negative.”
  • In response to the crisis, the price of oil went up – not because Egypt is an oil producer, but because it controls an important canal that bring Middle Eastern oil to the rest of the world.

Facts & Figures

  • Some of the companies evacuating Cairo: GM, Google, Coca-Cola, Heineken, Unilever, Citigroup, HSBC, Nestle
  • One of Google’s local marketing employees has been missing since the protests began

Best Quote

“The safety of our employees is our primary concern and we are taking all necessary measures to ensure everyone’s safety.” – Kenth Kaerhoeg, Spokesman for Coca-Cola

What do you think?

Did you know there were so many American companies with offices in Egypt? Do you think businesses have an obligation to stick around in countries where they earn money?