Azerbaijan, Baku, Feb. 11 /Trend, A.Akhundov, A.Tagiyeva/
Despite that the events in Egypt could lead to regime change and implementation of reforms in the country, they have already adversely affected the economy of the Arab world, said a Jordanian economist and analyst Fahmi Kotout.
"The events in Egypt had a negative impact on the investment attractiveness of the country," Kotout told Trend on Friday in a telephone conversation from Amman.
"This region has become dangerous for investments," said Kotout.
Large-scale anti-governmental protests are ongoing in Egypt. Thousands of people in different cities across the country have taken to the streets, demanding President Hosni Mubarak's resignation and the dissolution of parliament. The unrests in the country have killed at least 300 people and have injured over 4,000.
Mubarak made a statement and promised that he would not run for a sixth term as president in the upcoming September elections.
Several opposition leaders were not satisfied with promises of the president and continue to demand his immediate resignation.
During the demonstrations, Egypt has lost at least $12 billion. Since the beginning of demonstrations, for two weeks all banks and stock exchanges have been closed in Egypt. According to estimates of the Organization for Economic Cooperation and Development (OECD), the economy of Egypt lost about $90 million from the Internet blockade. Only during the first days of unrests, economic losses exceeded $11.8 billion.
According Kotout, given that the economic institutions in Egypt have been paralyzed and many foreign companies have closed their branches in the country, it is possible to conclude that foreign investors are not in hurry to restore cooperation with Egypt.
He also believes that the economic crisis in Egypt will not complete soon and it is likely that the similar situation in this country will continue even after a change of the government.
"The damage to Egypt's economy during the past three weeks is enormous and the economic recovery will take time," said Kotout.
He also added that the priorities of the new government will also include implementing economic reforms aimed at improving the economic situation in the country and attract foreign investments.
"There is no doubt that the new government will implement new economic reforms, and improve the economy with the support of other countries," he said.