INVESTMENT OPPORTUNITIES IN EGYPT 2009

Prepared By : AHMED ALY Under supervision of Dr : Sahra Khaleil

Background
High internal liquidity Low indebtedness Important recipient of Egyptian economy grew

FDI (direct and/or joint ventures): between $11 billion and $12 billion Strong domestic market Bilingual and young workforce: 32% of the total population is under the age of 14, while 63.5% of the population is between the ages of 15 to 64 Political stability

by 7.2% in FY 2007/08 For the year-end FY2008-2009, growth expected to be around 6%, and for the FY 2009-2010, around 5%

Key reasons to invest in Egypt

Low-cost labour force: 20% of UK costs Diversified sources of income: fees from the Suez

Canal, tourism, private transfers, and remittances, gas and oil/hydrocarbon exports Foreign-exchange reserves at a high level roughly at $33 billion Strategic location: gateway to Africa and the Middle East Access to one of the largest markets in the MENA region Low-cost energy Financial stability and strong banking sector

Key reasons to invest in Egypt (Contd)

Introduction of structural reforms to:

1.
2. 3. 4. 5.

Streamline bureaucratic procedures Tackle obstacles to higher growth Promote the privatization programme Improve the business climate Introduce multiple investment incentives targeting the upgrading of the business environment and modernization of the economy New natural gas reserves in the Mediterranean to develop the hydrocarbon sector

Sector Opportunities
1. New technologies 2. Infrastructure 3. Transport: a. Mass public transport b. Ports and airports 4. SMEs 5. Tourism 6. Consumer market: a. Consumer goods b. Retail 7. Commercial real estate development 8. Education and vocational training

New Technologies
Stimulation of new industries through technology

and business parks. Smart Village Cairo is the first fully operational technology and business park: 12,000 professionals run the operations of more than 100 companies. By the end of 2014, this number is expected to reach 80,000. Since 2006, innovative ventures under development: 1. Smart Village Cairo Financial District 2. Smart Village Damietta Business and Logistics Park

Infrastructure

ICT sector growing at 20% annually Sector attracting $1 billion in FDI each year Egypt sees the drivers for growth in the

partnerships with leading national and

international ICT players

Transport
Under the PPP Further investment in

framework, Egypt plans to build new cargo and railways Highly developed road network: linked by highways to several neighboring countries New infrastructure projects: 1. The Ahmed Helmy tunnel 2. El-Salam bridge (both connect the African and Asian sides of the Suez Canal.)

the development in infrastructure

Transport (contd)
Cairo international airports third terminal building

Home to more than 14 commercial ports

Handling more than 97.5 million tons of cargo a

year
First BOT (build-operate-transfer) and privately

run international airport is now operational at Marsa Alam

Other BOT airports are in construction in Ras Sidr

SMEs
Egypt has adopted a plan that aims to develop

the potential of about 4,000 small and mediumsized factories across the country. Trade and Industry Ministry and Federation of Egyptian Industries are developing a blueprint that involves helping factories in various industrial sectors to improve performance, productivity and quality of product. Blueprint will ensure the adoption of up-to-date production and management methods.

Tourism
Strong growth in the

tourism sector: 25% increase in tourist arrivals due to special offerings and affordable prices Increase in annual tourist arrival from 9.8 million in June 2007 to 12.3 million in June 2008 Sector represents 11.3% of GDP Employs 13% of the total workforce

Consumer market
Egypt has one of the most important and

promising consumer markets in the region

Attracting large international companies such as

Wal-Mart
Sector had a total of 40% growth rate over the

past three years

Egyptian consumer market is the first in Africa

and second in the Arab region

Commercial real estate development

Great potential for investment in the property

market: stable investment with good growth rates.

Low property prices starting at around only

30,000 such as in: Hurghada, Sahl Hasheesh

(Red Sea coast)
Less property taxes than in the UK British residents avoid inheritance tax on any

property in Egypt

Education and vocational training

World Economic Forum (WEF) Egyptian Education

Initiative (EEI): PPP initiative between the Egyptian government and WEFs ICT community to reform the education system: 1. 70% of the planned infrastructure achieved (connecting 2,000 schools to the internet, deliver 39,000 PCs to schools) 2. 65% of the training opportunities accomplished (train 64,000 teachers on ICT in education level) The Technical and Vocational Education and Training UK (TVET) project aims to enhance competitiveness of Egyptian enterprises on both the domestic and international markets through improving quality of vocational training, as well as quality and structure of Egypts labour force.

USEFUL LINKS
Arab-British Chamber of Commerce:

http://www.abcc.org.uk
Beltone Financial:

http://www.beltonefinancial.com
British Egyptian Business Association:

http://www.beba.org.eg
Egypt State Information Service:

http://www.sis.gov.eg/En/Default.htm
General Authority for Investment and Free Zones:

http://www.gafinet.org/index.htm
Ministry of Finance:

http://www.mof.gov.eg/english
Ministry of Foreign Trade and Industry: