Message to investors
“Egypt has always been a key player in the region given its
strategic location, population, historical and
cultural influence. The immense efforts undertaken by the
government since 2014 have restored Egypt’s regional and
international leverage and have enabled it to reinforce its
significant role and fulfill its responsibilities ….”
“… The African continent is the continent of opportunities,
which could be a new locomotive for the world economy,
especially after the launch of the operational phase of the Continental Free Trade
Area, as well as the development of an ambitious
infrastructure strategy to strengthen regional integration“Â
H.E. Abdel Fattah El-Sisi
President of Egypt
WHY EGYPT ?
- Africa’s leading economy with population exceeds 100 Million people is the highest in Middle East and 2nd in Africa.
- 3rd highest GDP in Africa at USD 300 Bn by 2020.
- Strategic location with access to Europe, Middle East and Africa.
- Access to exceptional talent pool.
- Ambitious 2030 Vision.
- Strong economic reform program.
The Egyptian government’s ambitious Vision 2030
has 4 key pillars that will benefit the investorsV I S I O N
Economic Development
By 2030, the Egyptian economy will be a balanced, knowledge based, competitive, and diversified market economy, characterized by a stable macroeconomic environment, capable of achieving sustainable inclusive growth.
Knowledge, Innovation & Scientific Research
A creative and innovative society producing technology and knowledge, within a comprehensive system that values the significance of knowledge creation in achieving development and overcoming challenges.
Social Justice
By 2030, Egypt will be a fair, interdependent society, characterized by equal economic, social, political rights and opportunities, to attain social inclusion.
Environment
Environment is a factor that is integrated in all economic sectors to optimally utilize natural resources, while ensuring next generations’ rights.
Liberalizing the Exchange Rate System
In Nov. 2016, the Central Bank of Egypt (CBE) liberated the Egyptian Pound to improve competitiveness, increase attractiveness to Egypt, as well as promoting exports and tourism.
Reducing
Energy Subsidies
The Egyptian government has announced the plan to reduce subsidies on energy which will free up resources that can be allocated to high-priority areas such as education, health and social safety networks.
Reviving the Economy
by Boosting Growth
Egypt aims to improve its business climate by implementing reforms to eliminate bureaucracy, ease the required procedures to obtain licenses for projects, and facilitate finance accessibility for Small and Medium Enterprises (SME).
A Global Location
- Egypt is a perfect investment destination due to its strategic location and qualified workforce.
- Investors in Egypt enjoy high returns, the support of a strong financial sector and a positive outlook for economic growth. Additionally, they are backed by a strong leadership committed to transition and reform.
- Its unique geographic location, and being the second largest signatory of multilateral trade agreements in the world, Egypt connects investors with both established and emerging markets.
- Egypt’s young market and educated workforce provide investors with access to a talented pool of labor. Their passion and creativity, together with legislative support, have put Egypt among the top 10 countries worldwide to promote/launch start-ups.
- Egypt’s marketplace offers manufacturers and developers high value proposition. With a population of over 100 million inhabitants, Egypt is the largest consumers market in the Middle East, representing huge potential for consumer-goods manufacturers.
Access to Global Markets
Advantages of investment in EGYPT
- A Gate to Africa and the Middle East
- Located at the Center of the World
- 100 million in Egypt and 3 billion in Africa.
- Free Trade Agreements including COMESA, GAFTA, EU Egypt, QIZ, Agadir, EFTA, Mercosur.
- Over 29 million.
- 60 % under the age of 30.
- Competitive wages.
- 20 Airports and 15 Seaports.
- Railway and subway networks.
- Mineral and Renewable Resources.
- Diversified investment opportunities.
- Competitive cost of doing business.
Egypt provides access to significant talent pool and has globally competitive labor costs
These interventions have resulted in significant
progress in recent yearsRecent success stories
Utility Upgrades
- 62 electricity projects were accomplished at a budget of L.E.15 billion, including: 50 power stations and networks’ paths of 2,133 kilometers.
- Overhead transmission cables now extend over 4,000 kilometers compared to 2,000 in 2014.
Economic Growth
- Driven primarily by exports, in (FY) 2019, real Gross Domestic Product (GDP) growth reached 5.6%, up from 5.3% in FY18.
- Unemployment decreased to 7.5%Â in the 4th quarter of FY19.
- The Central Bank of Egypt cut policy rates by 150 basis-points in August 2019.
- Decline in headline inflation in August 2019 to 7.5%.
Environmental Initiatives
- CLEANER AIR:Â encouraging farmers to refrain from burning waste that causes the notorious annual black cloud.
- NO PLASTICS:Â Red Sea Governor announced a ban on all single use plastic bags.
Road Connectivity
- National Road Project was put in place in 2014 to build 5,000 kilometers of new roads nationwide worth of 22.5 billion EGP.
- In 2018, a project to revamp national railway network was announced, worth of EGP 55 billion investment until 2022, to add 1,300 passenger carriages, 300 for cargo and 281 tractors.
Mega Infrastrcture
Al alamien constructions
Alalameen
new Alamien
New Alamien towers
Natural Resources – Renewable energy
Multi – Energy resources
Largest Solar energy farm in th world
Water Desalination
20 Airports
15 Sea ports
Egypt new projects (1)
Egypt new projects (2)
Egypt new projects (3)
Egypt new projects (5)
administrative capital
linking capital – new capital – sczone
Energy
Views of Doing Business in Egypt
Egypt, remained the largest FDI recipient in Africa in 2018 receiving 19.8 % of total inflows to the continent.
Egypt ranked the 18th worldwide out of 177 countries in attracting FDI in 2018.
Source: UNCTAD World Investment Report 2019
“Egypt advanced on the World Bank’s Doing Business 2020 report six places, ranking 114th out of 190 countries.”Â
Source: World Bank Doing Business 2020
“For the second year in a row, Egypt has topped the EBRD’s annual investments with new commitments of €1.2 billion in 26 projects in 2019 after €1.1 billion in the previous year.”
Source: EBRD
“Economic growth in Egypt, estimated at 5.6% for 2019, is forecast to strengthen to 5.8% in 2020 and 6% in 2021, supported by broad-based economic reform programs since 2016”Â
Source: African Development Bank’s – African Economic Outlook, 2020
“We see that Egypt now has a more vibrant economy which enables the private sector to grow and flourish.”
Source: Kristalina Georgieva, Managing Director of the IMF, Annual Meetings 2019
“OECD upgrades Egypt’s rank in Country Risk Classification Index as an attractive investments destination, February 2019”
Source: OECD
“Egypt was the most active venture capital market in MENA last year with 25% of all transactions in the region”Â
Source: MAGNITT’s 2019 MENA Venture Investment Report
“Egypt’s ongoing commitment to reform will gradually improve the government’s fiscal position and stimulate economic growth.”
Source: Moody’s, April 2019