Presented by Egypt's General Authority for Investment and Free Zones at the Annual Meeting of the MENA-OECD Working Group on Investment Policies and Promotion, March 2013

1. Current situation and
ongoing initiatives in
the Egyptian economy
march 2013

2. Current Situation

3. ϲ ϳ͘
4.1 4.3 4.5 ϱ ϳ͘ 5 5.6 5.4 5.5 5.6
-4.2
0.4 0.2 0.4
5.2
3.3 2.6 2.2
-6
-4
-2
0
2
4
6
8
Percent
11.77%
10.90%
11.10%
8.99%
9.03%
8.93%
8.90%
9.10%
9.00%
8.37%
8.60%
8.84%
9.37%
9.20%
9.36%
9.40%
9.12%
8.96%
8.94%
8.92%
11.90%
11.80%
11.90%
12.40%
12.60%
12.60%
12.50%
6%
7%
8%
9%
10%
11%
12%
13%
3
Source: Ministry of Planning
Unemployment Rate
Source: CAPMAS
GDP Quarterly Growth Rates
Source: Ministry of Planning
Current SituationCurrent Situation
46 66
97 129 95.5
127
145 168.2
74.87
4.6
6.9 7.1 7.2
4.7
5.1 1.8
2.2 2.4
0
2
4
6
8
0
50
100
150
200
Percent
Investment and Economic Growth
Private Investment Real Economic Growth
EGP Billion
0.3
-19.5
2.3 3.4
-3.8
12.7
3.3 2.3 5.1
2.8 0.7
3.94.5
7.8
4.3 2.8 2.4
-3.6
-30
-20
-10
0
10
20
Construction Tourism C.I.T Transportation Manufacturing SuezCanal
ͬͬͬͬͬϮϬϭϬ ϮϬϭϭ ͬͬͬͬͬϮϬϭϭ ϮϬϭϮ SemiAnnual2012/2013
Comparative Sectoral Growth RatesPercent
Source: Ministry of Planning

4. Inward & Outward FDI flows
4
Source: Central Bank of Egypt Source: Central Bank of Egypt
Source: Central Bank of Egypt
1.7
0.9
1.7
2.4
1.6
0.7
-0.2
0.1
0.4
-0.9
0.6
1.9
0.1
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009/10 2010/11 2011/12 2012/13
$ Bn.
4.1
9.1
13.1
17.8
12.8
11.0 9.6
11.8
2.7 2.3
-0.2
-3.0 -2.0
-4.6 -4.7 -4.3
-7.4
-9.7
-2.3 -2.2
3.9
6.1
11.1
13.2
8.1 6.8
2.2 2.1 0.4
0.1
-10
-5
0
5
10
15
20
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12Q12011/12Q12012/13
FDI Inflows FDI Outflows NET FDI Inflows
EGP
Bn.
Current SituationCurrent Situation
2.1
3.9
6.1
11.1
13.2
8.1
6.8
2.2 2.1
0.108
0
2
4
6
8
10
12
14
ͬͬͬͬͬϮϬϬϯϮϬϬϰ
ͬͬͬͬͬϮϬϬϰϮϬϬϱ
ͬͬͬͬͬϮϬϬϱϮϬϬϲ
ͬͬͬͬͬϮϬϬϲϮϬϬϳ
ͬͬͬͬͬϮϬϬϳϮϬϬϴ
ͬͬͬͬͬϮϬϬϮϬϬϵϴ
ͬϮϬϬϮϬϭϬϵ
ͬͬͬͬͬϮϬϭϬϮϬϭϭ
ͬͬͬͬͬϮϬϭϭϮϬϭϮ
Q1
2012/2013
US $ Billion
FDI Flows
0.9
3.3
5.2
6.4
2.3
2.7
2.23 2.1
0.4
0.9
2.8
2.3
0.3 0.2 0.02
1.7
2.5
1.8
3.0
4.1
5.4
3.6
-0.19
-1.8
0.1 0.1 0.1 0.4 0.1 0.3 0.13 0.1
-4
-2
0
2
4
6
8
Ύ ΍ ΍α ΅έΓΩΎί ΍ΕΎέηα γ΄ΗΓΩέ΍ ΍Ε΍έΎΛΗγ΍΍Ϭ ϭϣ ϭ ϳ ϭ ϳ ϭ ϣϟ ϛ ϟ ϟϻ λ ΍ΕΎέηϊ ΑΔ λ Σ ΍έ ΍Δ ΟΎΗ·ϭ ϭ ϳ Ϡϳ ϥϳϣϳ ϣϳ ϐ ϳ ϧϝ ϛϘ ϟϟ
έΗΑ ΍ϭϝ ϟ ΍έ Δ έόΑέλ Ε΍έΎϋ΍΍έη ΓΩέ΍Ε΍ ΣΗϥϳϣϳϣ ϳ ϓ ϣ ϣϲϓ ϭ ϳϭϘϟ Ϗ Ϙϟ ϼ
έΎϳϠϣέ Ωϭϻ
FDI Sectoral Breakdown

5. 5
Private Investments / Total Investments
Source: Ministry of Planning
total Investments / GDP
Current SituationCurrent Situation
49.4%
46.6%
48.1%
57.3%
62.6%
64.7%
48.4%
56.5%
63.2%
69.2%
67.1%
0%
20%
40%
60%
80%
ͬͬͬͬͬϮϬϬϮϮϬϬϯ
ͬͬͬͬͬϮϬϬϯϮϬϬϰ
ͬͬͬͬͬϮϬϬϰϮϬϬϱ
ͬͬͬͬͬϮϬϬϱϮϬϬϲ
ͬͬͬͬͬϮϬϬϲϮϬϬϳ
ͬͬͬͬͬϮϬϬϳϮϬϬϴ
ͬͬͬͬͬϮϬϬϮϬϬϵϴ
ͬϮϬϬϮϬϭϬϵ
ͬͬͬͬͬϮϬϭϬϮϬϭϭ
ͬͬͬͬͬϮϬϭϭϮϬϭϮ
SemiAnnual
2012/2013
Source: Ministry of Planning

6. 561
623
613
740
531
690
636
617
534
436
578
530
550
567
261
462
420
608
647
570
477
550
680
421
576
658
619
650
624
633
547
545
505
704
747
780
829
769
0
100
200
300
400
500
600
700
800
900
AverageEstablishment2009
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
6
Establishment of Corporations (Monthly(
No. of Establishment
Source: GAFI
Current SituationCurrent Situation
Establishment by sector “January 2013”
No. of Establishment

7. 7
Current SituationCurrent Situation
Simplifying Procedures Applied by GAFI
1- Cancellation of obtaining a preliminary approval for industrial activity
from the Industrial Development Authority (IDA) upon corporate
establishment in GAFI.
2- Issuance of imports certificate valid for 3-5 years instead of Stamping
invoices on a regular basis.
3- Issuance of Exports certificate valid for 3-5 years Instead of issuing letter
in yearly basis.
4- Reducing the minimum limits of capital required to establish limited
liability Company to be according to partner’s agreement.
5- Cancellation of the condition of security approval upon establishment of
press companies.
6- Launching the electronic registration service.
7- Issuance of Law in 2012 aiming at the formation of investment disputes
settlement committees.

8. The Egyptian InitiativeThe Egyptian Initiative
for National Accordfor National Accord
and Economic Take-offand Economic Take-off

9. 9
The Egyptian Initiative for National AccordThe Egyptian Initiative for National Accord
and Economic Take-offand Economic Take-off
The Egyptian Initiative for National Accord and Economic Take-off aimsThe Egyptian Initiative for National Accord and Economic Take-off aims
at working on all the sectors and governorates to avail new resourcesat working on all the sectors and governorates to avail new resources
and achieve economic growth rates starting from 3.5% in addition toand achieve economic growth rates starting from 3.5% in addition to
pumping investments approaching LE 276 billion in this fiscal year,pumping investments approaching LE 276 billion in this fiscal year,
targeting a growth rate of 7% in the next five years.targeting a growth rate of 7% in the next five years.
The Egyptian initiative consists of five parts :-
1. Business facilitation and removal of obstacles to investment.
 The main reform measures in the upcoming period include a new
system of incentives for investment in Egypt linked to the priorities
of the economic development plan, developing a diversified
package of incentives, which suits various activities in each sector
and extending more preferential incentives for investments
operating in remote areas.

10. 10
The Egyptian Initiative for National AccordThe Egyptian Initiative for National Accord
and Economic Take-offand Economic Take-off
2. Availing a list of investment opportunities and national projects,
which aim at ensuring sustainable development.
3. Supporting small and medium-sized enterprises and
entrepreneurship.
4. Incorporating the informal sector, through fiscal incentives,
within the formal economy
5. Restructuring of public-sector enterprises.