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EGYPT, THE GATE TO AFRICA
May, 2019
100 Million
• Total Population
22.5% Corporate tax
• With no double taxation in over 90
countries according to tax treaties
Strategic location
@the heart of the world trade
• One of the best economies in IRR for foreign
investors
• Competitive cost of production factors
• Quality cost competitive work force
• Diversified economy with various economic
sectors
• Resilient economy to external & internal shocks
• Continuous investment climate reforms
• Supportive legislative environment
• Improving infrastructure
1.6 Billion consumers
• Through preferential free trade
agreements
Egypt : Your Investment Destination
PAGE 3
Egypt Country Profile
 Population : 100,914,240 (worldometers)
 Growth Rate : 2.56%
 Capital City : Cairo
 Area : 1 million sq. km
 Major language : Arabic
 Major religion : 82% Muslims & 18% Christians
 Population Distribution : 38.7 % of the population is urban, 61.3% is rural
 GDP per Capita: $ 10,319 (2016)
Source: Egypt Capmas
AGRICULTURE IN EGYPT
PAGE 4 SOURCE : HTTPS://EN.WIKIPEDIA.ORG/WIKI/WATER_RESOURCES_MANAGEMENT_IN_MODERN_EGYPT
Land resources
*Total cultivated area 8 million acres
*Land ownership & farm size
- More than 90% less than 2 acres(mainly
in the Delta & Nile valley)
- New Land average ownership more than 5
acres
- Mega projects 3-4 million acres ( on
progress) in different location with very large
ownership
PROMISING SECTORS
PAGE 5
Agribusiness Engineering and
Electronics
Health care Logistics Mining ICT
Petrochemicals Pharmaceuticals Real estate and construction Retail Textile
Tourism Renewable
energy
Automotive
PAGE 6
Mega projects
The Suez Canal Economic Zone
SCZone
Ain Sokhna
• Creation of one of the largest industrial and port complexes globally. Industrial Development of over 16,250
hectares supporting light medium and heavy manufacturing activities, as well as commercial and business
activities.
East Port Said
• Development of East Port Said Port into a major transshipment hub and a thriving gateway port.
• 4,000 hectares earmarked for light and medium manufacturing, commercial and business activities and a
new urban area.
West Qantara
• Administrative center of Suez Canal zone. Specialized clusters for R&D activities in both ICT and
renewable energies in Ismailia City and also in East Ismailia.
• Agri-processing and related logistics center, dry port and other light manufacturing activities supported at
Qantara.
• Development of urban areas at Qantara and New Ismailia City – capacity to host over 350,000 residents.
Mega projects
The Suez Canal Economic Zone
A new chapter in the
economic development
of Egypt.
All imports are
exempted from duties
and sales
One Stop Shop to ease
all procedures
PAGE 8 HTTPS://WWW.SCZONE.EG/
Mega projects
The Suez Canal Economic Zone
P​orts & Logistics
Investment opportunities in the development of Ain
Sokhna Port and East Port Said Port and the associated
terminals and facilities: container terminals, bulk and
general cargo terminals, logistics, warehousing and
distribution centers as well as dry ports.
The 6 ports are :
- West Port Said Port: The port is located at the northern
entrance of the maritime corridor of Suez Canal
- East Port Said Port: The port is located at the northern
entrance of the maritime corridor of Suez Canal.
- Ain Sokhna and Adabia ports
- El Tor Port: planned to be developed in later stages
- Arish Port: planned to be developed in later stage​
resPAGE 9 HTTPS://WWW.SCZONE.EG/
Mega projects
The Suez Canal Economic Zone
PAGE 10 HTTPS://WWW.SCZONE.EG/
Maritime Services
With over 17,000 ships passing through the Suez Canal every year, the Suez Canal Economic Zone is ideally located for
the development of maritime related activities including ship building and ship repair services, bunkering, vessel scrapping
and recycling.
Industrial Zones
The industrial zones of Ain Sokhna, East Port Said, Silicon Valley and Qantara provide vast land areas for light, medium
and heavy industry. Potential opportunities are available in pharmaceuticals, food processing, automotive, electronics,
textiles, petrochemicals and other industries.
ICT
With a rapidly-expanding and well- recognized ICT industry in Egypt, the Suez Canal Economic Zone offers investors high
quality facilities to engage in research and development, of software and other activities.
Renewable Energy
The renewables sector is highly promising with strong potential for solar and wind farm development, and for the
establishment of clean energy industries.
Mega projects
Three main mining anchors in Upper Egypt
(Qena,Quseir &Safaga) ( limestone,
phosphate rocks, glass sand, shale rocks,
and gold) generating multiple industrial
zones with total area of 840 thousand
feddans, developing the area for tourism,
industrial, commercial and agriculture
opportunities.
Golden triangle
Expanding the footprint of Egypt beyond
traditional Nile Valley and Delta region.
Developing the land for agriculture
associated activities like logistics and agro
industries.
Project is planned to be implemented on 3
phases.
1.5 Million Acres
Mega projects
Cluster for furniture built on 333
Acres, includes 2000 workshops,
55 factories, aiming at modernizing
Egypt’s furniture industry in addition
to stimulating exports.
Damietta Furniture City
The logistics center will be located
on 3,350 square kilometers of land in
Damietta in the Delta area.
The project includes building storage
silos and two new quays that will be
able to receive large shipments at
Damietta Port.
Damietta Logistics center for grain
CONSTRUCTION IN EGYPT
PAGE 13
GDP FROM CONSTRUCTION IN EGYPT
PAGE 14
Source: Ministry of planning
GDP From Construction in Egypt increased to 59846.30 EGP Million in the fourth quarter of 2018 from 43844.30 EGP Million in the
third quarter of 2018. GDP From Construction in Egypt averaged 23047.06 EGP Million from 2007 until 2018, reaching an all time
high of 59846.30 EGP Million in the fourth quarter of 2018 and a record low of 5524.40 EGP Million in the second quarter of 2018.
GDP FROM MINING IN EGYPT
PAGE 15
Source: Ministry of planning
GDP From Mining in Egypt increased to 93349.60 EGP Million in the fourth quarter of 2018 from 63190.50 EGP Million in the third
quarter of 2018. GDP From Mining in Egypt averaged 67227.07 EGP Million from 2007 until 2018, reaching an all time high of
109152.20 EGP Million in the first quarter of 2018 and a record low of 52089.80 EGP Million in the third quarter of 2016.
GDP FROM TRANSPORT IN EGYPT
PAGE 16
Source: Ministry of planning
GDP From Transport in Egypt increased to 47847.80 EGP Million in the second quarter of 2018 from 37545.80 EGP Million in the first
quarter of 2018. GDP From Transport in Egypt averaged 20993.66 EGP Million from 2007 until 2018, reaching an all time high of
47847.80 EGP Million in the second quarter of 2018 and a record low of 11148.90 EGP Million in the first quarter of 2008.
CONSTRUCTION PROJECTS
PAGE 17 SOURCE: SIS “STATE INFORMATION SYSTEM”
New Administrative Capital
A large scale project located 45 km east
of Cairo aiming at reducing pressure
on Greater Cairo.
The master plan is to create a global
city with smart infrastructure for
Egypt's future, which will provide a
multitude of economic opportunities
and offer a distinct quality of life.
New Cairo's FY 2018/19 budget totals EGP 16.5bn
CONSTRUCTION PROJECTS
PAGE 18 SOURCE: SIS “STATE INFORMATION SYSTEM”
New Damietta
The new city of Damietta is one of the most
promising tourist attractions. It represents
a huge achievement in the field of
reconstruction and the establishment of
new urban communities that contribute to
facing the problems of urbanization in
Egypt and the structural restructuring of
Egypt's population map by establishing
urban launching areas in new centers
suitable for localization of projects.
Humans are no longer on the farmland .
Investment (4.108) billion pounds
CONSTRUCTION PROJECTS
PAGE 19 SOURCE: SIS “STATE INFORMATION SYSTEM”
West El-Negaila City Matrouh, Egypt
he project will involve the establishment of a
tourist city and an economic center, as well
as a port and logistics, industrial, and
residential areas. The development of the
project is planned to be done in three stages
over the next 10 years. The first phase of the
project includes the construction of a port as
well as the first phase of the logistics and
industrial zones. The project will include 42
fish tanks, residential area will include 1,000
housing units, and the project will also
include military and commercial ports.
Investment (10) billion pounds
CONSTRUCTION PROJECTS
PAGE 20 SOURCE: SIS “STATE INFORMATION SYSTEM”
Alamein new city
A new model for Egyptian coastal cities
that achieve integrated development.
The city is famous for witnessing several
World War II battles. The project is on the
Northwest coast and represents
approximately 12.8% of the total area of
Egypt. 48000 Acres. The project will attract
investments in the tourism, agriculture,
industrial, commercial, and educational
sectors.
The project’s budget is EGP 2b
CONSTRUCTION PROJECTS
PAGE 21 SOURCE: SIS “STATE INFORMATION SYSTEM”
Development of Sinai Peninsula
South Sinai
The project involves the development of Sinai
Peninsula. It will include comprehensive
network of roads, residential and industrial
developments, four water desalination plants,
hospitals and sewage networks. Including the
completion of the Sinai Peninsula 17 housing
units, including 11 in North Sinai and 6 in South
Sinai, besides establishing and paving El-Gedy
Road to support development in the middle of
Sinai Peninsula, and to facilitate transportation
of goods and products from the project’s area
to the Suez Canal through renovating the
relevant road.
Investment (16) billion pounds
CONSTRUCTION PROJECTS
PAGE 22 SOURCE: SIS “STATE INFORMATION SYSTEM”
Nabta University - Borg El Arab, Alexandria
The project involves construction of a college
town to offer 10 programs, all of which are
affiliated with the top international universities
in their respective fields: Engineering,
Biotechnology, Dentistry, Pharmacy, Physical
Therapy, Applied Medical Science, Business
and Economics, Mass Media, Foreign
languages and Linguistics, in addition to
Maritime and Logistics Management. It will
include construction of schools and training
centers.
Investment (4 ) billion pounds
CONSTRUCTION PROJECTS
PAGE 23 SOURCE: SIS “STATE INFORMATION SYSTEM”
"Bashayer El Khair 1" Project in Alexandria’s Gheit El Enab
district
"Bashayer El Khair" serves as an
integrated system and is the outcome
of thorough planning and honest
cooperation with the civil society.
It sets a unique example of social
integration that should prevail among
the people without adding to the
financial burdens of the State.
The project’s budget is EGP 2b
CONSTRUCTION PROJECTS
PAGE 24 SOURCE: SIS “STATE INFORMATION SYSTEM”
New Luxor
It lies south east of Luxor city .It is about
14.8 km far away Tiba city, The total area of
​​the city is 8976.75 acres and the Expected
population is 200 thousand inhabitants,
The government intends to renew the
marina of Luxor’s east and west bank and
provide it with international shops,
restaurants, cafes and malls & an
international stadium that change Luxor
into an integrated city.
The project’s budget is EGP 2b
PAGE 25 SOURCE: MOT
US$642 BILLION IN RAILWAY INVESTMENTS SET OUT IN THE MIDDLE EAST,
NORTH AFRICA, CENTRAL ASIA AND SOUTH ASIA
PAGE 26
Transport Infrastructure
Projects In Egypt
RAILWAY PROJECTS
PAGE 28 SOURCE: HTTP://WWW.PROJECTSFOREGYPT.COM/RAILWAY-PROJECT.HTML
New HS Railway System for Egypt (Cairo-Suez-Sharm-Medina)
Phase I
To construct 1255 km of tracks, 44 Stations (1 Hub station, 3 Airport Terminal Stations, 40 small stations).
New Routes:
Cairo – 6th of October (45 km) HS or Non-HS
Cairo – 10th of Ramadan + to Ismailia (100 km) Non-HS (In parallel with the new housing delta project)
Cairo – Suez (125 km) HS (In parallel with the new housing delta project)
Suez – Sharm Elsheikh (335 Km) HS
Sharm Elsheikh – El-Madina (700 km) HS – On the Saudi side.
Ismailia – Marsa Alam (650 Km) HS
RAILWAY PROJECTS
PAGE 29 SOURCE: HTTP://WWW.PROJECTSFOREGYPT.COM/RAILWAY-PROJECT.HTML
New HS Railway System for Egypt (Cairo-Suez-Sharm-Medina)
Phase II
West bound
1. 6th of October to North Coast (Alexandria)
2. North Coast cities and on to Libya
South bound
1. Port Said to Ismailia
2. Elbaz Development Corridor
Approximate cost for the whole project of one line.
Tracks: 2.510 Billion
Trains: $100 Million
Stations: $340 Million
ALEXANDRIA REGIONAL METRO
PAGE 30
• Phase one of the project is located in Alexandria, Egypt to connect Abu Kir station to Misr station. The
whole line is comprised of 18 stations of 3 types: Over track: 5 stations
• At grade: 8 stations
• Elevated: 5 stations
All stations are designed to permit easy exchange of passengers.
Works included:
• Architectural
• Structural works
• Mechanical works
• Plumbing works
• Electrical works
Source: National Authority for Tunnel
The project’s
budget is: $1.5 b
ALEXANDRIA-TO-ASWAN HIGH- SPEED RAIL LINE
PAGE 31
Project investment: $3.5 for Phase 1, Phases 2 and 3 TBC
Key stakeholders: Egyptian National Railways (ENR)
Ministry of Transport
Project initiation date: March 2014
Estimated project completion date:
TBC (3-5 years for Phase One, 8 years for Phase 2, 5 years
for Phase 3)
Source: National Authority for Tunnel
ALEXANDRIA-TO-ASWAN HIGH- SPEED RAIL LINE
PAGE 32
Project Details:
Egypt’s government has ambitious plans for the development of its entire national transport infrastructure
but the current railway projects underway are by far the most expansive and impressive.
In March 2014, Egypt’s transport minister Ibrahim El-Demeiry said that the proposed 1,087km Alexandria-
to-Aswan high-speed rail line would be “a top priority”. After feasibility studies and created action plans,
current proposals see the construction of the line in three distinct phases: Alexandria to Cairo, Cairo to
Luxor and Luxor to Aswan.
The first of three construction phases for this extensive new line will be the Cairo-Alexandria line which
will take an estimated five years to complete at a cost of $3.5 billion, ultimately boasting an annual
capacity of 10 to 18 million passengers.
The second phase involves a Cairo- Luxor line that accommodates 25 to 30 million passengers a year
and finally Phase 3 will be the Luxor- Aswan line which is expected to be completed in five years, though
cost analysis and feasibility studies are ongoing.
Source: National Authority for Tunnel
CAIRO METRO NETWORK LINES 3 AND 4
PAGE 33 Source: National Authority for Tunnel
Project investment: $2.7 billion for Line
3, $3.6 billion for Line 4
Key stakeholders: National Authority for
Tunnels
Project initiation date: 2007
Project completion date: Late 2016 for
Line 3, Late 2018 for Line 4
CAIRO METRO NETWORK LINES 3 AND 4
PAGE 34 Source: National Authority for Tunnel
Project details:
With nearly 20 million inhabitants, Cairo is one of the most heavily populated cities in the world and as it
expands further it requires greater public transport coverage and efficiency in order to keep it moving. The
Cairo Metro was the first of its kind to be built in Africa, with the first two lines opening in 1990 and 1997
respectively.
Two more lines are planned, as work on the 33km-long Line 3 began in 2007 and nears completion. Its 29
stations will connect Cairo Airport in the east to Imbaba and Mohandisseen in the west, crossing the downturn
area and Heliopolis. Construction work on Line 4 will quickly follow after the completion of Line 3.
Further expansions are in the early stages of planning after these two lines are complete, and by 2020 ENR
analysts predict that the expanded Cairo Metro network will comprise of six operational lines that will carry up
to 5 million passengers every day.
In addition to the new lines, the Egyptian Company for Metro Management and Operation envisages a signify
overhaul of specific sections of the metro’s carriages in order to provide a “premium” service. These upgraded
carriages could potentially offer internet access and the ability to reserve seats through the use of a dedicated
metro smart card system.
CAIRO METRO NETWORK LINES 5 AND 6
PAGE 35 Source: National Authority for Tunnel
Project investment: TBC
Key stakeholders: National
Authority for Tunnels,
Ministry of Transport
Project initiation date:
TBC
Project completion date:
TBC
CAIRO METRO NETWORK LINES 5 AND 6
PAGE 36 Source: National Authority for Tunnel
Project details:
The Ministry of Transport also has long-term plans for extending
the Cairo Metro network even further, with a fi and sixth line.
While the costs and timings of these projects are yet to be fully
determined, the vision for these two extensions is already in
place. Line 5 will run from Nasr City through Heliopolis and up to
Rod El-Farag, encompassing 17 underground stations.
Line 6 will connect El Khosous City near the Ring Road to New
Maadi and will include 24 stations both over and underground.
Important Statistics
(Major Economics Indicators) May, 2019
The Gross Domestic Product (GDP)
38
(GDP) in Egypt was worth 235.37 billion US dollars in 2017. The GDP value of Egypt represents 0.38 percent of the world
economy. GDP in Egypt averaged 76.57 USD Billion from 1960 until 2017, reaching an all time high of 332.90 USD Billion in
2016 and a record low of 4 USD Billion in 1962.
Resource: www.iif.com
The Gross Domestic Product per capita
39
(The Gross Domestic Product per capita in Egypt was last recorded at 2785.37 US dollars in 2017. The GDP per Capita in
Egypt is equivalent to 22 percent of the world's average. GDP per capita in Egypt averaged 1542.04 USD from 1960 until
2017, reaching an all time high of 2785.37 USD in 2017 and a record low of 631.10 USD in 1960.
Resource: www.iif.com
Fuel Subsidies & (%) of GDP
40
As part of the reformation plan, the Government reduced subsidies as a means to reallocate spending to other investments
that promote long term economic development. For FY 2018/2019, the Government aims to reduce the budget deficit as a
percentage of GDP to 8.4%, compared to a current budget deficit of 9.8% through further reductions in energy subsidies.
Resource: World Bank
Real GDP inflation rate % change
41
Resource: IMF, World Bank, Fitch Solutions
EGP/USD Rate:
42
Resource: IMF, World Bank, Fitch Solutions
0
5
10
15
20
25
Feb-14
May-14
Aug-14
Nov-14
Feb-15
May-15
Aug-15
Nov-15
Feb-16
May-16
Aug-16
Nov-16
Feb-17
May-17
Aug-17
Nov-17
Feb-18
May-18
Aug-18
Nov-18
Feb-19
The CBE floated the EGP in November 2016 and introduced a floating exchange rate as a means to increase foreign currency
reserves. Foreign currency reserves have increased to $44.1bn in May 2018 up from a low of $19bn in October 2016 as a result of
the currency flotation, leading to a stabilization of EGP.
Current Account Balance, 1991-2018 Fiscal Balance, 1991-2018
43
The currency has nearly stabilized at the new, sharply depreciated rate under a managed float regime with some positive impact on export
receipts (especially tourism), growth has risen to 5.3%, unemployment is down but remains stub-bornly high at 10%, global financial markets
have responded with strong inward capital flows, inflation has declined after a spike, to around 12%, while the current account and fiscal
deficits have narrowed, the former substantially.
FDI (Foreign Direct Investment)
44
Resource: IIF
Foreign Direct Investment in Egypt increased by 2873.30 USD Million in the third quarter of 2018. Foreign Direct Investment in
Egypt averaged 2481.93 USD Million from 2002 until 2018, reaching an all time high of 5572.50 USD Million in the fourth quarter
of 2007 and a record low of 40.70 USD Million in the second quarter of 2002.
Ease of doing business in Eypt
45
127 128 126 126 122 128 120
2012 2013 2014 2015 2016 2017 2018
Ease of Doing Business Ranking
Egypt ranked as one of the most improved countries in the World Bank’s latest Ease of Doing Business report by jumping up 8
spots, to rank 120 out of 190 countries. Egypt improved in starting a business, getting access to credit, protection for minority
investors, resolving bankruptcy and paying taxes.
Source: IIF
46
INDIA- EGYPT BILATERAL
TRADE
47
Year Exports to Egypt Imports from Egypt Total Trade/M $
2005-06 672 221 893
2006-07 763 1739 2502
2007-08 1398 1985 3383
2008-09 1699 2121 3820
2009-10 1403 1692 3095
2010-11 1952 1355 3307
2011-12 2122 3002 5124
2012-13 2897 2553 5450
2013-14 2562 2389 4951
2014-15 3026 1741 4767
2015-16 2337 1211 3548
2016-17 2071 1161 3232
2017-18 2392 1292 3684
India- Egypt Biteral Trade
48
16%
15%
14%
11%
9%
9%
9%
7%
5%
5%
Top 10 Egypt's Import from India
Vehicles
Organic chemicals
Cotton
Electronic equipment:
Machinery:
Plastics
Meat
Iron or steel products
Man-made staple fibers
Other chemical goods
49
62%
10%
7%
6%
4%
3%
3%2%2%1%
Top 10 Egypt's Import from India
Mineral fuels including oiln
Inorganic chemicals
Fertilizers
Cotton
Salt, sulphur, stone, cement
Fruits, nuts
Plastics
Soaps, lubricants, candles
Glass
Oil seed
PAGE 50
THE WORLD'S THREE LARGEST POWER PLANTS OPERATING AT A COMBINED CYCLE COST OF 6 BILLION EUROS
AWAY FROM THE COST OF FUEL DELIVERY PIPES AND OPERATING COST
PAGE 51
Beni Swif
El Porols
Administrative
Capital
THE LARGEST GAS FIELD IN
THE MEDITERRANEAN
PAGE 52
EGYPTIAN MISTRAL AIRCRAFT CARRIER WAS ORIGINALLY BUILT FOR RUSSIAN ARMY, BUT THE DEAL WAS
SUSPENDED DUE TO DIFFERENCES BETWEEN RUSSIA AND THE EUROPEAN UNION. EGYPT INTERVENED AND WAS
THE ALTERNATIVE BUYER AND AGREED WITH THE RUSSIAN SIDE TO PROVIDE THE CARRIER WITH A NUMBER OF
SUPER-POWERFUL ATTACK HELICOPTERS
PAGE 53
ONE OF THE 35 SEGMENTS IS THE LARGEST SOLAR PROJECT IN THE WORLD WITH A CAPACITY OF 2000
MEGAWATTS AND THE COST OF 3 BILLION EUROS. THE CONSTRUCTION OF A NUMBER OF OTHER STATIONS IN
DIFFERENT GOVERNORATES OF THE MICROSCOPES
PAGE 54
PRESIDENT OF SIEMENS MIDDLE EAST: EGYPT HAS
ONE OF THE LATEST ENERGY SYSTEMS IN THE WORLD
PAGE 55
CNBC- LINK:
https://www.cnbc.com/video/2019/04/07/siemens-
siersdorfer-egypt-has-one-of-the-most-modern-
energy-systems.html?__source=sharebar
EGYPT'S GIANT GAS
LIQUEFACTION PLANT
PAGE 56
EGYPT IMPORTS A LARGE NUMBER
OF BUSES THAT WORK WITH
ELECTRICITY AND IS PREPARING TO
MANUFACTURE 4000 BUSES IN
COOPERATION WITH CHINA WITHIN
THE SCHEME TO RELY ON MASS
TRANSPORT IN THE COMING YEARS
PAGE 57
LARGE PROJECTS FOR ESTABLISHMENT OF LARGEST WIND FARMS IN THE MIDDLE EAST IN
RED SEA, SUCH AS PROJECT OF WIND STATION OF GIANT OIL MOUNTAIN WITHIN
SCHEME OF EXPLOITING ALL RESOURCES OF THE STATE OF SUN AND WIND
PAGE 58
PAGE 59
H.E. PRESIDENT ABDEL
FATTAH AL-SISI INSPECTED
RAS AL-TIN MARINE BASE
PAGE 60
PART OF THE
EGYPTIAN
MARITIME
FLEET
PAGE 61
EGYPTIAN
SUBMARINE WITHIN
A NUMBER OF
SUBMARINES
RECEIVED FROM
GERMANY
PAGE 62
H.E. PRESIDENT ABDUL FATTAH AL-SISI FROM INSIDE THE HELICOPTER CARRIER MISTRAL
PAGE 63
EGYPTIAN WORKERS
ON THE LARGEST
GAS FIELD IN
MEDITERRANEAN
PAGE 64
FROM ASWAN- SOLAR
SCHOOL RECENTLY
INAUGURATED IN
CONJUNCTION WITH
ESTABLISHMENT OF THE
WORLD'S LARGEST SOLAR
POWER PLANT IN
BENNABAN TO CREATE A
GENERATION OF EXPERTISE
TO MANAGE AND OPERATE
SOLAR POWER PLANTS IN
EGYPT
PAGE 65
CONSTRUCTION SITE
OF THE NUCLEAR
STATION
PAGE 66
PAGE 67
68
THANK YOU!
‫شكرا‬

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Egypt, the gate to Africa

  • 1. EGYPT, THE GATE TO AFRICA May, 2019
  • 2. 100 Million • Total Population 22.5% Corporate tax • With no double taxation in over 90 countries according to tax treaties Strategic location @the heart of the world trade • One of the best economies in IRR for foreign investors • Competitive cost of production factors • Quality cost competitive work force • Diversified economy with various economic sectors • Resilient economy to external & internal shocks • Continuous investment climate reforms • Supportive legislative environment • Improving infrastructure 1.6 Billion consumers • Through preferential free trade agreements Egypt : Your Investment Destination
  • 3. PAGE 3 Egypt Country Profile  Population : 100,914,240 (worldometers)  Growth Rate : 2.56%  Capital City : Cairo  Area : 1 million sq. km  Major language : Arabic  Major religion : 82% Muslims & 18% Christians  Population Distribution : 38.7 % of the population is urban, 61.3% is rural  GDP per Capita: $ 10,319 (2016) Source: Egypt Capmas
  • 4. AGRICULTURE IN EGYPT PAGE 4 SOURCE : HTTPS://EN.WIKIPEDIA.ORG/WIKI/WATER_RESOURCES_MANAGEMENT_IN_MODERN_EGYPT Land resources *Total cultivated area 8 million acres *Land ownership & farm size - More than 90% less than 2 acres(mainly in the Delta & Nile valley) - New Land average ownership more than 5 acres - Mega projects 3-4 million acres ( on progress) in different location with very large ownership
  • 5. PROMISING SECTORS PAGE 5 Agribusiness Engineering and Electronics Health care Logistics Mining ICT Petrochemicals Pharmaceuticals Real estate and construction Retail Textile Tourism Renewable energy Automotive
  • 7. Mega projects The Suez Canal Economic Zone SCZone
  • 8. Ain Sokhna • Creation of one of the largest industrial and port complexes globally. Industrial Development of over 16,250 hectares supporting light medium and heavy manufacturing activities, as well as commercial and business activities. East Port Said • Development of East Port Said Port into a major transshipment hub and a thriving gateway port. • 4,000 hectares earmarked for light and medium manufacturing, commercial and business activities and a new urban area. West Qantara • Administrative center of Suez Canal zone. Specialized clusters for R&D activities in both ICT and renewable energies in Ismailia City and also in East Ismailia. • Agri-processing and related logistics center, dry port and other light manufacturing activities supported at Qantara. • Development of urban areas at Qantara and New Ismailia City – capacity to host over 350,000 residents. Mega projects The Suez Canal Economic Zone A new chapter in the economic development of Egypt. All imports are exempted from duties and sales One Stop Shop to ease all procedures PAGE 8 HTTPS://WWW.SCZONE.EG/
  • 9. Mega projects The Suez Canal Economic Zone P​orts & Logistics Investment opportunities in the development of Ain Sokhna Port and East Port Said Port and the associated terminals and facilities: container terminals, bulk and general cargo terminals, logistics, warehousing and distribution centers as well as dry ports. The 6 ports are : - West Port Said Port: The port is located at the northern entrance of the maritime corridor of Suez Canal - East Port Said Port: The port is located at the northern entrance of the maritime corridor of Suez Canal. - Ain Sokhna and Adabia ports - El Tor Port: planned to be developed in later stages - Arish Port: planned to be developed in later stage​ resPAGE 9 HTTPS://WWW.SCZONE.EG/
  • 10. Mega projects The Suez Canal Economic Zone PAGE 10 HTTPS://WWW.SCZONE.EG/ Maritime Services With over 17,000 ships passing through the Suez Canal every year, the Suez Canal Economic Zone is ideally located for the development of maritime related activities including ship building and ship repair services, bunkering, vessel scrapping and recycling. Industrial Zones The industrial zones of Ain Sokhna, East Port Said, Silicon Valley and Qantara provide vast land areas for light, medium and heavy industry. Potential opportunities are available in pharmaceuticals, food processing, automotive, electronics, textiles, petrochemicals and other industries. ICT With a rapidly-expanding and well- recognized ICT industry in Egypt, the Suez Canal Economic Zone offers investors high quality facilities to engage in research and development, of software and other activities. Renewable Energy The renewables sector is highly promising with strong potential for solar and wind farm development, and for the establishment of clean energy industries.
  • 11. Mega projects Three main mining anchors in Upper Egypt (Qena,Quseir &Safaga) ( limestone, phosphate rocks, glass sand, shale rocks, and gold) generating multiple industrial zones with total area of 840 thousand feddans, developing the area for tourism, industrial, commercial and agriculture opportunities. Golden triangle Expanding the footprint of Egypt beyond traditional Nile Valley and Delta region. Developing the land for agriculture associated activities like logistics and agro industries. Project is planned to be implemented on 3 phases. 1.5 Million Acres
  • 12. Mega projects Cluster for furniture built on 333 Acres, includes 2000 workshops, 55 factories, aiming at modernizing Egypt’s furniture industry in addition to stimulating exports. Damietta Furniture City The logistics center will be located on 3,350 square kilometers of land in Damietta in the Delta area. The project includes building storage silos and two new quays that will be able to receive large shipments at Damietta Port. Damietta Logistics center for grain
  • 14. GDP FROM CONSTRUCTION IN EGYPT PAGE 14 Source: Ministry of planning GDP From Construction in Egypt increased to 59846.30 EGP Million in the fourth quarter of 2018 from 43844.30 EGP Million in the third quarter of 2018. GDP From Construction in Egypt averaged 23047.06 EGP Million from 2007 until 2018, reaching an all time high of 59846.30 EGP Million in the fourth quarter of 2018 and a record low of 5524.40 EGP Million in the second quarter of 2018.
  • 15. GDP FROM MINING IN EGYPT PAGE 15 Source: Ministry of planning GDP From Mining in Egypt increased to 93349.60 EGP Million in the fourth quarter of 2018 from 63190.50 EGP Million in the third quarter of 2018. GDP From Mining in Egypt averaged 67227.07 EGP Million from 2007 until 2018, reaching an all time high of 109152.20 EGP Million in the first quarter of 2018 and a record low of 52089.80 EGP Million in the third quarter of 2016.
  • 16. GDP FROM TRANSPORT IN EGYPT PAGE 16 Source: Ministry of planning GDP From Transport in Egypt increased to 47847.80 EGP Million in the second quarter of 2018 from 37545.80 EGP Million in the first quarter of 2018. GDP From Transport in Egypt averaged 20993.66 EGP Million from 2007 until 2018, reaching an all time high of 47847.80 EGP Million in the second quarter of 2018 and a record low of 11148.90 EGP Million in the first quarter of 2008.
  • 17. CONSTRUCTION PROJECTS PAGE 17 SOURCE: SIS “STATE INFORMATION SYSTEM” New Administrative Capital A large scale project located 45 km east of Cairo aiming at reducing pressure on Greater Cairo. The master plan is to create a global city with smart infrastructure for Egypt's future, which will provide a multitude of economic opportunities and offer a distinct quality of life. New Cairo's FY 2018/19 budget totals EGP 16.5bn
  • 18. CONSTRUCTION PROJECTS PAGE 18 SOURCE: SIS “STATE INFORMATION SYSTEM” New Damietta The new city of Damietta is one of the most promising tourist attractions. It represents a huge achievement in the field of reconstruction and the establishment of new urban communities that contribute to facing the problems of urbanization in Egypt and the structural restructuring of Egypt's population map by establishing urban launching areas in new centers suitable for localization of projects. Humans are no longer on the farmland . Investment (4.108) billion pounds
  • 19. CONSTRUCTION PROJECTS PAGE 19 SOURCE: SIS “STATE INFORMATION SYSTEM” West El-Negaila City Matrouh, Egypt he project will involve the establishment of a tourist city and an economic center, as well as a port and logistics, industrial, and residential areas. The development of the project is planned to be done in three stages over the next 10 years. The first phase of the project includes the construction of a port as well as the first phase of the logistics and industrial zones. The project will include 42 fish tanks, residential area will include 1,000 housing units, and the project will also include military and commercial ports. Investment (10) billion pounds
  • 20. CONSTRUCTION PROJECTS PAGE 20 SOURCE: SIS “STATE INFORMATION SYSTEM” Alamein new city A new model for Egyptian coastal cities that achieve integrated development. The city is famous for witnessing several World War II battles. The project is on the Northwest coast and represents approximately 12.8% of the total area of Egypt. 48000 Acres. The project will attract investments in the tourism, agriculture, industrial, commercial, and educational sectors. The project’s budget is EGP 2b
  • 21. CONSTRUCTION PROJECTS PAGE 21 SOURCE: SIS “STATE INFORMATION SYSTEM” Development of Sinai Peninsula South Sinai The project involves the development of Sinai Peninsula. It will include comprehensive network of roads, residential and industrial developments, four water desalination plants, hospitals and sewage networks. Including the completion of the Sinai Peninsula 17 housing units, including 11 in North Sinai and 6 in South Sinai, besides establishing and paving El-Gedy Road to support development in the middle of Sinai Peninsula, and to facilitate transportation of goods and products from the project’s area to the Suez Canal through renovating the relevant road. Investment (16) billion pounds
  • 22. CONSTRUCTION PROJECTS PAGE 22 SOURCE: SIS “STATE INFORMATION SYSTEM” Nabta University - Borg El Arab, Alexandria The project involves construction of a college town to offer 10 programs, all of which are affiliated with the top international universities in their respective fields: Engineering, Biotechnology, Dentistry, Pharmacy, Physical Therapy, Applied Medical Science, Business and Economics, Mass Media, Foreign languages and Linguistics, in addition to Maritime and Logistics Management. It will include construction of schools and training centers. Investment (4 ) billion pounds
  • 23. CONSTRUCTION PROJECTS PAGE 23 SOURCE: SIS “STATE INFORMATION SYSTEM” "Bashayer El Khair 1" Project in Alexandria’s Gheit El Enab district "Bashayer El Khair" serves as an integrated system and is the outcome of thorough planning and honest cooperation with the civil society. It sets a unique example of social integration that should prevail among the people without adding to the financial burdens of the State. The project’s budget is EGP 2b
  • 24. CONSTRUCTION PROJECTS PAGE 24 SOURCE: SIS “STATE INFORMATION SYSTEM” New Luxor It lies south east of Luxor city .It is about 14.8 km far away Tiba city, The total area of ​​the city is 8976.75 acres and the Expected population is 200 thousand inhabitants, The government intends to renew the marina of Luxor’s east and west bank and provide it with international shops, restaurants, cafes and malls & an international stadium that change Luxor into an integrated city. The project’s budget is EGP 2b
  • 25. PAGE 25 SOURCE: MOT US$642 BILLION IN RAILWAY INVESTMENTS SET OUT IN THE MIDDLE EAST, NORTH AFRICA, CENTRAL ASIA AND SOUTH ASIA
  • 28. RAILWAY PROJECTS PAGE 28 SOURCE: HTTP://WWW.PROJECTSFOREGYPT.COM/RAILWAY-PROJECT.HTML New HS Railway System for Egypt (Cairo-Suez-Sharm-Medina) Phase I To construct 1255 km of tracks, 44 Stations (1 Hub station, 3 Airport Terminal Stations, 40 small stations). New Routes: Cairo – 6th of October (45 km) HS or Non-HS Cairo – 10th of Ramadan + to Ismailia (100 km) Non-HS (In parallel with the new housing delta project) Cairo – Suez (125 km) HS (In parallel with the new housing delta project) Suez – Sharm Elsheikh (335 Km) HS Sharm Elsheikh – El-Madina (700 km) HS – On the Saudi side. Ismailia – Marsa Alam (650 Km) HS
  • 29. RAILWAY PROJECTS PAGE 29 SOURCE: HTTP://WWW.PROJECTSFOREGYPT.COM/RAILWAY-PROJECT.HTML New HS Railway System for Egypt (Cairo-Suez-Sharm-Medina) Phase II West bound 1. 6th of October to North Coast (Alexandria) 2. North Coast cities and on to Libya South bound 1. Port Said to Ismailia 2. Elbaz Development Corridor Approximate cost for the whole project of one line. Tracks: 2.510 Billion Trains: $100 Million Stations: $340 Million
  • 30. ALEXANDRIA REGIONAL METRO PAGE 30 • Phase one of the project is located in Alexandria, Egypt to connect Abu Kir station to Misr station. The whole line is comprised of 18 stations of 3 types: Over track: 5 stations • At grade: 8 stations • Elevated: 5 stations All stations are designed to permit easy exchange of passengers. Works included: • Architectural • Structural works • Mechanical works • Plumbing works • Electrical works Source: National Authority for Tunnel The project’s budget is: $1.5 b
  • 31. ALEXANDRIA-TO-ASWAN HIGH- SPEED RAIL LINE PAGE 31 Project investment: $3.5 for Phase 1, Phases 2 and 3 TBC Key stakeholders: Egyptian National Railways (ENR) Ministry of Transport Project initiation date: March 2014 Estimated project completion date: TBC (3-5 years for Phase One, 8 years for Phase 2, 5 years for Phase 3) Source: National Authority for Tunnel
  • 32. ALEXANDRIA-TO-ASWAN HIGH- SPEED RAIL LINE PAGE 32 Project Details: Egypt’s government has ambitious plans for the development of its entire national transport infrastructure but the current railway projects underway are by far the most expansive and impressive. In March 2014, Egypt’s transport minister Ibrahim El-Demeiry said that the proposed 1,087km Alexandria- to-Aswan high-speed rail line would be “a top priority”. After feasibility studies and created action plans, current proposals see the construction of the line in three distinct phases: Alexandria to Cairo, Cairo to Luxor and Luxor to Aswan. The first of three construction phases for this extensive new line will be the Cairo-Alexandria line which will take an estimated five years to complete at a cost of $3.5 billion, ultimately boasting an annual capacity of 10 to 18 million passengers. The second phase involves a Cairo- Luxor line that accommodates 25 to 30 million passengers a year and finally Phase 3 will be the Luxor- Aswan line which is expected to be completed in five years, though cost analysis and feasibility studies are ongoing. Source: National Authority for Tunnel
  • 33. CAIRO METRO NETWORK LINES 3 AND 4 PAGE 33 Source: National Authority for Tunnel Project investment: $2.7 billion for Line 3, $3.6 billion for Line 4 Key stakeholders: National Authority for Tunnels Project initiation date: 2007 Project completion date: Late 2016 for Line 3, Late 2018 for Line 4
  • 34. CAIRO METRO NETWORK LINES 3 AND 4 PAGE 34 Source: National Authority for Tunnel Project details: With nearly 20 million inhabitants, Cairo is one of the most heavily populated cities in the world and as it expands further it requires greater public transport coverage and efficiency in order to keep it moving. The Cairo Metro was the first of its kind to be built in Africa, with the first two lines opening in 1990 and 1997 respectively. Two more lines are planned, as work on the 33km-long Line 3 began in 2007 and nears completion. Its 29 stations will connect Cairo Airport in the east to Imbaba and Mohandisseen in the west, crossing the downturn area and Heliopolis. Construction work on Line 4 will quickly follow after the completion of Line 3. Further expansions are in the early stages of planning after these two lines are complete, and by 2020 ENR analysts predict that the expanded Cairo Metro network will comprise of six operational lines that will carry up to 5 million passengers every day. In addition to the new lines, the Egyptian Company for Metro Management and Operation envisages a signify overhaul of specific sections of the metro’s carriages in order to provide a “premium” service. These upgraded carriages could potentially offer internet access and the ability to reserve seats through the use of a dedicated metro smart card system.
  • 35. CAIRO METRO NETWORK LINES 5 AND 6 PAGE 35 Source: National Authority for Tunnel Project investment: TBC Key stakeholders: National Authority for Tunnels, Ministry of Transport Project initiation date: TBC Project completion date: TBC
  • 36. CAIRO METRO NETWORK LINES 5 AND 6 PAGE 36 Source: National Authority for Tunnel Project details: The Ministry of Transport also has long-term plans for extending the Cairo Metro network even further, with a fi and sixth line. While the costs and timings of these projects are yet to be fully determined, the vision for these two extensions is already in place. Line 5 will run from Nasr City through Heliopolis and up to Rod El-Farag, encompassing 17 underground stations. Line 6 will connect El Khosous City near the Ring Road to New Maadi and will include 24 stations both over and underground.
  • 37. Important Statistics (Major Economics Indicators) May, 2019
  • 38. The Gross Domestic Product (GDP) 38 (GDP) in Egypt was worth 235.37 billion US dollars in 2017. The GDP value of Egypt represents 0.38 percent of the world economy. GDP in Egypt averaged 76.57 USD Billion from 1960 until 2017, reaching an all time high of 332.90 USD Billion in 2016 and a record low of 4 USD Billion in 1962. Resource: www.iif.com
  • 39. The Gross Domestic Product per capita 39 (The Gross Domestic Product per capita in Egypt was last recorded at 2785.37 US dollars in 2017. The GDP per Capita in Egypt is equivalent to 22 percent of the world's average. GDP per capita in Egypt averaged 1542.04 USD from 1960 until 2017, reaching an all time high of 2785.37 USD in 2017 and a record low of 631.10 USD in 1960. Resource: www.iif.com
  • 40. Fuel Subsidies & (%) of GDP 40 As part of the reformation plan, the Government reduced subsidies as a means to reallocate spending to other investments that promote long term economic development. For FY 2018/2019, the Government aims to reduce the budget deficit as a percentage of GDP to 8.4%, compared to a current budget deficit of 9.8% through further reductions in energy subsidies. Resource: World Bank
  • 41. Real GDP inflation rate % change 41 Resource: IMF, World Bank, Fitch Solutions
  • 42. EGP/USD Rate: 42 Resource: IMF, World Bank, Fitch Solutions 0 5 10 15 20 25 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 The CBE floated the EGP in November 2016 and introduced a floating exchange rate as a means to increase foreign currency reserves. Foreign currency reserves have increased to $44.1bn in May 2018 up from a low of $19bn in October 2016 as a result of the currency flotation, leading to a stabilization of EGP.
  • 43. Current Account Balance, 1991-2018 Fiscal Balance, 1991-2018 43 The currency has nearly stabilized at the new, sharply depreciated rate under a managed float regime with some positive impact on export receipts (especially tourism), growth has risen to 5.3%, unemployment is down but remains stub-bornly high at 10%, global financial markets have responded with strong inward capital flows, inflation has declined after a spike, to around 12%, while the current account and fiscal deficits have narrowed, the former substantially.
  • 44. FDI (Foreign Direct Investment) 44 Resource: IIF Foreign Direct Investment in Egypt increased by 2873.30 USD Million in the third quarter of 2018. Foreign Direct Investment in Egypt averaged 2481.93 USD Million from 2002 until 2018, reaching an all time high of 5572.50 USD Million in the fourth quarter of 2007 and a record low of 40.70 USD Million in the second quarter of 2002.
  • 45. Ease of doing business in Eypt 45 127 128 126 126 122 128 120 2012 2013 2014 2015 2016 2017 2018 Ease of Doing Business Ranking Egypt ranked as one of the most improved countries in the World Bank’s latest Ease of Doing Business report by jumping up 8 spots, to rank 120 out of 190 countries. Egypt improved in starting a business, getting access to credit, protection for minority investors, resolving bankruptcy and paying taxes. Source: IIF
  • 47. 47 Year Exports to Egypt Imports from Egypt Total Trade/M $ 2005-06 672 221 893 2006-07 763 1739 2502 2007-08 1398 1985 3383 2008-09 1699 2121 3820 2009-10 1403 1692 3095 2010-11 1952 1355 3307 2011-12 2122 3002 5124 2012-13 2897 2553 5450 2013-14 2562 2389 4951 2014-15 3026 1741 4767 2015-16 2337 1211 3548 2016-17 2071 1161 3232 2017-18 2392 1292 3684 India- Egypt Biteral Trade
  • 48. 48 16% 15% 14% 11% 9% 9% 9% 7% 5% 5% Top 10 Egypt's Import from India Vehicles Organic chemicals Cotton Electronic equipment: Machinery: Plastics Meat Iron or steel products Man-made staple fibers Other chemical goods
  • 49. 49 62% 10% 7% 6% 4% 3% 3%2%2%1% Top 10 Egypt's Import from India Mineral fuels including oiln Inorganic chemicals Fertilizers Cotton Salt, sulphur, stone, cement Fruits, nuts Plastics Soaps, lubricants, candles Glass Oil seed
  • 51. THE WORLD'S THREE LARGEST POWER PLANTS OPERATING AT A COMBINED CYCLE COST OF 6 BILLION EUROS AWAY FROM THE COST OF FUEL DELIVERY PIPES AND OPERATING COST PAGE 51 Beni Swif El Porols Administrative Capital
  • 52. THE LARGEST GAS FIELD IN THE MEDITERRANEAN PAGE 52
  • 53. EGYPTIAN MISTRAL AIRCRAFT CARRIER WAS ORIGINALLY BUILT FOR RUSSIAN ARMY, BUT THE DEAL WAS SUSPENDED DUE TO DIFFERENCES BETWEEN RUSSIA AND THE EUROPEAN UNION. EGYPT INTERVENED AND WAS THE ALTERNATIVE BUYER AND AGREED WITH THE RUSSIAN SIDE TO PROVIDE THE CARRIER WITH A NUMBER OF SUPER-POWERFUL ATTACK HELICOPTERS PAGE 53
  • 54. ONE OF THE 35 SEGMENTS IS THE LARGEST SOLAR PROJECT IN THE WORLD WITH A CAPACITY OF 2000 MEGAWATTS AND THE COST OF 3 BILLION EUROS. THE CONSTRUCTION OF A NUMBER OF OTHER STATIONS IN DIFFERENT GOVERNORATES OF THE MICROSCOPES PAGE 54
  • 55. PRESIDENT OF SIEMENS MIDDLE EAST: EGYPT HAS ONE OF THE LATEST ENERGY SYSTEMS IN THE WORLD PAGE 55 CNBC- LINK: https://www.cnbc.com/video/2019/04/07/siemens- siersdorfer-egypt-has-one-of-the-most-modern- energy-systems.html?__source=sharebar
  • 57. EGYPT IMPORTS A LARGE NUMBER OF BUSES THAT WORK WITH ELECTRICITY AND IS PREPARING TO MANUFACTURE 4000 BUSES IN COOPERATION WITH CHINA WITHIN THE SCHEME TO RELY ON MASS TRANSPORT IN THE COMING YEARS PAGE 57
  • 58. LARGE PROJECTS FOR ESTABLISHMENT OF LARGEST WIND FARMS IN THE MIDDLE EAST IN RED SEA, SUCH AS PROJECT OF WIND STATION OF GIANT OIL MOUNTAIN WITHIN SCHEME OF EXPLOITING ALL RESOURCES OF THE STATE OF SUN AND WIND PAGE 58
  • 60. H.E. PRESIDENT ABDEL FATTAH AL-SISI INSPECTED RAS AL-TIN MARINE BASE PAGE 60
  • 62. EGYPTIAN SUBMARINE WITHIN A NUMBER OF SUBMARINES RECEIVED FROM GERMANY PAGE 62
  • 63. H.E. PRESIDENT ABDUL FATTAH AL-SISI FROM INSIDE THE HELICOPTER CARRIER MISTRAL PAGE 63
  • 64. EGYPTIAN WORKERS ON THE LARGEST GAS FIELD IN MEDITERRANEAN PAGE 64
  • 65. FROM ASWAN- SOLAR SCHOOL RECENTLY INAUGURATED IN CONJUNCTION WITH ESTABLISHMENT OF THE WORLD'S LARGEST SOLAR POWER PLANT IN BENNABAN TO CREATE A GENERATION OF EXPERTISE TO MANAGE AND OPERATE SOLAR POWER PLANTS IN EGYPT PAGE 65
  • 66. CONSTRUCTION SITE OF THE NUCLEAR STATION PAGE 66