WHY EGYPT?

• Reliable infrastructure with constant expansion.

• committed available feedstock through project life time at competitive prices.

• Stability of political, economic and legal environment.

• Issuance of an “Investment Encouragement Law” including investment guarantees and incentives law.

• Logistical advantage of Egypt’s distinguished geographical proximity to European, Arabian and African markets.

• Availability of specialized technical expertise including fields of refineries, fertilizers and petrochemical industries ( with relatively low labor cost). 

• Growing market demand.

• Attractive tax exemption and guarantees  Package.

• Reliable organizations.

• Credible banking system.

THE LOCATION

Situated at the heart of the world, Egypt stands as a major trade and trans-shipment destination.  It occupies the north Eastern corner of Africa, Its north coast is on the Mediterranean Sea, while the eastern coast is bound by the Red Sea.

Egypt stands at crossroads between Europe, the Middle East, Africa and west & south Asia.  A few hours plane ride from Cairo will take travelers to Paris, Rabat, Istanbul, Kuwait city or Moscow.

At the heart of international trade and commerce, Egypt can competitively supply a market of one billion people.

THE AREA AND POPULATION:

Egypt occupies 1,002,000 square kilometers.  Egypt’s well diversified economy is the second largest in the Arab World and the largest in North Africa.  With a population of nearly 67.3 million inhabitants, Egypt is the largest Arab nation and one of the most populous countries in the African continent.  Egypt’s workforce close to 19.7 million is an excellent source of productive semi-skilled and skilled, inexpensive labor.  Arabic is the official language, although English and French are used extensively.  The Egyptian dialect is the most widely understood of all other Arabic dialects.

THE EGYPTIAN ECONOMY  (MINISTRY OF FOREIGN TRADE):

Since the early 1990’s More than 12 years ago, the Government of Egypt has determinably launched a comprehensive economic reform & stabilization program to be an active member of the global economy and aiming primarily at generating sufficient growth rates that are sustainable, alleviating and improving the standards of living, reducing unemployment and containing inflation rates down to safe levels.  Egypt is rapidly shifting towards a market based economy which necessitates that it also implements a consistent economy policy mix; which both constitute the enabling environment to allow for achieving real economic growth, and rehabilitate the Egyptian macro and microeconomic institutions.

MARKET CHARACTERISTICS (stable and strong rating):

These developments, coupled with a stable outlook, has rightfully earned the Egyptian economy investment grade credit rating.  This allowed Egypt to successfully launch it dual tranche inaugural Eurobond in June, 2001.  The first tranche covers US$ 500 million with a five year maturity, priced at 275 basis points over US Treasuries and offering a coupon of 7.26%.  The second tranche covers U.S. 1 billion which matures in 10 years, priced at 335 basis points over U.S. Treasuries and offered a coupon of 8.75%.  This bond rate was much lower than other emerging economies in the Middle East and North Africa, indicating the confidence of foreign investors in the Egyptian economy and their assurance of Egypt’s credibility.

FREE ZONE PROJECTS (MINISTRY OF FOREIGN TRADE):

Extending on Egypt’s strategic geographical location, free zones were established to capitalize on and encourage a new export platform for Egypt.  Free zones are also governed by Law 8 of 1997.

There are two types of free zones:  public free zones and private free zones.  Private free zones are established for specific projects or companies.  These accommodate storage, warehousing, mixing and repackaging, assembly and manufacturing for export, and service activities.

Today, there are seven public free zones established by the General Authority for Investment and there will be an additional three free zones to be opened soon.

Investment in Egypt’s Major Public Free Zones

As at June 2002

Value in US$ Million

SOURCE: Ministry of foreign trade -quarterly economic digest April- June 2003

Regional Agreements

Under its strong commitment to strengthening the marketing capabilities of its investors, the Egyptian government has signed and put in motion Free and Preferential Trade Agreements between Egypt and the Arab Countries, which will give any investment firm in Egypt a much large and wide market penetrations with millions of additional potential customers.

Please click here to view more details about regional agreements' tables and statistics.