Economy of Egypt
Encyclopedia
The economy of Egypt was highly centralized under President Gamal Abdel Nasser
. In the 1990s, a series of International Monetary Fund
arrangements, coupled with massive external debt relief resulting from Egypt's participation in the Gulf War
coalition, helped Egypt improve its macroeconomic performance. Since 2000, the pace of structural reforms, including fiscal, monetary policies, privatization and new business legislations, helped Egypt move towards a more market-oriented economy
and prompted increased foreign investment. The reforms and policies have strengthened macroeconomic annual growth results which averaged 5% annually but the government largely failed to equitably share the wealth and the benefits of growth have failed to trickle down to improve economic conditions for the broader population, especially with the growing problem of unemployment and underemployment among youth under the age of 30 years. A youth protest demanding more political freedoms, fighting corruption and delivering improved living standards forced President Mubarak to step down on February 11, 2011.
Under comprehensive economic reforms initiated in 1991, Egypt has relaxed many price controls, reduced subsidies, reduced inflation, cut taxes, and partially liberalized trade and investment
. Manufacturing
had become less dominated by the public sector
, especially in heavy industries. A process of public sector reform and privatization has begun to enhance opportunities for the private sector
. Agriculture
, mainly in private hands, has been largely deregulated, with the exception of cotton and sugar production. Construction, non-financial services, and domestic wholesale and retail trades are largely private. This has promoted a steady increase of GDP
and the annual growth rate
. The Government of Egypt tamed inflation bringing it down from double-digit to a single digit. Currently, GDP is rising smartly by 7% per annum due to successful diversification.
Gross domestic product (GDP) per capita based on purchasing-power-parity (PPP) increased fourfold between 1981 and 2006, from US$ 1355 in 1981, to US$ 2525 in 1991, to US$ 3686 in 2001 and to an estimated US$ 4535 in 2006. Based on national currency, GDP per capita at constant 1999 prices increased from EGP 411 in 1981, to EGP 2098 in 1991, to EGP 5493 in 2001 and to EGP 8708 in 2006. Based on the current US$ prices, GDP per capita increased from US$ 587 in 1981, to US$ 869 in 1991, to US$ 1461 in 2001 and to an estimated US$ 1518 (which translates to less than US$ 130 per month) in 2006. According to the World Bank
Country Classification, Egypt has been promoted from the low income category to lower middle income category.
Mean wages were $2.45 per manhour in 2009.
The reform programme is a work in progress. Noteworthy that the reform record has substantially improved since Nazif government came to power. Egypt has made substantial progress in developing its legal, tax and investment infrastructure. (See Nawar 2006) Indeed, over the past five years, Egypt has passed, amended and admitted over 15 legislative pieces. The economy is expected to grow by about 4% to 6% in 2009/2010.
Surging domestic inflationary pressures from both economic growth and elevated international food prices led the Central Bank of Egypt
to increase the overnight lending and deposit rates in sequential moves since February 2008. The rates stood at 11.5% and 13.5%, respectively, since 18 September 2008.
The rise of the World Global Financial Crisis led to a set of fiscal-monetary policy measures to face its repercussions on the national economy, including reducing the overnight lending and deposit rates by 1% on 12 February 2009. The rates currently stand at 10.5% and 12.5%, respectively.
Reform of energy and food subsidies, privatization of the state-owned Bank of Cairo
, and inflation targeting
are perhaps the most controversial economic issues in 2007/2008 and 2008/2009.
Egypt's trade balance marked US$10.36 billion in FY2005 compared to US$7.5 billion.
Egypt's main exports consist of natural gas, and non-petroleum products such as ready-made clothes, cotton textiles, medical and petrochemical products, citrus fruits, rice and dried onion, and more recently cement, steel, and ceramics. Egypt's main imports consist of pharmaceuticals and non-petroleum products such as wheat, maize, cars and car spare parts. The current account grew from 0.7% of GDP in FY2002 to 3.3% at FY2005. Egypt's Current Account made a surplus of US$4478 million in FY2005 compared to a deficit of US$158 million in FY2004.
Italy and the USA are the top export markets for Egyptian goods and services. In the Arab world
, Egypt has the largest non-oil GDP as of 2005.
According to the International Organization for Migration
, an estimated 2.7 million Egyptians abroad contribute actively to the development of their country through remittance inflows, circulation of human and social capital, as well as investment. In 2009 Egypt
was the biggest recipient of remittances in the Middle East
; an estimated US$ 7.8 bn was received in 2009, representing approximately 5 % of national GDP, with a decline of 10% from 2008, due mostly to the effect of the financial crisis. According to data from Egypt's Central Bank, the United States
was the top sending country of remittances (23%), followed by Kuwait
(15%), the United Arab Emirates
(14%) and Saudi Arabia
(9%).
On the expenditures side, strong expenditure growth has remained a main feature of the budget. This is mainly a result of continued strong expansion of (1) the public-sector wages driven by government pledges. Wages and Compensations increased from EGP30.5 bn in FY2002 to EGP59.6 bn in FY2008; (2) high interest payments on the public debt stock. Interest payments rose from EGP21.8 bn in FY2002 to EGP52.0 bn in FY2008. Importantly, dramatic increase in domestic debt which is projected to be roughly 62% of GDP in FY2008 up from 58.4% in FY2002; and (3) the costs of food and energy subsidies, which rose from EGP18.0 bn in FY2002 to EGP64.5 bn in FY2008.
The overall deficit, after adjusting for net acquisition of financial assets, remains almost unchanged from the cash deficit. The budget's overall deficit of EGP 43.8 bn or -10.2% of GDP for FY2002 has become 49.2 bn in FY2007, so that is narrowed to -6.7% of GDP. Deficit is financed largely by domestic borrowing and revenue from privatization sales, which became a standard accounting practice in budget Egypt. The government aims at more sales of assets in FY2008.
Recently, the fiscal conduct of the government was under strong criticism and heated debate and discussions in the Egyptian Parliament. In particular, reference was made to weak governance and management, loose implementation of tax collection procedures and penalties for offenders, and improper accounting of the overall system of basic subsidies and domestic debt, leading to domestic market disruptions,high inflation, increased inefficiencies and waste in the domestic economy.
Treasury bonds and notes issued to the Central Bank of Egypt
constitute the bulk of the government domestic debt. Since FY2001, net government domestic debt (i.e. after excluding budget sector deposits) has been rising at a fluctuating but decreasing rate. In 2007, it reached 65.4% up from 54.3% of GDP in 2001.
of Egypt, including the total public and private debt owed to non-residents repayable in foreign currency, goods, or services—based on the Ministry of Finance, the Central Bank of Egypt and The World Factbook
—is estimated at US$29,898 million at the end of FY 2007.
has calculated the opportunity cost of conflict
for Egypt since 1991 is almost $800 billion. In other words, had there been peace since 1991, an average Egyptian citizen would be earning over $3000 instead of $1700 he or she may earn next year.
to accumulate net international reserves, which increased from US$ 20 billion in FY2005, to US$23 billion in FY2006, and to US$30 billion FY2007 contributing to growth in both reserve money and in broad money (M2).
Credit extended to the private sector in Egypt declined significantly reaching about EGP 5 billion in FY2005. This credit crunch
is due to the non-performing loans extended by the banks to business tycoons and top government officials.
Lending criteria have been tightened following the passing of Money Laundry Law 80 in 2002 and Banking Law 88 in 2003. Interest rates are no longer the dominant factor in banks' lending decisions. In fact, both the inefficiency and absence of the role of the Central Bank of Egypt
in qualitative and quantitative control as well as implementing banking procedures and standards was almost entirely responsible for the non-performing loans crisis. Banks steadily reduced credit from its peak of about EGP 30 billion in FY1999 and alternatively invested in more liquid no-risk securities such as treasury bills and government bonds. Improving private sector access to credit will critically depend on resolving the problem of non-performing loans with businesses and top government officials.
The era of inflation targeting
—i.e. maintaining inflation within a band—has perhaps begun in Egypt more recently. Country experiences show that inflation targeting is a best-practice strategy for monetary policy. While the monetary policy appears more responsive to inflationary pressures recently in Egypt, it is noted that there is no core inflation
measure and the Central Bank of Egypt takes targeting decisions based on the inflation rate released by the CAPMAS
consumer price index
off-the-shelf.
Surging domestic inflationary pressures from both economic growth and elevated international food prices led the Central Bank of Egypt
(CBE
) to increase the overnight lending and deposit rates in sequential moves since 2008: it was raised by 0.25% on 10 February 2008, by 0.5% on 25 March 2008, by 0.5% on 8 May 2008, by 0.5% on 26 June 2008, by 0.5% on 7 August 2008 and most recently on 18 September 2008 for the sixth time in a year by 0.5% when it stood at 11.5% and 13.5%, respectively. However, the rise of the World Global Financial Crisis led to a set of fiscal-monetary policy measures to face its repercussions on the national economy, including reducing the overnight lending and deposit rates by 1% on 12 February 2009. The rates currently stand at 10.5% and 12.5%, respectively. The CBE
is expected to further cut on interest rates over 2009, with seemingly little fear on Egyptian Pound depreciation resulting from decreased interest rates.
The transition to the unified exchange rate regime was completed in December 2004. Shortly later, Egypt has notified the International Monetary Fund (IMF) that it has accepted the obligations of Article VIII, Section 2, 3, and 4 of the IMF Articles of Agreement, with effect from 2 January 2005. IMF members accepting the obligations of Article VIII undertake to refrain from imposing restrictions on the making of payments and transfers for current international transactions, or from engaging in discriminatory currency arrangements or multiple currency practices, except with IMF approval. By accepting the obligations of Article VIII, Egypt gives assurance to the international community that it will pursue economic policies that will not impose restrictions on the making of payments and transfers for current international transactions unnecessary, and will contribute to a multilateral payments system free of restrictions.
In the fiscal year 2004 and over most of the fiscal year 2005, the pound depreciated against the US Dollar. Since the second half of the fiscal year 2006 until the end of the fiscal year 2007, the pound gradually appreciated to EGP 5.69 per USD. While it was likely to continue appreciating in the short-term, given the skyrocketing oil prices and the weakening US economy, the advent of the global Economic crisis of 2008, and resulting behavior of foreign investors exiting from the stock market in Egypt increased the dollar exchange rate against the Egyptian pound, which rose by more than 4% since Lehman Brothers
declared Bankruptcy
. As the demand pressure from exiting foreign investors eases, the dollar exchange rate against the Egyptian pound is expected to decline. It stands at EGP 5.55 per USD as of 4 November 2008.
, rice
, wheat
, corn
, sugarcane
, sugar beet
s, onion
s, and bean
s are the principal crops. Increasingly, a few modern techniques are applied to producing fruits, vegetables and flowers, in addition to cotton, for export. Further improvement is possible. The most common traditional farms occupy one acre
(4,000 m²) each, typically in a canal-irrigated area along the banks of the Nile. Many small farmers also own cows, water buffalos, and chicken
s.
Several researchers questioned the domestic (and import) policies for dealing with the so-called the "wheat game" since the former Minister of Agriculture Youssef Wali was in office.
In 2006, areas planted with wheat in Egypt exceeded 400000 acres (1,618.7 km²) producing approximately 6 million metric tons. The domestic supply price farmers receive in Egypt is EGP 1200 (
US$ 211) per ton compared to approximately EGP 1940 (
US$ 340) per ton for import from the USA, Egypt's main supplier of wheat
and corn
. Egypt is, in fact, the U.S.'s largest market for wheat and corn sales, accounting for US$1 billion annually and about 46% of Egypt's needs from imported wheat. Other sources of imported wheat, include Kazakhstan, Canada, France, Syria, Argentina and Australia. There are plans to increase the areas planted with wheat up to nearly 3 million acres (12,000 km²) by 2017 to narrow the gap between domestic food supply and demand.
The Western Desert
accounts for about two-thirds of the country's land area. For the most part, it is a massive sandy plateau marked by seven major depressions. One of these, Fayoum, was connected about 3,600 years ago to the Nile by canals. Today, it is an important irrigated agricultural area.
Practically all Egyptian agriculture takes place in some 25,000 km² (6 million acres) of fertile soil in the Nile Valley and Delta.
Some desert lands are being developed for agriculture, including the controversial but ambitious Toshka project in Upper Egypt
, but some other fertile lands in the Nile Valley and Delta are being lost to urbanization and erosion.
Larger modern farms are becoming more important in the desert.
The agriculture objectives on the desert lands are often questioned; the desert farm lands which were offered regularly at different levels and prices were restricted to a limited group of elites selected very carefully, who later profiteered retailing the granted large desert farm land by pieces. This allegedly transforms the desert farms to tourist resorts, hits all government plans to develop and improve the conditions of the poor, and causes serious negative impact on agriculture and the overall national economy over time. One company, for example, bought over 70 hectare of large desert farm for a price as low as EGP 0.05 per square meter and now sells for EGP 300 per square meter. In numbers, 70 hectares bought for about US$6,000 in 2000 sells for over US$3.7 million in 2007. Currently, no clear solution exists to deal with these activities.
Agriculture biomass, including agricultural wastes and animal manure, produce approximately 30 million metric tons of dry material per year that could be massively and decisively used, inter alia, for generating bioenergy and improve the quality of life in rural Egypt. Unfortunately, this resource remain terribly underutilized.
Since early 2008, with the world food prices soaring, especially for grains, calls for striking a "new deal" on agriculture increased. Indeed 2008 arguably marks the birth of a new national agriculture policy and reform.
accounts for about two-thirds of the country's land area. This sizable part of Egypt has been facing severe unresolved challenge to agriculture reclamation and development posed by landmines planted by Germans during World War II. In particular, the so-called devil's gardens
, where landmines were laid during World War II by the troops led by Erwin Rommel
, the German Field Marshal, to cover up his withdrawal from Egypt's Alamain, when Egypt was then occupied by Britain, so as to prevent pursuit by the British troops. Egypt has 23 million landmines, accounting for 20% of the total number of landmines in the world.
25 centuries ago, "is the gift of the Nile." The land's seemingly inexhaustible resources of water and soil carried by this mighty river created in the Nile Valley and Delta the world's most extensive oasis. Without the Nile, Egypt would be little more than a desert wasteland.
The river carves a narrow, cultivated floodplain
, never more than 20 kilometers wide, as it travels northward toward Cairo
from Lake Nasser
on the Sudan
ese border, behind the Aswan High Dam. Just north of Cairo, the Nile spreads out over what was once a broad estuary that has been filled by riverine deposits to form a fertile delta about 250 kilometres (155.3 mi) wide at the seaward base and about 160 kilometres (99.4 mi) from south to north.
Before the construction of dams on the Nile, particularly the Aswan High Dam (started in 1960, completed in 1970), the fertility of the Nile Valley was sustained by the water flow and the silt deposited by the annual flood. Sediment is now obstructed by the Aswan High Dam and retained in Lake Nasser. The interruption of yearly, natural fertilization and the increasing salinity of the soil has been a manageable problem resulting from the dam. The benefits remain impressive: more intensive farming on thousands of square kilometers of land made possible by improved irrigation, prevention of flood damage, and the generation of millions of gigajoules of electricity at low cost.
, natural gas
, phosphate
s, gold
and iron ore. Crude oil is found primarily in the Gulf of Suez
and in the Western Desert. Natural gas is found mainly in the Nile Delta
, off the Mediterranean shore, and in the Western Desert
. Oil and gas accounted for approximately 7% of GDP
in fiscal year 2000/01.
Export of petroleum and related products amounted to $2.6 billion in the year 2000. In late 2001, Egypt's benchmark "Suez Blend" was about $16.73 per barrel ($105/m³), the lowest price since 1999.
Crude oil production has been in decline for several years since its peak level in 1993, from 941000 oilbbl/d in 1993 to 873000 oilbbl/d in 1997 and to 696000 oilbbl/d in 2005. (See Figure). At the same time, the domestic consumption of oil increased steadily (531000 oilbbl/d and 525000 oilbbl/d in 1997 and 2005 respectively), but in 2008, oil consumption reached to 697000 oilbbl/d. It is easy to see from the graph that a linear trend projects that domestic demand outpaced supply in (2008–2009), turning Egypt to a net importer of oil. To minimize this potential, the government of Egypt has been encouraging the exploration, production and domestic consumption of natural gas
. Oil Production was 630 oilbbl/d in 2008, and natural gas output continued to increase and reached 48.3 billion cubic meters in 2008.
Over the last 15 years, more than 180 petroleum exploration agreements have been signed and multinational oil companies spent more than $27 billion in exploration companions. These activities led to the findings of about 18 crude oil fields and 16 natural gas fields in FY 2001. The total number of findings rose to 49 in FY 2005. As a result of these findings, crude oil reserves
as of 2009 are estimated at 3.7 Goilbbl, and proven natural gas reserves are 1.656 trillion cubic meters with a likely additional discoveries with more exploration campaigns. In August 2007, it was announced that signs of oil reserves in Kom Ombo
basin, about 28 miles (45.1 km) north of Aswan, was found and a concession agreement was signed with Centorion Energy International for drilling. The main natural gas producer in Egypt is the International Egyptian Oilfield Company (IEOC), a branch of Italian Eni
. Other companies like BP, BG, Texas-based Apache Corp.
and Shell carry out activities of exploration and production by means of concessions granted for a period of generally ample time (often 20 years) and in different geographic zones of oil and gas deposits in the country.
Gold
mining is more recently a fast growing industry with vast untapped gold reserves in the Eastern Desert. There is already a gold rush and gold production facilities are now reality from the Sukari Hills, located close to Marsa Alam in the Eastern Desert. The concession of the mine was granted to Centamin Egypt
, an Australian joint stock company, with a gold exploitation lease for a 160-square-kilometer area. Sami El-Raghy, Centamin Chairman, has repeatedly stated that he believes Egypt's yearly revenues from gold in the future will exceed the total revenues from the Suez Canal, tourism and the petroleum industry combined.
Egypt's excess of natural gas
will more than meet its domestic demand for many years to come. The Ministry of Petroleum and Mineral Resources
has established expanding the Egyptian petrochemical industry and increasing exports of natural gas as its most significant strategic objectives and in 2009 about 38% of local gas production was exported.
As of 2009, most Egyptian gas exports (approximately 70%) are delivered in the form of liquefied natural gas
(LNG) by ship to Europe and the United States. Egypt and Jordan
agreed to construct the Arab Gas Pipeline
from Al Arish to Aqaba
to export natural gas to Jordan; with its completion in July 2003, Egypt began to export 1.1 Gcuft of gas per year via pipeline as well. Total investment in this project is about $220 million. In 2003, Egypt, Jordan and Syria reached an agreement to extend this pipeline to Syria, which paves the way for a future connection with Turkey, Lebanon and Cyprus by 2010. As of 2009, Egypt began to export to Syria 32.9 Gcuft of gas per year, accounting for 20% of total consumption in Syria
. In addition, the East Mediterranean Gas (EMG), a joint company established in 2000 and owned by Egyptian General Petroleum Corporation
(EGPC) (68.4%), the private Israeli company Merhav (25%) as well as Ampal-American Israel Corp.
(6.6%), has been granted the rights to export natural gas from Egypt to Israel and other locations in the region via underwater pipelines from Al 'Arish
to Ashkelon
which will provide Israel Electric Corporation
(IEC) 170 Mcuft of gas per day. Gas supply started experimentally in the second half of 2007. As of 2008, Egypt produces about 6.3 Gcuft, from which Israel imports of 170 Mcuft account for about 2.7 % of Egypt's total production of natural gas. According to a statement released on 24 March 2008, Merhav and Ampal's director, Nimrod Novik, said that the natural gas pipeline from Egypt to Israel can carry up to 9 billion cubic meters annually which sufficiently meet rising demand in Israel in the coming years. According to a memorandum of understanding, the commitment of Egypt is 680 Mcuft contracted for 15 years at a price below $3 per million of British thermal unit
, though this was renegotiated at a higher price in 2009 (to between $4 and $5 per million BTU), while the amounts of gas supplied were increased. Exporting natural gas to Israel faces broad popular opposition in Egypt. Nevertheless, agreements between Egypt and Israel allow for Israeli entities to purchase up to 7 billion cubic meters of Egyptian gas annually, making Israel one of Egypt's largest natural gas export markets. The decision to export of natural gas to Israel was passed in 1993 at the time when Dr. Hamdy Al-Bambi was Minister of Petroleum and when Mr. Amr Moussa
was Minister of Foreign Affairs. The mandate to sign of the Memorandum of Understanding (MoU) to delegate to the Ministry of Petroleum represented by the Egyptian General Petroleum Company (EGPC) to contract with EMG Company was approved by the former Prime Minister Dr. Atef Ebeid
in the Cabinet’s meeting No. 68 on 5 July 2004 when he served as the acting "President of the Republic" when President Hosni Mubarak
was receiving medical treatment in Germany.
A new report by Strategic Foresight Group
on the Cost of Conflict in the Middle East also details how in the event of peace an oil and gas pipeline from Port Said to Gaza to Lebanon would result in a transaction value for Egypt to the tune of $1–2 billion per year.
With respect to nuclear energy, Egypt's President Hosni Mubarak on 29 October 2007, a few days before the Egyptian ruling party's annual conference, proudly gave the go-ahead for building several nuclear power plant
s. Egypt's nuclear route is purely peaceful and fully transparent, but faces technical and financing obstacles. Egypt is a member of the IAEA and has both signed and ratified the Nuclear Nonproliferation Treaty (NPT). Currently, a draft Law on Nuclear Energy is being reviewed by the IAEA and expected to be passed by the Egyptian Parliament. Many other countries in the region, including Libya
, Jordan
, UAE, Morocco
, and Saudi Arabia
aspire to build nuclear power plants.
As of June 2009 it was reported that Cairo sources said Israelis will dig for oil in Sinai. This report comes in the time in which the government is heavily criticized for exporting natural gas to Israel
at an extremely low rate.
Cotton
has been the staple crop, but it is no longer vital as an export. Production in 1999 was 243,000 tons. Egypt is also a substantial producer of wheat
, corn, sugarcane, fruit and vegetables, fodder, and rice; substantial quantities of wheat are also imported, especially from United States of America and Russia, despite increases in yield since 1970, and significant quantities of rice are exported. Citrus
, dates, and grapes are the main fruits by acreage. Agricultural output in tons in 1999 included corn, 9,350,000; wheat, 6,347,000; rice, 5,816,000; potatoes, 1,900,000; and oranges, 1,525,000. The government exercises a strong degree of control over agriculture, not only to ensure the best use of irrigation water but also to confine the planting of cotton in favor of food grains. However, the government's ability to achieve this objective is limited by crop rotational constraints.
Egypt's fertile area totals about 3.3 million hectares (8.1 million acres), about one-quarter of which is land reclaimed from the desert. However, the reclaimed lands only add 7 percent to the total value of agricultural production. Even though only 3 percent of the land is arable, it is extremely productive and can be cropped two or even three times annually. Most land is cropped at least twice a year, but agricultural productivity is limited by salinity, which afflicts an estimation of 35% of cultivated land, and drainage issues.
Irrigation plays a major role in a country the very livelihood of which depends upon a single river, the Nile
. Most ambitious of all the irrigation projects is that of the Aswan High Dam, completed in 1971. A report published in March 1975 by the National Council for Production and Economic Affairs indicated that the dam had proved successful in controlling floodwaters and ensuring recurring water supply, but that water consumption had been more than needed and shall be controlled. Some precious land was lost below the dam because the flow of Nile silt was stopped, and increased salinity remains a major problem. Furthermore, five years of drought in the Ethiopia
highlands—the source of the Nile River's water—caused the water level of Lake Nasser
, the Aswan High Dam's reservoir, to drop to the lowest level in 1987. In 1996, however, the level of water behind the High Dam and in Lake Nasser reached the maximum level since the completion of the dam. Despite this unusual abundance of water supply, Egypt can only utilize 55.5 billion cu m (1.96 trillion cu ft) every year, according to the Nile Basin Agreement signed in 1959 between Egypt and Sudan
. Another magnificent project designed to address the water scarcity problem is the New Valley
(the "second Nile"), aimed at development of the large artesian water supplies underlying the oases of the Western Desert
.
The agrarian reform law of 1952 provided that no one might hold more than 190 feddans for farming and that each landholder must either farm the land himself or rent it under specified conditions. Up to 95 additional feddans might be held if the owner had children, and additional land had to be sold to the government. In 1961, the upper limit of landholding was reduced to 100 feddans, and no person was allowed to lease more than 50 feddans (1 feddan = 0.42 hectares). Compensation to the former owners was in bonds bearing a low rate of interest, redeemable within 40 years. A law enacted in 1969 reduced landholdings by one person to 50 feddans. By the mid-1980s, 90% of all land titles were for holdings of less than five feddans, and about 300,000 families, or 8% of the rural population, had received land under the agrarian reform program. According to a 1990 agricultural census, there were some three million small land holdings, almost 96% of which were under five feddans (2.1 hectares/5.2 acres). Since the late 1980s, many reforms attempting to deregulate agriculture by liberalizing input and output prices and by eliminating crop area controls have been initiated. As a result, the gap between world and domestic prices for Egyptian agricultural commodities has been closed.
is Egypt
's state owned automobile company, founded in 1960 in Helwan, Egypt
. Established in 1977, the company manufactures various vehicles under license from Daimler AG, Kia
, , and Peugeot
. Their current lineup consists of the Jeep Cherokee
; the open-top, Wrangler-based Jeep AAV TJL; the Kia Spectra
; the Peugeot 405
; and the Peugeot 406
.
Other manufacturers such as AAV - Arab American Vehicles
, the Ghabbour Group, WAMCO - the Watania Automotive Manufacturing Company, and MCV Egypt - Manufacturing Commercial Vehicles, produce automobiles in Egypt. MCV Egypt was established in 1994 to represent Mercedes-Benz
in the commercial vehicle sector in Egypt, producing a range of buses and trucks for domestic sale and for export throughout the Arab World
, Africa, and Eastern Europe
. The manufacturing plant at Salheya employs over 1000 people. Also there is Russian AutoVAZ manufacturing 'Lada'
fertilizer
s in Egypt
and the Middle East. It produces about 50% of the Egyptian Nitrogen Fertilizers. The company and the 1st Ammonia Urea plant was established at 1976. It is located at Abu Qir bay, 20 kilometers East Of Alexandria
, and there is Egypt Basic Industries Corporation (EBIC), one of the largest producers of greenfield ammonia plant.
is the largest Egyptian group of companies operating mainly in the field of domestic appliances. The main products it manufactures are washing machines, refrigerators, electric water heaters and gas cookers. It also operates in the fields of IT and real estate.
Bahgat Group
is a leading company in the fields of electronics and electrical home appliances, industries, constructions, internet service providing, and T.V stations. The group is composed of the following companies : Egy Aircon, International Electronics Products, Electrical Home appliances, General Electronics and Trading, Goldi Trading, Goldi Servicing, Egy Medical, Egyptian Plastic Industry, Egy House, Egy Speakers, Egy Marble, Dreamland and Dream TV.
is the largest steel company in Egypt and the Middle East. Now a part of Ezz Industries, which consists of four steel plants in Alexandria, Sadat City, Suez and 10th of Ramadan City. In addition, it includes also Al-Jawhara (Gemma) Company for Ceramic and Porcelain tiles.
EZDK is the largest independent producer of steel in the Middle East and North Africa (MENA) region and is the market leader in Egypt. It is ranked at the 65th place in the world biggest steel producers as per the World Steel Institute with total production of 4.5 Million Tons per year representing about three quarters of Egypt total annual production (6 Million Tons).
The public sector accounts for 90% of cotton spinning, 60% of fabric production and 30% of apparel production in Egypt.
Misr Fine Spinning and Weaving is the largest enterprise of its kind in Africa and the Middle East. The private sector apparel industry is one of the most dynamic manufacturing processes in Egypt.
And Arafa Holding is a global apparel manufacturer and retailer, operating through a strong vertically integrated platform at the local & international levels.
Orascom Construction Industries is a leading Egyptian EPC (engineering, procurement and construction) contractor, based in Cairo, Egypt and active in more than 20 countries. OCI was established in Egypt in 1950 and owned by Onsi Sawiris. The company is the first multinational Egyptian corporation, and is one of the core Orascom Group
companies.
As a cement producer, OCI owned and operated cement plants in Egypt, Algeria, Turkey, Pakistan, northern Iraq and Spain, which had a combined annual production capacity of 21 million tonnes.
The Talaat Moustafa Group
(TMG), one of the largest conglomerates in Egypt, was founded by the former Talaat Moustafa and is headed by his son, Tarek Talaat Moustafa.
The banking system comprises 57 state owned commercial banks. This includes 28 commercial banks, four of which are state-owned, 26 investment banks (11 joint venture banks and 15 branches of foreign banks), and three specialized banks. Although private and joint venture banks are growing, many remain relatively small with few branch networks.
Egypt's banking system has undergone major reforms since the 1990s and today consumers are faced with a liberalized and modernized system which is supervised and regulated according to internationally accepted standards.
Although the mortgage market is underdeveloped in Egypt and as yet foreigners cannot yet obtain a mortgage for a property in Egypt. In the near future, a new mortgage law will enable purchasers to take out property loans. This will open up the market considerably and create a storm of development and real estate activity in the near future.
The telecommunications liberalisation process started in 1998 and is still ongoing, but at a slow pace. Private sector companies operate in mobile telephony, and Internet access. There were 10 million fixed phone lines, 31 million mobile phones, and 8.1 million Internet users by the August, 2007.
Transport in Egypt are centered in Cairo and largely follow the pattern of settlement along the Nile. The main line of the nation's 4800 kilometres (2,982.6 mi) railway network runs from Alexandria to Aswan and is operated by Egyptian National Railways. The badly maintained road network has expanded rapidly to over 21000 miles (33,796.1 km), covering the Nile Valley and Nile Delta, Mediterranean and Red Sea coasts, the Sinai, and the Western oases.
In addition to overseas routes, Egypt Air provides reliable domestic air service to major tourist destinations from its Cairo hub. The Nile River system (about 1,600 km. or 1,000 mi.) and the principal canals (1,600 km.) are important locally for transportation.
The Suez Canal is a major waterway of international commerce and navigation, linking the Mediterranean and Red Sea. The ministry of transportation, along with other governmental bodies are responsible for transportation in Egypt. Major ports are Alexandria, Port Said, and Damietta on the Mediterranean, and Suez and Safaga on the Red Sea.
is one of the best known touristic countries in the world. It has many constituents of tourism, mainly historical attractions especially in Cairo
, Luxor
and Aswan
, but also beach and other sea activities. The government is always trying to promote foreign tourism since it is a major source of currency and investment. There are plans to get to 14 million visitors by 2011, by means of the improvement of touristic facilities and advertising of Egyptian tourism in international media, in order to maintain a steady demand for visiting Egypt.
The government established ITIDA through Law 15 of the year 2004 as governmental entity. This agency aims at paving the way for the diffusion of the e-business services in Egypt capitalizing on different mandates of the authority as activating the Egyptian e-signature law and supporting an export-oriented IT sector in Egypt
.
While the move could open the market for new entrants, add and improve the infrastructure for its network. and in general create a competitive market, the fixed line market is de facto monopolized by Telecom Egypt
.
The cellular phone market was a duopoly
with prices artificially high but witnessed in the past couple of years the traditional price war between the incumbents Mobinil
and Vodafone
. A 500 minutes outbound local and long distance calling plan currently costs approximately US$30 as compared to approximately US$ 90 in 2005. While the current price is not so expensive, it is still above the international price as plans never allow "unlimited night & weekend minutes."
A third GSM 3.5G license was awarded in April 2006 for US$3 billion to a consortium led by the UAE company Eitesalat
(66%), Egypt Post
(20%), the National Bank of Egypt
(NBE) (10%), and the NBE's Commercial International Bank (4%), thus moving the market from duopoly
to oligopoly
.
On 24 September 2006, the National Telecommunication Regulatory Authority (NTRA) announced a license award to Egyptian-Arab private sector consortium of companies to extend a maritime cable for international traffic. The US$120 million cable project will serve the Gulf region and south Europe. The construction of the cable should decrease the currently high international call costs and increase domestic demand on internet broadband services, in importantly increase exports of international telecommunication services of Egyptian companies, mostly in the Smart Village.
It is expected that NTRA will award two licenses for international gateways using open technology and deploy WiMax
technology enabling the delivery of last-mile wireless broadband access as an alternative to ADSL.
The main barrier to growth for Egypt's ICT sector remains its image of instability and very demanding employees. Quality people remain heavily overpaid, compared to the rest of the Middle East.
.
Private equity
has not been widely used in Egypt in the past as a source of funding for businesses. The government, however, has instituted a number of policy changes and reforms specifically intended to develop internal private equity funds and to attract private equity funding from international sources.
The major industries include textiles, hydrocarbon
and chemical production, and generic pharmaceutical production. Unemployment is high at about 10.5%.
Until 2003, the Egyptian economy suffered from shortages in foreign currency and excessively elevated interest rates. A series of budget reforms were conducted in order to redress weaknesses in Egypt's economic environment and to boost private sector involvement and confidence in the economy.
Major fiscal
reforms were introduced in 2005 in order to tackle the informal sector which according to estimates represents somewhere between 30% to 60% of GDP
. Significant tax cuts for corporations were introduced for the first time in Egyptian history. The new Income tax Law No 91 for 2005 reduced the tax rate from 40% to 20%. According to government figures, tax filing by individuals and corporations increased by 100%.
Many changes were made to cut trade tariffs. Among the legislators' goals were tackling the black market, reducing bureaucracy and pushing through trade liberalization measures. Amendments to Investment and Company law were introduced in order to attract foreign investors. For example, the number of days required for establishing a company was dramatically reduced.
Significant improvement to the domestic economic environment increased investors' confidence in Egypt. The Cairo & Alexandria Stock Exchange
is considered among the best ten emerging markets in the world. The changes to the policy also attracted increased levels of foreign direct investment in Egypt. According to the UN Conference on Trade and Development's World Investment Report, Egypt was ranked the second largest country in attracting foreign investment in Africa.
Given the large number of amendments to laws and regulations, Egypt has succeeded to a certain extent in conforming to international standards. Very recently the Cairo & Alexandria Stock Exchange
(CASE) was welcomed with full membership into the World Federation of Exchanges (WFE)—the first Arab country to be invited.
Enforcement of these newly adopted regulatory frameworks remain, sometime problematic. Problems like corruption hamper economic development in Egypt. Many scandals involving bribery were reported during the past years. "In 2002 alone, as many as 48 high-ranking officials—including former cabinet ministers, provincial governors and MPs were convicted of influence peddling, profiteering and embezzlement. Maintaining good relations with politicians is sometimes a key to business success in Egypt. Based on the 2006 Corruption Perception Index developed by Transparency International (where the higher the ranking the greater the level of corruption), Egypt ranked 70 out of 163. On a scale from 0 to 10 (with 0 being highly corrupt), Egypt scored a 3.3 .
According to a study by the International Organization for Migration
, 20% of Egyptian remittance-receiving households interviewed channelled the remittances towards various forms of investment, while the large majority (80%) was more concerned about utilizing remittances for meeting the daily needs of their families including spending on health care and education. Among the 20% of households that decided to invest, 39% invested in real estate, 22 % invested in small businesses employing fewer than five people and the smallest proportions of investors (6%) invested in medium private business employing no more than 20 people. According to Egypt’s Human Development Report 2008, despite representing approximately 5 % of GDP, remittances provided the initial capital for only 1.4% of newly established small and medium enterprises in Egypt in 2003-2004.
Egypt has a population of about 83 million, with the population concentrated within a region 20 miles (32.2 km) on either side of the Nile River. The majority of the population is employed in the services sector, followed by agriculture and industrial production. Approximately one-third of Egyptian labour is engaged directly in farming, and many others work in the processing or trading of agricultural products.
Unemployment rate increased from 10.3% in FY2004 to 11.2% in 2005. The average rate of growth of employment in the publicly owned enterprises sector was -2% per year between FY1998 and FY2005 as a result of aggressive privatization program. On the other hand, private sector employment grew at an average rate of 3% over that period. In addition, the government sector employment grew by almost double the rate of the private sector over the same period.
In general, the average weekly wage in the private sector is, in many instances, higher than that of the public sector. In some other instances, e.g. whole sale and retail trades, the weekly wage is lower by half of that in the public sector.
As a result of the weakness role of the Ministry of Manpower and Trade Unions to create a balance between the rights of workers and the interests of owners of companies in the private sector, privatization has led to worsening employment problems and deterioration in their working environment and health, and many workers have recently resorted to strike and picketing.
In an effort to quell discontent over rising food prices, Egypt offered government and public sector workers a pay rise of up to 30%, and urged the private sector to keep up with the pay rise. The offer came on the May day speech delivered by President Mubarak to the Egyptian General Federation of Trade Unions.
"We must go in dealing with the current global (food) crisis, on two basic tracks (1) we must strengthen the food security of our low-income people, (2) we must achieve a balance between wages and prices." President Mubarak said.
The pay rise originally proposed in the government budget ranged between 15%–20%, but the decision to double it was given on heightened worries that widespread anger over prices could lead to a social explosion. The pay rise is initiated immediately, rather than waiting for the start of the new fiscal year on 1 July 2008 and is to be financed from real resources.
While the headline CPI inflation rate was 15.8% (17.6% in rural areas, 14.4% in urban areas) in March 2008, the overall food price inflation rate was 23.7% (26.9% in rural areas, 20.5% in urban areas). Moreover, in April 2008 in urban areas, the headline CPI inflation rate reached 16.4% while food price inflation rate was 22.0%. This underlines the statement in Nawar (2008) that "the inflation rate as measured by the headline CPI does not concern the poor and low-income people, who are the majority of people in rural and urban Egypt, since they spend most of their income on food." Approximately 55 million poor and low-income citizens, representing about 75% of the population, are currently enrolled in food ration cards.
In April 2009 it was reported that Egypt feared the return of 500,000 Egyptian laborers working in the Gulf states.
Overall about 44.4% of the Egyptian population are in the range of extreme poor to near poor:
Poverty has a strong regional dimension in Egypt and concentrates in Upper Egypt region, both urban (18.6%) and rural( 39.1), while metropolitan areas are the least poor (5.7%). The government is currently employing recently completed poverty map
as tool for geographic targeting
of public resources.
To be completed soon:
Gamal Abdel Nasser
Gamal Abdel Nasser Hussein was the second President of Egypt from 1956 until his death. A colonel in the Egyptian army, Nasser led the Egyptian Revolution of 1952 along with Muhammad Naguib, the first president, which overthrew the monarchy of Egypt and Sudan, and heralded a new period of...
. In the 1990s, a series of International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
arrangements, coupled with massive external debt relief resulting from Egypt's participation in the Gulf War
Gulf War
The Persian Gulf War , commonly referred to as simply the Gulf War, was a war waged by a U.N.-authorized coalition force from 34 nations led by the United States, against Iraq in response to Iraq's invasion and annexation of Kuwait.The war is also known under other names, such as the First Gulf...
coalition, helped Egypt improve its macroeconomic performance. Since 2000, the pace of structural reforms, including fiscal, monetary policies, privatization and new business legislations, helped Egypt move towards a more market-oriented economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
and prompted increased foreign investment. The reforms and policies have strengthened macroeconomic annual growth results which averaged 5% annually but the government largely failed to equitably share the wealth and the benefits of growth have failed to trickle down to improve economic conditions for the broader population, especially with the growing problem of unemployment and underemployment among youth under the age of 30 years. A youth protest demanding more political freedoms, fighting corruption and delivering improved living standards forced President Mubarak to step down on February 11, 2011.
Macroeconomic trend
Egypt has a stable economy enjoying continuous growth, averaging 4%–5% in the past quarter-century. The economy embarked on various stages of development during which the public and private sectors played roles varying in relative importance:- Import substitution and nationalization, 1952–1966, during which the first program of industrialization in 1957 was established and led by the public sector in heavy industries such as iron and steel and chemical industries. Nationalization reduced the relative importance of the private sector.
- Inter-War, 1967–1973, adversely affected the performance of the economy and public sector role in import substitution.
- Openness Euphoria, 1974–1982 during which policies were introduced to encourage Arab and foreign investment through a series of incentives and liberalizing trade and payment; the economy expanded but this proved unsustainable and growth consequently scaled back.
- External Debt Crisis, 1982–1990, the external debt crisis and Paris ClubParis ClubThe Paris Club is an informal group of financial officials from 19 of some of the world's biggest economies, which provides financial services such as war funding, debt restructuring, debt relief, and debt cancellation to indebted countries and their creditors...
re-scheduling and debt reduction. - Economic Reform, 1991–2007, reform policies were introduced to meet the terms of international institutions, lenders and donors, including wider incentives to the role of the private sector in all economic activities.
- The World Food Crisis, 2008, soaring food prices, especially for grains, led to calls for the government to provide more immediate assistance to the population of more than 40% in the "poverty tunnel" and to strike a "new deal" on agriculture policy and reform.
- The World Global Financial Crisis, 2008–present, Egypt to face the repercussions of the global financial crisis on the national economy.
- Economic Boom, Egypt now has a GDP of $500.9 Billion, and the growth rate has been rising exponentially ever since
Reform era
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
. Manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
had become less dominated by the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
, especially in heavy industries. A process of public sector reform and privatization has begun to enhance opportunities for the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
. Agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
, mainly in private hands, has been largely deregulated, with the exception of cotton and sugar production. Construction, non-financial services, and domestic wholesale and retail trades are largely private. This has promoted a steady increase of GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
and the annual growth rate
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
. The Government of Egypt tamed inflation bringing it down from double-digit to a single digit. Currently, GDP is rising smartly by 7% per annum due to successful diversification.
Gross domestic product (GDP) per capita based on purchasing-power-parity (PPP) increased fourfold between 1981 and 2006, from US$ 1355 in 1981, to US$ 2525 in 1991, to US$ 3686 in 2001 and to an estimated US$ 4535 in 2006. Based on national currency, GDP per capita at constant 1999 prices increased from EGP 411 in 1981, to EGP 2098 in 1991, to EGP 5493 in 2001 and to EGP 8708 in 2006. Based on the current US$ prices, GDP per capita increased from US$ 587 in 1981, to US$ 869 in 1991, to US$ 1461 in 2001 and to an estimated US$ 1518 (which translates to less than US$ 130 per month) in 2006. According to the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
Country Classification, Egypt has been promoted from the low income category to lower middle income category.
Mean wages were $2.45 per manhour in 2009.
| Indicator | 1981 | 1991 | 2001 | 2005 | 2006 |
| GDP (PPP) per capita, (US$) | 1,354.81 | 2,524.99 | 3,685.98 | 4,316.59 | 4,534.82 |
| GDP per capita at constant prices, (EGP) | 3,121.85 | 4,075.47 | 5,138.36 | 5,519.09 | 5,692.24 |
| GDP per capita at current prices, (EGP) | 411.20 | 2,098.71 | 5,493.28 | 7,890.65 | 8,707.88 |
| GDP per capita at current prices, (US$) | 587.42 | 869.30 | 1,460.98 | 1,315.75 | 1,517.85 |
The reform programme is a work in progress. Noteworthy that the reform record has substantially improved since Nazif government came to power. Egypt has made substantial progress in developing its legal, tax and investment infrastructure. (See Nawar 2006) Indeed, over the past five years, Egypt has passed, amended and admitted over 15 legislative pieces. The economy is expected to grow by about 4% to 6% in 2009/2010.
Surging domestic inflationary pressures from both economic growth and elevated international food prices led the Central Bank of Egypt
Central Bank of Egypt
The Central Bank of Egypt is the central bank of Egypt. The bank's paid-up capital is 1000 million Egyptian pounds. According to its website, the CBE:*Regulates banks and the banking system of Egypt...
to increase the overnight lending and deposit rates in sequential moves since February 2008. The rates stood at 11.5% and 13.5%, respectively, since 18 September 2008.
The rise of the World Global Financial Crisis led to a set of fiscal-monetary policy measures to face its repercussions on the national economy, including reducing the overnight lending and deposit rates by 1% on 12 February 2009. The rates currently stand at 10.5% and 12.5%, respectively.
Reform of energy and food subsidies, privatization of the state-owned Bank of Cairo
Banque du Caire
Banque du Caire, or "Bank of Cairo", is a full service bank headquartered in Cairo. The bank operates over 123 branches in Egypt. It has branches in Abu Dhabi, Dubai, Sharjah, Ras al Khaima in the United Arab Emirates and Manama in Bahrain, representative offices in Kiev, Ukraine and Harare,...
, and inflation targeting
Inflation targeting
Inflation targeting is an economic policy in which a central bank estimates and makes public a projected, or "target", inflation rate and then attempts to steer actual inflation towards the target through the use of interest rate changes and other monetary tools.Because interest rates and the...
are perhaps the most controversial economic issues in 2007/2008 and 2008/2009.
External trade and remittances
Egypt's main exports consist of natural gas, and non-petroleum products such as ready-made clothes, cotton textiles, medical and petrochemical products, citrus fruits, rice and dried onion, and more recently cement, steel, and ceramics. Egypt's main imports consist of pharmaceuticals and non-petroleum products such as wheat, maize, cars and car spare parts. The current account grew from 0.7% of GDP in FY2002 to 3.3% at FY2005. Egypt's Current Account made a surplus of US$4478 million in FY2005 compared to a deficit of US$158 million in FY2004.
Italy and the USA are the top export markets for Egyptian goods and services. In the Arab world
Arab world
The Arab world refers to Arabic-speaking states, territories and populations in North Africa, Western Asia and elsewhere.The standard definition of the Arab world comprises the 22 states and territories of the Arab League stretching from the Atlantic Ocean in the west to the Arabian Sea in the...
, Egypt has the largest non-oil GDP as of 2005.
According to the International Organization for Migration
International Organization for Migration
The International Organization for Migration is an intergovernmental organization. It was initially established in 1951 as the Intergovernmental Committee for European Migration to help resettle people displaced by World War II....
, an estimated 2.7 million Egyptians abroad contribute actively to the development of their country through remittance inflows, circulation of human and social capital, as well as investment. In 2009 Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
was the biggest recipient of remittances in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
; an estimated US$ 7.8 bn was received in 2009, representing approximately 5 % of national GDP, with a decline of 10% from 2008, due mostly to the effect of the financial crisis. According to data from Egypt's Central Bank, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
was the top sending country of remittances (23%), followed by Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
(15%), the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
(14%) and Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
(9%).
Public finances
On the revenues side, total revenues of the government were EGP 89.1 billion in FY2002 and are projected to reach EGP184.7 bn in FY2008. Much of the increase came from a rise in tax revenues, particularly personal income and corporate taxes which constituted the bulk of total domestic taxes, due to recent tax reforms. This trend is likely to gradually widen the tax base in the forthcoming years. Revenues, however, have remained more or less constant (about 21% ) as a percentage of the GDP over the past few years.On the expenditures side, strong expenditure growth has remained a main feature of the budget. This is mainly a result of continued strong expansion of (1) the public-sector wages driven by government pledges. Wages and Compensations increased from EGP30.5 bn in FY2002 to EGP59.6 bn in FY2008; (2) high interest payments on the public debt stock. Interest payments rose from EGP21.8 bn in FY2002 to EGP52.0 bn in FY2008. Importantly, dramatic increase in domestic debt which is projected to be roughly 62% of GDP in FY2008 up from 58.4% in FY2002; and (3) the costs of food and energy subsidies, which rose from EGP18.0 bn in FY2002 to EGP64.5 bn in FY2008.
The overall deficit, after adjusting for net acquisition of financial assets, remains almost unchanged from the cash deficit. The budget's overall deficit of EGP 43.8 bn or -10.2% of GDP for FY2002 has become 49.2 bn in FY2007, so that is narrowed to -6.7% of GDP. Deficit is financed largely by domestic borrowing and revenue from privatization sales, which became a standard accounting practice in budget Egypt. The government aims at more sales of assets in FY2008.
Recently, the fiscal conduct of the government was under strong criticism and heated debate and discussions in the Egyptian Parliament. In particular, reference was made to weak governance and management, loose implementation of tax collection procedures and penalties for offenders, and improper accounting of the overall system of basic subsidies and domestic debt, leading to domestic market disruptions,high inflation, increased inefficiencies and waste in the domestic economy.
| Item | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Revenues | 78,318.3 | 89,146.0 | 101,878.7 | 110,864.0 | 151,266.0 | 172,153.0 | 184,729.0 | 275,700.0 | 224,986.0 |
| ... Taxes | 50,801.3 | 55,736.4 | 67,157.6 | 75,759.0 | 97,779.0 | 108,609.0 | 120,075.0 | 166,500.0 | 145,544.0 |
| ... Grants | 4,264.9 | 3,289.6 | 5049.6 | 2,853.0 | 2,379.0 | 3,657.0 | 3,166.0 | 4,600.0 | 7,700.0 |
| Expenditures | 115,541.9 | 127,319.6 | 145,987.9 | 161,611.0 | 207,811.0 | 212,104.0 | 241,552.0 | 340,370.4 | 319,137.0 |
| ... Wages and Compensations | 30,515.7 | 33,816.1 | 37,265.7 | 41,546.0 | 46,719.0 | 51,270.0 | 59,574.0 | 82,000.0 | 86,100.0 |
| ... Interest | 21,751.7 | 25,851.2 | 30,703.9 | 32,780.0 | 36,815.0 | 50,448.0 | 51,979.0 | 52,900.0 | 71,066.0 |
| ... Subsidies and Social Benefits | 18,050.9 | 20,649.2 | 24,751.7 | 29,706.0 | 68,897.0 | 51,844.0 | 64,465.0 | 133,600.0 | 73,400.0 |
| Cash Deficit | |||||||||
| Net Acquisition of Financial Assets | |||||||||
| 6,160.0 | |||||||||
| 730.0 | |||||||||
| Overall Deficit | |||||||||
| -51,643.0 | -50,385.0 | -49,160.0 | |||||||
| -67,344.0 | |||||||||
| ... Net Borrowing | 38,066.7 | 43,720.7 | 46,043.4 | 50,631.0 | 50,259.0 | 48,660.0 | 57,769.0 | 66,792.0 | 94,880.0 |
| ... Proceeds from Privatization | 418.8 | 39.2 | 17 | 1012 | 126.0 | 500 | 1000 | 10,000 | 0 |
| Deficit as % of GDP | |||||||||
| -6.4% | |||||||||
Treasury bonds and notes issued to the Central Bank of Egypt
Central Bank of Egypt
The Central Bank of Egypt is the central bank of Egypt. The bank's paid-up capital is 1000 million Egyptian pounds. According to its website, the CBE:*Regulates banks and the banking system of Egypt...
constitute the bulk of the government domestic debt. Since FY2001, net government domestic debt (i.e. after excluding budget sector deposits) has been rising at a fluctuating but decreasing rate. In 2007, it reached 65.4% up from 54.3% of GDP in 2001.
| Item | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 |
| Government domestic debt (EGP bn) | 194.6 | 221.2 | 252.1 | 292.7 | 349.1 | 387.7 | 478.2 |
| Government domestic debt (% GDP) | 54.3% | 58.4% | 60.4% | 60.3% | 64.8% | 62.8% | 65.4% |
External debt
The gross external debtExternal debt
External debt is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or private households. The debt includes money owed to private commercial banks, other governments, or international financial institutions such...
of Egypt, including the total public and private debt owed to non-residents repayable in foreign currency, goods, or services—based on the Ministry of Finance, the Central Bank of Egypt and The World Factbook
The World Factbook
The World Factbook is a reference resource produced by the Central Intelligence Agency of the United States with almanac-style information about the countries of the world. The official paper copy version is available from the National Technical Information Service and the Government Printing Office...
—is estimated at US$29,898 million at the end of FY 2007.
| Item | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 |
| External Debt (USD m) | 18,613 | 17,488 | 25,925 | 26,812 | 28,949 | 29,593 | 29,898 |
| External Debt (% GDP) | 23.3% | 20.8% | 38.2% | 33.9% | 30.9% | 27.4% | 22.9% |
Opportunity cost of conflict
A report by Strategic Foresight GroupStrategic Foresight Group
Strategic Foresight Group is a think tank based in India that works on issues of global importance and relevance. It was established in 2002 to create new forms of intellectual capital. It identifies emerging trends across sectors at regional and global levels and enables policy-makers to respond...
has calculated the opportunity cost of conflict
Cost of conflict
Cost of Conflict is a tool which attempts to calculate the price of conflict to the human race. The idea is to examine this cost, not only in terms of the deaths and casualties and the economic costs borne by the people involved, but also the social, developmental, environmental and strategic costs...
for Egypt since 1991 is almost $800 billion. In other words, had there been peace since 1991, an average Egyptian citizen would be earning over $3000 instead of $1700 he or she may earn next year.
Monetary policy
There have been several favorable conditions that allowed the Central Bank of EgyptCentral Bank of Egypt
The Central Bank of Egypt is the central bank of Egypt. The bank's paid-up capital is 1000 million Egyptian pounds. According to its website, the CBE:*Regulates banks and the banking system of Egypt...
to accumulate net international reserves, which increased from US$ 20 billion in FY2005, to US$23 billion in FY2006, and to US$30 billion FY2007 contributing to growth in both reserve money and in broad money (M2).
Credit extended to the private sector in Egypt declined significantly reaching about EGP 5 billion in FY2005. This credit crunch
Credit crunch
A credit crunch is a reduction in the general availability of loans or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates...
is due to the non-performing loans extended by the banks to business tycoons and top government officials.
Lending criteria have been tightened following the passing of Money Laundry Law 80 in 2002 and Banking Law 88 in 2003. Interest rates are no longer the dominant factor in banks' lending decisions. In fact, both the inefficiency and absence of the role of the Central Bank of Egypt
Central Bank of Egypt
The Central Bank of Egypt is the central bank of Egypt. The bank's paid-up capital is 1000 million Egyptian pounds. According to its website, the CBE:*Regulates banks and the banking system of Egypt...
in qualitative and quantitative control as well as implementing banking procedures and standards was almost entirely responsible for the non-performing loans crisis. Banks steadily reduced credit from its peak of about EGP 30 billion in FY1999 and alternatively invested in more liquid no-risk securities such as treasury bills and government bonds. Improving private sector access to credit will critically depend on resolving the problem of non-performing loans with businesses and top government officials.
The era of inflation targeting
Inflation targeting
Inflation targeting is an economic policy in which a central bank estimates and makes public a projected, or "target", inflation rate and then attempts to steer actual inflation towards the target through the use of interest rate changes and other monetary tools.Because interest rates and the...
—i.e. maintaining inflation within a band—has perhaps begun in Egypt more recently. Country experiences show that inflation targeting is a best-practice strategy for monetary policy. While the monetary policy appears more responsive to inflationary pressures recently in Egypt, it is noted that there is no core inflation
Core inflation
Core inflation is a measure of inflation which excludes certain items that face volatile price movements, notably food and energy.The preferred measure by the Federal Reserve of core inflation in the United States is the core Personal consumption expenditures price index...
measure and the Central Bank of Egypt takes targeting decisions based on the inflation rate released by the CAPMAS
CAPMAS
Central Agency for Public Mobilization and Statistics is the official statistical agency of Egypt that collects, processes, analyzes, and disseminates all statistical data and the Census....
consumer price index
Consumer price index
A consumer price index measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor Statistics as "a measure of the average change over time in the prices paid by urban consumers for a market basket of...
off-the-shelf.
Central Bank of Egypt
The Central Bank of Egypt is the central bank of Egypt. The bank's paid-up capital is 1000 million Egyptian pounds. According to its website, the CBE:*Regulates banks and the banking system of Egypt...
(CBE
Central Bank of Egypt
The Central Bank of Egypt is the central bank of Egypt. The bank's paid-up capital is 1000 million Egyptian pounds. According to its website, the CBE:*Regulates banks and the banking system of Egypt...
) to increase the overnight lending and deposit rates in sequential moves since 2008: it was raised by 0.25% on 10 February 2008, by 0.5% on 25 March 2008, by 0.5% on 8 May 2008, by 0.5% on 26 June 2008, by 0.5% on 7 August 2008 and most recently on 18 September 2008 for the sixth time in a year by 0.5% when it stood at 11.5% and 13.5%, respectively. However, the rise of the World Global Financial Crisis led to a set of fiscal-monetary policy measures to face its repercussions on the national economy, including reducing the overnight lending and deposit rates by 1% on 12 February 2009. The rates currently stand at 10.5% and 12.5%, respectively. The CBE
Central Bank of Egypt
The Central Bank of Egypt is the central bank of Egypt. The bank's paid-up capital is 1000 million Egyptian pounds. According to its website, the CBE:*Regulates banks and the banking system of Egypt...
is expected to further cut on interest rates over 2009, with seemingly little fear on Egyptian Pound depreciation resulting from decreased interest rates.
Exchange rate policy
The exchange rate has been linked to the US dollar since the 1950s. Several regimes were adopted including initially the conventional peg in the sixties, regular crawling peg in the seventies and the eighties and crawling bands in the nineties. Over that time period, there were several exchange rate markets including black market, parallel market and the official market. With the turn of the new millennium, Egypt introduced a managed float regime and successfully unified the Pound exchange rate vis-à-vis foreign currencies.In the fiscal year 2004 and over most of the fiscal year 2005, the pound depreciated against the US Dollar. Since the second half of the fiscal year 2006 until the end of the fiscal year 2007, the pound gradually appreciated to EGP 5.69 per USD. While it was likely to continue appreciating in the short-term, given the skyrocketing oil prices and the weakening US economy, the advent of the global Economic crisis of 2008, and resulting behavior of foreign investors exiting from the stock market in Egypt increased the dollar exchange rate against the Egyptian pound, which rose by more than 4% since Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
declared Bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
. As the demand pressure from exiting foreign investors eases, the dollar exchange rate against the Egyptian pound is expected to decline. It stands at EGP 5.55 per USD as of 4 November 2008.
Land, agriculture and crops
Warm weather and plentiful water permit several crops a year. Land is worked intensively and yields are high. CottonCotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, rice
Rice
Rice is the seed of the monocot plants Oryza sativa or Oryza glaberrima . As a cereal grain, it is the most important staple food for a large part of the world's human population, especially in East Asia, Southeast Asia, South Asia, the Middle East, and the West Indies...
, wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
, corn
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, sugarcane
Sugarcane
Sugarcane refers to any of six to 37 species of tall perennial grasses of the genus Saccharum . Native to the warm temperate to tropical regions of South Asia, they have stout, jointed, fibrous stalks that are rich in sugar, and measure two to six metres tall...
, sugar beet
Sugar beet
Sugar beet, a cultivated plant of Beta vulgaris, is a plant whose tuber contains a high concentration of sucrose. It is grown commercially for sugar production. Sugar beets and other B...
s, onion
Onion
The onion , also known as the bulb onion, common onion and garden onion, is the most widely cultivated species of the genus Allium. The genus Allium also contains a number of other species variously referred to as onions and cultivated for food, such as the Japanese bunching onion The onion...
s, and bean
Bean
Bean is a common name for large plant seeds of several genera of the family Fabaceae used for human food or animal feed....
s are the principal crops. Increasingly, a few modern techniques are applied to producing fruits, vegetables and flowers, in addition to cotton, for export. Further improvement is possible. The most common traditional farms occupy one acre
Acre
The acre is a unit of area in a number of different systems, including the imperial and U.S. customary systems. The most commonly used acres today are the international acre and, in the United States, the survey acre. The most common use of the acre is to measure tracts of land.The acre is related...
(4,000 m²) each, typically in a canal-irrigated area along the banks of the Nile. Many small farmers also own cows, water buffalos, and chicken
Chicken
The chicken is a domesticated fowl, a subspecies of the Red Junglefowl. As one of the most common and widespread domestic animals, and with a population of more than 24 billion in 2003, there are more chickens in the world than any other species of bird...
s.
Several researchers questioned the domestic (and import) policies for dealing with the so-called the "wheat game" since the former Minister of Agriculture Youssef Wali was in office.
In 2006, areas planted with wheat in Egypt exceeded 400000 acres (1,618.7 km²) producing approximately 6 million metric tons. The domestic supply price farmers receive in Egypt is EGP 1200 (
US$ 211) per ton compared to approximately EGP 1940 ( US$ 340) per ton for import from the USA, Egypt's main supplier of wheatWheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
and corn
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
. Egypt is, in fact, the U.S.'s largest market for wheat and corn sales, accounting for US$1 billion annually and about 46% of Egypt's needs from imported wheat. Other sources of imported wheat, include Kazakhstan, Canada, France, Syria, Argentina and Australia. There are plans to increase the areas planted with wheat up to nearly 3 million acres (12,000 km²) by 2017 to narrow the gap between domestic food supply and demand.
| Item | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 |
| Wheat | |||||||
| Production | 6,130 | 6,300 | 6,443 | 7,177 | 8184 | 8,200 | |
| Imports | 6,944 | 6,327 | 7,295 | 8,150 | 7,700 | 7,000 | |
| Imports from US | 3,547 | 860 | 3,985 | 1,765 | 1,181 | 1,300 | |
| Total Consumption | 12,750 | 12,800 | 13,300 | 14,200 | 14,800 | 15,600 | |
| Corn | |||||||
| Production | 6,160 | 6,000 | 5,740 | 5,840 | 5,860 | 5,870 | |
| Imports | 4,905 | 4,848 | 3,743 | 5,398 | 4,300 | 4,800 | |
| Imports from US | 4,283 | 2,904 | 3,120 | 3,738 | 3,927 | 4,200 | |
| Total Consumption | 11,200 | 10,900 | 9,200 | 11,300 | 10,300 | 10,600 | |
The Western Desert
Libyan Desert
The Libyan Desert covers an area of approximately 1,100,000 km2, it extends approximately 1100 km from east to west, and 1,000 km from north to south, in about the shape of a rectangle...
accounts for about two-thirds of the country's land area. For the most part, it is a massive sandy plateau marked by seven major depressions. One of these, Fayoum, was connected about 3,600 years ago to the Nile by canals. Today, it is an important irrigated agricultural area.
Practically all Egyptian agriculture takes place in some 25,000 km² (6 million acres) of fertile soil in the Nile Valley and Delta.
Some desert lands are being developed for agriculture, including the controversial but ambitious Toshka project in Upper Egypt
Upper Egypt
Upper Egypt is the strip of land, on both sides of the Nile valley, that extends from the cataract boundaries of modern-day Aswan north to the area between El-Ayait and Zawyet Dahshur . The northern section of Upper Egypt, between El-Ayait and Sohag is sometimes known as Middle Egypt...
, but some other fertile lands in the Nile Valley and Delta are being lost to urbanization and erosion.
Larger modern farms are becoming more important in the desert.
The agriculture objectives on the desert lands are often questioned; the desert farm lands which were offered regularly at different levels and prices were restricted to a limited group of elites selected very carefully, who later profiteered retailing the granted large desert farm land by pieces. This allegedly transforms the desert farms to tourist resorts, hits all government plans to develop and improve the conditions of the poor, and causes serious negative impact on agriculture and the overall national economy over time. One company, for example, bought over 70 hectare of large desert farm for a price as low as EGP 0.05 per square meter and now sells for EGP 300 per square meter. In numbers, 70 hectares bought for about US$6,000 in 2000 sells for over US$3.7 million in 2007. Currently, no clear solution exists to deal with these activities.
Agriculture biomass, including agricultural wastes and animal manure, produce approximately 30 million metric tons of dry material per year that could be massively and decisively used, inter alia, for generating bioenergy and improve the quality of life in rural Egypt. Unfortunately, this resource remain terribly underutilized.
Since early 2008, with the world food prices soaring, especially for grains, calls for striking a "new deal" on agriculture increased. Indeed 2008 arguably marks the birth of a new national agriculture policy and reform.
The Devil's Gardens
As mentioned above, the Western DesertLibyan Desert
The Libyan Desert covers an area of approximately 1,100,000 km2, it extends approximately 1100 km from east to west, and 1,000 km from north to south, in about the shape of a rectangle...
accounts for about two-thirds of the country's land area. This sizable part of Egypt has been facing severe unresolved challenge to agriculture reclamation and development posed by landmines planted by Germans during World War II. In particular, the so-called devil's gardens
Devil's gardens
The Devil's gardens was the name given by Erwin Rommel, commander of the German Afrika Korps during World War II, to the defensive entanglements of land mines and barbed wire protecting his positions during the Second Battle of El Alamein in late 1942...
, where landmines were laid during World War II by the troops led by Erwin Rommel
Erwin Rommel
Erwin Johannes Eugen Rommel , popularly known as the Desert Fox , was a German Field Marshal of World War II. He won the respect of both his own troops and the enemies he fought....
, the German Field Marshal, to cover up his withdrawal from Egypt's Alamain, when Egypt was then occupied by Britain, so as to prevent pursuit by the British troops. Egypt has 23 million landmines, accounting for 20% of the total number of landmines in the world.
Water resources
"Egypt", wrote the Greek historian HerodotusHerodotus
Herodotus was an ancient Greek historian who was born in Halicarnassus, Caria and lived in the 5th century BC . He has been called the "Father of History", and was the first historian known to collect his materials systematically, test their accuracy to a certain extent and arrange them in a...
25 centuries ago, "is the gift of the Nile." The land's seemingly inexhaustible resources of water and soil carried by this mighty river created in the Nile Valley and Delta the world's most extensive oasis. Without the Nile, Egypt would be little more than a desert wasteland.
The river carves a narrow, cultivated floodplain
Floodplain
A floodplain, or flood plain, is a flat or nearly flat land adjacent a stream or river that stretches from the banks of its channel to the base of the enclosing valley walls and experiences flooding during periods of high discharge...
, never more than 20 kilometers wide, as it travels northward toward Cairo
Cairo
Cairo , is the capital of Egypt and the largest city in the Arab world and Africa, and the 16th largest metropolitan area in the world. Nicknamed "The City of a Thousand Minarets" for its preponderance of Islamic architecture, Cairo has long been a centre of the region's political and cultural life...
from Lake Nasser
Lake Nasser
Lake Nasser is a vast reservoir in southern Egypt, and northern Sudan, and is one of the largest man-made lakes in the world. Strictly, "Lake Nasser" refers only to the much larger portion of the lake that is in Egyptian territory , with the Sudanese preferring to call their smaller body of water...
on the Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...
ese border, behind the Aswan High Dam. Just north of Cairo, the Nile spreads out over what was once a broad estuary that has been filled by riverine deposits to form a fertile delta about 250 kilometres (155.3 mi) wide at the seaward base and about 160 kilometres (99.4 mi) from south to north.
Before the construction of dams on the Nile, particularly the Aswan High Dam (started in 1960, completed in 1970), the fertility of the Nile Valley was sustained by the water flow and the silt deposited by the annual flood. Sediment is now obstructed by the Aswan High Dam and retained in Lake Nasser. The interruption of yearly, natural fertilization and the increasing salinity of the soil has been a manageable problem resulting from the dam. The benefits remain impressive: more intensive farming on thousands of square kilometers of land made possible by improved irrigation, prevention of flood damage, and the generation of millions of gigajoules of electricity at low cost.
Mineral and energy resources
Egypt's mineral and energy resources include petroleumPetroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
, natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, phosphate
Phosphate
A phosphate, an inorganic chemical, is a salt of phosphoric acid. In organic chemistry, a phosphate, or organophosphate, is an ester of phosphoric acid. Organic phosphates are important in biochemistry and biogeochemistry or ecology. Inorganic phosphates are mined to obtain phosphorus for use in...
s, gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
and iron ore. Crude oil is found primarily in the Gulf of Suez
Gulf of Suez
The northern end of the Red Sea is bifurcated by the Sinai Peninsula, creating the Gulf of Suez in the west and the Gulf of Aqaba to the east. The Gulf of Suez is formed within a relatively young, but now inactive rift basin, the Gulf of Suez Rift, dating back about 28 million years...
and in the Western Desert. Natural gas is found mainly in the Nile Delta
Nile Delta
The Nile Delta is the delta formed in Northern Egypt where the Nile River spreads out and drains into the Mediterranean Sea. It is one of the world's largest river deltas—from Alexandria in the west to Port Said in the east, it covers some 240 km of Mediterranean coastline—and is a rich...
, off the Mediterranean shore, and in the Western Desert
Libyan Desert
The Libyan Desert covers an area of approximately 1,100,000 km2, it extends approximately 1100 km from east to west, and 1,000 km from north to south, in about the shape of a rectangle...
. Oil and gas accounted for approximately 7% of GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
in fiscal year 2000/01.
Export of petroleum and related products amounted to $2.6 billion in the year 2000. In late 2001, Egypt's benchmark "Suez Blend" was about $16.73 per barrel ($105/m³), the lowest price since 1999.
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
. Oil Production was 630 oilbbl/d in 2008, and natural gas output continued to increase and reached 48.3 billion cubic meters in 2008.
Over the last 15 years, more than 180 petroleum exploration agreements have been signed and multinational oil companies spent more than $27 billion in exploration companions. These activities led to the findings of about 18 crude oil fields and 16 natural gas fields in FY 2001. The total number of findings rose to 49 in FY 2005. As a result of these findings, crude oil reserves
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...
as of 2009 are estimated at 3.7 Goilbbl, and proven natural gas reserves are 1.656 trillion cubic meters with a likely additional discoveries with more exploration campaigns. In August 2007, it was announced that signs of oil reserves in Kom Ombo
Kom Ombo
Kom Ombo or Ombos or Latin: Ambo and Ombi – is an agricultural town in Egypt famous for the Temple of Kom Ombo...
basin, about 28 miles (45.1 km) north of Aswan, was found and a concession agreement was signed with Centorion Energy International for drilling. The main natural gas producer in Egypt is the International Egyptian Oilfield Company (IEOC), a branch of Italian Eni
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...
. Other companies like BP, BG, Texas-based Apache Corp.
Apache Corp.
Apache Corporation is an American independent oil and gas corporation. It is headquartered in 1 Post Oak Central in the Uptown district of Houston, Texas....
and Shell carry out activities of exploration and production by means of concessions granted for a period of generally ample time (often 20 years) and in different geographic zones of oil and gas deposits in the country.
Gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
mining is more recently a fast growing industry with vast untapped gold reserves in the Eastern Desert. There is already a gold rush and gold production facilities are now reality from the Sukari Hills, located close to Marsa Alam in the Eastern Desert. The concession of the mine was granted to Centamin Egypt
Centamin Egypt
Centamin Egypt Limited is a gold mining business. It is based in Mount Pleasant in Western Australia. It is listed on the London Stock Exchange and the Toronto Stock Exchange and is a constituent of the FTSE 250 Index.-History:...
, an Australian joint stock company, with a gold exploitation lease for a 160-square-kilometer area. Sami El-Raghy, Centamin Chairman, has repeatedly stated that he believes Egypt's yearly revenues from gold in the future will exceed the total revenues from the Suez Canal, tourism and the petroleum industry combined.
Egypt's excess of natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
will more than meet its domestic demand for many years to come. The Ministry of Petroleum and Mineral Resources
Ministry of Petroleum and Mineral Resources
The Ministry of Petroleum and Mineral Resources is the Egyptian authority that supervises exploration, production, marketing and distribution of oil, gas and other natural resources. The current Minister is Mohamed Ghorab....
has established expanding the Egyptian petrochemical industry and increasing exports of natural gas as its most significant strategic objectives and in 2009 about 38% of local gas production was exported.
As of 2009, most Egyptian gas exports (approximately 70%) are delivered in the form of liquefied natural gas
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....
(LNG) by ship to Europe and the United States. Egypt and Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
agreed to construct the Arab Gas Pipeline
Arab Gas Pipeline
The Arab Gas Pipeline is a natural gas pipeline in the Middle East. It exports Egyptian natural gas to Jordan, Syria and Lebanon, with a separate line to Israel. It has a total length of at a cost of US$1.2 billion.-Arish–Aqaba section:...
from Al Arish to Aqaba
Aqaba
Aqaba is a coastal city in the far south of Jordan, the capital of Aqaba Governorate at the head of the Gulf of Aqaba. Aqaba is strategically important to Jordan as it is the country's only seaport. Aqaba is best known today as a diving and beach resort, but industrial activity remains important...
to export natural gas to Jordan; with its completion in July 2003, Egypt began to export 1.1 Gcuft of gas per year via pipeline as well. Total investment in this project is about $220 million. In 2003, Egypt, Jordan and Syria reached an agreement to extend this pipeline to Syria, which paves the way for a future connection with Turkey, Lebanon and Cyprus by 2010. As of 2009, Egypt began to export to Syria 32.9 Gcuft of gas per year, accounting for 20% of total consumption in Syria
Syria
Syria , officially the Syrian Arab Republic , is a country in Western Asia, bordering Lebanon and the Mediterranean Sea to the West, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest....
. In addition, the East Mediterranean Gas (EMG), a joint company established in 2000 and owned by Egyptian General Petroleum Corporation
Egyptian General Petroleum Corporation
The Egyptian General Petroleum Corporation is a national oil company of Egypt. It owns 70% of shares in the Egyptian Natural Gas Company, as well as a 75% stake in the petroleum-industry support airline Petroleum Air Services .It own a stake in the East Mediterranean Gas Company....
(EGPC) (68.4%), the private Israeli company Merhav (25%) as well as Ampal-American Israel Corp.
Ampal-American Israel Corporation
Ampal-American Israel Corporation is a holding company, which primarily acquires interests in businesses located in the State of Israel or that are Israel-related....
(6.6%), has been granted the rights to export natural gas from Egypt to Israel and other locations in the region via underwater pipelines from Al 'Arish
Al 'Arish
Arish or el-Arīsh is the capital and largest city of the Egyptian governorate of North Sinai, lying on the Mediterranean coast of the Sinai peninsula, northeast of Cairo. Al `Arīsh is distinguished by its clear blue water, widespread fruitful palmy wood on its coast, and its soft white sand...
to Ashkelon
Ashkelon
Ashkelon is a coastal city in the South District of Israel on the Mediterranean coast, south of Tel Aviv, and north of the border with the Gaza Strip. The ancient seaport of Ashkelon dates back to the Neolithic Age...
which will provide Israel Electric Corporation
Israel Electric Corporation
Israel Electric Corporation is the main supplier of electrical power in Israel.IEC builds, maintains and operates power generation stations, sub-stations, as well as the transmission and distribution networks....
(IEC) 170 Mcuft of gas per day. Gas supply started experimentally in the second half of 2007. As of 2008, Egypt produces about 6.3 Gcuft, from which Israel imports of 170 Mcuft account for about 2.7 % of Egypt's total production of natural gas. According to a statement released on 24 March 2008, Merhav and Ampal's director, Nimrod Novik, said that the natural gas pipeline from Egypt to Israel can carry up to 9 billion cubic meters annually which sufficiently meet rising demand in Israel in the coming years. According to a memorandum of understanding, the commitment of Egypt is 680 Mcuft contracted for 15 years at a price below $3 per million of British thermal unit
British thermal unit
The British thermal unit is a traditional unit of energy equal to about 1055 joules. It is approximately the amount of energy needed to heat of water, which is exactly one tenth of a UK gallon or about 0.1198 US gallons, from 39°F to 40°F...
, though this was renegotiated at a higher price in 2009 (to between $4 and $5 per million BTU), while the amounts of gas supplied were increased. Exporting natural gas to Israel faces broad popular opposition in Egypt. Nevertheless, agreements between Egypt and Israel allow for Israeli entities to purchase up to 7 billion cubic meters of Egyptian gas annually, making Israel one of Egypt's largest natural gas export markets. The decision to export of natural gas to Israel was passed in 1993 at the time when Dr. Hamdy Al-Bambi was Minister of Petroleum and when Mr. Amr Moussa
Amr Moussa
Amr Mohammed Moussa is an Egyptian politician and diplomat who was the Secretary-General of the Arab League, a 22-member forum representing Arab states, from 1 June 2001 until 1 June 2011. He is a candidate in the 2011 Egyptian presidential election....
was Minister of Foreign Affairs. The mandate to sign of the Memorandum of Understanding (MoU) to delegate to the Ministry of Petroleum represented by the Egyptian General Petroleum Company (EGPC) to contract with EMG Company was approved by the former Prime Minister Dr. Atef Ebeid
Atef Ebeid
Atef Muhammad Ebeid was the Prime Minister of Egypt from October 1999 to July 2004. President Hosni Mubarak invited him to form the new government after the parliamentary elections in 1999. Ebeid was sworn in on 5 October 1999, replacing Kamal Ganzouri.-Early career and Education:Dr...
in the Cabinet’s meeting No. 68 on 5 July 2004 when he served as the acting "President of the Republic" when President Hosni Mubarak
Hosni Mubarak
Muhammad Hosni Sayyid Mubarak is a former Egyptian politician and military commander. He served as the fourth President of Egypt from 1981 to 2011....
was receiving medical treatment in Germany.
A new report by Strategic Foresight Group
Strategic Foresight Group
Strategic Foresight Group is a think tank based in India that works on issues of global importance and relevance. It was established in 2002 to create new forms of intellectual capital. It identifies emerging trends across sectors at regional and global levels and enables policy-makers to respond...
on the Cost of Conflict in the Middle East also details how in the event of peace an oil and gas pipeline from Port Said to Gaza to Lebanon would result in a transaction value for Egypt to the tune of $1–2 billion per year.
With respect to nuclear energy, Egypt's President Hosni Mubarak on 29 October 2007, a few days before the Egyptian ruling party's annual conference, proudly gave the go-ahead for building several nuclear power plant
Nuclear power plant
A nuclear power plant is a thermal power station in which the heat source is one or more nuclear reactors. As in a conventional thermal power station the heat is used to generate steam which drives a steam turbine connected to a generator which produces electricity.Nuclear power plants are usually...
s. Egypt's nuclear route is purely peaceful and fully transparent, but faces technical and financing obstacles. Egypt is a member of the IAEA and has both signed and ratified the Nuclear Nonproliferation Treaty (NPT). Currently, a draft Law on Nuclear Energy is being reviewed by the IAEA and expected to be passed by the Egyptian Parliament. Many other countries in the region, including Libya
Libya
Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
, Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
, UAE, Morocco
Morocco
Morocco , officially the Kingdom of Morocco , is a country located in North Africa. It has a population of more than 32 million and an area of 710,850 km², and also primarily administers the disputed region of the Western Sahara...
, and Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
aspire to build nuclear power plants.
As of June 2009 it was reported that Cairo sources said Israelis will dig for oil in Sinai. This report comes in the time in which the government is heavily criticized for exporting natural gas to Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
at an extremely low rate.
Agricultural sector
During the 1970s, despite significant investment in land reclamation, agriculture lost its position as the leading economic sector. Agricultural exports, which were 87% of all merchandise export by value in 1960, fell to 35% in 1974 and to 11% by 2001. In 2000, agriculture accounted for 17% of Gross Domestic Production and 34% of total employment.Cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
has been the staple crop, but it is no longer vital as an export. Production in 1999 was 243,000 tons. Egypt is also a substantial producer of wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
, corn, sugarcane, fruit and vegetables, fodder, and rice; substantial quantities of wheat are also imported, especially from United States of America and Russia, despite increases in yield since 1970, and significant quantities of rice are exported. Citrus
Citrus
Citrus is a common term and genus of flowering plants in the rue family, Rutaceae. Citrus is believed to have originated in the part of Southeast Asia bordered by Northeastern India, Myanmar and the Yunnan province of China...
, dates, and grapes are the main fruits by acreage. Agricultural output in tons in 1999 included corn, 9,350,000; wheat, 6,347,000; rice, 5,816,000; potatoes, 1,900,000; and oranges, 1,525,000. The government exercises a strong degree of control over agriculture, not only to ensure the best use of irrigation water but also to confine the planting of cotton in favor of food grains. However, the government's ability to achieve this objective is limited by crop rotational constraints.
Egypt's fertile area totals about 3.3 million hectares (8.1 million acres), about one-quarter of which is land reclaimed from the desert. However, the reclaimed lands only add 7 percent to the total value of agricultural production. Even though only 3 percent of the land is arable, it is extremely productive and can be cropped two or even three times annually. Most land is cropped at least twice a year, but agricultural productivity is limited by salinity, which afflicts an estimation of 35% of cultivated land, and drainage issues.
Irrigation plays a major role in a country the very livelihood of which depends upon a single river, the Nile
Nile
The Nile is a major north-flowing river in North Africa, generally regarded as the longest river in the world. It is long. It runs through the ten countries of Sudan, South Sudan, Burundi, Rwanda, Democratic Republic of the Congo, Tanzania, Kenya, Ethiopia, Uganda and Egypt.The Nile has two major...
. Most ambitious of all the irrigation projects is that of the Aswan High Dam, completed in 1971. A report published in March 1975 by the National Council for Production and Economic Affairs indicated that the dam had proved successful in controlling floodwaters and ensuring recurring water supply, but that water consumption had been more than needed and shall be controlled. Some precious land was lost below the dam because the flow of Nile silt was stopped, and increased salinity remains a major problem. Furthermore, five years of drought in the Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...
highlands—the source of the Nile River's water—caused the water level of Lake Nasser
Lake Nasser
Lake Nasser is a vast reservoir in southern Egypt, and northern Sudan, and is one of the largest man-made lakes in the world. Strictly, "Lake Nasser" refers only to the much larger portion of the lake that is in Egyptian territory , with the Sudanese preferring to call their smaller body of water...
, the Aswan High Dam's reservoir, to drop to the lowest level in 1987. In 1996, however, the level of water behind the High Dam and in Lake Nasser reached the maximum level since the completion of the dam. Despite this unusual abundance of water supply, Egypt can only utilize 55.5 billion cu m (1.96 trillion cu ft) every year, according to the Nile Basin Agreement signed in 1959 between Egypt and Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...
. Another magnificent project designed to address the water scarcity problem is the New Valley
New Valley
New Valley may refer to:* New Valley LLC, an investment company based in Miami, Florida* New Valley Continuation High School, a high school in California* New Valley Governorate, Egypt-See also:* New Hall Valley* New Hope Valley* New Klang Valley...
(the "second Nile"), aimed at development of the large artesian water supplies underlying the oases of the Western Desert
Libyan Desert
The Libyan Desert covers an area of approximately 1,100,000 km2, it extends approximately 1100 km from east to west, and 1,000 km from north to south, in about the shape of a rectangle...
.
The agrarian reform law of 1952 provided that no one might hold more than 190 feddans for farming and that each landholder must either farm the land himself or rent it under specified conditions. Up to 95 additional feddans might be held if the owner had children, and additional land had to be sold to the government. In 1961, the upper limit of landholding was reduced to 100 feddans, and no person was allowed to lease more than 50 feddans (1 feddan = 0.42 hectares). Compensation to the former owners was in bonds bearing a low rate of interest, redeemable within 40 years. A law enacted in 1969 reduced landholdings by one person to 50 feddans. By the mid-1980s, 90% of all land titles were for holdings of less than five feddans, and about 300,000 families, or 8% of the rural population, had received land under the agrarian reform program. According to a 1990 agricultural census, there were some three million small land holdings, almost 96% of which were under five feddans (2.1 hectares/5.2 acres). Since the late 1980s, many reforms attempting to deregulate agriculture by liberalizing input and output prices and by eliminating crop area controls have been initiated. As a result, the gap between world and domestic prices for Egyptian agricultural commodities has been closed.
Automobiles manufacturing
El Nasr Automotive Manufacturing CompanyEl Nasr Automotive Manufacturing Company
Nasr, is Egypt's state owned automobile company, founded in 1960 in Helwan, Egypt. Since 1979 the company has produced licensed versions of the Fiat 1100R, Fiat 1300, Fiat 2300, Fiat 128, Fiat 125, Fiat 133, Fiat 126, mk2 Fiat 127, 1983-1992 FSO Polonez and in 1991 introduced a further range of...
is Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
's state owned automobile company, founded in 1960 in Helwan, Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
. Established in 1977, the company manufactures various vehicles under license from Daimler AG, Kia
Kia Motors
Kia Motors , headquartered in Seoul, is South Korea's second-largest automobile manufacturer, following the Hyundai Motor Company, with sales of over 1.4 million vehicles in 2010...
, , and Peugeot
Peugeot
Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker based in Europe.The family business that precedes the current Peugeot company was founded in 1810, and manufactured coffee mills and bicycles. On 20 November 1858, Emile Peugeot applied for the lion...
. Their current lineup consists of the Jeep Cherokee
Jeep Liberty
Inspired by styling from the Dakar and Jeepster concept cars, the Liberty was intended as a replacement for the discontinued Jeep Cherokee . Three trim levels were initially offered; the top end Limited, a more rugged looking Renegade and the base Sport. All were made available with either 2WD or 4WD...
; the open-top, Wrangler-based Jeep AAV TJL; the Kia Spectra
Kia Spectra
The Kia Spectra is a compact car produced by Kia Motors between 2000 and 2009.- First generation :- Second generation :...
; the Peugeot 405
Peugeot 405
The Peugeot 405 is a large family car released by the French automaker Peugeot in July 1987 and which continues to be manufactured under licence outside France. It used TU/XU petrol and XUD diesel engines....
; and the Peugeot 406
Peugeot 406
The Peugeot 406 was a large family car made by the French automaker Peugeot from 1995 to 2004. Available in saloon, estate and coupé bodystyles with a choice of petrol or turbodiesel engines, the 406 replaced the Peugeot 405 in Peugeot's lineup, and was itself replaced by the Peugeot 407...
.
Other manufacturers such as AAV - Arab American Vehicles
Arab American Vehicles
Arab American Vehicles is an Egyptian automobile manufacturer based in Cairo, Egypt.The company manufactures various vehicles under license from Daimler AG, Kia, Chrysler LLC, and Peugeot — having begun as a joint venture between the Arab Organization for Industrialization and 49% of the...
, the Ghabbour Group, WAMCO - the Watania Automotive Manufacturing Company, and MCV Egypt - Manufacturing Commercial Vehicles, produce automobiles in Egypt. MCV Egypt was established in 1994 to represent Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
in the commercial vehicle sector in Egypt, producing a range of buses and trucks for domestic sale and for export throughout the Arab World
Arab world
The Arab world refers to Arabic-speaking states, territories and populations in North Africa, Western Asia and elsewhere.The standard definition of the Arab world comprises the 22 states and territories of the Arab League stretching from the Atlantic Ocean in the west to the Arabian Sea in the...
, Africa, and Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
. The manufacturing plant at Salheya employs over 1000 people. Also there is Russian AutoVAZ manufacturing 'Lada'
Chemicals
Abu Qir Fertilizers Company (AFC) is one of the largest producers of nitrogenNitrogen
Nitrogen is a chemical element that has the symbol N, atomic number of 7 and atomic mass 14.00674 u. Elemental nitrogen is a colorless, odorless, tasteless, and mostly inert diatomic gas at standard conditions, constituting 78.08% by volume of Earth's atmosphere...
fertilizer
Fertilizer
Fertilizer is any organic or inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use...
s in Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
and the Middle East. It produces about 50% of the Egyptian Nitrogen Fertilizers. The company and the 1st Ammonia Urea plant was established at 1976. It is located at Abu Qir bay, 20 kilometers East Of Alexandria
Alexandria
Alexandria is the second-largest city of Egypt, with a population of 4.1 million, extending about along the coast of the Mediterranean Sea in the north central part of the country; it is also the largest city lying directly on the Mediterranean coast. It is Egypt's largest seaport, serving...
, and there is Egypt Basic Industries Corporation (EBIC), one of the largest producers of greenfield ammonia plant.
Consumer electronics and home appliances
Olympic GroupOlympic Group
Olympic Group is an Egyptian group of companies operating mainly in the field of domestic appliances. The main products it manufactures are washing machines, refrigerators, electric water heaters and gas cookers. It also operates in the fields of IT and real estate.It also owns the licensing rights...
is the largest Egyptian group of companies operating mainly in the field of domestic appliances. The main products it manufactures are washing machines, refrigerators, electric water heaters and gas cookers. It also operates in the fields of IT and real estate.
Bahgat Group
Bahgat Group
Bahgat Group is a group of companies in Egypt that manufacture electronics, household appliances, furniture, and medical equipment. It is also involved in entertainment and real estate development...
is a leading company in the fields of electronics and electrical home appliances, industries, constructions, internet service providing, and T.V stations. The group is composed of the following companies : Egy Aircon, International Electronics Products, Electrical Home appliances, General Electronics and Trading, Goldi Trading, Goldi Servicing, Egy Medical, Egyptian Plastic Industry, Egy House, Egy Speakers, Egy Marble, Dreamland and Dream TV.
Steel industries
EZDKEZDK
EZDK is the largest steel company in Egypt and the Middle East. It lies in Dekheila, West of Alexandria, the second biggest city of Egypt and its main port....
is the largest steel company in Egypt and the Middle East. Now a part of Ezz Industries, which consists of four steel plants in Alexandria, Sadat City, Suez and 10th of Ramadan City. In addition, it includes also Al-Jawhara (Gemma) Company for Ceramic and Porcelain tiles.
EZDK is the largest independent producer of steel in the Middle East and North Africa (MENA) region and is the market leader in Egypt. It is ranked at the 65th place in the world biggest steel producers as per the World Steel Institute with total production of 4.5 Million Tons per year representing about three quarters of Egypt total annual production (6 Million Tons).
Textiles and clothing
Textiles and clothing is one of the largest manufacturing and exporting processes in the country and a huge employment absorber. Egypt poses a high comparative advantage for a variety of TC products, which it has developed into a competitive advantage in major foreign markets. This industry contributes with one quarter of Egypt's non-oil export proceeds, with Cotton textiles comprising the bulk of Egypt's TC export basket.The public sector accounts for 90% of cotton spinning, 60% of fabric production and 30% of apparel production in Egypt.
Misr Fine Spinning and Weaving is the largest enterprise of its kind in Africa and the Middle East. The private sector apparel industry is one of the most dynamic manufacturing processes in Egypt.
And Arafa Holding is a global apparel manufacturer and retailer, operating through a strong vertically integrated platform at the local & international levels.
Construction and contracting sector
Orascom Group
The Orascom Group is an Egyptian conglomerate, established in 1976. The success of ventures within the Orascom Group as well as the other sectors of the company led to the management decision in 1997 to split Orascom into separate operating companies: Orascom Telecom Holding , Orascom Construction...
companies.
As a cement producer, OCI owned and operated cement plants in Egypt, Algeria, Turkey, Pakistan, northern Iraq and Spain, which had a combined annual production capacity of 21 million tonnes.
The Talaat Moustafa Group
Talaat Moustafa Group
'The Talaat Moustafa Group , one of the largest conglomerates in Egypt, was founded by the former Talaat Moustafa and is headed by his son, Tarek Talaat Moustafa....
(TMG), one of the largest conglomerates in Egypt, was founded by the former Talaat Moustafa and is headed by his son, Tarek Talaat Moustafa.
Banking & insurance
The banking sector has gone through many stages since the establishment of the first bank in 1856, followed by the emergence of private sector and joint venture banks during the period of the Open Door Policy in the 1970s. Moreover, the Egyptian banking sector has been undergoing reforms, privatization, and mergers and acquisitions from 1991 up to today.The banking system comprises 57 state owned commercial banks. This includes 28 commercial banks, four of which are state-owned, 26 investment banks (11 joint venture banks and 15 branches of foreign banks), and three specialized banks. Although private and joint venture banks are growing, many remain relatively small with few branch networks.
Egypt's banking system has undergone major reforms since the 1990s and today consumers are faced with a liberalized and modernized system which is supervised and regulated according to internationally accepted standards.
Although the mortgage market is underdeveloped in Egypt and as yet foreigners cannot yet obtain a mortgage for a property in Egypt. In the near future, a new mortgage law will enable purchasers to take out property loans. This will open up the market considerably and create a storm of development and real estate activity in the near future.
Communications
Egypt has long been the cultural and informational centre of the Arab world, and Cairo is the region's largest publishing and broadcasting centre.The telecommunications liberalisation process started in 1998 and is still ongoing, but at a slow pace. Private sector companies operate in mobile telephony, and Internet access. There were 10 million fixed phone lines, 31 million mobile phones, and 8.1 million Internet users by the August, 2007.
Transport
In addition to overseas routes, Egypt Air provides reliable domestic air service to major tourist destinations from its Cairo hub. The Nile River system (about 1,600 km. or 1,000 mi.) and the principal canals (1,600 km.) are important locally for transportation.
The Suez Canal is a major waterway of international commerce and navigation, linking the Mediterranean and Red Sea. The ministry of transportation, along with other governmental bodies are responsible for transportation in Egypt. Major ports are Alexandria, Port Said, and Damietta on the Mediterranean, and Suez and Safaga on the Red Sea.
Tourism sector
The Egyptian tourism industry is one of the most important sectors in the economy, in terms of high employment and incoming foreign currency. EgyptEgypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
is one of the best known touristic countries in the world. It has many constituents of tourism, mainly historical attractions especially in Cairo
Cairo
Cairo , is the capital of Egypt and the largest city in the Arab world and Africa, and the 16th largest metropolitan area in the world. Nicknamed "The City of a Thousand Minarets" for its preponderance of Islamic architecture, Cairo has long been a centre of the region's political and cultural life...
, Luxor
Luxor
Luxor is a city in Upper Egypt and the capital of Luxor Governorate. The population numbers 487,896 , with an area of approximately . As the site of the Ancient Egyptian city of Thebes, Luxor has frequently been characterized as the "world's greatest open air museum", as the ruins of the temple...
and Aswan
Aswan
Aswan , formerly spelled Assuan, is a city in the south of Egypt, the capital of the Aswan Governorate.It stands on the east bank of the Nile at the first cataract and is a busy market and tourist centre...
, but also beach and other sea activities. The government is always trying to promote foreign tourism since it is a major source of currency and investment. There are plans to get to 14 million visitors by 2011, by means of the improvement of touristic facilities and advertising of Egyptian tourism in international media, in order to maintain a steady demand for visiting Egypt.
ICT sector
The Egyptian information and communications technology sector has been growing significantly since it was separated from the transportation sector. The market for telecommunications market was officially deregulated since the beginning of 2006 according to the WTO agreement.The government established ITIDA through Law 15 of the year 2004 as governmental entity. This agency aims at paving the way for the diffusion of the e-business services in Egypt capitalizing on different mandates of the authority as activating the Egyptian e-signature law and supporting an export-oriented IT sector in Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
.
While the move could open the market for new entrants, add and improve the infrastructure for its network. and in general create a competitive market, the fixed line market is de facto monopolized by Telecom Egypt
Telecom Egypt
Telecom Egypt or Telecom Egypt SAE , is Egypt’s main Telephone company. It started in 1854 with the first telegraph line in Egypt...
.
The cellular phone market was a duopoly
Duopoly
A true duopoly is a specific type of oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market...
with prices artificially high but witnessed in the past couple of years the traditional price war between the incumbents Mobinil
Mobinil
Mobinil is one of Egypt's three mobile phone operators. Founded in 1998. The company is majority-owned and fully consolidated by France Télécom , which holds 71.25% of the shares in "Mobinil Telecom," the rest of the shares being held by Orascom Telecom...
and Vodafone
Vodafone
Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers , with around 341 million proportionate subscribers as of...
. A 500 minutes outbound local and long distance calling plan currently costs approximately US$30 as compared to approximately US$ 90 in 2005. While the current price is not so expensive, it is still above the international price as plans never allow "unlimited night & weekend minutes."
A third GSM 3.5G license was awarded in April 2006 for US$3 billion to a consortium led by the UAE company Eitesalat
Etisalat
Emirates Telecommunications Corporation, branded trade name Etisalat is a UAE based telecommunications services provider, currently operating in 18 countries across Asia, the Middle East and Africa...
(66%), Egypt Post
Egypt Post
Egypt Post is the company responsible for postal service in Egypt.Egypt Post, established in 1865, is one of the oldest and most time-honored Egyptian institutions, which enjoys the trust of its customers, amounting to more than 15 million...
(20%), the National Bank of Egypt
National Bank of Egypt
- in arabic National Bank of Egypt is the oldest and largest bank in Egypt, and has 405 branches within the country, including 131 in Cairo. It has assets of L.E. 185.3 bn., total deposits of L.E. 155.2 bn., and total loans and advances of L.E. 83 bn...
(NBE) (10%), and the NBE's Commercial International Bank (4%), thus moving the market from duopoly
Duopoly
A true duopoly is a specific type of oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market...
to oligopoly
Oligopoly
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers . The word is derived, by analogy with "monopoly", from the Greek ὀλίγοι "few" + πόλειν "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others...
.
On 24 September 2006, the National Telecommunication Regulatory Authority (NTRA) announced a license award to Egyptian-Arab private sector consortium of companies to extend a maritime cable for international traffic. The US$120 million cable project will serve the Gulf region and south Europe. The construction of the cable should decrease the currently high international call costs and increase domestic demand on internet broadband services, in importantly increase exports of international telecommunication services of Egyptian companies, mostly in the Smart Village.
It is expected that NTRA will award two licenses for international gateways using open technology and deploy WiMax
WiMAX
WiMAX is a communication technology for wirelessly delivering high-speed Internet service to large geographical areas. The 2005 WiMAX revision provided bit rates up to 40 Mbit/s with the 2011 update up to 1 Gbit/s for fixed stations...
technology enabling the delivery of last-mile wireless broadband access as an alternative to ADSL.
The main barrier to growth for Egypt's ICT sector remains its image of instability and very demanding employees. Quality people remain heavily overpaid, compared to the rest of the Middle East.
Largest companies
In 2009, 3 Egyptian companies were listed in the Forbes Global 2000 list - an annual ranking of the top 2000 public companies in the world by Forbes magazine. These companies were:| World Rank | Company | 785 | Orascom Construction Industries | Construction | 2.42 | 11.83 | 17.21 | 4.16 | |
|---|---|---|---|---|---|---|---|---|---|
| 846 | Orascom Telecom | Telecommunications Services | 4.83 | 2.08 | 11.42 | 3.15 | |||
| 1384 | Telecom Egypt Telecom Egypt Telecom Egypt or Telecom Egypt SAE , is Egypt’s main Telephone company. It started in 1854 with the first telegraph line in Egypt... |
Telecommunications Services | 1.80 | 0.43 | 6.19 | 4.51 | |||
| Arab Contractors Arab Contractors (company) The Arab Contractors is an Egyptian construction and contracting company established in 1955 by Osman Ahmed Osman, an Egyptian entrepreneur and politician who served as Egypt's Housing Minister under Sadat's presidency. The company helped in constructing the Aswan Dam and helped during the 1973... |
|||||||||
Investment
The stock market capitalisation of listed companies in Egypt was valued at $79.672 billions in 2005 by the World BankWorld Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
.
Investment climate
The Egyptian equity market is one of the most developed in the region with more than 633 listed companies. Market capitalization on the exchange doubled in 2005 from USD 47.2 billion to USD 93.5 billion, with turnover surging from USD 1.16 billion in January 2005 to USD 6 billion in January 2006.Private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
has not been widely used in Egypt in the past as a source of funding for businesses. The government, however, has instituted a number of policy changes and reforms specifically intended to develop internal private equity funds and to attract private equity funding from international sources.
The major industries include textiles, hydrocarbon
Hydrocarbon
In organic chemistry, a hydrocarbon is an organic compound consisting entirely of hydrogen and carbon. Hydrocarbons from which one hydrogen atom has been removed are functional groups, called hydrocarbyls....
and chemical production, and generic pharmaceutical production. Unemployment is high at about 10.5%.
Until 2003, the Egyptian economy suffered from shortages in foreign currency and excessively elevated interest rates. A series of budget reforms were conducted in order to redress weaknesses in Egypt's economic environment and to boost private sector involvement and confidence in the economy.
Major fiscal
Fiscal policy
In economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
reforms were introduced in 2005 in order to tackle the informal sector which according to estimates represents somewhere between 30% to 60% of GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
. Significant tax cuts for corporations were introduced for the first time in Egyptian history. The new Income tax Law No 91 for 2005 reduced the tax rate from 40% to 20%. According to government figures, tax filing by individuals and corporations increased by 100%.
Many changes were made to cut trade tariffs. Among the legislators' goals were tackling the black market, reducing bureaucracy and pushing through trade liberalization measures. Amendments to Investment and Company law were introduced in order to attract foreign investors. For example, the number of days required for establishing a company was dramatically reduced.
Significant improvement to the domestic economic environment increased investors' confidence in Egypt. The Cairo & Alexandria Stock Exchange
Cairo & Alexandria Stock Exchange
Egypt's Stock Exchange, now Egyptian Exchange , comprises two exchanges, Cairo and Alexandria, both governed by the same board of directors and sharing the same trading, clearing and settlement systems.-History:...
is considered among the best ten emerging markets in the world. The changes to the policy also attracted increased levels of foreign direct investment in Egypt. According to the UN Conference on Trade and Development's World Investment Report, Egypt was ranked the second largest country in attracting foreign investment in Africa.
Given the large number of amendments to laws and regulations, Egypt has succeeded to a certain extent in conforming to international standards. Very recently the Cairo & Alexandria Stock Exchange
Cairo & Alexandria Stock Exchange
Egypt's Stock Exchange, now Egyptian Exchange , comprises two exchanges, Cairo and Alexandria, both governed by the same board of directors and sharing the same trading, clearing and settlement systems.-History:...
(CASE) was welcomed with full membership into the World Federation of Exchanges (WFE)—the first Arab country to be invited.
Enforcement of these newly adopted regulatory frameworks remain, sometime problematic. Problems like corruption hamper economic development in Egypt. Many scandals involving bribery were reported during the past years. "In 2002 alone, as many as 48 high-ranking officials—including former cabinet ministers, provincial governors and MPs were convicted of influence peddling, profiteering and embezzlement. Maintaining good relations with politicians is sometimes a key to business success in Egypt. Based on the 2006 Corruption Perception Index developed by Transparency International (where the higher the ranking the greater the level of corruption), Egypt ranked 70 out of 163. On a scale from 0 to 10 (with 0 being highly corrupt), Egypt scored a 3.3 .
According to a study by the International Organization for Migration
International Organization for Migration
The International Organization for Migration is an intergovernmental organization. It was initially established in 1951 as the Intergovernmental Committee for European Migration to help resettle people displaced by World War II....
, 20% of Egyptian remittance-receiving households interviewed channelled the remittances towards various forms of investment, while the large majority (80%) was more concerned about utilizing remittances for meeting the daily needs of their families including spending on health care and education. Among the 20% of households that decided to invest, 39% invested in real estate, 22 % invested in small businesses employing fewer than five people and the smallest proportions of investors (6%) invested in medium private business employing no more than 20 people. According to Egypt’s Human Development Report 2008, despite representing approximately 5 % of GDP, remittances provided the initial capital for only 1.4% of newly established small and medium enterprises in Egypt in 2003-2004.
Response to the global financial crisis
The challenges of the global food crisis followed by challenges of the global financial crisis made room for more integrated policy reforms. Considering the massive economic measures that have been taken over the past 12 months or so, Egyptian economic policymakers score high based on the inside lag, i.e. the lapse of time between the moment that the shock began to affect the economy and the moment that economic (monetary and fiscal) policy as well as the regulatory policy are altered and put into effect in response to the shock to various markets: goods market (real GDP), the labor market (unemployment rate), money market (interest rate and inflation), and the financial (stock and bond) market. Indeed, moderate financial panic occurred driven—at least partially—by the fear that other investors are about to panic and sell. There were falls in stock and bond market prices, and rises in nominal interest rates.Egypt has a population of about 83 million, with the population concentrated within a region 20 miles (32.2 km) on either side of the Nile River. The majority of the population is employed in the services sector, followed by agriculture and industrial production. Approximately one-third of Egyptian labour is engaged directly in farming, and many others work in the processing or trading of agricultural products.
Unemployment rate increased from 10.3% in FY2004 to 11.2% in 2005. The average rate of growth of employment in the publicly owned enterprises sector was -2% per year between FY1998 and FY2005 as a result of aggressive privatization program. On the other hand, private sector employment grew at an average rate of 3% over that period. In addition, the government sector employment grew by almost double the rate of the private sector over the same period.
In general, the average weekly wage in the private sector is, in many instances, higher than that of the public sector. In some other instances, e.g. whole sale and retail trades, the weekly wage is lower by half of that in the public sector.
As a result of the weakness role of the Ministry of Manpower and Trade Unions to create a balance between the rights of workers and the interests of owners of companies in the private sector, privatization has led to worsening employment problems and deterioration in their working environment and health, and many workers have recently resorted to strike and picketing.
In an effort to quell discontent over rising food prices, Egypt offered government and public sector workers a pay rise of up to 30%, and urged the private sector to keep up with the pay rise. The offer came on the May day speech delivered by President Mubarak to the Egyptian General Federation of Trade Unions.
"We must go in dealing with the current global (food) crisis, on two basic tracks (1) we must strengthen the food security of our low-income people, (2) we must achieve a balance between wages and prices." President Mubarak said.
The pay rise originally proposed in the government budget ranged between 15%–20%, but the decision to double it was given on heightened worries that widespread anger over prices could lead to a social explosion. The pay rise is initiated immediately, rather than waiting for the start of the new fiscal year on 1 July 2008 and is to be financed from real resources.
While the headline CPI inflation rate was 15.8% (17.6% in rural areas, 14.4% in urban areas) in March 2008, the overall food price inflation rate was 23.7% (26.9% in rural areas, 20.5% in urban areas). Moreover, in April 2008 in urban areas, the headline CPI inflation rate reached 16.4% while food price inflation rate was 22.0%. This underlines the statement in Nawar (2008) that "the inflation rate as measured by the headline CPI does not concern the poor and low-income people, who are the majority of people in rural and urban Egypt, since they spend most of their income on food." Approximately 55 million poor and low-income citizens, representing about 75% of the population, are currently enrolled in food ration cards.
In April 2009 it was reported that Egypt feared the return of 500,000 Egyptian laborers working in the Gulf states.
Poverty and income distribution
According to the 2005 Household Income, Expenditure and Consumption Survey (HIECS), estimated per capita poverty lines vary across the regions. Data from a World Bank and Ministry of Economic Development poverty assessment based on comparisons between actual expenditures (and the cost of a consumption basket securing 2470 calories per day per person), shows that individual Egyptians who spent less than EGP 995 per year in 2005 are considered extreme poor, those who spent less than EGP 1423 per year are poor and those who spent less than EGP 1853 per year are near poor.Overall about 44.4% of the Egyptian population are in the range of extreme poor to near poor:
- 21% of the Egyptian population was near poor, meaning that about 14.6 million Egyptians can obtain their basic food requirements in addition to some basic services.
- 19.6% of the Egyptian population was poor, meaning that about 13.6 million Egyptians (one out of every five) had consumption expenditure below the poverty line and could not therefore obtain their basic food and non-food needs.
- 3.8% of the Egyptian population was extreme poor, meaning that about 2.6 million of the Egyptian poor could not obtain their basic food requirements even if they spent all their expenditure on food.
Poverty has a strong regional dimension in Egypt and concentrates in Upper Egypt region, both urban (18.6%) and rural( 39.1), while metropolitan areas are the least poor (5.7%). The government is currently employing recently completed poverty map
Poverty map
Poverty map is very powerful tool of targeting mechanisms. It provides a detailed description of the spatial distribution of poverty and inequality within a country. It combines individual and household survey data and population census data with the objective of estimating welfare indicators for...
as tool for geographic targeting
Geographic targeting
Geographic targeting is a viable way for resource allocation, especially to alleviate poverty in a country. In this context, public expenditure and policy interventions can be deployed to reach the neediest people in the poorest areas....
of public resources.
Statistics
| Basic Data | |
| Fiscal Year | 1 July–31 June |
| Currency | Egyptian pound (EGP) = 100 piasters |
| Land Area |  1 million km² |
To be completed soon:
| Economic Statistics | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Nominal GNP (EGP bn) | 373.6 | 393.2 | 432.1 | 502.8 | 563.3 | 649.4 | 773.8 | 897.0 | ||
| Nominal GDP (EGP bn) | 358.7 | 378.9 | 417.5 | 485.3 | 536.6 | 618 | 730 | 847 | 1008 | 1181 |
| Real GDP Growth | 3.5 | 3.2 | 3.1 | 4.1 | 5.0 | 6.9 | 7.1 | 7.2 | 5.2 | |
| Inflation | 2.4 | 2.4 | 3.2 | 10.3 | 11.4 | 4.4 | 7.62 | 12 | ||
| Current Account Balance (USD m) | ||||||||||
| 614 | 1943 | 3418 | 2911 | 1752 | 2696 | |||||
| Development Assistance (USD bn) | 1.3 | |||||||||
| Population (m) | 65.3 | 66.6 | 68.0 | 69.3 | 70.7 | 72.1 | 73.5 | 75.0 | 80.0 | |
| Labor Force | 19.3 | 19.9 | 20.4 | 20.9 | 21.8 | 21.8 | 22.9 | 23.6 * | ||
| Unemployment (%) | 9.2 | 10.2 | 11.0 | 10.3 | 11.2 | 10.3 | ||||
| Population below Poverty Line (%) | ||||||||||
| Merchandise Imports (fob: USD m) | 16441 | 14637 | 14821 | 18286 | 24193 | 30441 | 37834 | |||
| Merchandise Exports (fob: USD m) | 7078 | 7121 | 8205 | 10453 | 13833 | 18455 | 22018 | |||
| Net Foreign Direct Investment (FDI: USD m) | 509.4 | 428.2 | 700.6 | 2107.2 | 3901.6 | 6111.4 | ||||
| GDP Composition | ||||||||||
| -- Agriculture | 14 | 16 | 17 | 15 | 14 | 15 | ||||
| -- Industry | 30 | 32 | 33 | 31 | 33 | 36 | ||||
| -- Services | 56 | 53 | 50 | 54 | 53 | 49 | ||||
| Subsidies (EGP m) | 18,050.9 | 20,649.2 | 24,751.7 | 29,706.0 | 68,897.0 | 51,844.0 | 64,465.0 | |||
| Fiscal Balance, (-) Deficit (% of GDP) | ||||||||||
| -10.5% | -9.5% | -9.6% | ||||||||
| -6.7% | ||||||||||
| Electricity Generation (GW·h) | 18.5 | 19.7 | 21.3 | |||||||
| Per Pound USD Exchange Rate | 4.49 | 4.50 | 6.15 | 6.13 | 5.73 | 5.71 | 5.54 | 5.30 | ||
| IMF Voting Power | 0.45% |
See also
- EgyptEgyptEgypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
- Emerging marketsEmerging marketsEmerging markets are nations with social or business activity in the process of rapid growth and industrialization. Based on data from 2006, there are around 28 emerging markets in the world . The economies of China and India are considered to be the largest...
- List of Egyptian companies
- Next ElevenNext ElevenThe Next Eleven are eleven countries—Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam — identified by Goldman Sachs investment bank and Jim O'Neill as having a high potential of becoming, along with the BRICS, the world's largest...
- Qualifying Industrial ZoneQualifying Industrial ZoneQualifying Industrial Zones are industrial parks that house manufacturing operations in Jordan and Egypt. They are a special free trade zones established in collaboration with Israel to take advantage of the free trade agreements between the United States and Israel...