Egypt has access to large key markets through various multilateral and bilateral trade agreements with the USA, European, Middle Eastern and African countries; which secures benefits to Egyptian-based producers supplying these markets.
Foreign Direct Investment in Egypt increased by 3156.10 $ Million in the fourth quarter of 2015. Foreign Direct Investment in Egypt averaged 2309.81 $ Million from 2002 until 2015, reaching an all-time high of 5572.50 $ Million in the fourth quarter of 2007 and a record low of 40.70 $ Million in the second quarter of 2002.
The Egyptian Economy’s resilience is capable of overcoming its economic challenges as it did in the 2008 financial crisis, and long-term investors will see many opportunities.
Egypt has started its transformation to a stable, democratic and modern economy, where the dividends of growth and prosperity will be shared by all who participated in its achievement.
Egypt has emerged as a consumer market of significant importance in the region, as witnessed by the arrival of dozens of global brands and the sharp expansion of retail sales in the past two years.
This is partly due to the sheer size of Egypt’s population that put it as the most populated country in Africa and the Middle East, The fact that 50% of Egyptian are between the ages 15-44 has also impacted spending and investment trends.
Egypt boasts a world class infrastructure base. Three independent mobile (cellular) phone networks cover nearly 100% of the country’s inhabited land. Wire line broadband is readily available in urban centers. The country’s 15 commercial ports serve the nation’s exporters and importers alike, while an expanding, upgrading airport network caters to both passengers and cargo traffic, Egypt’s Air Cargo Airport, currently has three cargo terminals, dealing with textiles, vegetables and many industrial products.
Also the country has a well-established network of railways and roads. The road network has reached 108,784 KM, Railway network 9,570 KM and 20 Airports. Egypt also provides competitively prices and reliable supplies of power, water and gas. Egypt possesses an abundance in natural resources that can easily meet the needs of agricultural, industrial and mining activities.
Key global markets in Europe, the Middle East, Africa and the Indian Subcontinent are all readily accessible from Egypt. Closer to the European and North American markets than other major exporters including India, China and the Philippines, Egypt is also located on key international logistics routes.
Egypt enjoys the existence of the Suez Canal, which is considered to be the shortest link between the east and the west due to its unique geographic location. Approximately 8% of the world’s maritime shipping passes through the Suez Canal each year.
Vessels transiting through the canal from east to west or from west to east make significant savings in distance, time and operating costs.
Moreover, the maritime transport is the cheapest means of transport, with more than 80% of world trade volume transported via waterways (seaborne trade).
Egypt has recently adopted a bold and ambitious reform plan to ensure fiscal sustainability and solve macroeconomic imbalances with the objective of reducing economic risk and bolstering confidence among investors.
The reform plan aims at increasing tax base, streamlining spending on fuel and electricity subsidies, leveraging capital spending and allocating more resources to public services and social security.