Doing Business with Egypt Thessaloniki, 16 October 2014

Transcription

1 Egypt, Investment for Development Doing Business with Egypt Thessaloniki, 16 October Indicators Monthly Inflation Rate % at the end of August 2014 Net International Reserves (USD billion) at the end of Sept 2014 Net Foreign Direct Investments during the FY 2012/13 reached (3.8 billion USD) and (4.1 billion USD) the FY 2013/14: GDP Growth Rates 1,80% 2,20% 2.1% Unemployment Rate 13.4% during Jul-Sept. FY2013/14 Total exports (FY2012/2013 ) 26.0 USD billion, and recorded 18.7 USD billion during the 9 months of the FY 2013/ / / /13 Total imports (FY 2012/2013) 57.5 USD billion, and recorded 43.9 USD during the 9 months of the FY 2013/14 1

2 Foreign Direct Investment in Egypt USD Billion 9 8 8,1 7 6, ,1 3 2, / / / / / / Source : CBE Greek Investment in Egypt From January 1970 till August 2014: Total Greek participation in the issued capital is USD Million Total number of companies with Greek capital operating in Egypt is 140 companies Greek Investment Development in Egypt Greek Investment by Sector 79.3 Others; 2% Industry; 6% Services; 4% Tourism; 5% أغسطس- ١٤ Issued Capital Number of Companies Finance; 83% Source : GAFI 2

3 Sample of The largest international Companies working in Egypt 5 Support and Incentives for Investments The process of registering foreign company subsidiaries to only three days of processing time. The time to open foreign representation offices; 3 days while simplifying administrative steps related to establishing a business. Enhancing import and export flexibility through import and export certificates that are available for 3-5 year periods. Paying subscription fees to chamber of industry and the federation of Egyptian industries at the one stop shop Increasing GAFI s processing centers. Lifting the security approval requirement for media companies. As well as lifting licensing requirements for print publications. An initiative to provide resources for a credit risk guarantee program to help develop SMEs and help them gain access to bank financing. 3

4 Investor protection There are five investor protection schemes which GAFI is currently endorsing: 1. Investor Care Department: established within GAFI to support and guide investors to resolve any conflicts they might face with the different governmental authorities. 2. Disputes Settlement Center: established in 2009 for the reconciliation and disputes resolution between business partners. 3. The Investment Disputes Resolutions Committee: which GAFI hosts its the technical secretariat. 4. The Contracts Committee which GAFI is a member of, to resolve any conflict that might arise between the investors and different governmental bodies over previously signed business contracts. 5. Modification of the Investment law No. (8) year 1997 to allow the reconciliation between the investor and the government in the cases of proven fraud. 7 30% of industrial output INDUSTRY: Textiles 14.2% of Non- Petroleum exports in first three quarters of 2011/ % of local employment in 2010 Egypt is home to the only fully vertically integrated textiles industry in the Middle East. ICT: DIGITAL Egypt 2013 One of the highest-growth potential IT markets in the Middle East. has an annual sustained growth rate of 11.53% during q1 of the FY 2013/14 contributes 2.7 % to real GDP. Egypt offers easy access to markets in the Arabian Gulf, the Levant, North Africa and Sub-Saharan Africa as well as Europe. 8 4

5 RENEWABLE ENERGY 20% of total power generation by % of which will be generated by wind energy To boost US$110bn of investment into the power sector by 2027 The leader producer: as Egypt produces almost 57% of the region s total wind energy Objectives: FINANCE one of the oldest and most-established in the Middle East The nation s banks, brokerages, investment banks and private equity houses are among the most vibrant in the region. Smart village the premiere technology park in the middle east. 9 LOGISTICS Unique geographic location combined with an expanding infrastructure bas 8% of the world s maritime shipping passing through the Suez Canal. Accounting for 6.2% of GDP during q1 of the FY 2013/14. The government is planning investments of EGP 37.8 Bn. in the transportation sector during the FY 2013/14 TOURISM Accounting for 2.2% of total GDP during q1 of the FY 2013/14. Achieved growth rate of 10.2 during (Jul Mar) 2012/

6 AGRICULTURE Egypt represents one of the largest markets in the region, agriculture contributes to around 18.1% of Egypt's GDP in q1 2013/2014. Food production industry in Egypt is better developed than that in many neighboring states, creating strong export opportunities companies operating in the Agribusiness space in Egypt With total capital reaching EGP 50 billion and manpower of 5 million Education Egypt has a long history as an exporter of well-educated labor. Egypt has a diverse base of educational system that guarantees both a large pool of people who can teach and conduct training programs. 11 RETAIL Egypt is the largest market in the Arab world With a population of 84mn. Booming retail sub-sectors include autos as sales forecast to increase by 126% between 2012 and 2016, over-the-counter (OTC) pharmaceuticals, with sales expected to grow by 96.6% from by 2016, and consumer electronics sales are forecast to increase by 50.8% in Wages in the wholesale and retail sector average US$ weekly. Real Estate Total investments directed to the real estate sector in the FY 2011/12 reached 17% of the total implemented investments. housing needs expected to climb to 8 million in new urban cities are planned of which 5 under construction 12 6

7 Special Economic Zone in Egypt Incentive benefits in SE Zone The ZONE is strategically located on the main international ocean trade routes, promises to be a key benchmark in the evolution of Egypt. 5% flat tax rate on personal income tax and 10% tax on all activities within the zone Zero Import Duties. Zero Export duties when exporting out of Egypt. Zero Export duties on domestic components when sold in Egypt. Integrated custom and tax administration, licensing, and dispute settlement 13 A business environment favourable to investment Investor Protection 5 main investor protection schemes endorsed by GAFI 52 Double Tax Avoidance Agreements 111 Investment Protection Agreements Member of OECD Investment Committee Member of MIGA (Multilateral Investment Guarantee Agency) Legal Reforms A stimulus package introduced by The Ministry of Industry to facilitate investments in the industrial sector Lifting the security approval requirement for media companies. The issuance of the new financial tool SUKUK. processing reforms related to the technical operations at GAFI`s one stop shop An Incentive Tax System incentives for taxpayers on the full or partial payment of their deferred income/sales taxes We are optimistic that Egypt's program`s objectives of promoting social justice, fostering recovery, and maintaining macro economic stability and generating jobs will bring positive results for the Egyptian people. John Lipsky, Acting managing director of the IMF, June

8 Thank you for your attention