Post on 18-Jul-2020
1 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Egypt
The most promising market in the
Middle East - North Africa
Evangelos Dairetzis
Counselor, Economic & Commercial Affairs
2 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Egypt: Gateway to Africa and the Middle East
3 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Strategic position in the Mediterranean
Strategic position in the Middle East and
Africa
The largest market in the Arab world
The most stable country in a volatile
region
Gateway for the Greek products to the region
4 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Area: 1.001.450 sq. km.
Population: 85.000.000 in.
Density: 3 in. / Km²
Largest cities
Cairo: 14.000.000
Alexandria: 4.500.000
Port Said: 610.000
Suez: 550.000 Luxor: 490.000
Cairo: GMT +2
5 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
The Egyptian economy
GDP $ 262 billion
Per capita GDP $ 6.600
GDP Growth 2.1% (2012/13), 3,5% 2013/14 (est.)
Inflation 11,4% (Αug. 2014)
Unemployment 13,4% (Μarch. 2014)
Public debt 83.4% (2012/13) GDP
Budget deficit: 13.8% (2012/13) GDP
Sharp decline of 5 years CDS of state bonds
6 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
GDP structure
Mining 17,33%
Manufacturing Industries 15,65%
Agriculture, irrigation, fishing 14,51% Wholesale & retail trade
10,96%
General Government 10,42%
Constructions 4,58%
Transportations, storage 4,01%
Education, health 3,80%
Financial 3,27%
Social solidarity 3,23%
Tourism 3,15%
Real Estate 2,59%
7 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Egypt imports 2013 value share
Item $ 1000 %
PETROLEUM OILS 3.590.086 10.91
PETROLEUM CRUDE 2.024.648 6.15
YELLOW CORN, NOT FOR SHOWING 1.941.596 5.90
WHEAT 1.940.742 5.90
LIQUIFIED BUTANES 1.570.451 4.77
SEMI-FINISHED IRON PRODUCTS 1.518.479 4.62
MEDICINES 1,099,404 3.34
ARTICLES OF IRON & STEEL 1.095.947 3.33
FUEL OIL 955.313 2.90
MOTOR VEHICLES 926.570 2.82
GOLD 909.189 2.76
WOOD SAWN OR CHIPPED 839.167 2.55
IRON WASTE & SCRAP 836.806 2.54
95 OCTANE GASOLINE 830.101 2.52
BOVINE MEAT, BONELESS 826.892 2.51
8 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Main suppliers
2012 $ mil.
share 2013 $ mil.
share % 13/12
China 6.732 9,8% 6.961 10,9% 3,4%
Germany 4.749 6,9% 5.200 8,1% 9,5%
USA 5.372 7,9% 5.174 8,1% -3,7%
Italy 3.511 5,1% 3.535 5,5% 0,7%
Ukraine 3.941 5,8% 3.143 4,9% -20,2%
S. Arabia 2.739 4% 3.033 4,7% 10,7%
Turkey 3.511 5,1% 2.618 4,1% -25,4%
Kuwait 2.679 3,9% 2.598 4,1% -3,0%
Brazil 2.922 4,3% 2.273 3,6% -22,2%
India 2.293 3,35% 2.259 3,5% -1,5%
9 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Greek – Egyptian Trade
2012 - 2013
€ mil. 2012 2013 % 12/13
Exports 345.386.332 593.468.273 72%
Imports 444.391.206 576.500.234 29,7%
Trade volume 789.777.538 1.169.968.507 48,1%
Trade Balance -99.004.874 16.968.039 117,1%
10 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Greek – Egyptian Trade
2010-2013
11 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
GREEK EXPORTS TO EGYPT 2013 2013 % SHARE 2013
TOTAL 593.468.273
'27' MINERAL FUELS & OILS 406.931.716 68,6%
'52' COTTON 63.621.851 10,7%
'25' SALT, SULPHUR, EARTH & STONES 28.961.999 4,9%
'08' EDIBLE FRUITS & NUTS 18.163.855 3,1%
'24' TOBACCO & MANUFACTURED SUBSTITUTES 11.348.257 1,9%
'84' NUCLER REACTORS, BOILERS, MACHINERY 8.377.403 1,4%
'73' ARTICLES OF IRON & STEEL 7.112.353 1,2%
'39' PLASTICS & ARTICLES THEREOF 5.899.786 1%
'48' PAPER, PAPERBOARD, ARTICLES OF PAPERPULP 5.164.955 0,9%
'20' PREPARATIONS OF VEGETABLES, FRUIT, NUTS 4.950.467 0,8%
'72' IRON AND STEEL 4.296.783 0,7%
'38' MISCELLANEOUS CHEMICAL PRODUCTS 2.954.339 0,5%
'87' VEHICLES, PARTS & ACCESSORIES THEREOF 2.804.324 0,5%
'32' TANNING OR DYEING EXTRACTS, DYES, PIGMENTS 2.777.962 0,5%
'85' ELECTRICAL MACHINERY, EQUIPMENT & PARTS 2.716.260 0,5%
'31' FERTILISERS 1.988.008 0,3%
'49' PRODUCTS OF THE PRINTING INDUSTRY 1.519.960 0,3%
'04' DAIRY PRODUCE; BIRDS' EGGS; NATURAL HONEY 1.468.829 0,2%
'11' PRODUCTS OF THE MILLING INDUSTRY 1.325.490 0,2%
'23' RESIDUES FROM FOOD INDUSTRIES, ANIMAL FODDER 982.976 0,2%
'15' ANIMAL OR VEGETABLE FATS AND OILS 706.944 0,1%
'76' ALUMINIUM AND ARTICLES THEREOF 703.537 0,1%
'34' SOAP, WASHING & LUBRICATING PREPARATIONS, WAXES 604.067 0,1%
Greek – Egyptian Trade,
1st Semester 2014
€ mil. Jan-Jun 2014 Jan-Jun 2013 %13/14
Exports 490.505.170 347.140.985 41,3%
Imports 464.552.957 185.825.308 150%
Trade volume 955.058.127 532.966.293 79,2%
Trade Balance 25.952.213 161.315.677 521,6%
13 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Egypt Today
Turning points: the revolutions of January 25, 2011 and
June 30, 2013
Government and a charismatic elected president with
broad popular support
Parliamentary election expected by the end of the year
Gradual return of the country to normality Security has
been restored to the greatest extent
Powerful and capable economic team to manage and
restart economy
Clear signs of recovery of the Egyptian economy
14 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Government Priorities
Restarting the economy, attracting foreign investment
Ongoing investment program:15 mega projects of $ 100 billion to boost economy (Canal Suez Corridor, new land for agricultural use, road, railway network)
Infrastructure, security, education, housing, health, energy, agriculture, renewable energy resources
Continued financial support by Arab States –
Egypt’s stability crucial, not only for the region
The negative image of Egypt
projected by Western media
(mainly via Al Jazeera)
is not realistic
16 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Energy (renewable)
Infrastructure
Telecommunications - new
technologies
Transportation
Health
Education
Agriculture
Sectors with high growth rates
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Investment required in time and effort to
establish oneself in the market
Reliable local partner in problem solving
Detailed knowledge of legislation
procedures prior to any agreement.
Use of lawyer recommended
Ensure of exporter by letter of credit
Market characteristics
18 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Overregulation, delays at customs
Cumbersome commercial justice system
Price is the dominant factor, followed by
quality
Consumption peak period: two months
before and during Ramadan
Emerging market with considerable yields
19 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Gateway for re-exporting to countries in
the wider region
Preferential agreements with Arab, Nile
basin countries, African countries
(COMESA)
Positive image of Greece in Egypt but
incomplete. Most known for its food
products
Greek traditional products are popular,
though not successfully enough due to
lack of a comprehensive strategy on behalf of the Greek exporters
20 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Greek products, due to price, are
addressed to middle class consumers
Satisfactory performance but not as
successful as of Italian and Spanish
competitors
Labeling in Arabic offers clear advantage
to the product (successful cypriot example)
21 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Egyptian legislation one of the most favorable regarding commercial representation
Non Egyptian national is not allowed to set up commercial importing company
22 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Energy
RENEWABLE ENERGY
SOURCES
State target: Cover 20% of energy needs
by 2020
Significant solar and wind resources
Funding: State budget, international
organizations and developmental tools of
western countries
Prospects for Greek enterprises: using
solar energy for solar farms and
household, industrial and tourist use
Government has adopted new law
establishing new feeding tariffs for solar
and wind energy (at 0.8 and 1.05 piasters
per kW respectively). This might stimulate
alternative energy investments
24 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
25 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
HEALTH SECTOR
Drugs - medical equipment: 10% increase
in demand per year
The vast majority of medical equipment is
imported
Upgrading the health system creates
business opportunities (hospital supply)
Private medical centers
26 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Franchising
460 companies (65 American)
24% foreign names
$ 7 billion investment mainly in the food
sector
Prospects: food, clothing, foreign
languages teaching, furniture, accessories-gifts, hotels, electronics
Significant opportunities for
Greek products also because of :
Upgraded political relations with Greece
Crisis with Turkey is shrinking its market
share
Civil War in Syria (affected mainly the fruit
market) and Libya (trade through Egypt)
Prospects of increased maritime and port
cooperation
28 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Construction
Μακέτα του νέου Διοικητικού Κέντρου
29 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
INFRASTRUCTURE
Highways
Railway network
Airports
Inland road network
Hospitals, schools
Power stations, RES
Housing units
Tourist complexes
Water - drainage
Desalination plant
The Ambitious “ Suez Canal Development ptoject”
Ports
Industrial zones
Tunnels
Residential areas
Tourist areas
Fish farming
Logistics centers
30 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
31 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
FOODSTUFF
Egypt imports basic foodstuff
The world's largest importer of wheat
Greek products: middle class (15 mil.)
Significant perspectives for Greek fresh fruits
Meat and poultry products: Helal certification
Packaged agricultural products, juices, milk,
snacks, pre-prepared meals, pastries, frozen meats, seafood
32 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
TARIFFS
Association Agreement 2004: phasing out tariffs
within 15 years
Tariff information (EU Market Access Database):
http://madb.europa.eu/madb/indexPubli.htm
33 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
TARIFFS
Foodstuff: 0-32%
Alcoholic Drinks 1200-3000% - 300% for "tourism
purposes"
10% sales tax on commodities
34 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Corporate tax
Corporate tax: 25%
Companies in energy sector of 40%-55%
Personal income tax up to 25%
35 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Legal forms of companies
Ανώνσμη Εταιρεία (Joint Stock Company)
Εταιρεία Περιορισμένης Εσθύνης (Limited
Liability Company
Ομόρρσθμος Εταιρεία (General
Partnership)
Υποκατάστημα (Branch)
Γραυείο Αντιπροσώπεσσης
(Representative or Liaison Office)
36 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Investment Law 8/1997
Guarantee of capital repatriation, right to
hold foreign currency accounts
Preferential treatment and incentives
(manufacturing, infrastructure)
Information about the current status of
investments: General Investment Authority
(GAFI)www.gafinet.org
37 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
The most significant trade fairs
ΙΝTERBUILD (building materials)
www.interbuildegypt.com
SAHARA (agriculture)
www.saharaexpo.com
HACE (hotel equipment, restaurants etc.)
www.hace.com.eg
AGROFOOD (foodstuff, agroindustry)
www.agrofood.com.eg/
ΕGYMEDICA( medicines, medical equipment)
www.egymedica.com
38 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Direct sale: dealer - distributor
Tenders
Participation in exhibitions
Trade mission organized by business
entities
franchising
ENTRY TO THE MARKET -
PROMOTION
39 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
TECHNIQUES
Egyptians entrepreneurs: cosmopolitan, international experience, very good negotiators
Cultural specificities: every price is negotiable, sluggish bureaucracy
Advertising in newspapers and magazines, growing role of TV, street posters, “junk mail advertisement”
40 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Greek investment
Banking, constructions, shipping, energy
(exploration and production), food
industry, irrigation, clothing, packaging,
etc.
$ 1,2 billion
50 Medium and large scale companies
41 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
42 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
43 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
44 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Sectors of the Egyptian economy
and prospects for Greek products
and services
Energy: Renewable energy
Environment – water treatment, recycling
Transportation
Shipping: construction - expansion ports, passenger transport
Construction: undertake projects, construction materials
Agriculture: agricultural machinery, irrigation equipment, construction equipment and greenhouses, fertilizers, oil formulation, aquaculture, agribusiness
Health (hospitals, medical equipment, drugs)
Education and training
Manufacturing - industrial cooperation
Foodstuff
Transportation
Telecommunications
45 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
New technologies
Freight and passenger transport
Shipbuilding
Financial Sector
Security systems for companies, individuals, government
Franchising (foods. Wear, foreign languages, furniture, accessories-gifts,
227 Greek companies export products and services in Egypt
INTERNATIONAL ECONOMIC
FORUM
International economic summit scheduled
for February of next year.
The summit will encourage international
companies and organizations to invest in
the country and contribute to its
development.
46 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
EMBASSY OF GREECE –
OFFICE FOR ECONOMIC &
COMMERCIAL AFFAIRS - COMPANIES
Greek Investors Club (Business Club)
Egyptian – Greek Business Council
(EBA - SEV)
Active support for Greek investors
Assistance (advocacy) towards Authorities
Promotion of Greek products and services
TRADITIONAL GREEK PRESENCE
Patriarchate of Alexandria
Greek communities in Cairo and
Alexandria
Greek schools
Associations and Clubs of the Greek
community
Greek Chambers of Cairo and Alexandria
49 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
OFFICE FOR ECONOMIC & COMMERCIAL
AFFAIRS
EMBASSY OF GREECE IN CAIRO
ΤEL. +202-27948482
FAX +202-27940684
e-mail: ecocom-cairo@mfa.gr
Website: www.agora.mfa.gr