1 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ Egypt The most promising market in the Middle East - North...
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Transcript of 1 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ Egypt The most promising market in the Middle East - North...
1ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Egypt
The most promising market in the
Middle East - North Africa
Evangelos DairetzisEvangelos Dairetzis
Counselor, Economic & Commercial AffairsCounselor, Economic & Commercial Affairs
3ΓΡΑΦΕΙΟ 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
4ΓΡΑΦΕΙΟ 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 + GMT +22
5ΓΡΑΦΕΙΟ 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
7ΓΡΑΦΕΙΟ 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
8ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Main suppliersMain 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%
9ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Greek – Egyptian TradeGreek – Egyptian Trade2012 - 20132012 - 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%
11ΓΡΑΦΕΙΟ 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%
13ΓΡΑΦΕΙΟ 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
14ΓΡΑΦΕΙΟ 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
16ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Energy (renewable)
Infrastructure
Telecommunications - new technologies
Transportation
Health
Education
Agriculture
Sectors with high growth rates
17ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
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
18ΓΡΑΦΕΙΟ 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
19ΓΡΑΦΕΙΟ 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
20ΓΡΑΦΕΙΟ 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)
21ΓΡΑΦΕΙΟ 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
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 Government has adopted new law establishing new feeding tariffs for solar establishing new feeding tariffs for solar and wind energy (at 0.8 and 1.05 piasters and wind energy (at 0.8 and 1.05 piasters per kW respectively). This might stimulate per kW respectively). This might stimulate alternative energy investmentsalternative energy investments
24ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
25ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
HEALTH SECTORHEALTH 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
26ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
FranchisingFranchising
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
29ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
INFRASTRUCTUREINFRASTRUCTURE 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
30ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
31ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
FOODSTUFFFOODSTUFF
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
32ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
TARIFFSTARIFFS
Association Agreement 2004: phasing out tariffs within 15 years
Tariff information (EU Market Access Database): http://madb.europa.eu/madb/indexPubli.htm
33ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
TARIFFS
Foodstuff: 0-32% Alcoholic Drinks 1200-3000% - 300% for "tourism purposes" 10% sales tax on commodities
34ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Corporate tax
Corporate tax: 25% Companies in energy sector of 40%-55% Personal income tax up to 25%
35ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Legal forms of companies
Ανώνυμη Εταιρεία (Joint Stock Company) Εταιρεία Περιορισμένης Ευθύνης (Limited
Liability Company Ομόρρυθμος Εταιρεία (General
Partnership) Υποκατάστημα (Branch) Γραφείο Αντιπροσώπευσης
(Representative or Liaison Office)
36ΓΡΑΦΕΙΟ 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
37ΓΡΑΦΕΙΟ 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
38ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
Direct sale: dealer - distributor Tenders Participation in exhibitions Trade mission organized by business
entities franchising
ENTRY TO THE MARKET - PROMOTION
39ΓΡΑΦΕΙΟ 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”
40ΓΡΑΦΕΙΟ 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
44ΓΡΑΦΕΙΟ 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
45ΓΡΑΦΕΙΟ 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.
46ΓΡΑΦΕΙΟ 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
49ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ
OFFICE FOR ECONOMIC & COMMERCIAL AFFAIRS
EMBASSY OF GREECE IN CAIRO
ΤEL. +202-27948482
FAX +202-27940684
e-mail: [email protected]
Website: www.agora.mfa.gr