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Egypt The most promising market in the Middle East - North Africa

Egypt The most promising market in the Middle East - North Africa. Evangelos Dairetzis Counselor, Economic & Commercial Affairs. Egypt: Gateway to Africa and the Middle East. Strategic position in the Mediterranean Strategic position in the Middle East and Africa

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Egypt The most promising market in the Middle East - North Africa

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  1. Egypt The most promising market in the Middle East - North Africa EvangelosDairetzis Counselor, Economic & Commercial Affairs ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  2. Egypt: Gateway to Africa and the Middle East ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  3. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  4. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  5. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  6. GDP structure ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  7. ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  8. Main suppliers ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  9. Greek – Egyptian Trade2012 - 2013 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  10. Greek – Egyptian Trade 2010-2013 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  11. ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  12. Greek – Egyptian Trade, 1st Semester 2014

  13. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  14. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  15. The negative image of Egypt projected by Western media (mainly via Al Jazeera) is not realistic

  16. Sectors with high growth rates • Energy (renewable) • Infrastructure • Telecommunications - new technologies • Transportation • Health • Education • Agriculture ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  17. Market characteristics • 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  18. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  19. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  20. 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) ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  21. Egyptian legislation one of the most favorable regarding commercial representation • Non Egyptian national is not allowed to set up commercial importing company ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  22. Energy ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  23. 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

  24. ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ 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

  25. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  26. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  27. 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. Construction Μακέτα του νέου Διοικητικού Κέντρου ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  29. INFRASTRUCTURE • Highways • Railway network • Airports • Inland road network • Hospitals, schools • Power stations, RES • Housing units • Tourist complexes • Water - drainage • Desalination plant ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  30. The Ambitious “ Suez Canal Development ptoject” ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ Ports Industrial zones Tunnels Residential areas Tourist areas Fish farming Logistics centers

  31. 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: Helalcertification • Packaged agricultural products, juices, milk, snacks, pre-prepared meals, pastries, frozen meats, seafood ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  32. TARIFFS • Association Agreement 2004: phasing out tariffs within 15 years • Tariff information (EU Market Access Database): http://madb.europa.eu/madb/indexPubli.htm ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  33. TARIFFS • Foodstuff: 0-32% • Alcoholic Drinks 1200-3000% - 300% for "tourism purposes" • 10% sales tax on commodities ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  34. Corporate tax • Corporate tax: 25% • Companies in energy sector of 40%-55% • Personal income tax up to 25% ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  35. 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) ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  36. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  37. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  38. ENTRY TO THE MARKET - PROMOTION • Direct sale: dealer - distributor • Tenders • Participation in exhibitions • Trade mission organized by business entities • franchising ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  39. 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” ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  40. Greek investment Banking, constructions, shipping, energy (exploration and production), food industry, irrigation, clothing, packaging, etc. $ 1,2 billion 50 Medium and large scale companies ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  41. ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  42. ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  43. ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  44. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  45. 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 ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

  46. INTERNATIONAL ECONOMIC FORUM ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ 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.

  47. 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

  48. 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. ΤEL. +202-27948482 FAX +202-27940684 e-mail: ecocom-cairo@mfa.gr Website:www.agora.mfa.gr OFFICE FOR ECONOMIC & COMMERCIAL AFFAIRSEMBASSY OF GREECE IN CAIRO ΓΡΑΦΕΙΟ Ο.Ε.Υ. ΚΑΪΡΟΥ

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