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Doing Business with Egypt Greece 16 - 18 October 2014

Egypt, Investment for Development. Egypt. Doing Business with Egypt Greece 16 - 18 October 2014. Indicators. Monthly Inflation Rate 10.07 % at the end of August 2014 Net International Reserves 16.87 (USD billion) at the end of Sept 2014

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Doing Business with Egypt Greece 16 - 18 October 2014

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  1. Egypt, Investment for Development Egypt Doing Business with Egypt Greece 16 - 18 October 2014

  2. Indicators • Monthly Inflation Rate 10.07 % at the end of August 2014 • Net International Reserves 16.87 (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 billionUSD)the FY 2013/14: • 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 2013/14 • Total imports (FY 2012/2013) 57.5 USD billion , and recorded 43.9 USD during the 9 months of the FY 2013/14

  3. Foreign Direct Investment in Egypt USD Billion Source : CBE

  4. Greek Investment in Egypt From January 1970 till August 2014: • Total Greek participation in the issued capital is USD 613.23 Million • Total number of companies with Greek capital operating in Egypt is 140 companies Greek Investment Development in Egypt Greek Investment by Sector Source : GAFI

  5. Sample of The largest international Companies working in Egypt

  6. 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.

  7. Investor protection • There are five investor protection schemes which GAFI is currently endorsing:

  8. Ambitious sectorial strategies INDUSTRY: Textiles • 30% of industrial output • 14.2% of Non- Petroleum exports in first three quarters of 2011/2012 • 30% 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.

  9. Ambitious sectorial strategies RENEWABLE ENERGY • 20% of total power generation by 2020 • 12% 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 FINANCE • Objectives: • 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.

  10. Ambitious sectorial strategies 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) 2012/2013.

  11. Ambitious sectorial strategies 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. • 6130 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.

  12. Ambitious sectorial strategies 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 2016. • Wages in the wholesale and retail sector average US$ 32.20 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 2022. • 27 new urban cities are planned of which 5 under construction

  13. 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

  14. A business environmentfavourable to investment • 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) Investor Protection 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 2011

  15. Thank you for your attention www.gafi.org.eg

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