Conference Egypt: Best Kept Investment Secret

1. ConferenceEgypt: Best Kept Investment Secret Thursday 19 June 2014, Royal Over-Seas League, London Supported by

2. Egypt’s Economic Challenges • Drop in GDP Growth • Drop in Foreign Exchange Reserves • Increase in Inflation • Increase in Unemployment • Increased Deficit in Balance of Trade • Large Public Debt (Internal & External) • Drop in FDI & stoppage in the under construction ones • Drop in Tourism • Drop in Local Investment • Nearly 1000 Production Lines out of Service • Impact of Bureaucracy and the Slow Pace of Litigation

3. El Sisi’s Development Plans for Egypt as Stated in His Inaugural Speech on the 8th. Of June • Economic development needs security, stability, social justice, human rights and freedom for all groups in society • State-owned and private sector are the two pillars of the economy • The rights of low-income groups and the poor need to be preserved • Plans need to be developed to tackle slums in Egypt • Sisi believes in, and welcomes an open-door policy • Egypt suffers an immense budget deficit and high unemployment particularly among the younger work force • Acute foreign reserves deficit • Lack of energy resources

4. El Sisi’s Development Plans for Egypt • The business community needs to take on a ‘patriotic role’ and consider the social return of their investment • The government will create a conducive business environment for business people • The manufacturing sector needs to be further developed and improved • Job opportunities need to be created, particularly for the younger generation via labour intensive projects • Land needs to be made available for investors at affordable cost • Mining and quarrying processes need to be improved • Raw materials should not be exported, all export products need to be value added • There is an urgent need for waste recycling and waste to energy projects

5. El Sisi’s Development Plans for Egypt • 5 mega projects are in the planning: • Suez Canal area • Nuclear power station at Dabaa • Solar Energy • Western Dessert Development Corridor • Re-division of governorates to increase their number which will add 4 million acres of land for agricultural purposes • Improvement to healthcare facilities, particularly treatment for the elderly • Improve the education system (teacher, student & curriculum) with a focus on vocational training. There needs to be a link between education and Egypt’s market needs. • Construct new airports, sea ports and tourist destinations • The Ethiopian dam should not have an impact on Egypt’s water resources. Ethiopia has the right to develop its economy but not at the expense of the lives of Egyptians

6. Balance of Payment & Balance of Trade • Egypt’s Balance of Payments Surplus • Surplus $ 2.2 billion in the first nine months of the 2013/2014 fiscal year. • Deficit of $ 2.1billion in the same period of the previous fiscal year. • CBE attributed the improvement to 63.8 % increase in and expatriates' remittances. • Egypt’s Trade Deficit Falls • Trade deficit fell for the seventh consecutive month in February to reach $1.6 billion • 43.2 % drop from $3.1 billion compared to the same month in 2013, • Drastic fall in imports by 27.9 % in wheat, crude oil, pharmaceutical products and steel.