1 / 51

Consolato Della R. A. D’Egitto Ufficio Commerciale Milano

Consolato Della R. A. D’Egitto Ufficio Commerciale Milano. EGITTO: incontro sulla normativa tecnica e aggiornamento sulla situazione politica ed economica Nasser Hamed Console per gli Affari Commerciali Consolato d’Egitto a Milano 5 dicembre 2012, Treviso.

emi-mann
Télécharger la présentation

Consolato Della R. A. D’Egitto Ufficio Commerciale Milano

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Consolato Della R. A. D’Egitto Ufficio Commerciale Milano EGITTO: incontro sulla normativa tecnica e aggiornamento sulla situazione politica ed economica Nasser Hamed Console per gli Affari Commerciali Consolato d’Egitto a Milano 5 dicembre 2012, Treviso

  2. Doing business in Egypt 1

  3. Egypt at a Glance • GDP growth rates were at 1.8% during FY 2010/2011 and have reached 2.2% during FY 2011/2012. • Net international reserves have decreased to USD 15.043 Bn. by the end of September 2012. • FDI in Egypt recorded a net inflow of around US$ 218.0 million against US$ 2.1 billion). It reflected the shift in net investments of the oil sector from a net inflow of some US$ 35.0 million in July/March 2010/2011 to a net outflow of US$ 2.1 billion in the period under review. Meanwhile, net Greenfield investments inched up to US$ 2.0 billion (from US$ 1.9 billion). • Annual Inflation rate has declined to 6.22% in September compared to 8.78% in April 2012 and 9.03% in March. • Unemployment rates: 12.6% during the 3rd quarter of 2011/2012 of which 21.9% were previously employed. • Egyptian exports were worth $27 billion during FY 2011/2012 while imports were worth $-58.7 billion during the same period. • Exchange rate for the USD october 2012: 6.10 EGP. Source: CBE

  4. Why Invest in Egypt • A sustained growth rate of 7% over the period between 2005 and 2008. • Despite being affected by the current political unrest during the FY 2010/2011 growth rate which was 1.8% to drop to 0.2% and 0.4% during Q1 and Q2 of FY 2011/12 respectively, Q3 of the same year has been a signal of strong recovery to record a major increase of 5.2% growth rate. • Egypt has a diverse economy. • A large population and hence a large consumer market where per capita income was at EGP 17.062 in 2010/2011. • At around 26.8 million in Q1 2012, Egypt has the largest labor pool in the region with a competitive labor cost.

  5. Egypt’s New Objectives • Ensuring macroeconomic stability; real growth rates reached 2.2% in 2011/12. • Reducing inflation; with the aim of bringing inflation levels closer to those of neighboring countries. • Maintaining a flexible exchange rate set by free market forces, while avoiding short term volatility. • Upgrading the quality of government services. • Social policy reform through expanding social security nets and promoting pro-poor programs while reforming the subsidy structure. Jul - Mar

  6. The Ease of Doing Business • Time to establish a company: 72 hours • One Stop Shops gather all sectors and entities dealing with investors. • Removing restrictions on minimum capital of limited liability companies and reducing incorporation fees. • Launching the first phase of electronic establishment of companies through the internet (in Arabic) • Property registration fees reduces where cap is at EGP 2000 • Establishing the Egyptian Credit Bureaus (i-score) • 20% flat tax rate, according to the Tax Law No. 91 of 2005. • Reducing the time necessary to register property from 72 to 38 days. • Introduction of Nilex; The region’s first small cap stock exchange • Reducing the average custom tariff to 6.9% while tariff items have been reduced to six items only (previously 27). Source: CBE

  7. Competitive Manufacturing Costs Access to Export Markets Large Domestic Market Government policy Strategic Location Comparative Wages 10 Electricity prices compared to 8 1.6 Wages compared to Egypt in US$/ hr Egypt (Cents KWatt/ hr) 1.2 7 0.7 4 0.5 Egypt India Tunisia Turkey Egypt Turkey India Tunisia Egypt: Competitiveness Lucrative Returns Await FDI Inflow • Egypt’s competitive advantages make a compelling case for increasing FDI in Egypt. Comparative Electricity Prices Source: AmCham, GAFI Information Center,

  8. Low Cost of Doing Business • Competitive tax rates - corporate and personal tax rates top out at only 20% • Developed infrastructure with 15 commercial ports in addition to 44 specialized ports to serve importers and exporters, an expanding airport network catering to both passengers and cargo. • An abundance of natural resources and competitively priced water, power and gas. Source: CBE, Ministry of Investment

  9. Preferential Access to Key Global Markets The EU – Egypt Association Agreement grants Egypt preferential access to the EU market of 500 million The EFTA-Egypt Free Trade agreements grants access to the markets of Iceland, Liechtenstein, Norway and Switzerland in industrial and agricultural products. Free duty access to the US market of 300 million customers through the QIZ protocol. The COMESA, a common market for Eastern and Southern Africa creates a free trade area among the 19 member states. AGADIR Declaration creates grants Egypt a free trade zone between Egypt, Morocco, Jordan, and Tunisia in addition to a rules of origin advantage. Egypt – Turkey free trade agreement GAFTA: ratified by 22 Arab nations, involving the phasing out of customs and duties while eliminating non-tariff barriers Source: CBE

  10. 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. New facilities for investors include: 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. Support and Incentives for Investments

  11. A stimulus package has been introduced by The Ministry of Industry to facilitate investments in the industrial sector through: Reducing the value of Letters of Guarantee required to acquire land from industrial zones. Inspections by the Industrial Development Agency(IDA) are to be done upon request by the IDA chairman. Enforcing the role of IDA representative offices in governorates to issue all required approvals, except for land allocation. In case of fulfilling required terms of issuing an industrial registry, a permanent industrial license is issued and renewed every 5 years. Support and Incentives for Investments

  12. The issuance of Law no. (11) for year 2012 which provides incentives for taxpayers on the full or partial payment of their deferred income/sales taxes, the law is effected on three stages: Stage one: 25% discount on the investors’ taxable revenue in case of payment before the 31st of march 2012. Stage two: 15% discount on the investors’ taxable revenue in case of payment before the 30th of June 2012. Stage three: 10% discount on the investors’ taxable revenue in case of payment before the 31st of December 2012. The new incentive scheme has actually resulted in an increase of 10% to the collected taxes by applying only the first stage of the law. Support and Incentives for Investments

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

  14. Preferential Access to Key Global Markets • The EU – Egypt Association Agreement grants Egypt preferential access to the EU market of 500 million customers. • The EFITA – Egypt Free Trade Agreements grants Egypt access to the markets of Iceland, Liechtenstein, Norway and Switzerland in industrial and agricultural products. • Free duty access to the US market of 300 million customers through the QIZ protocol. • The COMESA, a common market for Eastern and Southern Africa creates a free trade area among the 19 member states. • Agadir Declaration creates a free trade zone between Egypt, Morocco, Jordan, and Tunisia in addition to a rules of origin advantage. • Egypt – Turkey free trade agreement • GAFTA: ratified by 22 Arab nations, involving the phasing out of customs and duties while eliminating non-tariff barriers. Source: CBE

  15. Investment Policy Framework

  16. FDI After the January Uprising • 12309 new companies/expansions have taken place over the period between January 2011 and june 2012 with a total capital of USD 10.5 billion, providing more than 311272 jobs. • Egypt’s ongoing drive to promote investment combined with greater transparency and a broader ownership of the national economic reform agenda will leverage Egypt’s inherent strengths. • BP is expected to invest USD 11 billion, GE to invest EUR303 million, Italy’s ENI to invest USD 18 billion, while Qatar is to launch two mega-projects worth more than USD 9 billion of investments and providing 1.2 million job opportunities.

  17. FDI in Egypt Today • Pegas Nonwovens SA (PEGAS), a Czech maker of special textiles used in hygiene products and health care • GlaxoSmithKline plc announced that it will invest US$ 84.7 million in Egypt’s healthcare sector over five years to expand its product portfolio • Al-FuttaimGroup will invest about US$ 300 million in 2012 to continue construction of Cairo Festival City project. • In April 2011, the Kuwait Investment Authority (KIA), set up a company worth $1 billion in capital to invest in Egypt's stock market • Electrolux, the Swedish appliance company, acquired a 52 percent stake in Egypt’s Olympic Group at a cost of US$ 350 million. • The Turkish company KCG announcement to raise its investments in Egypt by establishing 3 new projects valued at USD400 million in the textiles, electricity generation, and mining in Sinai. • The Indonesian company “Multistrada” announced establishing a tire factory in partnership with an Egyptian manufacturer, the project value is USD320 million.

  18. FDI in Egypt Today • In April, 2011, China Development Bank signed a memorandum of understanding and cooperation with Commercial International Bank and Commercial International Investment Company in Egypt to cooperate in infrastructure and loans for SMEs. • In July, 2011, the Egyptian Hydrocarbon Company (EHC) was established with paid-up capital of USD150 million; the first private sector industrial project to be implemented in Egypt at international prices with no subsidies. Total investments of the project are USD454 million. • In June 2011, Cisco announced it will invest USD10 million. The venture capital investment will be targeted at high-potential small businesses that provide innovative products and services. • The Turkish group “Limak” to carry out enhancement capacity project of Terminal 3 in Cairo International Airport with investments worth USD387 million. • The Indian company Dhunseri petrochemicals Ltd. established a 160 million dollars company in Sharkyia governorate in the field of plastic production providing 500 job opportunities • The Malaysian Islamic Finance company, AMANI , announced the establishment of a USD 500M fund.

  19. Bedaya Center for Small and Medium Investments (SMIs) • Establishment • Bedaya Center for Small and Medium Investments was established in January 2010 and aims to implement GAFI’s strategy of developing small and medium investments. • Mission • To support the growth and development of the small and medium investments in Egypt; in line with the national strategy towards create new sustainable jobs while raising economic development indicators.

  20. Bedaya Center for Small and Medium Investments (SMIs) • The Pillars of SMI Strategy • Facilitating SMEs access to finance: Through establishing a EGP 1 billion private equity/venture capital fund while assisting and supporting SMEs in accessing required credit guarantees to enhance their chances in accessing credit. • Providing business development services:Non financial technical support that includes easing technology transfer, introducing investment opportunities and providing technical training for entrepreneurs to acquire the necessary skills. Creating clinics for fostering SME growth during the first five years of their lifetime. • Promoting entrepreneurship activities:Through a process of selection of projects based on creativity, value added and initial viability and providing the necessary support. • Integrating SMEs in the supply chain of large companies:Enabling SMEs to play a more active role in the supply chains of big corporations and gaining access to bigger, more sustainable markets and hence changing the Corporate-SME relationship to a win-win relationship.

  21. Egypt&ItalyTrade & Investment

  22. Bilateral Trade(Egypt-Italy) Million Euro Source:ISTAT

  23. Egyptian Exports (2010-2011)(Million Euro) Source:ISTAT

  24. 6.8 Priority Sectors and Clusters • The energy sector is enormous, the government sector is encouraging foreign investment in the sector where natural gas is the evermore important revenue generator. • 63 new explorations were made in the FY 2009/10 while 11 new ones were made in Q1 2010/11. • Natural gas production recorded a decrease of 3.4% in Q1 2010/11 while that of crude oil recorded a an increase of 2.3% during the same quarter compared to Q1 of 2009/10. • Domestic consumption of petroleum products increased by 7% during Q1 2010/11 compared to the same period of the previous year. Production of Natural gas, crude petroleum and petrochemicals – Ministry of Petroleum Source: ECHEM

  25. 6.8 Priority Sectors and Clusters • One of the most vibrant sectors in Egypt. • Egypt is home to many regional offices of large multinational companies such as Microsoft, Oracle, France telecom and Intel. • Total investments in ICT amounted to 1.8% and 1.0% of total implemented investments in FY 2010/2011 and FY 2011/2012 respectively. • Internet users in Egypt increased by 29.6% during Q1 of FY 2010/2011 compared to the same period of the previous year. • Annual growth rate of the ICT sector is 9% in the Q3 FY 2011/2012 Source: ITIDA; BMI; MCIT

  26. 6.8 Priority Sectors and Clusters • The healthcare sector is an important growth sector, the core areas of investment include private hospitals, health tourism, pharmaceuticals, rural healthcare and continuing education programs. • Egypt is home to the largest trained workforce in the region such that 10,000 medical school graduates graduate annually, more doctors and pharmacists than any other country in the Middle East. • High doctor to patient ratio such that in 2008, Egypt recorded 6.68 physicians, 14.54 nursing staff per thousand patients in addition to 1.18 dentists and 1.59 pharmacists. • Upgrade of the national healthcare system, the government aims to spend 11% of GDP on healthcare to upgrade the national universal healthcare system, an amount that is expected to reach 44.8% of total government expenditure in 2012. Source: Ministry of Economic Development, CAPMAS

  27. 6.8 Priority Sectors and Clusters • The Egyptian government aims to transform the country’s infrastructure to a booming sector through raising infrastructure spending such that EGP 30 billion were added in the March, 2011 stimulus package. • There are currently 4 utilities projects among 7 PPP projects. • The Electricity Sector • Total investments reached EGP 13.4 billion during FY 2009/10, and EGP 2.5 billion during Q1 FY 2010/11. • The rate of growth of the electricity sector has reached 8% in Q1 of FY 2010/11, with a 6.9% increase in consumption during the same period. Source: GAFI

  28. Priority Sectors and Clusters • Egypt is open to foreign participation in higher education and training in order to meet the demands of the global market place. • The government plans to raise the percentage of Egyptians enrolled in university and technical education to 50% which required an additional 120 university and technical/vocational institutes. • The government aims to build 2,500 public schools of which 1,400 are to be build through PPP. • Of the multilingual workforce of more than 332,000 university graduates in 2009/10 41,000 were specialized in education.

  29. Priority Sectors and Clusters • The Industrial Sector • The sector represents an important and advanced rank in the national economy and is strongly interrelated with several production and service sectors along with boosting foreign trade and improving the balance of payments. • The sector amounts to 6.3% of growth rates during Q1 of FY 2010/11 compared to 4.9% during the same period of the previous year. • Total investments are worth EGP 25.5 billion and EGP 8.8 billion were poured into the industrial sector during FY 2009/10 and Q1 of FY 2010/11 respectively.

  30. Egypt Auto Industry Strengths: Egypt has one of the few production bases in the region Strong domestic production industry − 65% of local sales are Egyptian-built Foreign investment continues to flow into the industry, as Nissan pledges US$100mn for a recently acquired plant and Toyota plans a new service centre and showroom Opportunities: Trade tariff reform between Egypt and the EU will open the market for more overseas manufacturers and expand export opportunities for domestic producers. Nissan, BMW and Toyota are all increasing their presence in the country Government drives to convert cars to natural gas will provide opportunities for manufacturers of ‘green’ vehicles The sector has plenty of growth potential due to the population of 83mn and strong rates of foreign investment.

  31. Egypt Auto Industry

  32. Egypt Auto Industry

  33. Egypt Petrochemicals Industry Strengths: Egypt’s abundant natural gas reserves provide a competitive advantage in terms of petrochemicals production Egypt is relatively low risk in commercial and political terms, and offers competitive labour costs and tax exemptions It has a well-established fertiliser sector It is well-placed to export to Europe The Ministry of Trade & Industry is working towards improving trade relations worldwide, protecting the rights of exporters and, above all, sustaining Egypt’s exports to foreign markets Opportunities: The government has launched a 20-year US$20bn petrochemicals development plan The sector is due to expand rapidly; petrochemicals output should grow substantially in the coming years if all the projects go ahead as planned There is the prospect of large-scale fertiliser and petrochemicals developments based on the country’s gas reserves Early privatisation efforts, involving initial public offerings (IPOs) of successful companies, have generated encouraging results and are likely to promote investment

  34. Egypt Petrochemicals Industry

  35. The Egyptian petrochemicals sector represents about 12% of total industrial production and is worth around US$7bn, or just 3% of total GDP. Egypt’s chemical and petrochemical exports totaled US$10bn in 2008, according to Egypt’s Chemical and Fertilisers Export Council. In 2002, the Egyptian government launched a 20-year programme to increase investment in the petrochemicals sector to US$4.5bn. Overall, the government wants to see 24 new petrochemical production facilities built, which will produce 15mn tonnes by 2022 and generate revenues of around US$7bn per annum. It expects these projects to create up to 100,000 new jobs. Egypt Petrochemicals Industry

  36. Egypt Pharmaceuticals Sector Strengths: Gateway to other emerging and, many of which are less penetrable Middle Eastern, Asian and African markets Well-established manufacturing industry, with about 30 local drug makers privately owned, focusing on high volume basic medicines Local production accounting for about two-thirds of the drug market Low labor costs and a large pool of highly trained doctors, pharmacists, engineers and skilled technicians Opportunities: Sector modernization, with plans to increase healthcare insurance coverage Currently high consumption level allows for high growth potential Potential for generic sector growth as the government becomes increasingly cost-conscious Potential liberalization of the retail pharmacy sector Implementation of a new, faster drug registration process A growing number of free trade agreements (FTAs) Government finally deciding to raise prices of drugs to compensate for increased costs of raw materials

  37. Egypt Pharmaceuticals Sector

  38. Egypt Pharmaceuticals Sector

  39. Egypt Pharmaceuticals Sector

  40. Egypt Infrastructure Industry Strengths: The government has ambitious plans to transform the country’s infrastructure, which include several mega-projects such as the US$9.5bn refinery and petrochemical plant at Kafr-al-Shaikh, and US$8.7bn container terminal at EasternPort Said. Egypt has had one of the fastest-growing infrastructure sectors in the world, covering all segments including transport, tourism, commercial, industrial, etc. Opportunities: A growing number of visitors drawn to a relatively cheap country means there is the potential to build more hotels and resort areas There is a strong demand for housing in Egypt; increasing population and urbanisation has resulted in the government undertaking major urban planning programmes Raw material costs are falling due to the global economic downturn

  41. Egypt Infrastructure Industry

  42. Egypt Infrastructure Industry

  43. Egypt Textile Industry INDUSTRY HIGHLIGHTS: The Textile industry contributes with one quarter of Egypt’s non-oil export proceeds. The public sector accounts for 90% of cotton spinning, 60% of fabric production and 30% of apparel production in Egypt. The private sector apparel industry is one of the most dynamic manufacturing processes in Egypt. Egyptian wage levels in the Textile industry are among the lowest in the world, not exceeding one Dollar per hour. Cotton textiles comprise the bulk of Egypt’s TC export basket Egypt is the second largest MENA exporter of Textile products to the US, with woven apparel as the largest category. MFN treatment grants Egypt the lowest entry rates as mandated by US commitment to the WTO.

  44. Investment opportunities Mega Projects 1. East Port Said • GAFI is adopting this project through the Mega Projects Unit in order to achieve the vision to support investment projects in various fields. • The integrated development of East Port Said opens prospects for new development outside the Nile Valley and Delta, and contributes to the re-distribution of Egypt's population over the next 30 years. • The development is in alignment with the implementation of the Sinai strategy. • East Port Said Port - one of the most important ports to the major hub in the Mediterranean region is expected to be largest during the years. • New urban city (millions) in Port Said - The total area has about 36 thousand acres. • The industrial area east of Port Said - largest industrial area in Egypt 87 km 2 (20,700 acres). • Agriculture area- reclamation of 60 acres in sahl El-tena region. • Other projects ( sues canal tunnel in port said - electric train crossing the Suez Canal). وحدة المشروعات القومية ومشروعات الـPPP – الهيئة العامة للاستثمار

  45. Mega Projects 2. Upper Egypt- Red Sea Road (Sohag / Safaga) • Upper Egypt-Red Sea Company was established in November 2008 under the law of the Investment Guarantees and Incentives No. 8 for the year 1997. 200,000 acres of land were allocated to the company, under the Decree No. 356 of 2008 • Key projects include an integrated residential city on an area of ​4,300 acres to provide 24,000 housing units. • Other projects include:a) Three dry ports in the governorates Assiut, Sohag ,Red Sea east ,Qana b) A sea water desalination plant powered by solar or normal power, and serves the coast line from a source of sea water wells . Urban Communities

  46. 3. Special Economic Zones North West Suez Canal Mega Projects • Project Description: Area of 16.4 Km2 North East Suez Canal – Special Economic Zone (Sokhna). Attract the private sector to develop the first phase of the project with an area of 6.8 Km2 to manage, operate and maintain the infrastructure and utilities, and promote the Zone • Sponsor: The General Authority for Investment • Investment Cost: • 800 Million pounds • Status: The Chinese Company “TIDA” has been contracted for developing phase one of the project

  47. 4. Alexandria Medical City Mega Projects • GAFI is adopting a project to establish a Medical City in Alexandria through the Mega Projects Unit in order to achieve the vision to support investment projects in the medical field by coordinating efforts between them and the Alexandria Governorate and the Ministry of Health. • The project is located on a 500 acre lot, at a prime location, at the entrance of Alexandria on Cairo-Alex desert road. • Alexandria governorate will avail the land under a usufruct arrangement. • The project will include specialized hospitals, emergency centers, wellness facilities, administrative areas, and clinics. In addition to commercial and hospitality developments. • Anticipated investments of the project are around 8 Billion LE. • Project Sponsor : General Authority for Investment / Alexandria governorate. • Proposed Investment Mechanism: Investment Zone.

  48. PPP Projects

  49. PPP Projects • Planned projects: • These projects are being studied at the PPP central unit and are expected to be tendered within the first quarter of the FY 2012/2013:

  50. The General Authority for Investment and Free Zones Who We Are: GAFI is the principal governmental authority concerned with regulating and facilitating investment and stands ready to assist investors worldwide. Vision: Position Egypt as the location of choice for business and innovation Mission: Enabling and sustaining Egypt’s economic growth through investment promotion, facilitation, efficient business services and advocacy of investor friendly policies. Mandates: Promoting Egypt’s potential sectors while attracting new investments and promoting reinvestments and expansions. Facilitating and providing services to investors through the “One Stop Shop” in addition to supporting and accelerating the development of competitive and strategic clusters. Contact GAFI: www.gafinet.org

More Related