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Can We Expect Investment in Egypt in the Foreseeable Future?

Can We Expect Investment in Egypt in the Foreseeable Future? . Thursday 10 October 2013, King’s College London. CAN WE EXPECT INVESTMENT?. MOODY’S SOVEREIGN RATING. The return of foreign investment heavily depends on:

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Can We Expect Investment in Egypt in the Foreseeable Future?

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  1. Can We Expect Investment in Egypt in the Foreseeable Future?

    Thursday 10 October 2013, King’s College London
  2. CAN WE EXPECT INVESTMENT?
  3. MOODY’S SOVEREIGN RATING The return of foreign investment heavily depends on: The ability to secure finance for projects via financial institutions and individuals Financial institutions and insurance companies evaluate the risk factor of providing finance for investment in Egypt by looking into Egypt’s sovereign rating: “Egypt's Caa1 sovereign rating with negative outlook reflects the country's considerable economic dislocation and political uncertainty.” Positives: Egypt's external liquidity pressures were eased significantly by the $12 billion external financial support package from the governments of Saudi Arabia, Kuwait and UAE. Clear political road map laid out by the interim government recent reduction in the government's debt-financing costs Negatives: political uncertainty and turmoil in Egypt Formerly robust foreign direct investment has reduced ratcheting down real GDP growth Fiscal deficits have widened sharply as heightened social tensions led to higher wage and subsidy expenditures
  4. MOODY’S CONCLUDING STATEMENT Any upward movement in the rating is subject to: Proper implementation of fiscal and economic reforms that reduce macroeconomic imbalances Reduction in political tensions
  5. BRIEF ON LATEST INVESTMENT INFLOWS IN EGYPT 2007-2012
  6. TOTAL FDI INFLOWS 2007-2012 US$ million Source: Central Bank of Egypt
  7. FDI INFLOWS IN EGYPT BY REGION US$ million Source: Central Bank of Egypt
  8. TOP 5 SOURCES OF FOREIGN INVESTMENT IN EGYPT IN 2011-12 UK: $5.8bn Belgium: $2.1bn US: $578mn UAE: $560mln Netherlands: $409mn Indicator - Jul/Sept 2012-13 Investment by Purpose Petroleum: 74.4% Manufacturing: 6.7% Services: 4.6% (finance, real-estate, tourism, ICT) Source: Central Bank of Egypt
  9. PERCENTAGE DISTRIBUTION OF INVESTMENT IN EGYPT IN 2011-12 Source: General Authority for Investment & Free Zones
  10. INVESTMENT OPPORTUNITIES
  11. NUCLEAR POWER PROJECT President Mansour announced plans to re-start Egypt’s nuclear power project last week The plan to build the first power plant in Al-Dabaa on Egypt’s North Coast are unchanged Original plan: Total of 4 nuclear power reactors will be built in a 10-year period International Atomic Energy Agency (IAEA) approved the first site in August 2010 The revolution put plans on hold UK companies can enter the bidding in variety of areas including management and health &safety.
  12. SUEZ CANAL CORRIDOR (SCC) Entrusted to the Suez Canal Authority The engine of the Egyptian economy in the coming period The project is currently in its planning stage Next phase: presentation to consulting firms with international experience The consulting firms will prepare a master plan focusing on the huge potential of the ports of Suez, Ismailia and Port Said Many investors & major international companies plan on entering the bidding on the Suez Canal development project, this will be launched soon Operated through public-private partnerships (PPP’s) Large-scale plans include Technology Valley in Ismailia and new tunnel linking the Suez Canal's west bank to the central Sinai Peninsula
  13. EGYPT’S ECONOMIC FORECAST
  14. EGYPT’S ECONOMIC FORECAST
  15. EGYPT’S ECONOMIC FORECAST CONT’D
  16. Thank You
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