Egypt is in the midst of a real estate construction renaissance that could last for decades. In December, Deputy Minister of Housing, Utilities and Urban Communities Khaled Abbas told AmCham Egypt about government plans to build 42 new cities by 2052 as part of its goal to increase inhabited land from 7% to 14% to accommodate the population’s 2.5% annual growth. If not done right, however, this construction boom could conflict with Egypt’s environmental sustainability goals. According to the International Energy Agency (IEA), the buildings and construction sectors combined are responsible for almost one-third of total global final energy consumption. It also emits 28%…
Author: Tamer Hafez
For many low- and middle-income countries, foreign direct investment (FDI) is vital for making their economies eco-friendly and sustainable. It brings “capital, employment, export opportunities, greater consumer choice, advanced technologies, managerial know-how and overall economic growth” to countries with the most profitable opportunities but lack finance or know-how noted the World Economic Forum’s Davos Agenda published this year. Nowadays, foreign investors want to see more than just high profits and healthy balance sheets; many are requiring reports on environmental, social and governance (ESG) plans. “The ESG factor assessments are more of an inherent aspect of a sound investment process than…
In the wake of the COVID-19 pandemic and global recovery efforts, the war in Ukraine has complicated business decisions and spread uncertainty, especially in emerging markets. However, Minister of Finance Mohamed Maait told AmCham’s annual general meeting that Egypt was able to achieve stability in an uncertain period and can do it again. At the June 27 event, Maait discussed financial measures Egypt implemented to stabilize the economy during the pandemic and subsequent geopolitical global conflicts. “We are facing unprecedented uncertainty and crisis,” he said. Moreover, two years after the pandemic, the “global [community] is facing a new crisis on…
The rise of digitization puts all organizations, from startups to multinational conglomerates, under pressure to be visible in the digital universe to operate profitably. For one, almost all potential buyers will always visit websites, smartphone apps, and social media before buying. A survey by Salesforce, a U.S. cloud-based software company, found that 85% of consumers research a product online before buying. Almost 75% use company websites to learn more about products, while social media accounted for 38% of searches. “Consequently, businesses need to have an effective online strategy to increase brand awareness and grow,” Goran Paun, creative director of ArtVersion,…
The government is betting its newly built cities can relieve overcrowded existing metropolises. However, a report from Cityscape and Colliers says relying on mixed-use developments to attract residents might not be enough. For the past eight years, the government has been pushing to increase Egypt’s livable area to accommodate population growth of 2% a year. Speaking at a press event in December, Essam el-Gazzar, minister of housing, utilities and urban development, said Egypt’s livable area has now covered 13.7% of its total land. The original target was to achieve 14% by 2052. The government has been building new cities across…
The European Bank for Reconstruction and Development has released a document titled “Egypt Country Strategy 2022-2027” that outlines the Bank’s near-term investment plans. Egypt has long been an attractive investment destination for the European Bank for Reconstruction and Development (EBRD). In October 2020, the Bank selected Egypt as its top investment destination for 2021 until 2025, with the country retaining that status since 2016. In February, the EBRD board of directors approved the bank’s “Egypt Country Strategy 2022-2027.” The 32-page document generally praised the government’s reforms, GDP growth rates and resilience, efforts to increase socioeconomic inclusion and steps to build…
Balanced unemployment, inflation and GDP growth signify a healthy economy. In America, that balance looks increasingly shaky and puts Egypt’s exports to the United States at risk. Much like the pandemic accelerated emerging trends in 2020, including hybrid workplaces and reliance on digital communication, the war between Russia and Ukraine is amplifying the economic aftermath of COVID-19. The most significant fallout from the pandemic is runaway inflation due to product shortages, supply chain bottlenecks, and rising energy prices. Those factors jeopardize economic recoveries worldwide, as importers and exporters lose business due to late deliveries and increase consumer prices to account…
Egypt’s largest trade partner, Europe, is going through a consumption, manufacturing, and energy transformation due to rising inflation, the pandemic and the war in Ukraine. Those shifts present Egypt with opportunities that could shape trade flows for years to come. Egypt has been on a fast economic recovery trajectory since GDP shrank 1.7% during the second quarter of 2020. By the third quarter of 2021, GDP growth rates had reached 9.8%, according to the Central Bank (CBE). The World Bank said in its January 2022 Global Economic Prospects report about Egypt that “growth is expected [to continue] supported by external…
Egypt aims to create a green corridor to connect all electricity produced from renewable sources that reach a capacity of 70 GW, says Minister of Electricity and Renewable Energy Mohamed Shaker. The combination of solar, wind, hydro, and hydrogen power generation stations in Egypt is enough for the Electricity Ministry to develop a dedicated power grid for those stations, Shaker explains during a ministerial roundtable discussion at the U.S. GreenTech Business Mission on May 16. In a speech, Shaker showcased available land for establishing renewable energy projects (solar and wind) in Suez Gulf, West Nile, East Nile, Fares 1 and…
Innovative and effective financing tools are a catalyst to ensure that commitments made at COP26 are put into action ahead of COP27 in Egypt, says Minister of International Cooperation Rania Al-Mashat during a May 15 ministerial roundtable meeting with U.S companies visiting Egypt in search of green-tech investment opportunities. The roundtable was part of the first-ever U.S. GreenTech Business Mission on May 14-17, organized by the American Chamber of Commerce in Egypt (AmCham Egypt,) the U.S. Chamber of Commerce and the Office of the U.S Special Presidential Envoy for Climate. The mission’s delegation included American investors, policymakers, eco-friendly financiers, and…