Tourism has been doing well in Egypt. By the end of last year, revenue from visitors reached all-time highs thanks to major reforms led by then Minister of Tourism Rania Al Mashat. The United Nations World Tourism Organization (UNWTO) forecasts that the number of tourists will increase from 13 million in 2019 to more than 15 million in 2020. That would be an all-time high, up from 11.336 million arrivals in 2018, according to Trading Economics. “The minister’s choice of strong international media partners […] had such a great impact on the rise of the number of visitors to Egypt,”…
Author: Tamer Hafez
With the United States being Egypt’s second-biggest trade partner and the third-largest direct investor in Egypt, the health of U.S. economy has considerable influence on the Egyptian economy and its growth. As such, reports over the past few months from American think tanks and economists warning of an impending recession should raise red flags in Egypt. “There remains one significant and serious risk to emerging markets: a US recession,” wrote Barry Eichengreen, a former senior policy adviser at the International Monetary Fund, in the Guardian in December 2019. Such a recession may be accelerated by a potential corporate debt “bubble”…
When top African officials talk about the importance of economic integration within the continent, they speak with conviction and enthusiasm. “There is an urgent need for African countries to economically integrate and complement each other,” said President Abdel Fattah el-Sisi after meeting with Liberian officials and the ambassador to Egypt in November. “We have been organizing conferences with our African counterparts these past few years to overcome any obstacles on the ground.” It was, therefore, no surprise that 54 of Africa’s 55 nations signed the African Continental Free Trade Agreement (AfCFTA) in March 2018. Eritrea didn’t sign due to deep-rooted…
With five of the world’s 10 fastest-growing economies located in Africa, the continent is witnessing an unprecedented economic boom. To sustain it, governments have to quickly implement strategies and policies favorable to potential and existing foreign investors. To avoid being bogged down by incumbent administrative and regulatory problems, almost all those countries are fast-tracking construction of Special Economic Zones (SEZs) that have their own administrative and regulatory frameworks. The Suez Canal Special Economic Zone (SCZone) is Egypt’s most ambitious attempt to date to compete with 236 other SEZs in Africa, according to a 2019 report by the United Nations Conference…
Storming out of the gate, Egypt’s first sovereign wealth fund (SWF), signed a $20 billion deal with Abu Dhabi Developmental Holding Co. (ADDHC) to create a joint investment platform that would remain active for seven years. ADDHC will contribute $10 billion in cash, while Egypt will provide cash or assets of a similar value. After the announcement, the SWF board began signing contracts with state-owned companies and ministries to include their unused assets in its portfolio to activate the platform, a top priority for SWF CEO Ayman Soliman. “State-owned companies could become part of the fund either by allocating assets…
Last year, the government and Central Bank launched three initiatives for 2020 to help boost healthy large and medium factories, firms near bankruptcy or bankrupt because of unpaid debts, and exporters. Industry insiders say the initiatives addressing three in a long list of problems. Often described by state officials as the “locomotive of Egypt’s economic recovery,” industrial investments not only create permanent jobs, they account for 48 percent of dollar inflows. Yet the sector was the first and hardest hit by the aggressive structural reforms since the pound was floated in late 2016, and the sector’s recovery has been lackluster…
After representing the U.S. government abroad for 34 years, Johnathan Cohen became ambassador to Egypt in November. Cohen is known in diplomatic circles as a deal broker, matching companies with U.S. interests with opportunities in countries where he served. “I believe in forging U.S. partnerships with countries and regions to expand mutually beneficial opportunities,” he said at an AmCham luncheon event January 28. During his brief presence in Egypt, Cohen witnessed the signing of a $430 million deal in late November between the government and Noble Energy to supply natural gas through the East Mediterranean Gas Co. pipeline. In December,…
Egypt’s food security has long been a concern. Last fiscal year (FY), the country imported more than half of its corn, rice, sugar and wheat, according to AmCham’s 2018 Egypt Economic Profile Report. Worryingly, that ratio has worsened. In 2014, the U.N. Food and Agriculture Organization estimated Egypt could supply 60 percent of its food needs. Even more concerning is the value of wheat and corn imports in FY 2018/2019 were nearly triple that of all packaged fresh food exports. To increase cultivation of fruits and vegetables, President Abdel Fattah el-Sisi launched three megaprojects. The flagship initiative would boost the…
For Speed Medical, listing on the NileX was an important step to advance its core labs business as well as diversify to building hospitals. “We wanted to raise about EGP 46 million,” says company Chairman Mahmoud Lashin. However, he only raised EGP 21.16 million as the IPO was covered 0.46 times. “It wasn’t bad. But we put the majority of our post-listing plans on hold to determine our next step.” Ahead of the 2016 listing, Speed Medical had 52 medical labs in nine governorates. “We had treated 1.2 million patients in 2015 and were on track to receive 2 million…
A century and a half after Khedive Ismail Pasha hosted European royalty and financiers to celebrate the opening of the Suez Canal, Egypt’s leadership is preparing gala events to showcase the Grand Egyptian Museum. Authorities have moved nearly 50,000 Pharaonic artifacts to the 120-acre facility scheduled to open in late 2020 and hope 4 million visitors a year will flock to the nation’s latest attraction. The state estimates a direct return on investment of $840 million, including nearly 6,000 new jobs in construction, transportation and manufacturing with the museum becoming the prime economic growth engine for the Giza Plateau. “Millions…