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*. Egypt & UK Investment. London 21 March 2013. Presentation by Taher El Sherif Secretary General, The EBCC. Objectives . To Highlight the Latest Investment Developments in Egypt To Help Egyptian Businesses to Expand in the UK To Shed Light on Priority Sectors for Co-operation.
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* Egypt & UK Investment London 21 March 2013 Presentation by Taher El Sherif Secretary General, The EBCC
Objectives • To Highlight the Latest Investment Developments in Egypt • To Help Egyptian Businesses to Expand in the UK • To Shed Light on Priority Sectors for Co-operation
Contents • Global Investment in Egypt • UK Share of Investment in Egypt • Why Invest in Egypt?
* Global Investment in Egypt
EGYPT’s Net FDI (In US$ mn) FY 2007-2012 Source: Central Bank of Egypt
Egypt’s FDI Breakdown (in %) Establishment of new companies (Green Field) and expansions of companies in operation accounted for 40 % of net FDI flows during the period from FY 2004/05 to FY 2008/09. Oil & Gas sector has the lion’s share of FDI inflows (45 %) Privatisation (14 %) peak in 2006/07 New establishments peak in 2005/06, but fall in 2008/09 due to the economic downturn. Source: Central Bank of Egypt
Sector Distribution & Share of Each sector in Total FDI in Egypt (US$ mn) Source: Central Bank of Egypt
* UK Share of Investment in Egypt
1992 - 2011 The total accumulated UK investment in Egypt reaches £5,686 over 20 years Investment breakdown: Oil & gas - 60% Manufacturing – 15% Finance - 10% ICT - 8% Tourism – 5% Others – 2% UK/Egypt Net FDi(In £Mn) Source: OECD Statistics
Top Investor Countries in Egypt in % Inflows: US$2.69bn Outflows: US$ 2.26bn Net FDI: US$ 440.1mln In Q1 of FY 2011/12 the UK invests US$ 1.3bn in Egypt. This investment equates to 61% of total EU investment in Egypt (US$ 2.12bn). Q1 2011/2012 Source: Central Bank of Egypt
* Why Invest in Egypt?
Why invest in Egypt? How the Foreign Investor Looks at Egypt Unstable political situation Shortage of government resources Non-conducive environment for investment Security concerns
Why invest in Egypt? Cont’d Despite the current political uncertainty and instability, Egypt remains a robust and potential investment destination Strong infrastructure A legal framework that supports and invites FDI Strong banking system Mature and capable business community Solid judicial system Skilled and semi-skilled human resources local and international demand remains high Strong business and trade ties with the world Respect for international accords and treaties Abundance of natural resources, including oil & gas, tourism and the Suez Canal
Why invest in Egypt? Cont’d Advice for Foreign Investors Do not postpone your business venture until after the dust has settled Find your partner in Egypt Conduct market research Arrange your finance Research the available funds and agreements Conduct the location analysis Study the laws and regulations
Why invest in Egypt? Cont’d Government priority sectors Healthcare Education Energy/renewable energy Housing Waste management Water management Regional & rural projects (Sinai development)
Egypt’s Economic Indicators Source: Central Bank of Egypt, EIU, BMI
* Thank You Presentation by Taher El Sherif Secretary General, The EBCC