ongoing initiatives in the egyptian economy

Current situation and ongoing initiatives in the

Egyptian economy

march 2013

Current Situation

ϳϲ 41 43 45 ϳϱ 5 56 54 55 56

-42

04 02 04

5233 26 22

-6-4-202468

Percent

117

7

109

0

111

0

899

9

03

893

8

90

910

9

00

837

8

60

884

9

37

920

9

36

940

9

12

896

8

94

892

11

90

11

80

11

90

12

40

12

60

12

60

12

50

6789

10111213

3

Source Ministry of Planning

Unemployment Rate

Source CAPMAS

GDP Quarterly Growth Rates


Current SituationCurrent Situation

46 66 97 129 955

127145 1682

748746

69 71 7247

51 1822 24

02468

050

100150200

Percent

Investment and Economic Growth

Private Investment Real Economic Growth

EGP Billion

03

-195

23 34

-38

12733 23 51 28 07 3945

7843 28 24

-36

-30-20-10

01020

Construction Tourism CIT Transportation Manufacturing Suez Canal

ϮϬϭϬ4 ϮϬϭϭ ϮϬϭϭ5 ϮϬϭϮ Semi Annual 20122013

Comparative Sectoral Growth RatesPercent


Inward amp Outward FDI flows

4

Source Central Bank of Egypt Source Central Bank of Egypt

Source Central Bank of Egypt

17

09

17

24

16

07

-02

0104

-09

06

19

01

-15

-1

-05

0

05

1

15

2

25

3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

200910 201011 201112 201213

$ Bn

41

91131

178

128110 96

118

27 23-02

-30 -20-46 -47 -43

-74-97

-23 -22

3961

111132

81 6822 21 04

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-5

0

5

10

15

20

FDI Inflows FDI Outflows NET FDI Inflows

EGP Bn


2139

61

111132

8168

22 210108

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2012

201

3

US $ Billion FDI Flows

09

33

52

64

23 27223 21

0409

2823

03 02 002

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30

41

54

36

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ΎϬϟϭϣα ϭ έΓΩΎϳίϭ ΕΎϛέηα ϳγ΄ΗϟΓΩέ ϭϟΕέΎϣΛΗγϻ ϝϭλ ϭΕΎϛέηϊ ϳΑΔϠϳλ ΣϥϳϣϳϘϣϟ έϳϐϟΔϳΟΎΗϧ

ϝϭέΗΑϟ ϥϳϣϳϘϣϟ έϳΔϓέόϣΑέλϣϲϓΕ έΎϘϋ˯έηϟΓΩέϭΕϼϳϭΣΗϏ

έΎϳϠϣέϻϭΩ

FDI Sectoral Breakdown

5

Private Investments Total Investments


total Investments GDP

Current SituationCurrent Situation4

94

46

6

48

1 57

3 62

6

64

7

48

4 56

5 63

2 69

2

67

1

0

20

40

60

80

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636

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567

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462

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608

647

570

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0 680

421

576 65

8

619

650

624

633

547

545

505

704 74

7

780

829

769

0100200300400500600700800900

Ave

rage

Est

ablis

hmen

t 20

09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

6

Establishment of Corporations (Monthly)No of Establishment

Source GAFI


Establishment by sector ldquoJanuary 2013rdquo

No of Establishment

7


Simplifying Procedures Applied by GAFI

1- Cancellation of obtaining a preliminary approval for industrial activity from the Industrial Development Authority (IDA) upon corporate establishment in GAFI

2- Issuance of imports certificate valid for 3-5 years instead of Stamping invoices on a regular basis

3- Issuance of Exports certificate valid for 3-5 years Instead of issuing letter in yearly basis

4- Reducing the minimum limits of capital required to establish limited liability Company to be according to partnerrsquos agreement

5- Cancellation of the condition of security approval upon establishment of press companies

6- Launching the electronic registration service

7- Issuance of Law in 2012 aiming at the formation of investment disputes settlement committees

The Egyptian InitiativeThe Egyptian Initiativefor National Accordfor National Accord

and Economic Take-offand Economic Take-off

9

The Egyptian Initiative for National Accord The Egyptian Initiative for National Accord and Economic Take-offand Economic Take-off

The Egyptian Initiative for National Accord and Economic Take-off aims The Egyptian Initiative for National Accord and Economic Take-off aims at working on all the sectors and governorates to avail new resources at working on all the sectors and governorates to avail new resources and achieve economic growth rates starting from 35 in addition to and achieve economic growth rates starting from 35 in addition to pumping investments approaching LE 276 billion in this fiscal year pumping investments approaching LE 276 billion in this fiscal year targeting a growth rate of 7 in the next five yearstargeting a growth rate of 7 in the next five years

The Egyptian initiative consists of five parts -

1 Business facilitation and removal of obstacles to investment

The main reform measures in the upcoming period include a new system of incentives for investment in Egypt linked to the priorities of the economic development plan developing a diversified package of incentives which suits various activities in each sector and extending more preferential incentives for investments operating in remote areas

10


2 Availing a list of investment opportunities and national projects which aim at ensuring sustainable development

3 Supporting small and medium-sized enterprises and entrepreneurship

4 Incorporating the informal sector through fiscal incentives within the formal economy

5 Restructuring of public-sector enterprises

PowerPoint Presentation

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Current Situation

ϳϲ 41 43 45 ϳϱ 5 56 54 55 56

-42

04 02 04

5233 26 22

-6-4-202468

Percent

117

7

109

0

111

0

899

9

03

893

8

90

910

9

00

837

8

60

884

9

37

920

9

36

940

9

12

896

8

94

892

11

90

11

80

11

90

12

40

12

60

12

60

12

50

6789

10111213

3


Unemployment Rate

Source CAPMAS




46 66 97 129 955

127145 1682

748746

69 71 7247

51 1822 24

02468

050

100150200

Percent



EGP Billion

03

-195

23 34

-38

12733 23 51 28 07 3945

7843 28 24

-36

-30-20-10

01020






4



17

09

17

24

16

07

-02

0104

-09

06

19

01

-15

-1

-05

0

05

1

15

2

25

3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

200910 201011 201112 201213

$ Bn

41

91131

178

128110 96

118

27 23-02

-30 -20-46 -47 -43

-74-97

-23 -22

3961

111132

81 6822 21 04

01

-10

-5

0

5

10

15

20


EGP Bn


2139

61

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8168

22 210108

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101214

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Q1

2012

201

3


09

33

52

64

23 27223 21

0409

2823

03 02 002

1725

18

30

41

54

36

-019-18

01 01 01 04 01 03 013 01

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-2

0

2

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6

8



έΎϳϠϣέϻϭΩ


5





94

46

6

48

1 57

3 62

6

64

7

48

4 56

5 63

2 69

2

67

1

0

20

40

60

80

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ual

2

01

22

013


561 62

3

613 74

0

531

690

636

617

534

436

578

530

550

567

261

462

420

608

647

570

477 55

0 680

421

576 65

8

619

650

624

633

547

545

505

704 74

7

780

829

769

0100200300400500600700800900

Ave

rage

Est

ablis

hmen

t 20

09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

6


Source GAFI



No of Establishment

7












9






10







Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

ϳϲ 41 43 45 ϳϱ 5 56 54 55 56

-42

04 02 04

5233 26 22

-6-4-202468

Percent

117

7

109

0

111

0

899

9

03

893

8

90

910

9

00

837

8

60

884

9

37

920

9

36

940

9

12

896

8

94

892

11

90

11

80

11

90

12

40

12

60

12

60

12

50

6789

10111213

3


Unemployment Rate

Source CAPMAS




46 66 97 129 955

127145 1682

748746

69 71 7247

51 1822 24

02468

050

100150200

Percent



EGP Billion

03

-195

23 34

-38

12733 23 51 28 07 3945

7843 28 24

-36

-30-20-10

01020






4



17

09

17

24

16

07

-02

0104

-09

06

19

01

-15

-1

-05

0

05

1

15

2

25

3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

200910 201011 201112 201213

$ Bn

41

91131

178

128110 96

118

27 23-02

-30 -20-46 -47 -43

-74-97

-23 -22

3961

111132

81 6822 21 04

01

-10

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0

5

10

15

20


EGP Bn


2139

61

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8168

22 210108

02468

101214

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2012

201

3


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33

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64

23 27223 21

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2823

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18

30

41

54

36

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8



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5





94

46

6

48

1 57

3 62

6

64

7

48

4 56

5 63

2 69

2

67

1

0

20

40

60

80

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0

531

690

636

617

534

436

578

530

550

567

261

462

420

608

647

570

477 55

0 680

421

576 65

8

619

650

624

633

547

545

505

704 74

7

780

829

769

0100200300400500600700800900

Ave

rage

Est

ablis

hmen

t 20

09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

6


Source GAFI



No of Establishment

7












9






10







Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11


4



17

09

17

24

16

07

-02

0104

-09

06

19

01

-15

-1

-05

0

05

1

15

2

25

3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

200910 201011 201112 201213

$ Bn

41

91131

178

128110 96

118

27 23-02

-30 -20-46 -47 -43

-74-97

-23 -22

3961

111132

81 6822 21 04

01

-10

-5

0

5

10

15

20


EGP Bn


2139

61

111132

8168

22 210108

02468

101214

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5ϮϬϭ

Ϯ

Q1

2012

201

3


09

33

52

64

23 27223 21

0409

2823

03 02 002

1725

18

30

41

54

36

-019-18

01 01 01 04 01 03 013 01

-4

-2

0

2

4

6

8



έΎϳϠϣέϻϭΩ


5





94

46

6

48

1 57

3 62

6

64

7

48

4 56

5 63

2 69

2

67

1

0

20

40

60

80

ϮϬϬ

Ϯ4ϮϬ

Ϭϯ

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mi A

nn

ual

2

01

22

013


561 62

3

613 74

0

531

690

636

617

534

436

578

530

550

567

261

462

420

608

647

570

477 55

0 680

421

576 65

8

619

650

624

633

547

545

505

704 74

7

780

829

769

0100200300400500600700800900

Ave

rage

Est

ablis

hmen

t 20

09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

6


Source GAFI



No of Establishment

7












9






10







Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

5





94

46

6

48

1 57

3 62

6

64

7

48

4 56

5 63

2 69

2

67

1

0

20

40

60

80

ϮϬϬ

Ϯ4ϮϬ

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Ϭϰ

ϮϬϬ

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mi A

nn

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2

01

22

013


561 62

3

613 74

0

531

690

636

617

534

436

578

530

550

567

261

462

420

608

647

570

477 55

0 680

421

576 65

8

619

650

624

633

547

545

505

704 74

7

780

829

769

0100200300400500600700800900

Ave

rage

Est

ablis

hmen

t 20

09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

6


Source GAFI



No of Establishment

7












9






10







Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

561 62

3

613 74

0

531

690

636

617

534

436

578

530

550

567

261

462

420

608

647

570

477 55

0 680

421

576 65

8

619

650

624

633

547

545

505

704 74

7

780

829

769

0100200300400500600700800900

Ave

rage

Est

ablis

hmen

t 20

09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

6


Source GAFI



No of Establishment

7












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9






10







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9






10







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10







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