Investment Information in North Africa

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					                                                                 Investment Information in North Africa

                                                                                    Specific Measure                                 Agency that may              Obstacle upon Thai
 No.    Country             General Regulation
                                                                  Supported Sector                      Incentive                   support indirectly                 Investor
 1     Egypt        In light of the worldwide economic       1. Agri-Business.               Investment Incentives               GENERAL                       - High tax rates.
                    downturn, Egypt experienced                                              Investment Law                      AUTHORITY OF                  - Lengthy administrative
                                                             2. Communications and
                    minimal decline and in contrasts with                                    On May 11, 1997, Egypt's            INVESTMENT (GAFI)               procedures.
                    many economies around the globe            Information Technology.       new Investment Incentives                                         - Complex land
                    emerged resident and full of                                             and Guarantees Law (Law             Address: GAFI: 3, Salah         registration.
                                                             3. Education.
                    opportunity. Egypt’s GDP fell from                                       No. 8 of 1997), which repeals       Salem st; Nasr City,          - Corruption and
                    7.2% in 2007/2008 to 4.7%                4. Financial.                   and replaces Investment Law         Cairo, 11562, Egypt.            macroeconomic
                    2008/2009 but it recorded 5.1% in                                        No. 230 of 1989, was                                                instability.
                                                             5. Healthcare.
                    Q3 2009/2010 and projected to reach                                      legislated. The new law aims        Tel : +202 240 55 452
                    6.5% by 2015. Among the nation’s         6. Logistics and                to boost production and
                    fastest growing sectors are                                              foreign and domestic                Fax: +202 240 55 425          Informal Barriers:
                                                               Transportation.
                    construction, communication and                                          investment and offers                                             While the current Nazif
                    information technology, tourism,         7. Petrochemicals.              potentially good incentives for     Email:                        government has taken
                    manufacturing and transportation.                                        investors, including:               investorcare@gafinet.org      significant steps to attract
                                                             8. Renewable Energy.
                                                                                              The prohibition of                                              foreign investment, certain
                     Despite the economic crisis             9. Retail.                      nationalization, confiscation,                                    informal barriers still
                    affecting all economies, the                                             and freezing of assets;             The General Authority for     exist. Foreigners may
                                                             10.Textile and Ready-Made
                    unemployment rate in Egypt                                                The right to own buildings        Investment Is the principal   function as commercial
                    decreased from 9.4% Q4 2009 to             Garments.                       and land for project purposes     governmental authority        agents, but are prohibited
                    9.12 Q1 2010. Egypt’s ranking rose                                         regardless of investors'          concerned with regulating     from acting as importers
                                                             11. Tourism.
                    22 places on the financial market                                          nationality and place of          and facilitating              for trading purposes. A
                    sophistication indicator in the Global                                     residence;                        investment, and stands        foreign company wishing
                    Competitiveness Report by the                                             The right to maintain foreign     ready to assist investors     to import for trading
                    World Economic Forum in 2009,                                              currency bank accounts;           worldwide. GAFI               purpose must do so
                    indicating that there is both a high                                      The exemption of                  broadened its scope from      through an Egyptian
                    level of growth and sophistication in                                      manufacturing projects from       the traditional regulatory    importer. In the banking
                    the Egyptian market.                                                       price controls or profit          framework into a more         sector, the Central Bank
                                                                                               limitations;                      effective and proactive       has not issued a new
                    At about 25 million, Egypt’s labor                                        The right to repatriate capital   investment promotion          commercial banking
                    pool is the largest in the region. For                                     and profits;                      agency through its            license in almost 20 years.
                    decades, Egypt has had a reputation                                       The right of 100 percent          Research and Market            In practice, the only way




Investment Information in North Africa                                                   1                                                                        Thai Trade Center, Cairo
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                    as a net regional exporter of                                   foreign ownership of             Intelligence, Promotion       for a new bank, whether
                    educated, skilled labor. However, as                            ventures.                        and Facilitation and          foreign or local, to enter
                    domestic demand for skilled labor                                                                Investor Aftercare bodies     the market (except as a
                    rises, young people are increasingly                           In addition, the new law                                        representative office) is to
                    choosing to pursue opportunities at                            provides extended tax             GAFI also represents          purchase an existing bank.
                    home. Complementing world-class                                holidays for projects in target   Egypt’s sole "One Stop        As part of a plan to
                    universities and technical schools, a                          areas. It allows companies,       Shop" for investment,         restructure the banking
                    new national industrial training                               once established, to gain their   which aims at easing the      sector, the government has
                    program is training workers to fill                            tax incentives automatically      way for investors             sold shares in several joint
                    some 500,000 new jobs in                                       without receiving the prior       worldwide to take             venture banks to foreign
                    manufacturing.                                                 approval of any administrative    advantage of the              banking entities since
                                                                                   authority. It also provides       opportunities in egypt’s      2004. The first public
                     Each year, around 324,000                                     incentives for exporters.         promising emerging            bank to be fully privatized
                    Egyptians obtain university degrees,                           Whereas the previous law          market. GAFI makes            was Bank of Alexandria,
                    of whom 16,000 are trained                                     extended tax incentives for       emphasis on various           which was sold to a
                    engineers and 14,000 have degrees in                           any capital increase or any       investment opportunities      foreign banking entity,
                    science and technology. In addition,                           project expansions, however,      that lie ahead in different   Sanpaolo Intesa of Italy in
                    22,000 graduate with European                                  the new law provides no such      sectors throughout the        October 2006. In 2009,
                    language skills.                                               tax concessions.                  egyptian economy. With        the Central Bank
                                                                                                                     this objective, GAFI holds    announced that it had no
                     Skills-intensive and service-based                            The law specifies a list of       its responsibility through    plans to privatize the three
                    sectors such as CIT, financial                                                                   developing                    remaining state-owned
                                                                                   priority sectors that
                    services and tourism are among                                                                   communicational               banks (Banque Misr,
                                                                                   automatically benefit from its
                    Egypt’s economic leaders. Wages in                                                               campaigns and assisting       Banque du Caire, the
                                                                                   guarantees and incentives.
                    these sectors are very competitive                                                               its image accentuating the    National Bank of Egypt),
                                                                                   These sectors include land
                    and more stable than wage levels in                            reclamation, manufacturing        improved investment           citing poor market
                    competitor countries.                                          and mining, transport,            climate in Egypt              conditions. The three
                                                                                                                     worldwide                     banks control at least 40
                                                                                   software and computer
                    Egypt has emerged as a consumer                                                                                                percent of the banking
                                                                                   systems development and
                    market of significant importance in                                                                                            sector's assets.
                                                                                   production, medical services,     MISSION:
                    the region, as witnessed by the
                                                                                   certain financial services, oil   To enable and sustain
                    arrival of dozens of global brands                             field services, agriculture and   Egypt's Economic Growth       In the insurance sector, the
                    and the sharp expansion of retail                              tourism. For these and for        through investment            government has stated that
                    sales in the past two years. This is                                                                                           it will not issue licenses



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                    partly due to the sheer size of                                 most other projects,            promotion, facilitation,       for new insurance
                    Egypt’s population that put it as the                           investments are automatically   efficient business services,   companies, in order to
                    most populated country in Africa and                            approved.                       and advocacy of investors'     focus investor attention on
                    the Middle East, as well as Per capita                                                          friendly policies.             privatization of the
                    income that reached EGP 13648 in                                The new law expressly                                          existing firms. Therefore,
                    2008/2009 from EGP 5544 in                                      preserves the benefits and      VISION:                        as in the banking sector,
                    2000/2001. the fact that 50% of                                 incentives, as well as          Position Egypt as the          foreign firms can only
                    Egyptian are between the age 15-44                              investment guarantees granted location of choice for           enter the Egyptian
                    has also impacted spending and                                  under law No. 230 for           Business and                   insurance market through
                    investment trends.                                              companies established under     Innovation…                    purchase of shares in
                                                                                    that law or existing prior to                                  existing insurance firms.
                    Egypt boasts a broad, world-class                               the promulgation of the new     MANDATE:                        In 2006-07, MOI began
                    infrastructure base. Three                                      law under Law No. 230, all                                     restructuring the public
                    independent mobile (cellular) phone                             foreign investment projects     Promote Egypt's               insurance companies in
                    networks cover nearly 100% of the                               are exempted from taxes and       potential sectors.           preparation for
                    country’s inhabited land. Wireline                              duties applied in Egypt for a   Attract new investments       privatization. In
                    broadband is readily available in                               period of five years which        and promote re-              September 2007, the
                    urban centers. The country’s 15                                 may be extended by another        investments and              companies were merged
                    commercial ports serve the nation’s                             five years, regardless of the     expansions.                  and placed under an
                    exporters and importers alike, while                            location of the project.        Facilitate and provide        insurance holding
                    an expanding, upgrading airport                                                                   services to investors        company, and real estate
                    network caters to both passenger and                                                              through expanding GAFI       assets were stripped out of
                                                                                    The new law has also
                    cargo traffic. Egypt also provides                                                                "One Stop Shop"              the companies and
                                                                                    abolished the highly
                    competitively priced and reliable                                                                                              transferred to a newly
                                                                                    bureaucratic General            Support and accelerate
                    supplies of power, water and gas.                                                                                              established affiliate, Misr
                                                                                    Authority for Investment          the development of
                                                                                    (GAFI). The entity that will                                   for Real Estate. A
                                                                                                                      competitive strategic
                    Corporate and personal taxes each                               replace GAFI and its                                           foreign consultant was
                                                                                                                      clusters.
                    top out at only 20% in Egypt.                                                                                                  helping the holding
                                                                                    functions are to be determined  Stimulate the
                    Personal taxes have been cut from                                                                                              company to prepare a
                                                                                    by a presidential decree.         development of
                    32% to 20%, while corporate taxes                                                                                              prospectus, and the MOI
                                                                                    Pending issuance of the           innovation.
                    have been slashed from 42% to 20%.                                                                                             took some of the
                                                                                    decree, GAFI will remain the  Implement Policy
                    The nation’s newly overhauled tax                               authorized administrative                                      consultant’s
                    code is easy to navigate, and the                                                                 Advocacy Strategy.           recommendations into
                                                                                    agency.
                    country has moved to random-sample                                                                                             considerations, but there



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                    auditing. The nation’s largest                                   Tax Incentives                                         have been no significant
                    corporate taxpayers are served by a                                                                                     events in this regard since
                    special, highly trained unit at the Tax                          Law No. 8 of 1997 grants the                           2007.
                    Authority.                                                       projects working under its
                                                                                     rubric a tax holiday that                              The Egyptian government
                    Egypt has access to large key                                    includes provisions of interest                        controls prices in the
                    markets through various multilateral                             to investors.                                          pharmaceutical sector to
                    and bilateral trade agreements with                                                                                     ensure that drugs are
                    the USA, European, Middle Eastern                                Profits on projects and                                affordable to the public.
                    and African countries; which secures                             shareholder shares are                                 The government does not
                    benefits to Egyptian-based producers                                                                                    have a transparent
                                                                                     exempted from the tax on
                    supplying these markets.                                                                                                mechanism for
                                                                                     industrial and commercial
                                                                                     profits and from the corporate                         pharmaceutical pricing.
                                                                                     tax for a period of five years                          The Pharmaceutical
                    Key global markets in Europe, the                                starting from the first fiscal                         Committee in the Ministry
                    Middle East, Africa and the Indian                               year following the beginning                           of Health and Population
                    Subcontinent are all readily                                                                                            reviews prices of various
                                                                                     of production or activity. The
                    accessible from Egypt. Closer to the                                                                                    pharmaceutical products
                                                                                     exemption may be extended to
                    European and North American                                                                                             and negotiates with
                                                                                     ten years for projects
                    markets than other major exporters                                                                                      companies to adjust prices
                                                                                     established in new industrial
                    including India, China and the                                   zones, new urban                                       based on a cost-plus
                    Philippines, Egypt is also located on                                                                                   formula. This method,
                                                                                     communities, remote ar/and
                    key international logistics routes.                                                                                     however, does not allow
                                                                                     those projects financed by the
                                                                                     Social Fund for Development.                           price increases to
                     Egypt enjoys the existence of the                                                                                      compensate for inflation
                    Suez Canal, which is considered to                                                                                      and the pricing policy has
                    be the shortest link between the east                            Profits on projects operating
                                                                                                                                            failed to keep pace with
                    and the west due to its unique                                   outside the Old Valley and
                                                                                                                                            the rising cost of raw
                    geographic location. Over 8% of the                              profits of shareholder shares
                                                                                                                                            materials. In 2007, the
                    world’s maritime shipping passes                                 shall be exempted from tax on
                                                                                                                                            government granted price
                    through the Suez Canal each year.                                industrial and commercial
                                                                                     profits and from the corporate                         increases for selected
                                                                                     tax for a period of twenty                             pharmaceutical products,
                     Vessels transiting through the canal                                                                                   but the approved increases
                    from east to west or from west to east                           years starting from the first
                                                                                                                                            were minimal.



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                    make significant savings in distance,                           fiscal year following the                              About 85 percent of active
                    time and operating costs.                                       beginning of production or                             pharmaceutical
                                                                                    activity.                                              ingredients in Egypt are
                     Moreover, the maritime transport is                                                                                   imported. In 2004, the
                    the cheapest means of transport, with                           An amount equivalent to a                              government reduced
                    more than 80 % of world trade                                   percentage of the capital paid                         customs duties on most
                    volume transported via waterways                                in, to be determined by the                            imports of pharmaceutical
                    (seaborne trade).                                               Egyptian Central Bank for                              inputs and products from
                                                                                    Lending, and discount rates,                           10 percent to 2 percent. In
                    Egypt’s economy is among the most                               for the year of fiscal                                 that same year, the MOHP
                    diverse in the Middle East and North                            treatment, shall be exempted                           lifted restrictions on
                    Africa, helping ensure long-term                                from the corporate tax,                                exporting pharmaceuticals
                    growth prospects and stability for all                          provided that the company is                           to encourage
                    sectors. In 2008/2009 the Industrial                            a JSC and its stocks are                               pharmaceutical investment
                    Sector accounts for 16.6% of GDP                                registered at one of the stock                         and exports.
                    while CIT, tourism and financial                                exchanges.
                    services accounts for 10.2% from                                                                                       Other obstacles to
                    GDP and retail accounts for 11.5%                                                                                      investment include
                                                                                    Yields of bonds, finance share
                    and 13.7% for agriculture.                                                                                             excessive bureaucracy, a
                                                                                    warrants and incomes of the
                                                                                    other similar securities                               shortage of skilled mid-
                    In light of an expanding economy                                portfolios as issued by the                            level managers, limited
                    and unexploited opportunity for                                                                                        access to credit, slow and
                                                                                    JSCs shall be exempted from
                    investment, Egypt is climbing the                                                                                      cumbersome customs
                                                                                    the tax on revenues of
                    ranks as an ideal location for doing                                                                                   procedures in some areas,
                                                                                    movable capitals, providing
                    business. Ranking 24 for starting a                                                                                    and non-tariff trade
                                                                                    they are placed for public
                    business by World Bank 2010 report,                             subscription and registered at                         barriers. The Egyptian
                    (up 19 points from 2009), Egypt has                             one of the stock exchanges.                            judicial system, which
                    risen dramatically and is recognized                                                                                   generally upholds the
                    as an attractive market to invest in                                                                                   sanctity of contracts, is
                    with its appealing governmental                                 A customs tax at a unified rate
                                                                                                                                           extremely slow and can
                    incentives. The World Bank doing                                of 5 percent of the value is
                                                                                    levied on the value of all                             take several years to
                    business 2010 report tracks 183                                                                                        process cases. The
                    countries giving Egypt the 106th,                               imports (machines, equipment
                                                                                                                                           judicial system is also
                    while naming Egypt among the top                                and instruments) imported by
                                                                                                                                           subject, in some cases, to



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                    ten reformist in the world for the                             such projects.                                          political influence.
                    third consecutive year.
                                                                                   The profits resulting from the                          In April 2008, the
                     Egypt was the first Arab and first                            merger, division or the change                          government stopped
                    African country to sign the OECD                               of the legal entity of a project                        construction of a fertilizer
                    declaration on international                                   are exempted from the taxes                             plant after the Canadian
                    investment and multinational                                   and duties payable on the                               company Agrium invested
                    enterprises. With high levels of                               merger, division or change of                           $280 million and four
                    Foreign direct investment (FDI)                                legal entity. Such projects                             years of planning in the
                    despite the global economy crisis, it                          shall enjoy the exemptions                              plant. While local
                    increased from USD 11.1 billion                                prescribed before the merger,                           activists raised
                    2006/07 to USD 13.2 billion                                    division or change of legal                             environmental concerns
                    2007/08. 2008/09 saw a light dip                               entity, until the relevant                              about its location along
                    USD 8.1 billion with respect to the                            exemption periods expires.                              the Mediterranean coast,
                    global economy crisis.                                         The merger, division or                                 Agrium noted that it was
                                                                                   change of the project's legal                           adjacent to other industrial
                     In 2008/2009 Egypt ranked the                                 entity shall not result in any                          plants. Agrium agreed to
                    number one destination to North                                new fiscal exemptions.                                  sell its stake in the plant in
                    Africa, the 2nd in Africa, and the                                                                                     September 2008 to a state-
                    third among the Arab nations                                                                                           owned firm, which does
                                                                                   The result of assessing the in-
                    according to UNCTAD.                                           kind portions forming the                               not plan to resume
                                                                                   foundation of JSCs,                                     construction. Egypt's
                     According to Moody's credit rating                                                                                    reputation as an attractive
                                                                                   Partnership Limited by Shares
                    agency, Egypt's sovereign credit                                                                                       location for foreign direct
                                                                                   and LLCs shall b exempted
                    rating outlook has changed from                                                                                        investment (FDI) risked
                                                                                   from the tax on revenues of
                    negative to stable. This improvement                           commercial and industrial                               being affected because of
                    would positively affect the sovereign                          activities or the tax on                                the dispute.
                    credit rating of local and foreign
                                                                                   corporate companies' profits
                    currencies in Egypt (Ba1), the credit
                                                                                   according to each case.
                    rating of bank deposits in foreign
                    currency (Ba2) and the credit rating
                    of bonds in foreign currency (Baa2).

                     In August 2009, Egypt was ranked



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                    first in North Africa and second best
                    destination for foreign direct
                    investment (FDI) in the African                       SECTORS IN DETAILS
                    continent for the FY 2009/10, after                                    The agribusiness sector
                    South Africa, in terms of investment      Agri-Business                accounts for nearly 21% of
                    climate attractiveness, according to                                   Egypt’s total industrial
                    “African Countries of the future                                       production and is currently
                    2009-2010” report by FDI                                               worth an estimated US$ 4.7
                    Intelligence. The study considered                                     billion
                    numerous criteria when measuring
                    such a rank, including infrastructures,                                Egypt’s communications and
                    local strategies for encouraging FDI,     Communications and           information technology sector
                    the economic potential of the             Information Technology       is a leading global
                    country, human resources, living                                       outsourcing destination
                    standards and market openness.                                         ranked thirteenth on A.T.
                                                                                           Kearney’s 2007 Global
                    Political stability allows businesses                                  Services Location Index
                    to be confident that the economic                                      ahead of competitors
                    policies that attracted them to invest                                 including the Czech Republic,
                    in Egypt will remain in place.                                         the UAE, Poland, Canada,
                    Moreover, Egypt’s crime rate is low                                    Australia and Ireland.
                    by any standard, and Cairo is one of
                    the safest large cities in the world,                                  Egypt’s education sector
                    making it easy for multinational          Education                    creates and serves the largest
                    corporations to convince key staff                                     workforce in the Middle East
                    members to accept long-term posting                                    and North Africa and is ripe
                    here.                                                                  with investment opportunities.

                                                                                           Egypt’s financial services
                    "Egypt is ranked 41 overall for           Financial                    sector — one of the oldest and
                    Starting a Business.                                                   most-established in the
                                                                                           Middle East — is also one of
                    "Egypt is ranked 70 overall for                                        the best-developed in the
                    Protecting Investors."                                                 region thanks to an



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                                                                             industrious private sector and
                                                                             key regulatory reforms.


                                                                             The Egyptian government has
                                                 Healthcare                  undertaken an ambitious
                                                                             reform of the national
                                                                             healthcare system, hoping to
                                                                             build on a reputation as an
                                                                             excellent source of healthcare
                                                                             in the region and as a major
                                                                             destination for both health
                                                                             tourism and investment. The
                                                                             country’s strong GDP growth
                                                                             over the past few years and its
                                                                             impressive economic growth
                                                                             rate have put new demands on
                                                                             Egypt’s infrastructure. As a
                                                                             result, the Egyptian
                                                                             government has pledged to
                                                                             involve the private sector in
                                                                             every aspect of the economic
                                                                             reform process, including
                                                                             healthcare.

                                                                             Egypt’s unique geographic
                                                 Logistics and               location combined with an
                                                 Transportation              expanding infrastructure base
                                                                             is enhancing the country’s
                                                                             position as a key global
                                                                             logistics hub for companies
                                                                             looking to do business in, or
                                                                             trade between, Europe, Asia
                                                                             and Africa. With over 8% of



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                                                                             the world’s maritime shipping
                                                                             passing through the Suez
                                                                             Canal each year and an
                                                                             increasing number of
                                                                             international companies from
                                                                             India and China to Turkey and
                                                                             Spain using Egypt as a
                                                                             manufacturing base for
                                                                             exports targeted at the
                                                                             European market, Egypt’s
                                                                             logistics and transportation
                                                                             sector is playing an
                                                                             increasingly vital role in
                                                                             international trade. Some 90%
                                                                             of Egypt’s foreign trade is
                                                                             shipped through ports, while
                                                                             the country’s logistics
                                                                             capacity continues to expand
                                                                             hand-in-hand with the volume
                                                                             of trade.

                                                                             The petrochemicals sector
                                                 Petrochemicals              represents approximately 12%
                                                                             of Egypt’s total industrial
                                                                             production and is currently
                                                                             worth around US$ 7 billion.
                                                                             While this figure is equivalent
                                                                             to just 3% of Egypt’s total
                                                                             GDP, international industry
                                                                             experts and national industrial
                                                                             strategists alike believe that
                                                                             the petrochemicals sector
                                                                             holds a great deal of promise
                                                                             in terms of future growth.



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                                                                              Egypt ranks eighth in the
                                                                              Middle Eastern
                                                                              Petrochemicals Business
                                                                              Environment Rankings matrix
                                                                              ahead of Turkey and top gas
                                                                              producer Algeria. Industry
                                                                              experts expect the ranking to
                                                                              improve by the end of the
                                                                              decade as the government’s
                                                                              ambitious petrochemical
                                                                              industry development plan
                                                                              moves forward.


                                                                              With natural gas reserves
                                                 Renewable Energy             expected to be exhausted in
                                                                              the next 57 years, Egypt is an
                                                                              investor’s dream when it
                                                                              comes to sustainable energy
                                                                              resources. Egypt possesses an
                                                                              abundance of land, sunny
                                                                              weather and high wind
                                                                              speeds, making it a prime
                                                                              resource for three renewable
                                                                              energy sources: wind, solar
                                                                              and biomass. Although
                                                                              renewable energy is a
                                                                              relatively virgin market in
                                                                              Egypt, the country’s strategic
                                                                              location and the government’s
                                                                              commitment to increasing its
                                                                              renewable energy output
                                                                              make it an attractive
                                                                              investment opportunity. In



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                                                                                fact, the 2008 New
                                                                                Renewable Energy Act
                                                                                (NREA) will soon create a
                                                                                new policy framework that
                                                                                fosters an investor-friendly
                                                                                system and encourages
                                                                                foreign as well as private
                                                                                sector involvement.

                                                                                Egypt’s retail and wholesale
                                                 Retail                         sector is booming: Total retail
                                                                                sales grew from US$ 35
                                                                                billion in 2003 to US$ 42.6
                                                                                billion in 2006, with sales
                                                                                projected to reach US$ 67.4
                                                                                billion by 2011. The fast-
                                                                                paced growth of this dynamic
                                                                                sector is winning international
                                                                                recognition. Estimates suggest
                                                                                that some 7.5 million people
                                                                                can afford to make at least one
                                                                                purchase every year at high-
                                                                                end shopping malls such as
                                                                                Cairo’s landmark CityStars.
                                                                                That’s a figure equal to nearly
                                                                                half of the population of The
                                                                                Netherlands, more than half
                                                                                the population of Switzerland
                                                                                and Sweden, or nearly the
                                                                                entire population of Denmark.

                                                                                Egypt is home to the only
                                                 Textiles and Ready-Made        fully vertically integrated
                                                 Garments                       textiles industry in the Middle



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                                                                         East, with the entire
                                                                         production process — from
                                                                         the cultivation of cotton to the
                                                                         production of yarns, fabrics
                                                                         and ready-made garments —
                                                                         carried out domestically. The
                                                                         sector, which employed more
                                                                         than 1 million people in
                                                                         20006/07, is a fast-growing
                                                                         contributor to the nation’s
                                                                         exports, valued at US$ 1.8
                                                                         billion and representing 18%
                                                                         of the non-oil exports in 2007.
                                                                         The sector’s export growth
                                                                         rate is about 17% per year.
                                                                         There are approximately
                                                                         4,000 textile-related
                                                                         companies registered with the
                                                                         Federation of Egyptian
                                                                         Industries; of these, 400-500
                                                                         of them currently export. The
                                                                         power player within the sector
                                                                         is ready-made garments
                                                                         (RMG), worth 75% of the
                                                                         textile and garment industry.
                                                                         The RMG subsector produced
                                                                         about 310 million pieces in
                                                                         2006, with global brands such
                                                                         as Marks & amp; amp;
                                                                         Spencer, GAP, Wal-Mart,
                                                                         Levi Strauss, Target and
                                                                         Calvin Klein sourcing from
                                                                         and investing in Egypt.




Investment Information in North Africa                              12                                                           Thai Trade Center, Cairo
                                                                   Specific Measure                               Agency that may     Obstacle upon Thai
 No.    Country             General Regulation
                                                     Supported Sector                   Incentive                support indirectly        Investor
                                                                             Egypt’s tourism industry is
                                                 Tourism                     among the most diverse and
                                                                             vibrant in the world. Beyond
                                                                             the pristine beaches and year-
                                                                             round sunshine, Egypt’s long
                                                                             and varied history, rich
                                                                             cultural heritage and unique
                                                                             geographic features make it a
                                                                             popular destination for
                                                                             adventure, eco, sailing,
                                                                             diving, health and cultural
                                                                             tourism — and for religious
                                                                             tourism to sites of importance
                                                                             to Christians and Muslims
                                                                             alike. Although well-served
                                                                             by five-star properties, there is
                                                                             considerable room for
                                                                             investment in the three and
                                                                             four-star hospitality segments.
                                                                             Other highly promising
                                                                             sectors include residential
                                                                             tourism, operating therapeutic
                                                                             tours, nature/desert safari,
                                                                             eco-tourism adventures and
                                                                             the like.




Investment Information in North Africa                                  13                                                            Thai Trade Center, Cairo

				
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