Egypt Industry

Egypt’s chemicals and plastics sector is becoming an increasingly important contributor to industrial output and exports. With demand being driven by agriculture and fast-moving consumer goods (FMCG), the sector is likely to become an industrial heavyweight in the coming years.

Muted levels of construction activity since the 2011 revolution, combined with constraints on electricity supply, has stifled operating conditions for Egypt’s cement producers, though new projects scheduled to launch in the second half of 2014 could provide a helpful boost to the segment, recently buoyed by the successful IPO of Arabian Cement.

Fast-moving consumer goods (FMCG) producers and retailers in Egypt face a somewhat mixed outlook in the short term, with limits on disposable incomes and high inflation making many Egyptians cautious about overspending. However, with such favourable demographics, long-term prospects appear more positive as the economy recovers, consumer confidence rises and export opportunities open up.

With a large domestic market and a substantial local manufacturing base, Egypt’s auto retail sector is one of the largest in the Middle East and North Africa (MENA) region. Sales have been hit by the recent political instability and economic slowdown, but pent-up demand is expected to help the recovery accelerate from its currently sluggish pace. This will have a knock-on effect for the manufacturing sector, which is gearing up for resurgence.