Egypt

Hopes are rising that a $4bn project to widen the Suez Canal will provide Egypt with a boost in construction activity, while also significantly raising revenue in the longer term.

With its significant reserves of liquefied natural gas (LNG), Egypt has been a key exporter for regional consumers over the past decade but with growing domestic consumption and a number of fiscal constraints, the country has been looking to secure additional supplies by expanding LNG capacity.

With only limited opportunity to improve wheat yields due to shortages of arable land and water, Egypt is looking to tightening up the storage and logistics links in its grain supply chain to reduce import costs and bolster food security.

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.

Egypt’s banking sector, which was impacted by the instability of the past few years, is beginning to see increased momentum, with the formal launch of an Emirati-owned bank and modest upgrades in credit ratings for a pair of key players.

A new licence system governing Egypt’s fiercely competitive telecoms sector is expected to be rolled out within weeks, paving the way for mobile and fixed-line operators to vie for each other’s business.