Egypt

The Egyptian Exchange (EGX) has been through a roller coaster ride of late, buffeted by political crises, economic slowdowns and government involvement. But a new deal intended to open the market to greater foreign investment, and possible regulatory changes, may be important steps in the bourse’s recovery.

A range of gas exploration tenders should bring Egypt billions of dollars in investment this year and help the country meet its pressing long-term energy needs.

A large, underbanked market makes Egypt an appealing prospect for financial institutions looking for long-term growth, although the effects of ongoing economic and political uncertainty are weighing on some lenders.

The large and comparatively diverse higher education sector is expected to see an encouraging increase in demand in the years to come, but a mismatch between the courses chosen by Egypt’s university students and the market’s requirements has highlighted the need for wide-ranging reforms across the university system.

The government is reaffirming Egypt’s commitment to the planned expansion of its broadband infrastructure, in the hopes of spurring new development in technology-based industries. ICT has grown rapidly in Egypt over the past decade, both in terms of take-up by Egyptian consumers and outsourcing and offshoring activity.

Despite being badly shaken by the 2011 revolution and its aftermath, Egypt’s tourism sector achieved a significant recovery in 2012. In an effort to sustain the industry, Egypt has identified a number of priorities for the short-term, including intensified promotion efforts, improved connectivity, enhanced services and the establishment of new source markets.