Egypt

With up to as many as 16m Egyptians estimated to lack adequate housing, the government in Egypt has taken steps to ease access to home loans for low-income groups, while at the same time looking at options for spurring private sector developers to build low-cost residential units.

The announcements for a number of multi-billion dollar projects are indicative of rising confidence in Egypt’s retailing sector, bolstered by the economy’s favourable long-term fundamentals, although there is still a certain wariness over the country’s macroeconomic performance.

Despite emerging from one of its weakest performances in years, the Egyptian tourism sector shows signs that could portend a modest recovery in 2014.

The past year has been another challenging 12 months for Egypt, but going into 2014, the outlook is more bullish for a country that still offers attractive long-term fundamentals.

Financial support from Gulf allies, signs of economic recovery and a quieter atmosphere on the streets have helped Egypt’s capital markets make up some lost ground. The country’s key share index hit a three-year high in early November, with the market up 20% on just two months previously.

The start of production at a concession in Egypt’s Nile Delta basin by a German firm has come as welcome news, an indication of the sizable potential offered by the country’s offshore blocks. With local consumption growing, the North African state is looking to balance the need to expand output to meet domestic gas demand while at the same time fulfilling its long-term external commitments.