Egypt

While Egypt has a number of appealing long-term fundamentals – including a large and growing population, broad export profile, strong manufacturing base, natural resources and huge potential tourism revenues – the uncertainty over the country’s stability, economic indicators and broader policies has noticeably slowed growth and production over 2013.

The proposal by Egyptian regulators to allow all four main telecoms companies to provide universal services looks set to shake up the industry, encouraging growth in data service amid a tight competitive environment.

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.