Egypt

The New Year sees a very different Egypt from the one that welcomed the opening of 2011, being in the process of instituting multi-party democracy, while trying to reshape the national economy. However, many hurdles still have to be overcome to ensure social, economic and political stability.

In what comes as no surprise for a country that used Facebook, Twitter and mobile phones to help overturn a political regime, a recent report by the UN Conference on Trade and Development (UNCTAD) stated that Egypt “is poised to emerge as a major player in the information economy”.

Continuing to attract international attention and investment, Egypt’s real estate sector is performing well in what has been a turbulent year for the country’s economy. Unsurprisingly, given the country’s massive population, recent reports have emphasised the potential of Egypt’s property market, particularly in the residential, leisure and office segments, in the wake of the country’s political revolution. A deal inked by Qatari Diar, one of the region’s larger real estate companies, worth around half a billion dollars serves as a clear testimonial to investor confidence in its long-term future.

Large investments are being made in the Egyptian telecommunications industry as the private and public sectors look to boost capacity and increase the availability of new technologies.

Although a number of Egypt’s largest banks posted notable growth during the turbulent first half of 2011, the second half may prove more challenging as tourism, investments and fund flows continue to decline.

With its recently passed budget for the 2011-12 fiscal year, Egypt has established a revised set of ambitious targets for tackling its public expenditures. Having rebuffed aid offers from several international organisations and countries, the move is a sign that the country will steer clear of a rising budget deficit on its own accord.