Egypt

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.

After several years of strong demand growth, the economic slowdown and investment uncertainty associated with the 2011 revolution and its aftermath have dampened steel consumption in Egypt, leaving potential supply above demand. This gap partly explains the government’s decision to impose import tariffs, the rationale being that Egypt should not need imports if its domestic supply outstrips its own needs. For steel consumers, however, it is not necessarily that simple. They feel they should be free to import cheaper foreign products.

Still in a difficult transition period following its revolution, Egypt’s politics are in a state of flux. One of the most persistent challenges over the past two years has been maintaining currency stability, and the intricately linked issue of the depleting foreign currency reserves. The Central Bank of Egypt’s (CBE’s) interventions have helped manage the Egyptian pound’s decline during that time but have also put pressure on foreign exchange reserves. However, emergency measures cannot be a long-term substitute for attracting more investment.

The stock market in Egypt got off to a bullish start in 2013, but political deadlock, ongoing unrest across the country, a rising government budget deficit, foreign reserve losses and currency depreciation have all seen the Egyptian Exchange (EGX) struggle in recent weeks. A recent government decision to impose a tax on all EGX transactions is likely to contribute to continued unstable performance.

A combination of new public investment and increased private participation are expected across Egypt’s expanding health care sector as the country prepares to meet rising demand for a broader range of services driven by its growing population.