Industry & Retail

The manufacturing industry is a central part of Egypt’s economic engine, producing goods for the huge domestic market and for export across the world. Manufacturing industries accounted for 15.6% of GDP in the fiscal year 2013 (July 2012-June 2013). The sector was affected by the difficult post-revolution period, but as of 2014 the outlook seemed more positive. The sector’s recovery has been supported by a more favourable global economic climate, as well as by a return to greater stability following the presidential elections in early 2014. While the domestic market is the primary focus for many investors, Egypt’s relatively low costs, decades of experience in many sectors and skills base all make it an attractive location for production for export. Egypt has benefitted from particularly strong trade ties with Europe and the Middle East, but is now also turning its attention to Africa and Asia. Egypt’s retail market has continued to expand despite the economic and political challenges of the past few years, though consumer spending patterns have shifted in some areas towards lower-cost goods. Household retail spending was worth about $90.3bn in 2013, according to the General Authority for Investment and Free Zones, and is expected to keep rising at a steady clip over the next few years. Modern retail outlets are taking an increasing share of the market, benefitting from an expansion in dedicated commercial space, although traditional retailers – and indeed the informal sector – will continue to account for a large portion of Egyptians’ spending.

This chapter contains interviews with Mounir Fakhry Abdel Nour, Minister of Industry; Raouf Ghabbour, Chairman and CEO, Ghabbour Auto; Mark Duffelen, Regional General Manager, Xerox Middle East and Africa; and Basil El Baz, Chairman and CEO, Carbon Holdings.