Path to recovery: Page 36

The improving political situation has brought a new sense of optimism after three years of turbulence. The IMF forecasts GDP growth will reach 3.5% by 2015, and the new government has outlined an ambitious vision for development and begun to address a structural fiscal deficit that reached 13.7% of GDP in 2012/13. Efforts to revamp the costly subsidy system and overhaul the tax regime are likely to continue. Egypt in figures Continental crossroads: Stability is returning to the regional power after years of turbulence Forging closer ties: Boosting trade and security with neighbours and global partners Interview: President Abdel Fattah El Sisi Growth initiatives: A new programme will boost public and private investment in Upper Egypt Interview: Robert Walter MP, Chair, UK All-Party Parliamentary Group on Egypt A blend of ancient and modern: An influential regional player with a relatively broad-based and growing economy Viewpoint: Wang Yi, Minister of Foreign Affairs of China Path to recovery: Expected structural reforms should help to improve the fiscal position, while GDP growth is forecast to rise Inward flow: External aid from donors and international organisations continues Interview: Hany Kadry Dimian, Minister of Finance Interview: Anis Aclimandos, Chairman, American Chamber of Commerce in Egypt Taking action: Reforms to lower fiscal deficit Small but significant: Aiding the development of the nation’s SMEs The banking sector’s ability to emerge from a recent difficult period with sound fundamentals is testament to the reform efforts of the central bank, which, having undergone a hiatus in the post-revolutionary period, are now expected to resume. Meanwhile, new microfinance legislation offers opportunities to enter the small-business lending arena. Currency control: Halting the decline in foreign currency reserves Interview: Hassan Fahmy, Chairman, General Authority for Investment and Free Zones Interview: Ahmed Heikal, Chairman and Founder, Qalaa Holdings Necessary reforms: Subsidy cuts On the rebound: Reforms prove successful, as the sector maintains robust performance Interview: Hisham Ezz Al Arab, Chairman and Managing Director, Commercial International Bank Reaching for reform: Basel implementation set to continue amid strong fundamentals Untapped potential: New microfinance legislation offers opportunities Moving to mobile: Strong potential for take-up of new mobile banking technology Back on its feet: The country’s financial markets are poised to recover lost ground Lining up offerings: Encouraging firms to list will be central to the market’s new strategy All shapes and sizes: A new index for SMEs should help to unlock potential Interview: Mohamed Omran, CEO, Egyptian Exchange (EGX) Viewpoint: Hussein Choucri, Chairman and Managing Director, HC Securities & Investment A steady hand: New reforms are set to put the market on track for sustainable growth Stocks & bonds: Share analysis & data provided by HC Securities & Investment EFG Hermes Holding: Financial services Crédit Agricole Egypt: Banking Oriental Weavers: Consumer goods Egypt Kuwait Holding: Investment Telecom Egypt: Telecommunications SODIC: Real estate The energy sector has seen welcome developments in 2014, with a debt-repayment programme restoring investors’ confidence and new initiatives to expand the power supply. Through a combination of increased production, subsidy reform, alternative energy and infrastructure improvements, the utilities sector is set to see major changes for the better. Strong fundamentals: New products and premium growth bolster the sector Interview: Sherif Samy, Chairman, Egyptian Financial Supervisory Authority (EFSA) Increasing access: Improving health cover and expanding penetration are top priorities Interview: Abdel Raouf Kotb, Chairman, Insurance Federation of Egypt Power up: Efforts are being devoted to increasing production and capacity, despite some delays Interview: Sherif Ismail, Minister of Petroleum and Mineral Resources Interview: Ross Clarkson, CEO, TransGlobe Balancing act: The government must weigh support for subsidies against the need for more sustainable development Day in the sun: Working to increase solar’s contribution to the energy mix Interview: Ibrahim Sarhan, Chairman, e-finance At full speed: The sector must tackle increasing local demand while trying to ramp up exports Connecting the dots: Between encouraging efficiency and improving capacity, the national grid is set to undergo improvements A powerhouse revives: The sector is recovering thanks to a more favourable economic climate Interview: Mounir Fakhry Abdel Nour, Minister of Industry Growth potential: Locating manufacturing in the country makes commercial sense for many large automotive companies Interview: Raouf Ghabbour, Chairman and CEO, Ghabbour Auto Interview: Mark Duffelen, Regional General Manager, Xerox Middle East and Africa Growing again: Producers of fast-moving consumer goods are benefitting from rising demand in the country and the wider region Interview: Basil El Baz, Chairman and CEO, Carbon Holdings Other options: Industry is exploring alternative energy sources Balancing act: Although the short-term outlook is challenging, investment is planned to meet future demand for steel Market forces: Consumer spending patterns shift as the country returns to stability On the move: Bold schemes are unfolding in a number of areas Sea change?: Suez may be looking to bulk food shipments to East Asia Rail on a roll: Plans to expand the train network Interview: Mohab Mameesh, Chairman, Suez Canal Authority (SCA) A national plan: Terminals and cargo facilities Full of activity: The growing market is on the cusp of new developments Roundtable: Saeed Al Hamli, CEO, Etisalat Misr; Yves Gauthier, CEO, Mobinil; and Hatem Dowidar, Chairman, Vodafone Egypt A changing landscape: Expanding market opportunities and establish a new mobile operator Scope for growth: Government emphasis being placed on enhancing value-added services A new investment drive: Plans to encourage a broader array of ICT products Home-grown empire: Mega-projects abound as a nation rebuilds itself Back to basics: The cement industry switches to coal to recover lost fortunes Digging for victory: Citizens raise around $9bn for Suez project in eight working days Interview: Osama Bishai, CEO, Orascom Construction Industries Bouncing back: Stability sees sales rise Bet the house on it: Home loan availability is gradually broadening Home discomforts: The new property tax law has finally been ratified Street-legal: Amnesty proposed for registration and repairs on unlicensed housing 221 224 226 234 236 242 243 244 246 251 254 259 260 261 264 267 272 275 280 282 287 288 Homes for all: Addressing the region’s shortage of affordable housing Interview: Iyad Malas, CEO, Majid Al Futtaim Holding Roller coaster ride: Optimism in hotel industry as signs of stability return Looking ahead: Development authority sees record revenues from investment deals Cropping up: Feeding economic growth by focusing on farms and farmers Interview: Adel El Beltagy, Minister of Agriculture and Land Reclamation Growing potential in desert sands: Long-term projects create arable tracts from arid land Naval academy: The expanding citrus industry seeks to add value to output Read all about it: A well established and evolving industry retains considerable potential Eye on the long term: After a difficult 2013, the sector looks forward to a rebound in ad spend Pressure point: A rapidly rising population is placing strain on the system Time to take cover: State and private insurance could reduce out-of-pocket expenditure Interview: Hamed Sherif, Chairman, Misr International Hospital Learning the hard way: A lack of prioritisation has left its mark on the system Interview: Mahmoud Abo El Nasr, Minister of Education Deloitte Regulation revisited: New laws to impact personal and corporate taxation Spelling it out: Presidential decrees to boost tax revenues and bring greater clarity Helmy, Hamza & Partners By the book: A review of the regulatory environment for international companies Viewpoint: Mohamad B Talaat, Co-Managing Partner, Helmy, Hamza & Partners A good night’s rest: Hotels in Cairo, Alexandria and the Red Sea Listings: Contact information for ministries, embassies, car hire, accountancy and legal services, and more Facts for visitors: Useful hints for travellers and tourists Following tough post-revolution years of slower domestic demand growth, disrupted supply chains and delayed investment plans, the outlook for industry and retail is looking up: the economy is improving, policy is more stable and demand from key trade partners is rising. Manufacturing grew 2.3% in FY2013, reaching 15.6% of GDP, and firms are now looking to Africa and Asia. Confidence is returning to the sector following a significant drop in tourism in 2013, with arrivals expected to grow 5-10% in 2014, and promotional campaigns increasing the number of tourists from Gulf countries in particular. Connectivity, however, remains a concern: EgyptAir is mired in debt and overstaffed, hampering Cairo’s efforts to become a regional hub.

The construction sector faced many challenges in recent years, but the prospects for the industry are bright. Plans for 1m new affordable homes, the expansion of the Suez Canal and other infrastructure schemes are turning Egypt into a hive of activity. After a real estate slide in 2011, higher sales volumes and values have both been reported throughout 2014.

To reduce dependence on food imports, the government is initiating irrigation projects to increase the area of arable land and working to improve oversight of land use. Agricultural exports are an important source of foreign exchange and efforts to strengthen other niches are creating opportunities for investors.