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Construction remains one of the most important contributors to the domestic economy. In 2016 the sector’s output increased by 10.3%, a significant uptick after growing at an average of 5.3% in the preceding four years. This growth trend was largely maintained in 2017, expanding by 7.3% in the first nine months of FY 2016/17. The Egyptian real estate market has proven itself remarkably resilient to the political and economic tensions experienced previously in the country. However, while the industry has historically been seen as a safe bet in uncertain times, economic headwinds – especially strong in late 2016 and the first half of 2017, stoked by government reform efforts – are proving to be a tougher proposition. This chapter contains interviews with Hassan Allam, CEO, Hassan Allam Holding; Osama Bishai, CEO, Orascom Construction; Magued Sherif, CEO, Sixth of October; and Ashraf Dowidar, CEO, ARDIC.

Having long been one of the most dynamic sectors of the economy, continuing to grow even during periods of turbulence, the Egyptian telecoms industry experienced a landmark year in 2017. Steady subscription growth and increasing demand for data should bolster the position of all operators, with 4G providing a new field of competition in what is incrementally becoming a less voice-dominated, price-sensitive industry. The IT sector’s contribution to GDP was $4.2bn in FY 2016/17, with the IT export industry valued at more than $3.25bn in 2017 and expected to grow at a compound annual growth rate of 13.4% through to 2020. This chapter contains an interview with Eng. Yasser El Kady, Minister of Communications and Information Technology; and a roundtable with Hazem Metwally, CEO, Etisalat Misr; Jean-Marc Harion, CEO, Orange Egypt; and Ahmed El Beheiry, CEO, Telecom Egypt

With a large consumer base, skilled labour force, strategic geographic location and a series of pro-business government efforts to streamline licensing and operations, Egypt’s industrial sector is an attractive proposition. While challenges remain, there are new local and export-focused opportunities for increased investment – particularly with the ongoing construction of a new capital. While economic policies throughout 2017 may have placed a limitation on individual purchasing power in the short term, the expectation that inflation rates will stabilise and investment will increase on the back of business-friendly reforms should see the retail sector maintain a positive growth trajectory in the medium to long term. This chapter contains an interview with Tarek Kabil, Minister of Industry and Trade.

Egypt continues to strive, not just for energy independence, but to return to its status as a regional exporter. With oil and gas fields in the Gulf of Suez, the Mediterranean Sea and the Western Desert, the country has been a site of energy exploration since the early 20th century. With recent discoveries of major natural gas deposits as well as continued exploration announcements, a low-cost operating environment and the anticipation of steady, even rising, global oil prices, Egypt has its sights set on increased petroleum production to meet growing local energy demand, as well as for export growth to acquire much-needed foreign currency. This chapter contains interviews with Tarek El Molla, Minister of Petroleum and Mineral Resources; Claudio Descalzi, CEO, Eni; Hesham El Amroussy, Chairman and Managing Director, ExxonMobil Egypt; and Walid Sheta, Cluster President for North-east Asia and Levant, Schneider Electric.

With the largest population in the Middle East, a relatively developed life insurance industry and a government determined to pursue ambitious infrastructure development, Egypt is a promising market for both domestic and foreign insurers. There are currently 34 insurance and reinsurance companies in Egypt and despite concerns regarding sector privatisation, regulatory changes such as proposed mandatory insurance cover for police and security forces and the government health care provision strategy will drive premium growth. However, a significant currency devaluation and the risk of economic disturbance remain as challenges to growth in the sector. This chapter includes an interview with Hamed Mabrouk, Head of North Africa, Willis Towers Watson.

Despite the economic challenges facing the country, 2017 was a positive year for the Egyptian Exchange (EGX), with the main index expanding by approximately 17%. The EGX remains an important component of the economy and thanks to an ongoing process of market development is likely to continue to act as a useful platform for both corporates and small and medium-sized enterprises wishing to raise capital. The ability of the EGX to attract new listings and investors is linked to the wider question of Egypt’s macroeconomic performance. A potential commodities exchange would represent a key structural advance, although a number of important questions regarding its implementation remain to be answered. This chapter contains interviews with Mohamed Farid Saleh, Chairman, Egyptian Stock Exchange; and Hussein Choucri, Chairman and Managing Director, HC Securities & Investment. The chapter also contains share analyses & data provided by HC Securities & Investment.