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Recent macroeconomic trends – particularly the depreciation of the Egyptian pound and the foreign currency shortage – reflected both positively and negatively on Egypt’s real estate market throughout 2016, resulting in mixed results and predictions across the sector. The situation was felt across all sectors, but it had a particular impact on the real estate market. On the one hand, investment in property continues to be a relatively stable prospect in uncertain times. On the other hand, the depreciation of the Egyptian pound resulted in increased construction costs for imported materials and corresponding delays, diminished the amount of disposable income for the population and made profit generation a challenge for the retail segment. Yet despite some economic setbacks and continued legislative hurdles, there is reason for optimism in the country’s real estate sector. While growth rates may have slowed for the moment, and foreign currency shortages have delayed some projects, demand remains strong and housing needs across the income spectrum must be met. This chapter contains interviews with Ayman Ismail, Chairman, New Administrative Capital; and Ahmed El Hitamy, CEO, Madinet Nasr Housing and Development.

As of the end of 2016, Egypt’s telecommunications sector was strongly positioned for future growth. With more than 95m mobile subscribers, the nation’s three mobile telecoms providers – namely Vodafone Egypt, Etisalat Misr and Orange Egypt – are investing heavily in network expansion, quality of service improvements and new technologies. This has accelerated in recent months, following the National Telecom Regulatory Authority issuance of four 4G LTE licences in mid-2016. While the licensing of 4G LTE service providers in Egypt bodes well for consumers, the operators face a tightening competitive environment. Furthermore, all three mobile operators report relatively narrow margins and various infrastructure-related challenges, while mobile data – and smartphone usage – is still seeing slow uptake. The steady advance of ICT over the past decade has left Egypt’s tech industry in a strong position, despite the nation’s ongoing economic and political challenges. The country has seen a significant rise in internet penetration in recent years, as a result of growing usage among middle-class Egyptians and the business community, rapidly expanding international bandwidth, as well as the accompanying lower tariffs. While Egypt’s strong fundamentals, state-led support programmes and large tech-savvy workforce bode well for the future of the domestic ICT industry, numerous challenges lie ahead. For example, the overall impact of the recent issuance of a new mobile telecoms license to Telecom Egypt (TE), the state-owned, fixed-line operator has yet to be realised, although many market watchers expect TE to significantly increase its infrastructure investments in the coming years. This chapter contains an interview with Ashraf Sabry, CEO, Fawry.

Transport infrastructure is one of the current priority areas for development by the Egyptian government, which is looking to roll out an era of mega-projects. Roads are congested, with 92m people competing for space with trucks and trailers, as almost all commercial goods in the country are moved via roads. The process of refurbishing ports and rail lines is under way, but are in need of further investment, and private sector partners are involved. Though concerns remain about whether the government is currently deploying its resources in the best available spots, Egypt’s ability to attract aid and concessional financing helps the government to prioritise more projects than it otherwise could on its own, and the effectiveness of this approach will be assessed over the next several years, helping to further clarify the long-term vision. This chapter contains interviews with Mohab Mameesh, Chairman and Managing Director, Suez Canal Authority; and Ahmed Darwish, Chairman, General Authority for the Suez Canal Economic Zone.

Egypt’s retail market is competitive and highly fragmented. The maturing formal retail sector features a range of shopping malls, supermarkets, hypermarkets and smaller franchised competitors, as well as the more informal options that have traditionally served Egypt’s shopping needs, such as souqs, street vendors, independent high-street shops and neighbourhood corner stores. The country’s modern retail segment grew at a compound annual growth rate of 6.3% from 2013 to 2015, and is expected to grow by of 10% in 2017, potentially doubling by 2021. Despite the instability of recent years, retailers remain focused on the long-term opportunity that Egypt’s fast-growing population presents, as evidenced by the country’s return to the top of AT Kearney’s global retail index, notwithstanding the challenges presented by Cairo’s urban density, downward pressure on the pound and other obstacles. This chapter contains interviews with Mohamed Zaki El Sewedy, Chairman, Federation of Egyptian Industries; and Hassan Nouh, Managing Director, Ezz Steel.

Egypt is one of Africa’s main oil and gas producers, but it is also the continent’s largest consumer of energy. Both oil and gas are found throughout the country in multiple onshore and offshore regions, including the Mediterranean Sea, which is emerging as a major new gas basin. Nevertheless, sourcing enough supply to meet demand is the sector’s central challenge, even as these discoveries are expected to contribute significantly to meeting demand within the next few years. With discoveries in 2016 and the expectation of future upstream findings, Egypt is well on its way to addressing the supply side of its energy provision problem. Managing demand increases through subsidy cuts is a longer-term proposition, and Egypt is working to become a net energy exporter again. This chapter contains an interview Tarek El Molla, Minister of Petroleum and Mineral Resources.

The Egyptian insurance industry, one of the oldest in the region, has shown a welcome degree of resilience in recent years. Despite its long history, however, the market remains at a relatively nascent stage of growth compared to those in more advanced economies, characterised by a low penetration rate and modest insurance density. While this means that growth opportunities abound, questions remain as to how they will be achieved. Despite these obstacles, there is significant potential for development in Egypt’s insurance industry. Oil importing economies in the MENA region, such as Egypt, are likely to see premiums grow in excess of GDP growth where governments are able to maintain their determined development plans. This chapter contains an interview with Corneille Karekezi, Group CEO, Africa Re.