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The year 2016 was a difficult one for exchanges across the MENA region, due in large part to persistently low oil prices and political unrest. Egypt’s main index reflected the regional malaise for the first half of 2016, with a currency crisis and seemingly intractable fiscal deficit impacting investor confidence. By the second half of the year, however, the index was climbing once again as negotiations regarding an IMF lending programme were nearing a successful conclusion. While significant challenges remain, not least the direction of Egypt’s economy over the coming years, the Egyptian Exchange (EGX) and its regulator continue to develop one of the region’s most important exchanges. While the ability of the EGX to attract both new listings and investors is tied to the wider question of Egypt’s macroeconomic performance and the vicissitudes of global politics, the exchange is well positioned to grow should circumstances allow. This chapter contains interviews with Sherif Samy, Chairman, Egyptian Financial Supervisory Authority; Hussein Choucri, Chairman and Managing Director, HC Securities & Investment; and Omar El Maghawry, CEO, FEP Capital.

Egypt’s banking sector has shown itself capable of weathering difficult economic circumstances in recent years. However, profitability has been challenged by a range of forces, including significant changes made in 2016 to the regulatory framework surrounding lending activity and a shortage of foreign currency that negatively affected the daily operations of banks and wider investor sentiment. The sector is also undergoing something of a shake-up in terms of ownership, following an announcement in 2016 by the Central Bank of Egypt that the country intends to sell stakes in two state-owned lenders. Egypt’s banking sector is likely to continue to face some significant changes in 2017-18. The country’s lenders are still well placed to weather volatility, and are generally in good health, but the coming months will test their ability to adapt to changing circumstances. This chapter contains an interview with Khalid Elgibali, Division President, Mastercard MENA.

Egypt’s GDP per capita of $3615 in 2015, according to the World Bank, is considerably lower than the world average of $10,058, and establishes the country as lower-middle income. The nation’s transition from an energy exporter to a net importer of gas has resulted in a stubborn current account deficit. Nevertheless, Egypt entered 2016 on the back of some encouraging economic data. According to the Ministry of Planning, real GDP for FY 2014/15 grew by 4.2% at market prices, the most rapid rate of expansion since the 2011 revolution. Improving Egypt’s investment credentials will remain a key concern for the government over the coming year, as it seeks to shift the burden of development from the state to the private sector. The promulgation of the new Investment Law will bring much-needed clarity to important investment factors such as free zones, tax exemptions and the purchase of state-owned land. In the short term, however, the government is likely to continue to face considerable economic challenges. The possibility of Egypt establishing a functioning foreign exchange market after a currency flotation also promises to bring a number of substantive improvements to the business environment. This chapter contains interviews with Mohamed Khodeir, Chairman, General Authority for Investment; Anis Aclimandos, President, American Chamber of Commerce in Egypt; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.

Already home to a number of modern health care facilities, the emirate is preparing for a strong push in the sector as it pursues its goal to become a centre of excellence in the UAE. Meanwhile, an ageing population and increasingly sedentary lifestyles are raising new health challenges that both the private and public sector are helping to address, led by the federal-level Ministry of Health and Prevention and the local-level regulator, the Sharjah Health Authority.

As the third-largest economy of the seven emirates that make up the UAE, Sharjah has a large population and a strategic location for regional connectivity, as well as significant real estate activity, all of which contribute towards an expanding construction sector. The emirate has several major real estate projects under construction, many of which are mixed-use developments that could have a big impact on the emirate’s property market. The opportunities available in Sharjah today have drawn the interest of many more companies from the rest of the UAE, and from other GCC countries, to get involved in the near future, further opening the emirate to outside investments.