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The Egyptian telecoms sector is one of the most dynamic parts of the country’s economy, having weathered the economic slowdown over the past few years. Following the approval of a new universal licence in September 2014, the sector is set to see significant changes: a new mobile operator will be launched by legacy telco Telecom Egypt, the fixed-line market will be opened to mobile companies, and, within a few years, 4G networks will be rolled out and new international gateway licences offered. The long-awaited green light to universal licences will trigger some of the most significant changes in the market’s recent history. With a large domestic market and a strong export-oriented sector, Egypt’s ICT industry is one of the economy’s leading magnets for investment. Internet use is growing rapidly but still has substantial scope to expand. Egypt is also one of the world’s top outsourcing and offshoring destinations, leveraging a skilled workforce, low costs, an advantageous location and strong government support. While there are still challenges, including limited fixed-line broadband networks and modest household demand, greater liberalisation of infrastructure ownership along with a concerted push by the government will help boost activity in the coming years. This chapter contains a roundtable with Saeed Al Hamli, CEO, Etisalat Misr; Yves Gauthier, CEO, Mobinil; and Hatem Dowidar, Chairman, Vodafone Egypt.

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.

The extraction of oil and gas has long played a central role in the Egyptian economy, accounting for 15.3% of the country’s GDP in the 2013/14 financial year. With exploration in the North African nation dating back to the 1880s, the government has a long history of working with private firms to develop and manage its resources. Over the course of 2014 Egypt’s energy sector has seen some welcome developments. The announcement of a debt-repayment programme for funds owed to international oil companies (IOCs) has restored confidence in the upstream segment and brought pledges of increased investment from larger operators such as the UK’s BP. In the meantime, exploration for new resources continues. However, considerable challenges remain to be overcome, and the power outages that Egyptian individuals and businesses faced in 2014 are likely to remain a part of daily life for some time to come. This chapter contains interviews with Sherif Ismail, Minister of Petroleum and Mineral Resources; Ross Clarkson, CEO, TransGlobe; and Ibrahim Sarhan, Chairman, e-finance.

The three years since the 2011 revolution have proven to be profitable for most of Egypt’s insurers, making it one of the few sectors to overcome the country’s economic malaise. Insurance companies collected LE13bn ($1.85bn) in premiums in the 2012/13 financial year, an increase of 18% from LE11bn ($1.56bn) in 2011/12. However, by most measures, Egypt’s insurance market remains small relative to those in the developed world and state players continue to dominate the arena. Although the insurance sector has fared better than most others in the turmoil that has engulfed Egypt, and has even seen its profits rise, industry players are hoping a period of greater stability will yield even better results and help to stimulate growth, expansion and profitability. This chapter contains interviews with Sherif Samy, Chairman, Egyptian Financial Supervisory Authority (EFSA) and Abdel Raouf Kotb, Chairman, Insurance Federation of Egypt.

After a downturn in the wake of the 2011 revolution, the Egyptian Exchange (EGX) has staged an impressive recovery. Having dealt effectively with the fallout from the broader economic uncertainty, the management of the EGX has now turned its attention to deepening the market and widening its investor base. The EGX is relatively diverse compared to its regional peers, with the largest sector in 2013 being construction and materials (21.37%), followed by telecoms (15.7%), banking (14.3%) and financial services (7.29%), among several other significant sectors. Since 2010 investors have also had the option to direct their capital to a range of small- and mid-cap firms that are listed on a separate board, the Nile Stock Exchange (NILEX). The sub-market has a lower capital requirement of $7.1m and more flexible financial history and disclosure rules. While ratings agencies take a more favourable view of the nation’s economic prospects, significant structural reforms are still necessary to stabilise Egypt’s economy in the longer term. This chapter contains interviews with Mohamed Omran, CEO, Egyptian Exchange (EGX) and Hussein Choucri, Chairman and Managing Director, HC Securities & Investment.

Despite a challenging economic backdrop, Egypt’s banks have succeeded in growing their assets and maintaining profitability over the past year. Their solid performance has been facilitated by a process of reform that began a decade ago. The banking network comprised 3651 branches in 2013, an increase of 41 branches over the previous year, which resulted in a density of 22,900 people per banking unit. Egypt’s banking sector has shown its ability to thrive even in turbulent times by posting a growth in activity over the past year, while maintaining profitability. Over the next year it is likely that the question of regulatory compliance will continue to occupy banks’ management across the sector as the central bank presses on with the Basel III Accord. This chapter contains an interview with Hisham Ezz Al Arab, Chairman and Managing Director, Commercial International Bank.