USEFUL BUSINESS INFORMATION ON EGYPT

1. Country Brief:

A. Introduction - (Official Name: Arab Republic of Egypt). Egypt is one of the most populous countries in Africa. The vast majority of its estimated 78 million people (2007) live near the banks of the Nile River (about 40,000 km² or 15,450 sq miles) where the only arable agricultural land is found.[1] Large areas of land form part of the Sahara Desert and are sparsely inhabited. Around half of Egypt's residents live in urban areas, with the majority spread across the densely populated centres of greater Cairo, Alexandria and other major cities in the Nile Delta.

Egypt is famous for its ancient civilization and some of the world's most famous monuments, including the Pyramids and the Great Sphinx; the southern city of Luxor contains a particularly large number of ancient artifacts such as the Karnak Temple and the Valley of the Kings. Today, Egypt is widely regarded as an important political and cultural centre of the Middle East

B. Climate - Egypt receives the least rainfall in the world. South of Cairo, rainfall averages only around 2 to 5 mm (0.1 to 0.2 in) per year and at intervals of many years. On a very thin strip of the northern coast the rainfall can be as high as 170 mm (7 in), all between November and March. Snow falls on Sinai's mountains and some of its middle and coastal cities.

Temperatures average between 80 and 90°F (27 - 32°C) in summer, and up to 109°F (42°C) on the Red Sea coast. Temperatures average between 55 and 70°F (13 to 21°C) in winter. A steady wind from the northwest helps hold down the temperature near the Mediterranean coast. The Khamaseen is a wind that blows from the south in Egypt, usually in spring or summer, bringing sand and dust, and sometimes raises the temperature in the desert to more than 100°F (38°C). Egypt relies on The Nile River for water

C. Geographical Area -Egypt has a maximum length from north to south of about 1085 km (about 675 mi) and a maximum width, near the southern border, of about 1255 km (about 780 mi). It has a total area of 997,739 sq km (385,229 sq mi).

D. Language - Egyptian Arabic - The official language is Arabic, but English is widely spoken in commerce and government.

E. Currency With Exchange Rate - Egyptian pound (EGP) , The Egyptian pound is written E£, and is divided into 100 piastres VALUE OF CURRENCY

1 Egyptian pound = 0.17559 U.S. dollars

F. Population - Population: 80,335,036 (July 2007 est)

G. Major Cities - Cairo, Alexandria and other major cities in the Nile Delta

2. Transportation:

A. Railway - Total: 5,105 km, standard gauge: 5,105 km 1.435-m gauge (42 km electrified)

B. Road - Total: 64,000 km, Paved: 49,984 km, Unpaved: 14,016 km

C. Airports – Total : 89

Airports - with paved runways: Total: 72

Airports - with unpaved runways: total: 17

Heliports: 2 (2003 est.) 

D. Waterways - 3,500 km

Note: includes the Nile, Lake Nasser, Alexandria-Cairo Waterway, and numerous smaller canals in the delta; Suez Canal (193.5 km including approaches), used by oceangoing vessels drawing up to 16.1 m of water

e. Sea ports

3. Economy:

Egypt has had a very strong economic growth in recent years, a situation that continues even as of 2005, with a growth in GDP of 4.5% divided on a population growth of 1.8%. Egypt has a stable economy in the Middle East and North Africa enjoying continuous growth in the past half-a-century. Its current GDP per capita expanded 46% in the Sixties and reached a peak growth of 139% in the Seventies. But this proved unsustainable and growth consequently scaled back to 48% in the Eighties rising smartly to 89% in the Nineties due to successful diversification.

Under comprehensive economic reforms initiated in 1991, Egypt has relaxed many price controls, reduced subsidies, reduced inflation, cut taxes, and partially liberalized trade and investment. Manufacturing is still dominated by the public sector, which controls virtually all heavy industry. A process of public sector reform and privatization has begun, however, which could enhance opportunities for the private sector. Agriculture, mainly in private hands, has been largely deregulated, with the exception of cotton and sugar production. Construction, non-financial services, and domestic marketing are largely private. This has promoted a steady increase of GNP and the annual growth rate. Among Arab countries, Egypt's GDP is second only to Saudi Arabia's. However, the Egyptian economy relies heavily on tourist revenues. The tourism sector suffered tremendously following a terrorist attack on tourists in Luxor in October 1997, and the September 11, 2001 attacks against the United States, affecting the economy as a whole.

A. Major Manufacturing - The manufacturing sector is an important and growing contributor to the Egyptian economy, with production dominated by large state-owned enterprises. As a result of the oil boom in the Gulf and the influx of large Arab investments in Egypt, recording an annual growth rate of 10 percent or more. Growth, however, has since slowed down, although the private sector has expanded since 1996, and its contribution has increased dramatically as a result of economic liberalization.

Egyptian companies produce a wide range of goods. Textiles and food processing account for the largest share of Egypt's manufacturing revenue. Other manufactured goods include furniture, ceramics, and pharmaceuticals. The termination of public sector monopoly over the production of automobiles in 1991 has led to a considerable growth in the car assembly sector. Egypt has a fledgling computer software industry that the government has encouraged. Heavy industries, including iron and steel production, are based in Helwan, outside Cairo, and in Dikheila, near Alexandria. Aluminum production is based in Nag Hammadi, while the production of chemicals is concentrated in Aswan. Since the 1970s, the government has attempted to encourage industrial production in non-agrarian regions in order to relieve the congestion in the main cities. As a result, 7 free zones (areas within which goods are received and stored without payment of duty) have been established throughout the country, and industrial production in those areas is subject only to minimal regulations.

B. Major Export - Crude Oil, Petroleum Products, Cotton, Textiles, Metal Products and chemicals.

C. Import - Machinery & equipment, foodstuffs, chemicals, wood products, and fuels.

E. Major Industry - Oil and natural gas are two of Egypt's major industries. Chemical and steel production are also important industries. The banks of the Nile River provide rich soil for farming dates, grapes and cotton. Other industries include textiles and food processing.

F. Trade balance - The revival of the Egyptian Economy has solely relied upon the trade of the country. Commodity exports has reached $ 13.8 billion for the year 2005 which is 31.4% increase over the year 2003.The value of commodity imports have increased to $ 24.2 billion in 2004.The main exportable items were crude oil and petroleum products, cotton and textiles, agricultural goods and raw cottons etc.

Import items include machinery and transport equipment, life stock and food beverages etc.

Top trading partners of Egypt are Italy, US, Germany, Japan and South Korea.

The trade balance have widened from $ 7.8 billion in 2004 to $ 1.4 billion by 33.33%.

4. Trade Associations, Chamber of Commerce, Trade shows and Exhibitions in Egypt:

Major Trade Associations

Egyptian Auto Feeders Association

ADDRESS 11, Mostafa El Baradi  St. - Nozha Gadida  

Cairo- Egypt

TEL + 202  62 48 548 

FAX + 202  62 24 421 

Mobil   + 2010 25 81 2 2 5 

E-mail: eafa@tedata.net.eg

Website: www.eafa-egypt.com

Egyptian Automobile Manufacturers Association

131, El Tahrier Street Dokki, Giza

Telephone: +202 335 5245, 336 3303

Telefax: +202 360 1223

Adany Export & Import

48 A Abd El Mohsin El Wasimi St., El Ala Masaken, Cairo

Egypt

Tel: +202-392 2004 +202-393 2059

Fax: +202-392 0056

Egyptian Exporters Association

23 El Israa St., El Mohandessin, Giza

Egypt

Tel: +202-345 0783 +202-346 1482

Fax: +202-304 6889

Chambers of Commerce

Federation of Egyptian Chambers of Commerce

Address:  4 El Falaki Square, Downtown Cairo.

City:  Cairo, Egypt

Tel:  +2023551813, 2023551136

Fax :  +2023557940

Contact Person:  Mr. Mahmoud El Araby, President

CAIRO CHAMBER OF  COMMERCE

4, Midan El Falaki Street

Cairo,

Egypt

Phone: (202) 3542943

Fax: (202) 3557940

President: Mahmoud Al-Araby

Major Trade Shows

A. Cairo International Motor Show

Event Profile: Cairo International Motor Show, Formula Al-Ahram is the only motor show approved by the (OICA) in the Egypt, Middle East and Africa. The show is marked by UFI, an an operative member of the Global Association of the Exhibition Industry, and it started in 1990 (15 rounds). It is an ideal platform to reach delegates and visitors from all over the automotive industry

Start Date: 24-JAN-08

End Date: 28-JAN-08

Organizer:

Art Line for Organizing International Exhibitions & Conferences (S.A.E)

57, Ibrahim El-Refaei St, 8th District,

Nasr, Egypt.

Tel: +(20)-(2)-2732237/2732238

Fax: +(20)-(2)-2732055

B. Automation Egypt

Event Profile: Automation Egypt is a comprehensive display of technology for the instrumentation, control and automation professional. This exhibition focuses on robotics and automation, instrumentation and process, electrical and electronics, hydraulics and pneumatics, industrial control, engineering projects, oil and gas automation & process control and automation in construction technology.

Start Date: 08-APR-08

End Date: 10-APR-08

Organizer:

Sama Marketing Business (SMB Co.)

10 Adel Shokoko St., From Mohamed Mabrouk St., Bashteel, Imbaba,

Giza, Egypt.

Tel: +(20)-(2)-3539456

Fax: +(20)-(2)-3539456

C. AUTOMECH AKHBAR EL YOM

Event Profile: AUTOMECH AKHBAR EL YOM, International African Arabian Exhibition for Vehicles, Buses, Motorcar Workshops, Service Station Equipment, Automobile Spare Parts, Accessories and Feeding Industries. AUTOMECH AKHBAR EL YOM provides a substantial platform for manufacturers and suppliers worldwide to reach out trade buyers from Egypt, the Middle East and Africa.

Start Date: 04-JUN-08

End Date: 09-JUN-08

Organizer:

A. C. G. I. T. F.

41, Street No. 269, New Maadi,

Cairo, Egypt.

Tel: +(20)-(2)-7538401/7538402/7538403/7538404

Fax: +(20)-(2)-7538323

5. Useful links

Egyptian Importers, Dealers of Japanese Used Cars, Construction Machinery & Auto Parts