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English - Human Development Reports - United Nations ...

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Egypt’s Social Capital and Arab Economic IntegrationTable (7-3)Contributon of Arabs in Subscribed Capitalto Established Companies till Decemer 2000SectorShare valueRatio to Total Arab Capital %Ratio to Sector Total investment %Industrial Co.3448258Agricultural Co.522412Construction Co.34225Tourism Co.33982512Funding Co.29692217Service Co.36535Free Zone Co.26661911Egyptian exports, especially as Egypt enjoysa strategic geographic location in the Arabregion. Inter-Arab trade is already supportedby several factors: the availability ofnon-exploited natural resources; the economicreforms and liberalization policies that havebeen carried out in most Arab countries; andthe implementation of trade agreements,such as the ‘Arab Free Trade Area’. Egypthas already signed four agreements toliberalize trade with other Arab countries.Trade between Egypt and the Arab countriesstill faces many obstacles, however. Forinstance, Egypt has not enjoyed anypreferential privileges in Arab markets untilrecently. In addition, difficulties withcross-border measures, the absence ofregular navigation lines, high shippingcosts, and the similarity of productionstructures in Arab countries, weaken thecomparative advantage of the Egyptianproducer and narrows inter-Arab tradeopportunities. Further, most Arab countrieslack an adequate economic database andstill need to reform and unify commercial,monetary and financial codes. Additionally,unstable economic and politicalcircumstances in the Middle East region, adecline in the price of oil, the variability ofexchange rates, fierce competition fromSouth East Asian countries and other fastgrowing economies, and the challengesimplied by world economic blocks, complicatethe situation even further.Nonetheless, part of the problem lies withthe Egyptian exporters themselves who stillhave insufficient experience of Arabmarkets despite their proximity, are usuallysmall and irregular exporters with a limitedexporting capability, and are not alwayscommitted to international standards.Egyptian-Arab Trade during the1990sArab trade with Egypt, as shown in Table(7.4), represents about 7 per cent of totalEgyptian foreign trade, and is characterizedby a fast growth. During the 1990s, Egypt’strade with Arab countries increased fromUS$484 million in 1990 to US$1474million in 1999. It is notable that the rate ofEnhancing trade in theArab region wouldresult in a new outletfor Egyptian exports.Table (7-4)Egypt’s Trade with selected Arab countries During the NinetiesYears199019941999CountryExportsImportsTotalExportsImportsTotalExportsImportsTotalSaudia7776153155194350121698819Libya441244444892425799Syria71258581774422567Arab Emirates13741411354376198Sudan21342929231223759Egypt <strong>Human</strong> <strong>Development</strong> Report 2000/2001 - 113

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