The Arab-German Trade Directory - Ghorfa
The Arab-German Trade Directory - Ghorfa
The Arab-German Trade Directory - Ghorfa
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<strong>The</strong> Egypt section<br />
is sponsored by<br />
in 2007 (including condensates and natural<br />
gas liquids), according to the EGPC. Crude<br />
oil exports are constrained by lower<br />
production and by rising local demand.<br />
Egypt’s proven reserves of natural gas were<br />
77.2 trn cu ft in mid-2009. <strong>The</strong> government<br />
is encouraging additional exploration, as a<br />
minimum total of 120trn cu ft would be<br />
necessary for the government to realise its<br />
ambitious plans for the sector, which<br />
include LNG projects, gas export pipelines,<br />
gas-to-liquids schemes, petrochemicals<br />
expansion and increased domestic consumption.<br />
Egypt has also rapidly expanded its LNG<br />
export capability, becoming the world's<br />
sixth-largest gas producer and the thirdlargest<br />
in Africa, behind Algeria and Nigeria.<br />
Banking Sector<br />
Rationalisation of the tax code has<br />
encouraged more FDI, with 27 tariff<br />
categories cut down to six and a reduction<br />
of duties of around 75%. New policies have<br />
been adopted to encourage various business<br />
sectors, while stocks have made impressive<br />
advances.<br />
Since 2003 the most significant reform<br />
achieved by the state in terms of the<br />
everyday operation of the Egyptian<br />
economy has been the complete overhaul of<br />
the banking system. <strong>The</strong> dominance of<br />
public banks is starting to subside with four<br />
of the country's major banks being sold, a<br />
move which included the eradication of a<br />
large percentage of non-performing loans<br />
that had been hindering sector growth. <strong>The</strong><br />
World Bank loan of $500m was given to<br />
allow the recapitalization required in order<br />
for two of the biggest public banks to<br />
comply with Basel II standards. <strong>The</strong> venture<br />
into the private sector is helping banks<br />
recruit higher-quality employees and target<br />
parts of the market traditionally left<br />
untouched, such as the local retail market,<br />
ultimately benefiting local consumers.<br />
Along with privatization comes new<br />
legislation, so that the sector will operate to<br />
international standards and setting off a<br />
trend of mergers and acquisitions.<br />
Deposits at Egyptian banks are forecasted to<br />
grow at Compound Annual Growth Rate<br />
(CAGR) of about 14% between 2008-09<br />
and 2010-11, with household sector<br />
accounting for majority of deposits.<br />
Meanwhile, Bank loans to the private<br />
business sector are forecasted to grow at a<br />
CAGR of about 9.5% during 2008-09 to<br />
2010-11. <strong>The</strong> manufacturing sector will<br />
remain the major recipient of bank loans in<br />
local as well as foreign currencies during<br />
2007-08 to 2010-11, and net interest<br />
income is projected to grow at a CAGR of<br />
over 12% during 2008-2012.<br />
<strong>The</strong> banking system comprised 39 total<br />
banks in Egypt in 2008/09 with total<br />
branches of 3441 banks. Private and joint<br />
venture banks are increasingly growing,<br />
but many remain relatively small with few<br />
branch networks.<br />
Insurance Sector<br />
Egypt’s insurance sector can be generally<br />
described as in the process of developing<br />
with big potential for growth. <strong>The</strong> sector<br />
has been long hampered by a lack of public<br />
appreciation of the significance of insurance<br />
as well as heavy state dominance. However,<br />
the picture is expected to brighten with the<br />
planned privatization and liberalization of<br />
the sector. Several developments have been<br />
taking place to open up the sector. Ongoing<br />
changes include redefining the supervisory<br />
role of the Egyptian Insurance Supervisory<br />
Authority (EISA), encouraging more<br />
private sector participation through new<br />
licenses and acquisitions, as well as<br />
enhancing efficiency and dissemination of<br />
information.<br />
<strong>The</strong> Egyptian insurance sector has<br />
traditionally dealt with a limited range of<br />
insurance covers, but with the upsurge of<br />
international competition and the changing<br />
needs of the market itself, the sector is<br />
expected to witness the emergence of<br />
various activities, especially in the untapped<br />
areas of life insurance, third-party liability<br />
and health insurance.<br />
Tourism<br />
Tourism is one of Egypt's key foreign<br />
currency earnings, with its fascinating<br />
ancient monuments, year-round sunshine<br />
and beautiful beaches which attract visitors<br />
from around the world in ever growing<br />
numbers. <strong>Arab</strong> tourists rose to 1.8 million<br />
in 2007 from 1.1m in 2002, with revenues<br />
spiking to $2.2bn per year. <strong>The</strong> UAE<br />
invested $4bn in the country’s tourism<br />
sector accounting for 30% of total <strong>Arab</strong><br />
investment in the country, a senior<br />
Egyptian official revealed. Speaking at the<br />
<strong>Arab</strong>ian Travel Market in Dubai, in May,<br />
Fact File<br />
Country name: <strong>Arab</strong> Republic of Egypt<br />
Population: 76.054.112 (Jan. 2009)<br />
Land Area: 1,001,450km 2<br />
Official Language: <strong>Arab</strong>ic<br />
Currency: 1 Egyptian Pound =<br />
100 piaster<br />
Main Cities: Cairo (Capital), Giza,<br />
Tanta, Alexandria, Shubra el-Khema,<br />
Port Said, Suez, Mahalla el-Kubra,<br />
Hurghada, Sharm el-Sheikh<br />
Useful Contacts<br />
Embassy of the <strong>Arab</strong> Republic of Egypt<br />
Stauffenbergstr. 6-7 10785 Berlin<br />
<strong>German</strong>y<br />
Tel: (+49) 30 477 54 70<br />
Fax: (+49) 30 447 10 49<br />
Email: embassy@egyptian-embassy.de<br />
Website: www.egyptian-embassy.de<br />
Commercial & Economic Office<br />
Friedrichstr. 60 10117 Berlin<br />
Tel: (+49) 30 2064113<br />
Fax: (+49) 30 20641140<br />
Email: info@ecrg-trade.de<br />
Website: www.ecrg-trade.de<br />
Egypt 48 - 49<br />
Embassy of the Federal Republic of<br />
<strong>German</strong>y<br />
8 B, Sharia Hassan Sabri, Zamalek,<br />
Cairo, Egypt<br />
Tel: (+20) 2 739 96 00<br />
Fax: (+20) 2 736 05 30<br />
Email: info@cairo.diplo.de<br />
Website: www.cairo.diplo.de<br />
Federation of Egyptian Chambers of<br />
Commerce<br />
4, Al Falaqi Square<br />
Cairo Egypt<br />
Tel: (+202) 279 536 77<br />
Fax: (+202) 279 511 64<br />
Email: fedcoc@menanet.net<br />
Website: www.fedcoc.org.eg/chamberportal