Egypt has witnessed many ups and downs economically in recent years, however even though things looked quite shaky at one time the economy and political situation is turning around in a positive direction. Most experts believe that the future of Egypt now looks good and fruitful. There’s never been a better time for investing in Egypt because of the vast amount of potential, especially due to the largest consumer market the country has. The strategic key location of Egypt in addition to projections of major future trade and economic growth make it one of the key places you should consider investing in.
Egyptian oil, gas and petrochemical industries are widely regarded as having the most potential right now in Egpyt, but there are also a few additional areas where it’s worth thinking seriously about investing:
- Asset acquirement
- Oil and gas production and exploration
- New petrochemical projects
- New world-class third generation refinery projects
- New joint mega LNG projects
- Buying shares of great companies in the Egyptian stock market
- Industries manufacturing of oil and gas materials, equipment and services
Reasons To Invest In Egypt
Egypt has been successful in appealing to foreign investors and in creating prolific partnerships with many international oil and gas companies. The support of the Egyptian government has been a driving force behind these successful partnerships and has helped the country emerge as a favored location for investment. There are many reasons which make investing in Egypt a wise decision.
Flourishing Petroleum Sector
Evolving technology and use of advanced equipments has helped Egypt in making good progress in its hydrocarbon industries. The exploration of new deep water exploration and development by experts helped in locating new oil and gas reserves here. New techniques and geological concepts have helped in adding many new reserves of oil and gas in the country and in thus enhancing the investment opportunities in this field.
Efficiency Of EGPC, The State Energy Company
Egyptian General Petroleum Corporation (EGPC) was formed in 1962 and has emerged as a major operator for foreign companies interested in joint ventures. EGPC is the pioneer in this sector and is active in upstream, downstream and petrochemical industries. They are the sole decision maker for import and export of petroleum products and crude oil in the country. EGPC is an industry-controller and foreign investments are maintained via joint collaborations between EGPC that are fully supported by the government.
Advantageous Geographical Location Of Egypt
Egypt is situated at the crossroads of three continents namely Asia, Africa and Europe, making it well-connected to the entire global economy and key markets. Due to its close ties with Europe Egypt is an entrée to east-west trade opportunities and an ideal place to invest in downstream and upstream sectors. The control of Sinai peninsula is also well worth-mentioning since there is also great potential there linked to the petroleum industry.
Increasing Economic And Political Stability
Installation of parliament in 2004 made Egypt a fruitful place to invest. The reduction of taxes and tariffs, enhanced transparency in the national budget, privatization of public enterprises and implemented legislation designed for betterment of the private sector has helped in adding to the competitiveness of Egypt. The new phase of political and democratic development aims at better democratic practice and stability and moderation. Its strong alliance with U.S. for a military and strategic partner has helped Egypt in enjoying some political stability even despite regional tension.
Egypt’s implementation of new public infrastructure strategies for investment has helped in development of many new projects. The construction of more than 100 new hospitals, 300 new schools and more such places have helped in making Egypt a country with great investment opportunities. Egypt is also home to the largest wind farm on the globe and it is also the second richest nation in the world in terms of natural gas.
Institutional and legal reforms that have help in enhancing the investment opportunities in Egypt:
- Simplification of process due to the establishment of a one-stop shop at the General Authority for making investments and free zone
- Decrease in the tariff rates and tariff dispersion
- Income tax cut down by almost half
- Revitalization of the asset management program
- Reforms in banking sector and development of financial sector
- Broadening of free trade agreements covering principal trading blocks
- Easy access to low cost priced lands
- Improvement in dispute settlement programs
- Build up of new trading opportunities between private and public sectors
- Financial stability and a strong banking sector
- Development of infrastructure including roads, electricity, CIT, airports and ports
- Easy availability of qualified labor force at relatively low prices
- Access to the largest markets in the region
- Increasing drive for political and economic stability
- Large local market
- Proximity to markets in north Africa, Gulf region and Europe
- Easy availability of energy at competitive rates
Infrastructure And Services
- Communication and Information Technology
- Housing utilities
- Maritime, Land and River Transportation
- Tourism sector
- Petroleum sector
- Agricultural sector
- Industrial sector
- Real estate sector
Collaboration and work with international partners and MNC’s has helped in modernizing the economy of Egypt and expanding investment opportunities for all citizens. The portfolio of the World Bank with projects worth $4.1 billion is largest here in North Africa and Middle East. Egypt’s potential of emerging as a powerful economy are strong and the World Bank Group commits to supporting the country’s priorities to decrease poverty and acquire shared prosperity.
Making investments in Egypt is a very good idea and it’s increasingly the new go-to investment location of the future. Sound reforms, public initiatives and an educated and healthy labor force as well as plenty of natural resources have helped in Egypt becoming a prime destination for global companies and investments.