Egypt - Country Information

 

Strategic location

Egypt is the gateway linking Africa and Asia. Located on key international trade routes, it is close to the Arabian, American, African and European markets. Trade flows from the Suez Canal – home to 10% of the world’s vessels – contributed an estimated US$5 billion in government revenue in 2015. Egypt’s position as a regional export hub is also well supported by its excellent infrastructure.

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Large labour force

With a population of 97 million and a median age of 24, Egypt has a sizeable workforce that is still largely untapped. While the informal economy accounted for 62% of employment in 2016, the government has been pursuing reforms to formalise the economy.

The government is investing in upgrading its talent pool through education and vocational training. Since 2014, a US$5.9 billion plan to increase the number of market-ready graduates and promote a knowledge-based economy through extensive education programmes has been underway.

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Political stability

The stable political environment in Egypt has contributed to steady GDP growth of 3-5% for the past few years. The government has shown its willingness to make difficult decisions that will improve the economy in the long run, such as introducing VAT in 2014.

The government has also committed to paying its debts and has strengthened protections for investor rights. The General Authority for Investment (GAFI), which regulates and facilitates investment in Egypt, makes it easier for foreign investors to set up businesses by serving as a one-stop shop.

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Venture to Egypt

Egypt is the third largest economy in the Middle East and Africa, and the second largest economy in Africa alone. Its market is expected to grow over 5% in the coming years1.

Through boosting national security to create a more stable environment for investors, as well as upgrading the skills of its workforce, Egypt hopes to attract FDI worth US$15 billion and bring down unemployment by 9% by 2019.

Manufacturing is a key pillar of Egypt’s economy, contributing 16% to its GDP. MNCs such as Coca-Cola, BP, P&G, Palm Hills and Ikea are also investing in Egypt to tap the growing consumer market.

 

 

1: IMF report, 2017

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Geography: Egypt is located at the north-eastern tip of the African continent. It borders Libya to the west, Sudan to the south and Israel to the east.

Population: 97 million (est. July 2017)

Ease of Doing Business Ranking: 128th (2017)

Economic Freedom Ranking: 144th (2017)

Bilateral Trade: S$536.1 million (2016)

Currency Used: Egyptian Pound (EGP)

Language: Arabic (official), English, French

 

 
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