THE ARAB REPUBLIC OF EGYPT (Jumhūriyyat Miṣr al-ʿArabiyyah) THE NORTH AFRICA COUNTRY SERIES 2019 THE ARAB REPUBLIC OF EGYPT n COUNTRY PROFILE i THE ARAB REPUBLIC OF EGYPT (Jumhūriyyat Miṣr al-ʿArabiyyah) 2019 ii THE ARAB REPUBLIC OF EGYPT n COUNTRY PROFILE iii ACKNOWLEDGEMENTS Team Leader: Samir S. Amir Lead Researcher: Mohammed Abrar Khan DISCLAIMER The findings, interpretations and conclusions expressed do not necessarily reflect the views of the Board of Directors and members of The Pakistan Business Council or the companies they represent. Any conclusions and analysis based on data from ITC, UN Comtrade, World Bank, Doing Business and CIA World Factbook are the responsibility of the author(s) and do not necessarily reflect the opinion of the UN, WTO, World Bank, or the CIA. Although every effort has been made to cross-check and verify the authenticity of the data, The Pakistan Business Council, or the author(s), do not guarantee the data included in this work. All data and statistics used are correct as of December 1st, 2018, and may be subject to change. For any queries or feedback regarding this report, please contact [email protected] or [email protected] iv THE PAKISTAN BUSINESS COUNCIL: AN OVERVIEW The Pakistan Business Council (PBC) is a business policy advocacy platform, established in 2005 by 14 (now 79) of Pakistan’s largest private-sector businesses and conglomerates, including multinationals. PBC businesses cover nearly all sectors of the formal economy. It is a professionally- run organization headed by a full-time chief executive officer. The PBC is a not-for-profit entity, registered under Section 42 of the Companies Ordinance 1984. Though it is not required under the law to do so, the PBC follows to the greatest extent possible, the Code of Corporate Governance as applicable to listed companies. The PBC is a pan-industry advocacy group. It is not a trade body nor does it advocate for any specific business sector. Rather, its key advocacy thrust is on easing barriers to allow Pakistani businesses to compete in regional and global arenas. The PBC conducts research and holds conferences and seminars to facilitate the flow of relevant information to all stakeholders in order to help create an informed view on the major issues faced by Pakistan. The PBC works closely with the relevant government departments, ministries, regulators and institutions, as well as other stakeholders including professional bodies, to develop consensus on major issues which impact the conduct of business in and from Pakistan. The PBC has submitted key position papers and recommendations to the government on legislation and other government policies affecting businesses. It also serves on various taskforces and committees of the Government of Pakistan as well as those of the State Bank, SECP and other regulators with the objective to provide policy assistance on new initiatives and reforms. THE ARAB REPUBLIC OF EGYPT n COUNTRY PROFILE v THE PBC’S FOUNDING OBJECTIVES The major objectives of the PBC as stated in its founding documents are: • To provide for the formation and exchange of views on any question connected with the conduct of business in and from Pakistan. • To conduct, organize, set up, administer and manage campaigns, surveys, focus groups, workshops, seminars and field works for carrying out research and raising awareness in regard to matters affecting businesses in Pakistan. • To acquire, collect, compile, analyse, publish and provide statistics, data analysis and other information relating to businesses of any kind, nature or description and on opportunities for such businesses within and outside Pakistan. • To promote and facilitate the integration of businesses in Pakistan into the World economy and to encourage in the development and growth of Pakistani multinationals. • To interact with governments in the economic development of Pakistan and to facilitate, foster and further the economic, social and human resource development of Pakistan. More information on the PBC, its members, and its workings, can be found on its website: www.pbc.org.pk vi THE PBC’S MEMBER COMPANIES THE ARAB REPUBLIC OF EGYPT n COUNTRY PROFILE vii viii Executive Summary Since 2015, the Pakistan Business Council (PBC), has been publishing a Country Profile Series aimed at promoting Pakistan’s trade with its non-traditional trading partners. In 2015 ‘six’ countries from Africa – Angola, Ethiopia, Ghana, Mozambique, Nigeria and South Africa were covered, in 2016 ‘five’ countries from South America – Argentina, Brazil, Chile, Columbia and Mexico were highlighted, in 2017 ‘five’ countries of Central Asia – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan were showcased, while in 2018 ‘six’ South Asian countries – Cambodia, Indonesia, Malaysia, Singapore, Thailand and Vietnam were featured. In the 2019 series, the PBC is covering ‘four’ countries in North Africa – Algeria, Egypt, Morocco and Tunisia. This is the second publication in the North Africa Country Series and features the Arab Republic of Egypt (Jumhūriyyat Misr . al-‘Arabiyyah). Egypt is a Mediterranean country located on the north-eastern corner of the African continent. It shares land borders with Sudan to the south, Libya to the west, the Red Sea to the east & south and the Gaza Strip and Israel to the northeast. In addition, it has maritime borders with Cyprus, Greece, Jordan, Saudi Arabia and Turkey. As of July 2017, Egypt had an estimated population of 99.37 million, with less than 10% of the population being non-Muslims. Nearly the entire population can be categorised as of ethnic Egyptians. On the economic freedom index, Egypt ranked 11th among 14 countries in the Middle East and North Africa region with a score of 52.5, making its economy the 144th freest in the world. Egypt is one of the largest economies in the African continent and is rich in natural resources including; oil, natural gas, phosphates and iron ore. The table below highlights the economic indicators for Egypt. The country had a GDP growth rate of (4%), and an inflation rate of (29.50%) in 2017. Egypt’s foreign direct investment net inflows were around USD 7.39 billion in 2017. Egypt in 2017 had a trade deficit of USD 40.40 billion. Economic Indicator 2013 2014 2015 2016 2017 GDP (Current USD Billion) 288.59 305.53 332.70 332.93 235.37 GDP per capita (Current USD) 3,213.39 3, 327.75 3, 5 47.71 3,479.28 2,412.73 GDP growth (Annual %) 2.19 2.92 4.37 4.35 4.18 Inflation (Annual %) 9.42 10.14 10.36 13.81 29.50 Exchange rate (LCU per USD) 6.87 6.97 7.35 8.14 18.745 Population (Millions) 89.81 91.81 93.78 95.69 97.55 Foreign direct investment (Net inflows, 4.19 4.61 6.93 8.11 7.39 USD Billion) Trade Balance (USD Billion) -37.0 8 -44.53 -52.39 -35.55 -40.40 THE ARAB REPUBLIC OF EGYPT n COUNTRY PROFILE ix Egypt’s top three export partners were the UAE, Italy and Turkey which accounted for 26.05% of total exports, whereas top three import partners were China, Germany and Italy which shared 25.45% in total imports. Top exports included mineral fuels, mineral oils and products of their distillation, natural or cultured pearls, precious or semi-precious stones, precious metals and electrical machinery and equipment and parts, while top imports were mineral fuels and mineral oils, machinery, mechanical appliances, nuclear reactors, boilers and electrical machinery and equipment. Egypt enjoys a trade surplus with Pakistan. Since 2014, exports have grown and stood at USD 133.70 million in 2017. Imports from Pakistan in 2017 were worth USD 81.78 billion. This country profile also highlights 25-high potential exports from Pakistan to Egypt at HS-06 level. The section covers the current standing of products exported by Pakistan to Egypt and the potential increase that can be achieved as of 2017. The potential for the 25 leading product categories stood at USD 1,258.26 million, whereas Egypt’s export potential for the 25 leading product categories stood at USD 2,150.74 million. Lastly, on the Ease of Doing Business index, Egypt moved up eight places in 2018 to be ranked 127th among the economies surveyed. Egypt has improved its ranking in ‘getting credit’, ‘protecting minority investors’, ‘paying taxes’ and ‘resolving insolvency’. x TABLE OF CONTENTS Section 1: Geographic and Social Landscape ............................................................... 01 Country name: ...................................................................................................... 02 Capital: .................................................................................................................. 02 Time zone: ............................................................................................................ 02 Central Bank: ........................................................................................................ 02 Currency: .............................................................................................................. 02 Geographic coordinates: .................................................................................... 02 Location ................................................................................................................. 02 Area ........................................................................................................................ 03 Land boundaries ................................................................................................... 03 Natural resources .................................................................................................