Egypt: On the path to reform
To be published on

World Investments News is preparing a special report on Egypt, in light of President Chirac’s visit to Egypt in April. It will be published in L’Express, the prestigious magazine in France recognized for its weekly coverage of issues concerning government, business, industry and international relations. The extended version will appear on the website of World Investment News.

The focus of this report will be Egypt’s economical and political reform process and the strengthening ties to France, which is considered to be Egypt’s most important EU partner. Egypt and France have long shared strong political, economic and cultural links. Both countries are key players in the Euro-Mediterranean region in which the Barcelona Process and the Partnership Agreement between the European Union and Egypt will further enhance the economic ties between Egypt and France. Therefore, World Investment News will cover these latest issues, as well as highlight the business opportunities and key companies in the Tourism, Energy, Agriculture, Communications, Transport and Financial industries among others.

Political

Egypt is in the middle of a political reform process. In September the country held its first-ever contested presidential election won by the 25-year incumbent, President Hosni Mubarak. And during the following, month-long legislative elections, won by the ruling National Democratic Party (NDP), campaigning has been more heated and better covered by the press.

However, the evolution towards completing democracy with a more open and pluralist system is still irregular. The good electoral results of the Muslim Brotherhood, whose candidates had to run as independents, will question the government’s decision on denying it legal status.

Economical

In recent years Egypt’s pace of economic reform has changed for better. The government is listening to and addressing the concerns of the business community.

The re-launching of privatization and cuts in customs tariffs and tax have helped stir economic activity. Inflation is down to below 4%, growth in gross domestic product has risen to about 5%, foreign direct investment in non energy sectors has tripled to $1.2bn and the stock exchange has been among the world’s best performers this year.

The ongoing reform in the banking sector is vital if Egypt’s economy is to achieve the growth needed in order to realize President Mubarak’s promise of creating 4.5 million jobs during his fifth six-year term. The population explosion is of concern for the stability of a country, in already-heavily populated Egypt, and where the unemployment rate is between 10 and 20 per cent.

International

On the 10th anniversary of the Barcelona Declaration, there is no doubt that Egypt – strategically located and a leading country among the Arab nations – is a key player in the Euro-Mediterranean region in which the Barcelona Process is set to implement an ambitious agenda for political cooperation, economic development and harmonization.

Egypt and the EU signed an important Association Agreement in the year 2001 which came into force last year. Based on Barcelona and the Association Agreement, a joint Action Plan is now being negotiated under the European Neighbourhood Policy.

Business Opportunities

Main sectors: Tourism, Energy, Agriculture, Transport and Infrastructure, ICT, and Financial.
Other interesting sectors: Industry (especially the sub-sectors Textiles and Food Processing) and Construction.

Company Profiles and Interviews by sector
Government
Interview with Zoheir Garranah, Minister of Tourism ...read more!	Interview with Hany Helal, Minister of Higher Education and Scientific Research ...read more!
Ambassadors to Egypt
Interview with S.E. Víctor R. Carazo, Ambassador of Venezuela to Egypt ...read more! (In Spanish)	Interview with Dr. Klaus Ebermann, Ambassador of the Delegation of the European Commission ...read more!
Business Resources
Read our company profile about Cairo International Conference Center (CICC) ...read more!
Tourism & Business
Read our company profile about San Giovanni Group ...read more!