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Real Estate

About Real Estate:
Egypt has maintained a positive economic backdrop despite the effects of the Covid-19 pandemic and this will remain supportive of its real estate industry with demand for commercial real estate assets expected to remain stable to a little stronger during 2021. An improving regulatory background combined with the government's ongoing development programmes will also encourage some growth in investor appetite for the limited amount of investment-grade commercial property that is currently available across the country. Overall, the supply of commercial real estate will increase but at a pace that will encourage mild rental growth across all three sub-sectors during 2021.​The expect demand for real estate across Egypt to continue to improve in Q221, supported by a combination of an upbeat economic backdrop and the continued development of the country's new cities; the New Administrative Capital, New Alamein City and New Mansoura City. While there domestic consumption will be a little constrained and domestic and international tourism will take some time to return to pre-2020 levels, we hold a positive outlook for real GDP growth in the country and maintain our forecast for an expansion of 3.2% in the year 2020/21 (ending June 2021). ​​Cairo continues to be the main focus of commercial real estate investment activity, supported by a good appetite for new opportunities as they arise, particularly investment-grade office and retail real estate. Meanwhile, a strong tourism sector boosts demand for retail facilities in Giza, with demand set to improve in 2021 following the weak level of activity in 2020. Alexandria remains popular for industrial real estate and developments due to its industrial trade links with the Suez canal and the rich oil and gas pipelines that run through the city. Warehouse demand is steady to growing in the city here, and with exports poised to maintain strong growth in the medium term, we believe that there will continue to be good demand for industrial assets in Alexandria.​While Egypt is expected to be one of the stronger performers in terms of real GDP growth levels in 2021, we expect consumption will be a little constrained as the effects of the pandemic take time to fade. This will help encourage demand across the three subsectors and rental rates are forecast to experience a determined recovery in Cairo, Giza and Alexandria and follow an upward trajectory over the medium-to-long term, supported by a growing population and improving economy.​​Egypt's industrial real estate market activity continues to be focused heavily on the industrial hubs close to Alexandria and Cairo. The industrial property rental rates expecting to rise in Alexandria in 2021 and also in Cairo and Giza, as conditions remain favourable for landlords, partly due to increased demand for warehouse and logistics premises to support growth in the country's online retail market along with ambitions to become a central hub in Africa. As such, Cairo will benefit from the a new logistics village by Cairo International Airport that should bring in new demand to the market, although an increase in vacancies will limit growth in rental rates in the near term.​​

Communication and Information Technology

Communication and Information Technology: ​
The world has witnessed a true revolution in the field of communications and information technology, and any country that aspires to accomplish a sustainable development can no longer realize this without considering the communications sector as one of its basic pillars. The Ministry of Communications and Information Technology (MCIT) seeks to develop this vital sector in order to develop the national information and communications technology sector. MCIT seeks to develop this sector, and strives to achieve the digital economy through the use of ICT tools, in addition to developing a competitive and creative national ICT industry. MCIT has achieved a great progress in the process of implementing the Digital Egypt Strategy, through which MCIT aims to adopt the latest global technology and support innovative thinking to create an integrated digital society. The latter will enhance the development of the Egyptian human being, the progression of the State's sectors, and strengthening Egypt's position on the map of the communications and information technology industry.

Mining

Mineral wealth:
Mineral wealth:Egypt posses' abundance of minerals, which vary in type, quantity and distribution locations. Mineral wealth in Egypt is classified into five basic categories: Solid-state ores: It has a number of types, the most important ones, Carbonic materials such as coal, which are found in the rocks above the composition of phosphate in the governorates of the Red Sea and the New Valley. Radioactive materials: Such as uranium, which is found in the rocks of the Eastern Desert and Sinai and is used in the production of nuclear energy. Metallic materials: It includes three types of metals, iron ore, non-ferrous materials and precious metals. Iron ore: Such as iron, which is one of the most important mineral wealth, which is famous in Egypt and is the basis of heavy industries, which issued in the car industry, trains and construction. There are also many non-ferrous materials such as copper and precious metals such as silver, platinum, gold, non-metallic materials and finally the raw materials of chemical industries and fertilizers and all these minerals are available in large quantities and are exploited in production and export. Construction Materials: Such as Granite, marble, white sand and limestone.
The Eastern Desert: It extends from the Nile Valley in the west to the R​ed Sea, Suez Gulf, and Suez Canal in the East, and from Lake Manzala on the Mediterranean in the North of Egypt's southern borders with Sudan in the south. The Eastern Desert is marked with the Eastern Mountains that extend along the Red Sea with peaks that rise to about 3000 feet above sea level. This desert is rich with natural resources including various ores such as gold, coal, oil. The Sinai Peninsula: Sinai is shaped like a triangle with its base at the Mediterranean in the North and its tip in the South at Ras Mohammed, the Gulf of Aqaba to the East and the Gulf of Suez and Suez Canal to the West.
It is topographically divided into three main sections:- The Southern section is an extremely tough terrain. It is composed of high-rise Granite Mountains.- Mount Catherine rises about 2640 meters above sea level, a matter that makes it the highest mountaintop in Egypt.
- The Central Section is bounded by the Mediterranean to the North and the Al-Teeh plateau to the south. It is a plain area with abundant water resources derived from rain water that flows from southern heights to the central plateau.

Health Care

Egypt is the largest country in North Africa and the Middle East, with a population of 101 million people, making it the 14th most populous country on the planet, accounting for 1.3 percent of the global population.
The population, which is expanding at a rate of 1.8 percent per year, will continue to drive demand for infrastructure and services, especially healthcare, affecting the changing urban landscape.
Two main government bodies are governing this sector: The Ministry of Health (MoH)The Health Insurance Organization (HIO).
While services are being provided by two main Sectors: The Government, (Public Sector).The Private Sector.
The Egyptian HealthCare system has recently seen a number of modifications in order to ensure the Egyptian people's health and well-being. Not to mention the difficulties that the industry has faced since the inception of COVID-19.Because of the following, the healthcare sector was able to limit COVID-19 losses: Manufacturing industry with a long history that includes both state-owned and private local businesses.
Low labor expenses, as well as a big pool of highly skilled doctors, pharmacists, engineers, and technicians.
An growth in the number of free trade agreements and governmental determination to expand the healthcare industry.
Exceptionally favorable demographics. Initiatives in Egypt that promote public health, with a focus on the gradual implementation of a complete healthcare insurance system. Proposals for a new Egyptian Drug Authority and bio-similar registration are heralding regulatory system changes. The 'New Investment Law' improves the operating environment for foreign investors.
The Egyptian Minister of Health and Population devised a strategy to combat the coronavirus, which is organized into main areas: To provide safe health-care service outlets. This point includes 320 public and central hospitals in Egypt, as well as hospitals dedicated to fevers and chest disorders. In addition, the hospitals' workload abilities for chronic disease management and PCR lab analysis would be increased. Establishing a sufficient medical supply and medicine reserve. The presence of medical personnel inside a country's major airports to aid in the PCR test process for visitors arriving from other countries. Production and distribution of vaccines, which will be managed by the Egyptian Holding Company for Biological Products and Vaccines (VACSERA) in collaboration with a Chinese vaccine company.
A quarantine specialized hospital (QSH) is assigned for Covid 19 cases in each governorate (27 in total)Along with the following: Self-sterilizing ambulances dispatched to transport infected patients to QSHs.About 1k frontline healthcare workers will receive life insurance under policies worth EGP 2.5 mn.
The policies are being bought by the Federation of Egyptian Industries. The Health Ministry will help determine who is eligible for coverage under the policies. The policies are intended for staff who work directly with covid-19 patients.
[i][i] https://aegypten.ahk.de/en/corona-virus-in-egypt

Financial and insurance services

The financial sector include banking and non-banking financial sectors, which includes capital market, insurance, mortgage finance, micro finance, financial leasing, and factoring. ​
·Capital markets:Capital markets are considered a reflection of the overall national economy's performance. They also represent a significant tool for pricing financial assets and determining the impact of the development of economy on those assets. Capital markets are an efficient mean in directing savings to investment channels. The more efficient this function is in terms of availability of offerings that address various investors' needs and their timely issuance, the best allocation of resources is accomplished.
·Insurance:- Insurance sector is one of the most important non-banking financial activities, as it supports and maintains its stability for playing a vital role in supporting the Egyptian economy and developing national investments. It provides financial protection for individuals and projects against various risks. It is also a major channel for collecting national savings and using these savings in financing national investments and development plans, creating new job opportunity and reducing inflation. In addition, optional pension funds provide supplementary pension to the participants.- In spite of challenges faced by the Egyptian economy in the last three years, the Egyptian insurance market has achieved remarkable success in providing insurance coverage, this reflects the fast response of the insurance market to the new requirements and that it is keeping pace with new events and developing many existing coverage.
-FRA has made significant progress in achieving an effective supervision through applying international norms and standards.· Mortgage finance:-Real estate investment sector in Egypt is one of the most important sectors affecting the Egyptian economy. Real estate activity affects and is linked to many services and financial instruments such as mortgage finance, leasing, securitization and registration of real estate companies in the stock market as well as real estate investment funds.
-The laws regulating the real estate market are of paramount importance because they constitute the legal framework regulating the market. The most important law that regulate the real estate market is Mortgage Finance Law No. 148 of 2001 and it's Executive Regulations, which have been amended by ministerial decree No. (465) of 2005 that added many facilitations to the dealers in the market regarding all that is related to ways of proving investor's income, identifying beneficiaries of mortgage finance fund, standards for the accreditation of brokers and valuation experts. The purpose from activating mortgage finance law is not only putting an end for the recession and providing housing units but the main purpose in the first place is maintaining a process of correction and rebalancing of development process.
·Micro-Finance:- Micro-finance is offering finance for economic productivity, service, and commercial purposes with the value set by FRA's Board of Directors. Microfinance is encouraging the contribution of low-income groups in the economy. In this respect, granting different means of finance for individuals and owners of micro-enterprises will reduce unemployment and will improve the incomes of the poorest families. Besides, it will increase investments and contribute in the national economy.
-On 13th November, Presidential Decree no.141 of 2014 on regulating microfinance activity was published in the Egyptian Gazette (issue no. 46). Then, the Authority begins to prepare related executive decisions and rules necessary to regulate the activity and determine licensing requirements for the companies and NGOs.
Financial leasing:- Financial leasing is one of the finance tools that plays a substantial role in financing investments, especially those related to small and medium industries planning to purchase equipment, machinery and related inputs for industrial activities. Financing such needs is spread over several years to cut down startup costs.-Under the leasing agreement, the right to use a specific asset owned by the lessor is transferred to the lessee according to a contract between the two parties, entitling one party (lessee) to use an asset owned by the other party (lessor) for periodic installments to be paid over a specific period of time.
At the end of such period, the lessee may purchase the asset from the lessor.
·Factoring- Factoring is set of integrated services that include querying the potential buyer (debtor) and evaluating his financial and business conditions as well as managing future accounts and collecting outstanding balances on time or speeding up its payment.
-It is a contract between the company and vendor under which the company buys the rights of short-term cash from the seller without returning to him once more that is in case of the debtor bankruptcy. This activity is an international activity if one of the parties deals from abroad.

EDUCATION

​Education Sector:
Education is the most important source of investment in human capital, as this sector aims at providing the largest workforce in the Middle East and North Africa region. Such sector is characterized by multiple investment opportunities, and Egypt has many opportunities that can be achieved to develop the education sector, from private education to partnership between the public and private sectors in various educational stages in addition to corporate training programs. Egypt has an educational system that surpasses all other educational systems in North African countries in terms of the ability to enroll in all stages of education with the support and finance of the State. The Egyptian government is carrying out reforms to improve the education system, especially in rural areas, by strengthening decentralization in the education system, raising the capabilities of local institutions, and implementing programs to develop the skills of cadres working in public and technical education.​The State succeeded in making a real breakthrough in the education system, as it was able to change the evaluation criteria from memorization and indoctrination to understanding, analysis and application through exams that measure the level of comprehension. In addition, the Government handed tablets to more than one and half million (1.5 million) students and teachers during the past three years. The State continues to grant tablets as a gift from the State to its students, to contribute to providing the largest amount of learning resources that help students in understanding the educational outcomes on the various educational platforms​.

Agriculture and Land Reclamation

Agriculture and Land Reclamation:
The agricultural sector is one of the main sectors in the Egyptian economy that employs about 27% of the employees1 in 2023, which is the highest employment share among the economic sectors.
The agricultural area in 2023 reached 9.72 million feddans, while the cropped area will reach 17.5 million feddans3 until 2023.Egypt has placed a special priority on achieving 75% self-sufficiency in wheat during the next ten years.
The government also gives priority to cultivating 1.5 million feddans, which is a huge project, aimed at increasing the area of cultivated land.The government also seeks to dig more than 1500 new wells in the Western Desert to transform the desert into arable land.
The agricultural seasons in Egypt are divided into three seasons: winter, summer, and the “Nili” season. There are also permanent or annual crops whose production season extends to a full agricultural year, such as sugar cane, fruit crops, and timber.
Fish farming:Fish is considered a vital food source in Egypt, as it represents approximately 25.3% of the protein sources consumed by the Egyptian family. Aquaculture is considered the main source of fish production in Egypt.
Fish production in 2023 reached 2 million tons4, recording 85% self-sufficiency, including 1.6 tons from fish farms production and the rest from fishing in the Mediterranean Sea, the Red Sea, and the Nile River and the lakes.
It is found that the fish farm sector provides 816,000 job opportunities (including 150,000 job opportunities in aquaculture value chains and 666,000 in fish farms).Tilapia is the most common type of fish farmed in the country.
Most of the country's fish production is consumed locally at a rate of one fish per capita per week.The area of marine fisheries in Egypt reached about 11 million feddans6 in 2023, in addition to lake fisheries, which include Lakes of Manzala, Burullus, Bardawil, Mariout, Nasser, and others.Aquaculture is currently considered the largest fish production sector in Egypt, representing about 51% of total fish production.
Private farms produced more than 98% of aquaculture production.Poultry production:Poultry is one of the most important industries in the food industry that faces some challenges in terms of the availability of high-quality poultry farms to increase production.
After this industry had lost a large part of its capabilities due to the H5N1 crisis in 2006, it was able to recover from the repercussions of that deadly crisis and return to self-sufficiency, and even export after the 14-year export ban was lifted.
The total volume of commercial poultry production in Egypt is about 1.4 billion birds, while the rural sector produces about 320 million chickens.
Egypt also produces about 14 billion table eggs. The volume of investments in the poultry industry in Egypt is about EGP 100 billion.
Poultry sector in Egypt encompasses about three million workers, as the total number of poultry establishments in Egypt is about 38,000, including farms - feed factories - slaughterhouses - outlets selling veterinary medicines and vaccines.

Pharmaceuticals and Medical Industries

Egypt has many inherent advantages represented in the genius of its strategic location among the countries of the world, the ancient cultural heritage, and the large and growing population, in addition to the fact that the pharmaceutical industry is under development, which provides great opportunities for expansion and foreign investment in addition to local investment.
The pharmaceutical industry is one of the oldest strategic industries in Egypt, as it goes back to 1934 with the establishment of the Misr Pharmaceutical Company (Holdi Pharma), which was considered the first national facility at that time.
Egypt has given great attention to the priority of achieving self-sufficiency in medicine, and has also adopted policies focusing on developing medicines at the various stages of industry, at the level of raw materials used in medical preparations, basic chemicals, manufacturing and packaging, as well as marketing, selling and exporting.
In this report, some key characteristics of the Egyptian pharmaceutical market will be highlighted, in addition to an overview of the key performance indicators, as well as some success stories in the pharmaceutical sector.
[1] Holdi Pharma company

Food Processing

The cultivated area in Egypt reached about 9.4 million acres in 2022, the agricultural crops are the essential input for the manufacturing of agricultural crops which in turn represents the largest sub sector of food processing followed by dairy products , readymade food, mills, oil and fats , natural water and othersThe government will continue investing in land reclamation projects, increasing the area available for agricultural output. however, the government is committed to developing Sinai Peninsula and legalising the status of agricultural farmers and investors in the region.The government has initiated a number of schemes designed to improve food security in the country on both the production and the consumption fronts, in addition to the Multinational majors are investing heavily in the country and in the region, which will improve production facilities.Egypt's sophisticated food processors are creating products and packaging with high quality, competitively priced and attractive to global markets. Several success stories are working in the Egyptian market in the field of food processing such as Nestle, Americana group, tetra pack and others, moreover, food processing sector is one of top export sectors in Egypt.Favourable demographics will support strong levels of food consumption out to 2023 and beyond​​.

Oil and Gas

In fact, Egypt is among the top ten oil producing countries on the African continent for the year 2022. Egypt produces about 650,000 barrels per day, ranks fifth, and has the largest crude oil refining capacity in Africa. With the increase in demand from European markets, Egypt is looking forward to improving exploration, with a particular focus on drilling new wells.
· Egypt possesses a key role in regional and global energy markets. This is most likely attributed to its geographical proximity and strategic location at the crossroad of international trade of oil and gas, in addition to the control of two major transit routes: the Suez Canal and the Suez-Mediterranean Pipeline (SUMED).
·Egypt's power Strategic plan depends on the diversification and expansion of energy resources and rational use of conventional energy resources.
·Oil and Gas is one of the most dynamic industries in Egypt, and hydrocarbon production is by far the largest single industrial activity in the country.
Egypt has significant energy resources, both in traditional fossil fuels and in renewable energy. Egypt's proven hydrocarbon reserves stood at 3.3 billion barrels of oil and 62.8 trillion cubic feet (tcf) of natural gas at the end of 2017.
The Government of Egypt encourages international oil companies (IOC) to participate in the oil and gas sector, and currently more than fifty IOCs are operating in Egypt.
· Egypt plays a vital role in international energy markets through the operations of the two Suez Canal transit points and the Suez-Mediterranean (SUMED) pipeline.
Expanded in 2015, the Suez Canal is an important transit route for oil and liquefied natural gas (LNG) shipments travelling southbound from North Africa and along the Mediterranean Sea to Asia.
Fees collected from the operation of these two transit points are significant sources of revenue for the Egyptian government.
[i] Ministry of Petroleum www.petroleum.gov.eg
[ii] Egypt natural gas EGAS, http://www.egas.com.eg

Tourism

About Tourism
The tourism sector plays an important role in the economic and social development of any country, as it is a source of foreign exchange for the country, and contributes to creating direct and indirect job opportunities, filling the balance of payments deficit, and increasing national income, in addition to its role in stimulating investment and developing new touristic areas. It is considered one of the most important sources of national income, as it is a dynamic sector characterized by high growth rates, and its large contribution to the growth of the GDP, in addition to the expansion of its labor capacity, as its hotel and tourism facilities create many job opportunities, in addition to the distinction of the tourism sector by the spatial spread of its extension Its activities are for uninhabited desert areas.​Egypt is distinguished by its possession of many archaeological and touristic sites, in addition to having a strong infrastructure based on serving the tourism sector in Egypt, including hotel rooms, tourist resorts, and aviation offices, During the current period, the government has taken many important measures and decisions that are in the interest of the tourism and antiquities sector in Egypt. The tourism sector is intertwined with many complementary industries, as it is intertwined with more than 70 productive and service sectors that are based on tourism activity. In the coming period, the government is also targeting markets that are more new in an effort to increase the incoming tourism movement to various Egyptian cities, especially Sharm El Sheikh, Hurghada, and Marsa Alam, and to exploit Egypt's diversity in tourist destinations to increase the number of tourists.

Textiles

About Textiles
The spinning and weaving sector is one of the most important industrial sectors that contributes a prominent role in the Egyptian national economy, given the great comparative advantage that Egypt enjoys in this industry, and its global fame in the high-quality raw material (cotton).The textile and clothing industry is also the second largest industrial sector in Egypt after the food industry, and the textile industry also plays a major role in shaping the Egyptian economy, and the Egyptian textile industry has been directed to be a major supplier of textile raw materials for clothing, home textile manufacturers, and many other uses locally and globally.

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