Content Who We Are Economic Situation Dynamic Economy Foreign Direct Investment in Egypt Asian Investments in Egypt Japanese Investment in Egypt The Way Forward Mega Projects Suez Canal Project North Coast Development Project Golden Triangle Project 2
Who We Are Who are we GAFI is the principal governmental authority concerned with regulating and facilitating and promoting investment and stands ready to assist investors worldwide. Vision Position Egypt as the location of choice for business and innovation Mission Enabling and sustaining Egypt s economic growth through investment promotion, facilitation, efficient business services and advocacy of investor friendly policies. Mandate Promoting Egypt s potential sectors; attracting new investments; Greenfield or Expansions. providing services to investors through the One Stop Shop in addition to supporting and accelerating the development of competitive and strategic clusters. Economic Situation 4
Dynamic Economy Q3 2013/2014 Q3 2012/2013 Gross Domestic Production 2.5% 2.2% June 2014 June 2013 Net International Reserves USD 16.7 billion USD 14.9 billion Q3 2013/2014 2012/2013 Foreign Direct Investment USD 4.7 billion USD 5.2 billion June 2014 June 2013 Inflation 10.7 % 11.5% Q2 2014 Unemployment 13.3 % 5 Foreign Direct Investment Billion USD Total FDI 5.2 4.7 4 2.23 2010-2011 2011-2012 2012-2013 Q3 2013/2014 Source: CBE 6
Foreign Direct Investment (Cont d) Total Asian FDI to Egypt 2008/2009 Q3 2013/2014 India 25% Korea 6% Sales Singapore 7% Japan 31% Country Total FDI Japan 273 China 261.4 India 223.3 Korea 57.3 Taiwan 1% China 30% Singapore 61.7 Taiwan 7.5 Total 884.2 mn $ Source: CBE 7 Foreign Direct Investment (Cont d) Japan FDI in Egypt 2008/2009 Q3 2013 /2014 98.4 44.9 27.4 36.7 52.6 13 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 Q3 2013/2014 Source: CBE 8
Key FDIs (2011-14) 9 The Way Forward Legislative Agenda Unified Investment Law New Labor Law Bankruptcy Law Mining Law Unified Industry Law Unified Company Law Continued Tax Reform Value Added Tax Property Tax Incentive Package; linked to priorities of Egypt s economic development plan (geographical and sectoral) Special attention to Power Sector Feed-in-tariff Power purchase agreement Sovereign guarantee 10
Investment Opportunities 11 Mega Projects (1) Suez Canal Corridor Development project West Port-said Port East Port-Said Port & The Silicon Industrial Zone Valley Technology Valley East of Ismailia El-Areesh Port North West of Suez Bay Industrial Zone Al-Adabeyya Port Al-Sokhna Port 12
Mega Projects (1) Objectives: 1. Developing and boosting the national economy of Egypt by making use of the unique location of the Suez Canal 2. Creating new industrial and logistics centers 3. Generating job opportunities 4. Increase Suez Canal ship traffic Suez Canal Corridor Development project Potential industries within the frame of the project: - Automotive Car Components - Food processing - Electronics - Textile - Ship building and ship maintenance - Distribution and logistics centers - Mining Industries - Pharmaceutical Industries DAR Al-HANDASA (SHAIR & PARTNERS) is the winner consortium for the project master plan 13 Mega Projects (2) Golden Triangle Development Project 14
Mega Projects (2) Golden Triangle Development Project Investment Potential; Infrastructure Projects Roads 1. The Red Sea Coastal Road from Suez in the north to Shalateen in the south 2. Safaga - Qena Road linking the eastern coast to the new Upper Egypt Desert Road 3. Al Kosair - Keft Road Ports 1. Hurghada Port, which is proposed to be used as an international commercial port 2. Safaga Port, which is an international commercial port Airports 1. Hurghada Airport: located 5 km to the southern west of the heart of Hurghada. 2. Marsa Alam: located 60 km from Marsa City to the northern direction in the Red Sea governorate. 3. Luxor Airport: located 6 km to the east of Luxor. 15 Mega Projects (3) 1. North Coast Development Project Examples of Other Projects 2. A 3200 km New Road Network with total investment of LE 18 billion 3. 8000 MW of Renewable Energy (Solar and Wind) with total investment of LE 14.5 billion during the next year (2014/2015) 16
Other Investment opportunities Oil & Gas 3 projects with about USD9bn worth of investments Tourism 6 projects with about EGP 2.8bn worth of investments Transport 18 projects with about USD5bn worth of investments Housing 2 projects with EGP950mn worth of investments Public Enterprises Electricity & Energy 22 projects with USD2bn worth of investments 3projects with about USD3.9bn worth of investments 17 Now; It s time to invest in Egypt 18
Thank you For future inquires, please contact Mahmoud A. ElMahgoub Investor Relations Dept. Asia Region Tel: +202 240 55 452 Ext: 478 Cell: +20100 30 54 326 Fax: +202 240 55 326 Email: mmahgoub@gafinet.org Website: www.gafi.gov.eg 19