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    Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Egypt’s food industries contribute 24.5% of GDP

    Egypt’s food industries contribute 24.5% of GDP

    $36mln contract for construction of Duqm fisheries complex

    $36mln contract for construction of Duqm fisheries complex

    Ministry signs agreement to support Oman’s honey industry

    Ministry signs agreement to support Oman’s honey industry

    Local, Italian companies partner up to establish food retail chain in Egypt

    Local, Italian companies partner up to establish food retail chain in Egypt

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      Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

      Egypt’s food industries contribute 24.5% of GDP

      Egypt’s food industries contribute 24.5% of GDP

      Profits at top Saudi banks jump 17.6% in Q1

      Profits at top Saudi banks jump 17.6% in Q1

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      New study reveals that UAE is most competitive economy in the Arab world

      New study reveals that UAE is most competitive economy in the Arab world

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      • CES 2017
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      Oman Construction Equipment Industry to 2028

      Oman Construction Equipment Industry to 2028

      $36mln contract for construction of Duqm fisheries complex

      $36mln contract for construction of Duqm fisheries complex

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      Madayn working on major Oman industrial city projects

      Madayn working on major Oman industrial city projects

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Iraq set to award new Faw Port deals

      Iraq set to award new Faw Port deals

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        Suez Canal expects US$3.5 billion in revenues in H1

        Suez Canal expects US$3.5 billion in revenues in H1

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Investments in renewables in Egypt reach LE6 bn: Official

        Investments in renewables in Egypt reach LE6 bn: Official

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        JGC lands $3.7bn Iraq refinery upgradation project deal

        JGC lands $3.7bn Iraq refinery upgradation project deal

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        • Hospitality

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

          Qatar’s hospitality sector peaks despite turbulent 2020

          Qatar’s hospitality sector peaks despite turbulent 2020

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Staycations to stimulate Qatar’s hospitality sector

          Staycations to stimulate Qatar’s hospitality sector

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        • Agrofood
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          • Agriculture
          • Environment
          • Food

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Egypt’s food industries contribute 24.5% of GDP

          Egypt’s food industries contribute 24.5% of GDP

          $36mln contract for construction of Duqm fisheries complex

          $36mln contract for construction of Duqm fisheries complex

          Ministry signs agreement to support Oman’s honey industry

          Ministry signs agreement to support Oman’s honey industry

          Local, Italian companies partner up to establish food retail chain in Egypt

          Local, Italian companies partner up to establish food retail chain in Egypt

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics

            Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

            Egypt’s food industries contribute 24.5% of GDP

            Egypt’s food industries contribute 24.5% of GDP

            Profits at top Saudi banks jump 17.6% in Q1

            Profits at top Saudi banks jump 17.6% in Q1

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            New study reveals that UAE is most competitive economy in the Arab world

            New study reveals that UAE is most competitive economy in the Arab world

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman Construction Equipment Industry to 2028

            Oman Construction Equipment Industry to 2028

            $36mln contract for construction of Duqm fisheries complex

            $36mln contract for construction of Duqm fisheries complex

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            Madayn working on major Oman industrial city projects

            Madayn working on major Oman industrial city projects

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Iraq set to award new Faw Port deals

            Iraq set to award new Faw Port deals

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              Suez Canal expects US$3.5 billion in revenues in H1

              Suez Canal expects US$3.5 billion in revenues in H1

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Investments in renewables in Egypt reach LE6 bn: Official

              Investments in renewables in Egypt reach LE6 bn: Official

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              JGC lands $3.7bn Iraq refinery upgradation project deal

              JGC lands $3.7bn Iraq refinery upgradation project deal

              Trending Tags

              • Hospitality

                Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

                Qatar’s hospitality sector peaks despite turbulent 2020

                Qatar’s hospitality sector peaks despite turbulent 2020

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Staycations to stimulate Qatar’s hospitality sector

                Staycations to stimulate Qatar’s hospitality sector

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              Egypt on the road to macroeconomic stability

              Euromonitor International

              July 25, 2017
              in Economy, Infrastructure
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              Euromonitor International’s Egypt Economy, Finance and Trade Country Briefing focuses on one of the Arab world’s largest and most populous economies that was harshly hit by the political upheaval experienced between 2011 and 2013. The political crisis left Egypt with very low levels of foreign exchange reserves, a soaring currency black market, very high levels of youth unemployment and a weak fiscal position. However, through subsidy reforms (that started since 2014) and higher infrastructure investment, Egypt is on the right path of recovery. Nonetheless, this is just the beginning; long-term steadfast reforms are needed, in order to restore macroeconomic stability.

              The government has been implementing various reforms in order to increase foreign investment, stimulate economic growth and improve its fiscal stance:

              •    In 2015, Egypt posted the highest annual real GDP growth of 4.5% since 2010, driven by robust growth in the manufacturing and construction sectors, continuous financial support from the Gulf nations, and a surge in foreign direct investment (FDI) inflows and domestic demand. The economic outlook remains positive, as annual output growth is expected to accelerate to 4.8% in 2016, mainly owing to the opening of the new Suez Canal in August 2015 and the discovery of the Zohr gas field in 2015, coupled with continuous inflows of international aid packages;
              •    In February 2015, to wipe out the foreign currency black market, the Central Bank of Egypt (CBE) imposed restrictions on bank deposits in the US dollar to a maximum of US$10,000 per day and US$50,000 per month. In January 2016, the daily limit was removed and the monthly limit was increased to US$250,000. Furthermore, in March 2016, these limits were ended for those involved in importing essential goods, such as medicines, however, the restrictions are still applicable for other imports;
              •    The decline in tourism and exports weakened the EGP by 7.7% against the US dollar in 2015. Furthermore, in March 2016, the CBE devalued the EGP by 13.0%, in a bid to adopt a more flexible exchange rate regime;
              •    Various pro-business reforms have been imposed under the new government since 2014, including a reduction in income tax rates on individuals and companies, for instance, the corporate income tax rate was slashed from 25.0% to 22.5% in 2015. This along with an acceleration in economic growth increased FDI inflows by 45.7% year-on-year in real terms in 2015;
              •    Egypt’s general government net budget deficit deteriorated from 8.2% of GDP in 2010 to 13.3% in 2015, owing to the political upheaval since 2011 that resulted in the government adopting expansionary policies, coupled with increased spending on defense to strengthen internal security. However, the widening of the deficit would have been worse if not for the financial assistance from the Gulf States. Substantial further cuts in fuel subsidies, lower oil prices, and continued international financial assistance should help improve public finances in the future.

              Infrastructure investment and subsidy cuts will create more jobs and reduce the budget deficit

              After four prolonged years of political turmoil and sluggish economic growth, Egypt has set itself on a new path of reforms. The government has continued to embark upon fuel subsidy reforms since July 2014 that has helped slightly bring down its high budget deficit. Furthermore, in its 2016 budget, the government announced cuts in the total subsidy bill by 14.0% in the 2016/2017 fiscal year, mainly by reducing subsidies on petroleum products by approximately 43.0%. Through deeper cuts in fuel subsidies, the Egyptian government should be able to reallocate more resources to the poorer populace and towards labor-intensive activities, such as, infrastructure. The expansion of the Suez Canal project unveiled in August 2015 is expected to substantially increase current annual revenues and create a large number of new job opportunities.

              According to trade sources, the government plans to invest US$2.3 billion, during 2015-2020, on building large malls and superstores that is estimated to create 40,000 new jobs. In March 2015, the government announced a mega-project to build a New Cairo Capital, worth US$45.0 billion. However, Egypt has just begun its journey of reforms; continued steadfast reforms if implemented resolutely, should help sustain long-term economic stability, spur job growth, restore public finances and boost investment.
              Euromonitor International
              25 July

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