While Egypt continues to face considerable economic challenges, the outlook is improving on the back of strong private sector activity and government reforms. New revenue enhancements have been put into place, while current spending is being curtailed and a long-awaited legal framework aimed at attracting new investment will soon be rolled out. Financial services, telecoms and industrial firms have benefitted from steady domestic demand, although there are plenty of obstacles to faster growth, including a troubled currency – the flotation of which, while seen as necessary, threatens to drive up inflation.
- Banking: Holding Steady – Egypt’s banks are facing a period of adjustment, both to a new regulatory landscape and an adverse macroeconomic environment, but remain well placed to weather volatility, and are generally in good health.
- Industry: Hungry for More – With a well-connected market of 92m consumers and growing, Egypt is a natural fit for manufacturing industries. The sector spans a diverse offering of activities that range from building materials and textile factories, to food and fast-moving consumer goods.
- Tourism: Back to Black – The tourism industry in Egypt is working to regain its international reputation as a top destination and further develop nontraditional tourism niches, as the government remains determined for the sector to retain its position as a key driver of the economy and critical source of foreign currency.
- Telecoms & IT: Building Connections – As of the end of 2016, Egypt’s telecommunications sector was strongly positioned for future growth. With more than 95m mobile subscriptions, the nation’s three mobile telecoms providers are investing heavily in network expansion, quality of service improvements and new technologies.