Country Profile
From The Report: Egypt 2019
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Egypt gained independence in 1922 with the end of the British protectorate, but it has operated as a presidential republic since the 1952 revolution. President Abdel Fattah El Sisi is the current leader and has served since June 2014, while the current prime minister and head of government in office since June 2018 is Mostafa Madbouly. The country’s economy has struggled since the 2011 revolution and although economic growth has improved since, many challenges remain. A number of significant steps are being taken to improve economic order and stability in the country, such as to improve public finances, reduce the size of the state and to make the investment environment more attractive. Moreover, Egypt has recently oriented its focus towards increasing its investments across Africa and to boost trade with its African partners. The country has relied heavily on the US for aid and support in the past but is now build¬ing a broader network of international partnerships, including with Russia and China, both of which have entered African markets aggressively during the past decade and have continued to strengthen ties with Egypt through investments in several mega-projects. This chapter contains an interview with Abdel Fattah El Sisi, President of Egypt; a viewpoint from Christine Lagarde, Managing Director, IMF; and an interview with Jeffrey Donaldson, UK Trade Envoy to Egypt.

Articles from this Chapter

Overview

Building off the past: Egypt looks to increase its influence in connecting the MENA region with the rest of Africa
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Egypt has long been central to the development of the MENA region. As a major centre of cultural output and political thought, the country continues to be a key influence within the Arab world. While the oil riches of the Gulf have changed the equation somewhat in recent decades, Egypt still remains one of the most significant actors in the wider region. History “From the heights of these pyramids, 40 centuries look down on us,” Napoleon Bonaparte declared during the French campaign…

Interview

Renewed leadership: President Abdel Fattah El Sisi, on growing regional ties, improving trade and bolstering security
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Interview: Abdel Fattah El Sisi What are the government’s priorities for continuing to improve the business environment? ABDEL FATTAH EL SISI: The government is committed to facilitating the work of investors according to the best international standards. The economic reform programme has contributed to realising stability on several levels, positively reflecting the current economic situation. The adoption of fiscal and monetary reform policies has been praised by international institutions.…

Overview

Pushing for policy: Recent political and social changes are preparing the country to take on historical and modern challenges
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In comparison to the years before 2011, Egypt’s post-revolutionary period has been defined by political upheaval and dynamism. The country has adopted a new constitution, moved to a unicameral legislature, had two presidents; Mohamed Morsi, who was appointed in the country’s first free presidential election and departed two years later in 2013, and the current serving president, Abdel Fattah El Sisi. However, as such agitation is beginning to settle, the country is faced with a familiar…

Analysis

Africa bound: Egypt is looking to work with African nations as the continent continues to see significant economic growth
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Since 2000, half of the world’s fastest growing economies have been in Africa, and 21 out of 30 of the world’s fastest-growing cities are now in Africa. Due to an expanding middle class, Africa’s potential has been increasingly attractive for both African and international investors alike, with GDP growth on the continent expected to average 4% in 2019. Egypt has recently oriented its focus towards Africa, and although Egypt’s diplomatic and economic relations with African countries…

Analysis

Modern alliances: Strong and calculated ties are helping the country secure diverse export markets
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Despite the instability that has rocked the MENA region in recent years, the Egyptian government has pursued a consistent diplomatic programme to strengthen ties with major Gulf players and improve border security. While these policies have been successful, the challenges that still face Egypt and the region will take time to disappear. Therefore, while Egypt continues to have strategic and economic ties with the Gulf – a long-time source of expatriate remittances and tourism revenue as…

Viewpoint

Solid structure: Christine Lagarde, Managing Director, IMF, on laying the foundations for strong fiscal management
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Viewpoint:Christine Lagarde Fiscal policy plays a vital role in creating and nurturing sustainable and inclusive growth. This is because we need fiscal space for spending on health, education, social protection and public investment, which are all key priorities in the Arab world. Unfortunately, this region has yet to fully recover from the global financial crisis and other big economic dislocations over the past decade. Fiscal deficits are still high, and public debt has risen sharply. This…

Overview

Business Barometer: Egypt CEO Survey:
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Business leaders in Egypt remain bullish about the country’s economic prospects, with 95% of those interviewed in the OBG Business Barometer: Egypt CEO survey indicating that they have positive or very positive expectations of local business conditions in the coming 12 months. Confidence can be partly attributed to the sustained reform momentum, which is supporting a recovery in some of the country’s main economic indicators. Emboldened by government efforts to enhance and implement safety and security measures, growth in tourism has been highlighted by 28% of CEOs surveyed as the top internal event to have the greatest effect on the economy.…

Interview

Strengthening ties: Jeffrey Donaldson, UK Trade Envoy to Egypt, on UK-Egypt trade relations and building investor confidence
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Interview:Jeffrey Donaldson What impact is Brexit expected to have on trade between the UK and Egypt? JEFFREY DONALDSON: The UK remains open for business; we are the same outward-looking, globally minded, big-thinking country we have always been. In 2016/17 the UK represented 41% of total foreign direct investment (FDI) inflows into Egypt. This decade alone, UK companies have invested $43bn in Egypt and bilateral trade is going from strength to strength. The UK is working closely with the…