Industry & Retail
From The Report: Egypt 2018
View in Online Reader

With a large consumer base, skilled labour force, strategic geographic location and a series of pro-business government efforts to streamline licensing and operations, Egypt’s industrial sector is an attractive proposition. While challenges remain, there are new local and export-focused opportunities for increased investment – particularly with the ongoing construction of a new capital. While economic policies throughout 2017 may have placed a limitation on individual purchasing power in the short term, the expectation that inflation rates will stabilise and investment will increase on the back of business-friendly reforms should see the retail sector maintain a positive growth trajectory in the medium to long term.

This chapter contains an interview with Tarek Kabil, Minister of Industry and Trade.

Articles from this Chapter

Overview

Manufacturing might: Growing export activity and emphasis on local production support the transition into an industrial centre
OBG
plus

With a large consumer base, a skilled labour force, a strategic geographic location for trade, and a series of pro-business government efforts to streamline licensing and operations, there are a number of reasons to recommend Egypt as an industrial centre. While challenges remain, there are new local and export-focused opportunities for increased investment – particularly with the ongoing construction of the new capital – a continued focus on infrastructure development and a government-supported…

Interview

Feeding growth: Tarek Kabil, Minister of Trade and Industry, on expanding the skilled labour pool and facilitating industrial clustering
OBG
plus

Interview:Tarek Kabil What segments do you expect to be the main drivers of growth for the manufacturing sector? TAREK KABIL: The authorities are putting an emphasis on four main manufacturing segments, namely chemicals, textiles, building materials and engineering, putting in place a strategy to deepen local content. There are strong programmes in place, aimed at boosting the feeding activities of the chemical, textiles and engineering segments. The strategy for the building material segment…

Analysis

Shifting focus: Firms switch to local production to keep up with rising demand
OBG
plus

Egypt’s large and growing urban middle class makes it an increasingly attractive market for producers of fast-moving consumer goods (FMCGs), from snacks to cosmetics, to household cleaning supplies. Despite budget constraints stemming from the economic reforms passed in 2017 (see Economy chapter), many companies are taking a longer-term view of the opportunities presented by Egypt as both a large consumer centre and a production hub for export. Short-Term Challenges The November 2016…

Analysis

Cementing gains: Production levels expected to continue growing in the wake of increased demand for infrastructure
OBG
plus

Egypt’s construction sector continues apace, and cement production levels have been largely sustained to support ongoing infrastructure, commercial and residential projects. Despite challenges, the cement industry – the 12th largest in the world in 2016, according to international bank HSBC – is set to maintain this growth trend in the coming years. Moving Forward “The boom in construction in Egypt has helped lead to increased demand for building materials,” Ahmed Hafez, chairman…

Analysis

Added value: Chemicals exports bolstered by petrochemicals and fertilisers
OBG
plus

Since the late 2000s energy production has lagged behind consumption, and a shortage of natural gas has left industrial customers scrambling for solutions. Growth in upstream production failed to keep up with downstream demand, with both oil and gas production falling below historical highs. However, as new upstream discoveries have come on-line since then, Egypt’s growing chemicals industry looks to continue its trajectory in mitigating the demand-supply deficit and boost many opportunities…

Analysis

Sewn up: The textiles industry is experiencing a revival
OBG
plus

With a renewed focus on growing quality cotton crops (see Agriculture chapter), Egypt’s textiles industry is experiencing a revival. The Ministry of Trade and Industry (MTI) points to textiles as one of the industries helping to shift Egypt’s trade balance in 2017, with exports increasing by around 12% and imports declining by 59%. Tarek Kabil, minister of trade and industry, noted that in 2017 the textiles industry contributed 3% to GDP, employed about one-third of the industrial labour…

Overview

Market recovery: Industry players remain optimistic for sector recuperation
OBG
plus

Egyptian retail has come a long way since the days of the winding hustle of the Khan El Khalili market and the tentmaker’s souq. In a September 2017 briefing on the current status of Egypt’s economic reform programme, the IMF listed retail as one of the key sectors driving the 4.2% GDP growth rate during FY 2016/17. In a 2015 report, global management consulting firm AT Kearney forecast a potential doubling of the size of the retail market by 2021. While economic policies throughout…