Industry & Retail
From The Report: Egypt 2019
View in Online Reader

With a long-established presence of large-scale manufacturing capacity and a rapidly expanding domestic market, Egypt’s industrial sector will remain critical for job creation and regional development. Government strategies to expand production capacity into Upper Egypt are expected to improve employment options, and investment into road and railway links will also be critical to ensure that this manufacturing capacity can be developed with a close connection with logistics networks. Moreover, with a population of nearly 100m, expanding by roughly 2m every year, Egypt remains a sizable market for retailers and fast-moving consumer goods manufacturers. However, economic instability and the devaluation of the pound have brought new challenges and a need for the sector to adapt to remain competitive. Modern retail areas are nevertheless expanding, and customers are increasingly interested in interacting with retailers through new technologies, bringing new opportunities for the sector to expand in order to cater to changing consumer trends. This chapter contains an interview with Tawfeek Laham, CEO, Middle East Glass.

Articles from this Chapter

Overview

Manufacturing drive: Within a challenging economic environment, the industrial sector continues its comeback
OBG
plus

With a long-established presence of large-scale manufacturing capacity and a rapidly expanding domestic market, the industrial sector has long been a fundamental component of Egypt’s economy. With the combined potential of a population of nearly 100m and a central location between Africa, Europe and Asia that makes it well situated to service international export markets, the industrial sector has built a reputable manufacturing track record across an array of different segments. Foreign…

Analysis

Room to build: Industrial zones attract new manufacturing capacity
OBG
plus

The government is focusing on the development of new industrial zones in order to attract foreign direct investment (FDI), create new employment opportunities and increase the sector’s value, which was estimated at 27.8% of GDP in 2018. International Cooperation In May 2018 the government signed a 50-year deal with Russian authorities to establish a 5.25m-sq-metre industrial zone in Port Suez, within the Suez Canal Economic Zone (SCEZ). The location was chosen as part of the government’s…

Analysis

Smooth road ahead: The automotive segment moves in the right direction, with promising growth in sales and plans for expansion
OBG
plus

Egypt is expanding its automotive industry, following a series of new developments aimed at boosting domestic production capacity. The most recent development came in January 2019 when German manufacturer Mercedes-Benz announced it was planning to open a vehicle assembly plant in the country, which will be constructed by a local business partner. This announcement follows the launch of the first assembly line for the Kia Sorento sport utility vehicle in December 2018, as part of a five-year,…

Analysis

From field to factory: Agro-industrial producers navigate economic challenges affecting domestic consumption and exports
OBG
plus

With fertile agricultural land and a large pool of human resources, Egypt’s competitive advantages for agro-industry have enabled the expansion of one of the country’s most important segments. Its large population has made Egypt an attractive market for both domestic and foreign agro-industrial producers. Despite this, the segment has lagged behind in reaching its full potential due to volatile economic conditions and insufficient distribution networks. Domestic consumption of food products…

Interview

Competitive base: Tawfeek Laham, CEO, Middle East Glass, on strengthening local manufacturers and encouraging exports to Africa
OBG
plus

Interview:Tawfeek Laham How are Egyptian manufacturers taking advantage of trade agreements to export to Africa? TAWFEEK LAHAM: Egypt is in many ways a very competitive base to export from. It was expected that the manufacturing sector would benefit from the currency floatation in 2016 because of the increased competitiveness of products when priced in foreign currencies. This was true to some extent: in addition to increasing clarity for businesses that no longer had to deal with multiple…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution – Egypt
OBG
plus

The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are presenting emerging markets with opportunities such as improved productivity, as well as risks, namely reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as the Gulf states, that have the resources to invest in new technologies, and those with better established manufacturing sectors, such as countries in Southeast Asia, appear best placed to reap the benefits of the 4IR. Many…

Overview

Spending power: Despite threats to consumer spending, the sector continues to expand and adapt to changing retail trends
OBG
plus

With a population of nearly 100m, expanding by roughly 2m every year, Egypt remains a sizeable market for retailers and fast-moving consumer goods manufacturers. This has sustained a number of large domestic producers and attracted global heavyweights to the market. However, economic instability and the devaluation of the pound has brought new challenges and a need for the sector to adapt to remain competitive. Modern retail areas are nevertheless expanding, and customers are increasingly…

Overview

E-commerce evolution: Online shopping is set to keep growing in emerging markets, despite some cultural and logistical challenges
OBG
plus

E-commerce is now well established in developed markets, where the majority of adults make at least occasional purchases online. However, levels of activity on the whole remain relatively low in emerging countries, as these markets are restrained by a wide range of challenges, among them less-developed financial and logistical infrastructure. Nevertheless, online sales are growing in many developing economies, with local governments deploying different measures aimed at boosting activity. Several notable regional players are emerging in these largely untapped markets, in some cases backed by partnerships with major international e-commerce…

Overview

E-commerce evolution: Online shopping is set to keep growing in emerging markets, despite some cultural and logistical challenges
OBG
plus

E-commerce is now well established in developed markets, where the majority of adults make at least occasional purchases online. However, levels of activity on the whole remain relatively low in emerging countries, as these markets are restrained by a wide range of challenges, among them less-developed financial and logistical infrastructure. Nevertheless, online sales are growing in many developing economies, with local governments deploying different measures aimed at boosting activity. Several notable regional players are emerging in these largely untapped markets, in some cases backed by partnerships with major international e-commerce…