December 06 , 2011 OECD Headquarters in Paris, France Mona Zobaa
12
OECD Special Event on “Policy Options for Reviving Investment in the MENA Region: Protection, Promotion and Risk Mitigation” of the MENA-OECD Investment Programme December 06 , 2011 OECD Headquarters in Paris, France Mona Zobaa Undersecretary / Head of Investment Policy Department Ministry of Investment Egypt, Cairo
description
OECD S pecial Event on “Policy Options for Reviving Investment in the MENA Region: Protection, Promotion and Risk Mitigation” of the MENA-OECD Investment Programme . December 06 , 2011 OECD Headquarters in Paris, France Mona Zobaa Undersecretary / Head of Investment Policy Department - PowerPoint PPT Presentation
Transcript of December 06 , 2011 OECD Headquarters in Paris, France Mona Zobaa
OECD Special Event on “Policy Options for Reviving Investment in the MENA Region: Protection, Promotion and Risk Mitigation” of the MENA-
OECD Investment Programme
December 06 , 2011OECD Headquarters in Paris, France
Mona ZobaaUndersecretary / Head of Investment Policy DepartmentMinistry of InvestmentEgypt, Cairo
2
Recent Developments in the Egyptian Economy
Foreign Direct Investments in Egypt
Contents
Recent Developments in the Egyptian Economy
3
4
Recent Developments in the Egyptian Economy
Source: MOP
2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011012345678
4.6 %
6.9 %7.1 %
7.2 %
4.7 %5.1 %
1.8 %
GDP Growth Rate
GDP Growth Rate
GDP Quarterly Growth Rates
6.77.7 7.4
6.75.7
4.1 4.3 4.5 4.6 55.6 5.4 5.5 5.6
-4.2
0.4
-6
-4
-2
0
2
4
6
8
10
July
-Sep
t 07/
08
Oct
-Dec
07/
08
Jan-
Mar
07/
08
Apr-
Jun
07/0
8
July
-Sep
t 08/
09
Oct
-Dec
08/
09
Jan-
Mar
08/
09
Apr-
Jun
08/0
9
July
-Sep
t 09/
10
Oct
-Dec
09/
10
Jan-
Mar
09/
10
Apr-
Jun
09/1
0
July
Sep
t. 10
/11
Sep.
-Dec
. 10/
11
Jan
- Mar
. 201
1
Apr-
July
201
0/20
11
5Source: MOP
15.92.4
9.0
12.59.310.2
5.712.5
8.42.3 11.8
Sectors Contribution in GDP growth in 2009/2010
Manufacturing Extractive industry Agriculture ConstructionTourism C.I.TTransportation Wholesale & RetalFinancal Services & Insurance Real Estate activitiesOthers
Sectoral Growth Rates
11.4
1.3
14.6
5.5
3.2 3.7
5.9
13.212 12
6.8
3.55.3
0.9
6.1
3.7
-5.9
6.5
22.7
0.61.6
6.1
-0.9
-10
-5
0
5
10
15
20
Construction Tourism C.I.T Transportation Agriculture Manufacturing ExtractingIndustries
Wholesale &Retail
%
2008/2009 2009/2010 2010/2011
-7.44.3
18.1
9.9
-12.8
14.34.48.7
11.4
4.7
44.4
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% Sector Contribution in GDP Growth in 2010/2011Others (Public utilities-Suez canal-Gov. services-Social Services)
Real Estate activities
Financal Services & Insurance
Wholesale & Retal
Transportation
C.I.T
Tourism
Construction
Agriculture
Extractive industry
Manufacturing
Recent Developments in the Egyptian Economy
6
Total Investment / GDP *
Recent Developments in the Egyptian Economy
Source: MOP
EGP billion %
7996.4
115.7
155.3
200.5200
235.3
56.3 64.147
63
229
17.419
19.921.9 22.3 19.2 19.5
15.5
18.8
1517
16.7
0
5
10
15
20
25
0
50
100
150
200
250
Total Investment % of GDP
-2.7%
33.6 3746.4
66.3
97.3
129
95.4
127
39.1 44.2
27.935.4
144.7
34.542 50 49.4
5870.4
101.6 105
17.2 19.8 16.527.6
84.3
0
20
40
60
80
100
120
140
160
EGP
billi
on
Public & Private Investment
Private Investment Public Investment
7
Engagement of the Private Sector
Source: MOP
Private Investment / Total Investment
49.3% 46.8% 48.1%
57.3%62.7% 64.7%
48.4%54.7%
69.4% 69.1%62.8%
49.3%
63.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2002
/2003
2003
/2004
2004
/2005
2005
/2006
2006
/2007
2007
/2008
2008
/2009
2009
/2010
2010
/2011
Q1
2010
/2011
Q2
2010
/2011
Q3
2010
/2011
Q4
2010
/2011
Private Investment / GDP
8.6 8.19.2
11.4
13.1
15.1
9.611 11
0
2
4
6
8
10
12
14
16
Recent Developments in the Egyptian Economy
32 32 34 37 4666
97129
95.5 127
39.1 4427.9 35.4
144.7
3.4 3.2 3.2 4.1 4.66.9 7.1 7.2
4.7 5.1 5.5 5.6
-4.2
0.41.8
-6-4-202468
020406080
100120140160
%EGP billion Private Investment & Economic Growth
Private Investment Real Economic Growth
8
532 56
129
3 331 38
230
643
338
739
7 452
376
304
504
430 50
5 540
685
576
744
542
701 78
355
3 632 70
260
3 683
660
676
613 66
368
355
455
142
0 466
585
429 47
9 503
594
514 57
4 624
584
505
484
608
568
690
623
613
740
531
690
636
617
534
436
578
530
550
567
261
462
420
608 64
757
047
7 550
683
0
100
200
300
400
500
600
700
800
900
Avg 2
005-2
008
Avg 2
009
Jan-0
6Fe
b-06
Mar-
06Ap
r-06
May-
06Ju
n-06
Jul-0
6Au
g-06
Sep-0
6O
ct-06
Nov-
06De
c-06
Jan-0
7Fe
b-07
Mar-
07Ap
r-07
May-
07Ju
n-07
Jul-0
7Au
g-07
Sep-0
7O
ct-07
Nov-
07De
c-07
Jan-0
8Fe
b-08
Mar-
08Ap
r-08
May-
08Ju
n-08
Jul-0
8Au
g-08
Sep-0
8O
ct-08
Nov-
08De
c-08
Jan-0
9Fe
b-09
Mar-
09Ap
r-09
May-
09Ju
n-09
Jul-0
9Au
g-09
Sep-0
9O
ct-09
Nov-
09De
c-09
Jan-1
0Fe
b-10
Mar-
10Ap
r-10
May-
10Ju
n-10
Jul-1
0Au
g-10
Sep-1
0O
ct-10
Nov-
10De
c-10
Jan-1
1Fe
b-11
Mar-
11Ap
r-11
May-
11Ju
n-11
Jul-1
1Au
g-11
Sep-1
1O
ct-11
Monthly No. of Companies establishment
Source: GAFI
Egypt completely eliminated the minimum capital requirements for limited liability companies.
Between FY 2004/05 and FY 2010/2011 the number of newly established companies stood at 43,934 ; which constitutes around 56% of all establishments created since 1970.
Recent Developments in the Egyptian Economy
1779311286
36903
23127
1526119152
13467
2120 753 606 7650
40008000
1200016000200002400028000320003600040000
2004
/2005
2005
/2006
2006
/2007
2007
/2008
2008
/2009
2009
/2010
2010
/2011
Jul-1
1
Aug-11
Sep-11
Oct-11
EGP million
• July 2009/2010 = 1325.80 EGP Million• August 2009/2010 =1160 EGP Million• October 2009/2010= 2309 EGP Million
9
Issued capital of established companies2004/2005 - Oct. 2011/2012
Source: GAFI
Recent Developments in the Egyptian Economy
10
2004/2005 % 2005/2006 % 2006/2007 % 2007/2008 % 2008/2009 % 2009/2010 % 2010/2011 % July-Sep.2011/2012 %
Egyptians 14043.31 79% 8033.68 71% 23236.61 63% 15301.32 66% 11238.69 74% 16785.96 88% 10963.85 81% 2775.45 79.8
Arab 2445.5 14% 1350.18 12% 11921.82 32% 5371.1 23% 1444.43 9% 1116.68 6% 1391.12 10% 622.69 17.9
Foreign 1304.31 7% 1902.23 17% 1745.13 5% 2454.53 11% 2578.41 17% 1249.58 7% 1112.33 8% 81.32 2.3
Total 17793.12 100% 11286.09 100% 36903.56 100% 23126.95 100% 15261.53 100% 19152.22 100% 13467.3 100% 3479.46 100%
79%71%
63% 66%74%
88%81%
14%
12% 32% 23% 9%
6%10%
7%17%
5%11%
17%7% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011
foreign
Arab
Egyptians
Foreign contribution in Issued capital of established companies2004 / 2005 – 2011 /2012
Recent Developments in the Egyptian Economy
11
Foreign Direct Investments in Egypt
FDI Breakdown
65.1
30 27.3 31.1
66.753.1
23.7
54.847.3
48.5
28.439.8
102.0
10.7 14.836
17.43.7 2.6
1.0
-9.0
0.5 0.4 0.3 3 1.2 4.56.0
-20%
0%
20%
40%
60%
80%
100%
2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011
Oil GF.& EXP. Sales of Assets Real Estate
2.1
3.9
6.1
11.1
13.2
8.16.8
2.2
0
2
4
6
8
10
12
14
2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011
- 38.6%
12
54%
80%
19%
-16.5%
.
.
Foreign direct Investment
Source: CBE
0.5
4.45.7
8.5 8.1
4.33.1
0.90123456789
FDI / GDP
UK45%
USA19%
Belgium8%UAE
4%
Germany3%
Italy3%
France2%
KSA2%
Qatar2%
Switzerland2%
Others10%
Top 10 Countries Investing in Egypt 2010/2011
-67.6%
Recent Investments in Egypt
