Practical Finance & Business Planning R OYA L OVE R SE A S L E AG U E LO ND ON, 1 0 O CTO B E R 20 1 5 Contents • Egypt’s Economic Indicators • EGYPT – UK Trade Figures • Investment Projects in Egypt • The Suez Canal • El Dabaa Nuclear Development & The Qattara Depression • Public Private Partnership Projects (PPP) via the Ministry of Finance Domestic Economy 2012/13 2013/14 2014/15f Real GDP growth (%) 2.2 2.2 2.7 Budget deficit (% of GDP) 13.7 12 10 Headline Inflation (%) Core Inflation Excl. F &E (%) 9.75 7 8.2 8.76 11.49 (a, Aug) 10.07 (a, Aug) Interest Rate (%) 9.76 10.08 9.25 (a, Sept) Unemployment (%) 12.7 13.2 12.3a (a, May) Exports (US $m) 25.072 24.214 31.478 Imports (US $m) 59.211 57.513 63.264 Balance of Trade (US $m) -34.139 -33.299 -31.786 Gov. Domestic Debt to GDP (%) 87.1 89.3 External Debt to GDP (%) 17.3 15.5 (Q3) External Sector Government Egypt’s Economic Forecast UK Trade with Egypt Jan-Jul 2013 Jan-Jul 2014 % change UK Exports to Egypt 519 587 +13.5 UK Imports from Egypt 392 600 +53 Total Trade Volume 911 1187 +30.3 Egypt’s Trade with the UK in £m The Suez Canal Development Project PROJECT SPANS 225KM ALONG THE LENGTH OF THE CANAL The Suez Canal I MPL EME NTAT IO N Funding Implementation in Three Phases • Phase 1: • Creation of a Parallel Waterway 35 km (underway) • Deepening of Current Canal from 45 ft to 66 ft (underway) • Six Tunnels for Cars, Railway and Utilities to Connect East and West Banks (underway) Funding via Suez Canal Investment Certificates - LE 64 bn Collected in 8 Days from Egyptian Investors • The Egyptian Government Expects Foreign Investment from the US, China, Norway, India, Russia & the Netherlands. • Regional Investment is Expected from the Gulf Countries; Saudi Arabia, Kuwait and UAE Phase 2: • Creation of an Industrial Zone for Industries such as Textiles, Production of Machinery, Building Materials, Packaging Factories and Light Tourism • Transformation of Port Said & Suez Ports into Global Warehouses • Construction of a Container Terminal & Shipyard, Wave Breaker, Dock Walls, Railway Network and Telecommunications Network • Bunker Ship Service in Suez • World Hub for Grain Silos in Suez Phase 3: • Construction of the Technology Valley in Ismailia El Dabaa & Qattara E NE R G Y PR OJ E CTS El Dabaa • • • • • • • • Egypt’s North Coast on the Mediterranean First Nuclear Power Station in Egypt Total estimated investment $20 billion Part of a Project to Build a Total of Four Reactors Tender Process for Construction of El Dabaa First Reactor to Start Late 2014 El Dabaa is Scheduled to be in Operation from 2019 Capacity Between 900 and 1650 mw /hr Government to Formulate Licensing for Nuclear Energy Development Qattara Depression • • • • • North-west of Egypt in the Matruh Governorate Second Lowest Point in Africa 19,605km2 Hydroelectricity Project Feasibility Study to be Conducted Shortly Ministry of Finance – PPP Central Unit P U B L IC PR IVAT E PA R T NE R SHIP P R OJ ECTS S E P T E MBE R 20 1 4 1. Projects Under Tendering • Abo Rawash Wastewater Treatment Plant Contract Will Be Awarded in Dec. 2014 2. Projects Approved by the PPP Supreme Committee • • • Nile River Bus Ferry Cairo Contact Centre Park (CCC) Rollout & Automation of the Notary Offices Start Tendering Oct. 2014 Start Tendering Oct. 2014 Start Tendering Dec. 2014 3. Projects under Pre-feasibility Studies (to be tendered Q2 – Q4 2015) • • • • • • • Safaga Industrial Port Hurghada Desalination Plant Sharm El Sheikh Desalination Plant Helwan Wastewater Treatment Plant Street Lighting Power Consumption Reduction River Ports for Freight Building 1000 Public Schools Start Tendering Jan. 2015 Pre-feasibility Study Complete Nov. 2014 Pre-feasibility Study Complete Nov. 2014 Pre-feasibility Study Complete Nov. 2014 Pre-feasibility Study Complete Oct. 2014 Start Pre-feasibility Study Nov. 2014 Start Pre-feasibility Study Dec. 2014 Thank You Mr Taher El Sherif Secretary-General The Egyptian-British Chamber of Commerce Tel: +44 (0)20 7499 3100 Fax: +44 (0)20 7499 1070 E-mail: taher@theebcc.com Website: www.theebcc.com