- September 7, 2016
The economy of Egypt depends,mainly on agriculture, tourism, and money remittances from workers who are outside the country, oil, petrochemical industrious, media and revenues of Suez Canal.
The economy of Egypt is considered to be one of the few multi economic in the Middle East and it does not depend on oil as it is in Iraq and Gulf States in Egypt there is a stock.
The rate of economic growth was ranging from 4- 5 during the past quarter century, but now the annual growth of GDP is 6% and the Egyptian economy is the second largest in the Arab Countries, after Saudi Arabia, but it is the largest economy in terms of non-oil depending economy .
It is the eleventh economy in the Middle East in terms of per capita income. As well as, In Africa, the economy of Egypt occupies the second rank after South Africa in terms of GDP.
Important sectors of Egypt
Information and Communication Technology
Egypt’s Communications and Information technology sector is a leading global outsourcing destination. Egypt, one of the highest-growth latent IT markets in the Middle East, is getting growing responsiveness from tier-one vendors and distributors, most of which are at present very familiar with the market.
Egypt’s tourism industry is amid the most varied and vibrant in the world. Beyond the untouched beaches and year-round suns shine, Egypt’s long and varied history, rich cultural legacy and exceptional geographic landscapes make it a widespread destination for adventure, eco, sailing, diving, health and cultural tourism – and for religious tourism to sites of importance to Christians and Muslims alike. Although well-served by five-star properties, there is significant room for investment in the three- and four-star hospitality segments.
Egypt is home to the largest population and market in the Middle East. Real estate is one of the most vital sectors subsidizing to economic growth and touching more than 90 industries connected to construction. It is measured a labor-intensive sector as it accommodates at least 8% of the total labor force.
With an increasing population of more than 80mn, Egypt indicates one of the largest markets in the region, agriculture supports to around 13% of Egypt’s GDP in 2012/2013. Egypt rests as the world’s largest wheat importer, and controlling global prices will aid to decline pressure on the country’s fiscal situation and on local inflation. In line with this, Egypt ramped up wheat imports at the end of 2013 as prices moderated sharply and as Russia, which traditionally supplies the country at very competitive prices, returned to export markets. The lifting of the three-year ban on rice exports as providing a boost to the local industry. The sugar industry is promoting from a tight local market and higher domestic prices.
The Egyptian retail sector is set to endure to raise over the next few years, with its massive and incessantly mounting population and snowballing levels of disposable income resulting in a strong rise in household spending across all retail subsectors.
The Financial sector became the broadcaster of economic growth and poverty reduction in Egypt, it is one of the ancient and most- laid down in the Middle East and one of the best-developed in the region, cheers to a diligent private sector and key regulatory reforms. Today, the country’s banks, brokerages, investment banks and private equity houses are among the most vibrant in the MENA region, attracting foreign investment from major local and international names while throwing their own determined regional growth plans.
Petrochemical industry plays a dynamic role in the Egyptian economic development and growth. In acknowledgement of the reputation of petrochemicals industry in Egypt’s economy, along with the introduction existence of successful drivers, petrochemical development strategy has established to hasten the implementation of such industry.
Logistics and Transportation
The transportation sector is the chief support of economic growth, as transportation networks are well-thought-out as the channels which economic and social actions flow through, where all sectors of the national economy rest on the services and amenities of this sector to link both production and consumption markets together, besides having the access to the needs of raw materials and services and operating.
Egypt’s exceptional geographic location pooled with a mounting infrastructure base is augmenting the country’s position as a key global logistics hub for companies eyeing to do business in, or trade between, Europe, Asia and Africa.
With the anticipated exhaustion of natural gas assets, Egypt is an investor’s dream when it comes to sustainable energy resources. Egypt owns a profusion of assets land, sunny weather and high wind speeds, making it a prime resource for three renewable energy sources: wind, solar and biomass.
Egypt’s education sector makes and aids as the largest workforce in the Middle East and North Africa and is developed with investment prospects. Looking away, Egypt has seen how much the private sector can fetch to educational development, from private education to public-private partnerships.
Egypt has a long past in healthcare and medical practice, which dates back to Pharoanic times. In recent decades, the nation has attained numerous developments both in health pointers and health care endowment.
The pharmaceutical sector in Egypt is one of the firstborn strategic sectors in the country, founded in 1939. The Egyptian pharmaceuticals and cosmetics sector is reflected as the largest in the region with concerns to growth capacity and extension during the coming five years compared to similar sectors in neighboring countries.
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