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University of Arizona Egypt Orientation Session January 28, 2004

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Title: University of Arizona Egypt Orientation Session January 28, 2004


1
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
2
US Team visit to Egypt
  • Mr. Bruce Nasby, SENIOR VICE PRESIDENT GLOBAL
    SIFE
  • Mrs. Marcia Helaine Klipsch, FACULTY
  • Mr. Richard Klipsch
  • STUDENTS
  • Ms. Amanda Wright Zaluga
  • Ms. Amanda Elizabeth Davis
  • Mr. James Edward Tang-Mills
  • Mr. Juan Ciscomani Garcia

3
EGYPT
My homeland, my homeland, my hallowed land,Only
to you, is my due hearty love at command,My
homeland, my homeland, my hallowed land,Only to
you is my due hearty love at command,Mother of
the great ancient land,My sacred wish and holy
demand,All should love, awe and cherish
thee,Gracious is thy Nile to humanity,No evil
hand can harm or do you wrong,So long as your
free sons are strong,My homeland, my homeland,
my hallowed land,Only to you, is my due hearty
love at command.
To listen to the National Anthem, follow the link
below
Source http//www.sis.gov.eg/anthem/html/anthem.h
tm
4
Geography
Location Northeast corner of Africa on the
Mediterranean Sea
Source http//www.infoplease.com/atlas/africa.htm
l
5
Geography
Location Northeast corner of Africa on the
Mediterranean Sea Neighbors
West Libya, South the
Sudan, East the Red Sea and
Israel. Size One and one-half times Texas. Eg
ypt is divided into two unequal, extremely arid
regions by the northward-flowing Nile River (100
mi).
Source http//www.infoplease.com/ipa/A0107484.htm
l
6
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt
  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

7
Background Information
  • Arab Republic of Egypt
  • President Hosni Mubarak (1981)
  • Prime Minister Atef Ebeid (1999)
  • Area 386,660 sq mi (1,001,450 sq km)
  • Population (2003 est.) 74,718,797 (growth rate
    1.9) birth rate 24.4/1000 infant mortality
    rate 35.3/1000 density per sq mi 193
  • Capital (2003 est.)
  • Cairo, 15,892,400 (metro.area), 7,937,700 (city
    proper)
  • Other large cities Alexandria, 3,891,000 Giza,
    2,597,600 (part of Cairo metro. area) Shubra el
    Khema, 1,018,000 (part of Cairo metro. area) El
    Mahalla el Kubra, 462,300

Source http//www.infoplease.com/ipa/A0107484.htm
l
8
Background Information
  • Monetary unit Egyptian pound
  • Language Arabic
  • Ethnicity/race Eastern Hamitic stock (Egyptians,
    Bedouins, and Berbers) 99, Greek, Nubian,
    Armenian, other European (primarily Italian and
    French) 1
  • Religions Islam 94, Christian (mostly Coptic)
    6
  • Literacy rate 51.4 (1995 est.)

For more information, click on the links below
Land , People , Economy , Government , History .
Source http//www.infoplease.com/ipa/A0107484.htm
l
9
Background Information
  • Stay tuned
  • http//weekly.ahram.org.eg/ Government
    newspaper
  • http//www.egyptdaily.com/ Daily information
    and local weather forecast
  • http//usembassy.egnet.net/ American Embassy in
    Egypt, Arabic news summary
  • http//www.egypttoday.com/ The magazine of Egypt
    (wonders of Egypt)
  • Get more information
  • Egypt State Information Service
    http//www.sis.gov.eg
  • Get to know the country and its culture with
    audio and video files to download,
  • Get the TV news live,
  • SIS search Engine.

10
Background Information
  • Get more information
  • Middle East Network Information Center,
    University of Texas http//menic.utexas.edu/menic
    /Countries_and_Regions/Egypt/
  • Arts and Humanities , Economy, Education,
    Egyptology, Government, Health and Medicine,
    Maps, News and Media, Science and Technology,
    Social Science, Society and Culture.
  • The Library of Congress Egypt, a country study
  • http//lcweb2.loc.gov/frd/cs/egtoc.html
  • The Historical Setting, the Society and its
    Environment, the Economy, Government and
    Politics, National Security (warning research
    completed in 1990, some information need to be
    updated).
  • The CIA, the World Fact Book
  • http//www.cia.gov/cia/publications/factbook/geos
    /eg.html
  • Introduction, Geography, People, Government, Econ
    omy, Communications, Transportation,
    Military,  Transnational Issues.

11
Background Information
  • Get more information
  • Egypt Search Engine
  • General information, Art, Education, etc.
  • Mazika
  • http//www.mazika.com
  • Get to know the local music.

12
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt
  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

13
Government and Politics
  • Country name
  • Conventional long form Arab Republic of Egypt
  • Conventional short form Egypt
  • Government type Republic
  • Administrative divisions
  • 26 governorates
  • Independence Egyptian nationalism forced Britain
    to declare Egypt an independent sovereign state
    on Feb. 28, 1922, although the British reserved
    rights for the protection of the Suez Canal and
    the defense of Egypt.
  • Constitution 11 September 1971
  • Legal system Based on English common law,
    Islamic law, and Napoleonic codes judicial
    review by Supreme Court and Council of State
    (oversees validity of administrative decisions)
    accepts compulsory ICJ jurisdiction, with
    reservations.
  • Suffrage 18 years of age universal and
    compulsory

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
14
Government and Politics
  • Executive branch
  • Chief of state President Mohammed Hosni MUBARAK
    (since 14 October 1981)
  • Head of government Prime Minister Atef Mohammed
    ABEID (since 5 October 1999)
  • Cabinet Cabinet appointed by the president
  • Elections president nominated by the People's
    Assembly for a six-year term, the nomination must
    then be validated by a national, popular
    referendum,
  • National referendum last held 26 September 1999
    (next to be held NA October 2005)
  • Prime minister appointed by the president .
  • Election results national referendum validated
    President MUBARAK's nomination by the People's
    Assembly to a fourth term.

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
15
Government and Politics
  • Legislative branch
  • Bicameral system
  • The People's Assembly or Majlis al-Sha'b (454
    seats 444 elected by popular vote, 10 appointed
    by the president members serve five-year terms),
  • The Advisory Council or Majlis al-Shura - which
    functions only in a consultative role (264 seats
    176 elected by popular vote, 88 appointed by the
    president members serve NA-year terms).
  • Elections People's Assembly - three-phase voting

  • last held 19 October, 29 October, 8 November 2000
    (next to be held November 2005)
  • Advisory Council - last held 7 June 1995.

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
16
Government and Politics
  • Legislative branch
  • Election results People's Assembly - percent of
    vote by party - NDP 88, independents 8,
    opposition 4 seats by party - NDP 398, NWP 7,
    Tagammu 6, Nasserists 2, LSP 1, independents 38,
    undecided 2
  • Advisory Council - percent of vote by party - NDP
    99, independents 1 seats by party - NA
  • Judicial branch Supreme Constitutional Court

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
17
Government and Politics
  • Political parties and leaders
  • Nasserist Arab Democratic Party or Nasserists
    Dia' al-din DAWUD
  • National Democratic Party or NDP President
    Mohammed Hosni MUBARAK - governing party
  • National Progressive Unionist Grouping or Tagammu
    Khalid MUHI AL-DIN
  • New Wafd Party or NWP No'man GOMA
  • Socialist Liberal Party or LSP leader NA
  • Note Formation of political parties must be
    approved by the government.

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
18
Government and Politics
  • Political pressure groups and leaders
  • Most significant political opposition Muslim
    Brotherhood
  • Constitutional ban against religious-based
    parties,
  • MUBARAK tolerated limited political activity by
    the Brotherhood for his first two terms,
  • MUBARAK moved more aggressively since then to
    block its influence,
  • Civic society groups are sanctioned, but
    constrained in practical terms
  • Trade unions and professional associations are
    officially sanctioned.

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
19
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt
  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

20
Economic Evolution over last decade
  • Macroeconomic performance improved by following
    IMF advice on fiscal, monetary, and structural
    reform policies.
  • Results
  • Controlled inflation, lower budget deficits, and
    more foreign investment.
  • BUT, in the past four years
  • Less reforms excessive spending on national
    infrastructure projects increase budget
    deficits.
  • Lower foreign exchange earnings since 1998
    pressure on the Egyptian pound periodic dollar
    shortages.

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
21
Economic Evolution over last decade
  • Monetary pressures have increased since 11
    September 2001 (declines in tourism Suez Canal
    tolls) Egypt has devalued the pound several
    times in the past year.
  • Future The development of a gas export market is
    a major bright spot for future growth prospects.

  • In the short term, regional tensions will
    continue to affect tourism and hold back
    prospects for economic expansion.

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
22
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt
  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

23
Current Economic Situation
  • GDP
  • purchasing power parity - 289.8 billion (2002
    est.)
  • real growth rate 3.2 (2002 est.)
  • per capita purchasing power parity - 4,000
    (2002 est.)
  • composition by sector agriculture 17
    industry 34 services 49 (2001)
  • Population below poverty line 22.9 (FY 95/96
    est.)
  • Inflation rate (consumer prices) 4.3 (2002
    est.)
  • Labor force 20.6 million (2001 est.)
  • Labor force - by occupation agriculture 29,
    industry 22, services 49 (2000 est.)
  • Unemployment rate 12 (2001 est.)

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
24
Current Economic Situation
  • Budget revenues 21.5 billion
    expenditures 26.2 billion, including capital
    expenditures of 5.9 billion (2001)
  • Industries textiles, food processing,
    tourism, chemicals, hydrocarbons, construction,
    cement, metals
  • Industrial production growth rate 2.2
    (2002 est.)

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
25
Current Economic Situation
  • Agriculture - products cotton, rice, corn,
    wheat, beans, fruits, vegetables cattle, water
    buffalo, sheep, goats
  • Exports 7 billion f.o.b. (2002 est.)
  • Exports - commodities crude oil and petroleum
    products, cotton, textiles, metal products,
    chemicals
  • Exports - partners US 18.3, Italy 13.7, UK
    8.4 (2002)
  • Imports 15.2 billion f.o.b. (2002 est.)
  • Imports - commodities machinery and
    equipment, foodstuffs, chemicals, wood products,
    fuels
  • Imports - partners US 16.9, Germany 7.9,
    Italy 6.7, France 6.5, China 5, UK 4.1 (2002)

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
26
Current Economic Situation
  • Debt - external 30.5 billion (2002 est.)
  • Economic aid - recipient ODA, 2.25 billion
    (1999)
  • Currency Egyptian pound (EGP)
  • Exchange rates Egyptian pounds per US dollar
    7.0 (2004 projection), 6.2 (2003), 4.5 (2002),
    3.97 (2001), 3.47 (2000), 3.4 (1999), 3.39
    (1998), 0.34 (1966).

Source http//www.cia.gov/cia/publications/factbo
ok/geos/eg.html
27
Current Economic Situation
DOMESTIC ECONOMY National Accounts Egyptian
fiscal year ( July-June) US billions unless
stated otherwise FY99/00 FY00/01 FY01/02
FY02/03 GDP (current prices, LE billion) 340
359 382 405 GDP (current prices, US billion)
98.7 93.3 88.1 78.7 GDP real growth rate (
) 5.9 3.4 3.2 2.5 GDP/Capita US 1420
1530 1470 NA Government Spending/GDP () 3
0.0 30.1 29.9 31.5 Consolidated Fiscal defic
it/GDP 1.20 2.23 2.50 2.90
Inflation () 2.8 2.4 2.4 4.0
Wholesale Price Index (, June of each year) 1.6
1.3 3.5 18.5 Unemployment () 9.0 9.2
9.0 9.9 Foreign Exchange Reserves 15.130 1
4.24 14.147 14.809 Reserves/months of imports
10.2 10.4 11.6 12 Avg. Exch. Rate for LE/
3.446 3.850 4.338 5.149
End of Period Exch. Rate (June of each year)
3.446 3.860 4.510 6.154 Debt service ratio
() 8.0 7.4 9.3 9.8 Total Foreign Debt/GD
P 28.2 28.5 32.6 35.7
U.S. assistance (U.S. Fiscal Year) 2.035 1.995
1.955 1.915 Military 1.3 1.3 1.3 1.3 E
conomic 0.735 0.695 0.655 0.615
Preliminary figures for FY 2002/2003 unless sta
ted otherwise. As of May 2003 Debt Service
is ratio of external debt service to current
account receipts. As of March 2003
Sources Egyptian government, IMF, World Bank,
Embassy estimates based on those sources
28
Current Economic Situation
Key Sectoral Statistics 1999 2000 2001 2002
Tourism Revenues (USD million) 3904 4345
3800 3764 Total Arrivals (millions) 4.797 5.5
06 4.648 5.192 Energy and Petroleum Oi
l (crude) (avg. thous. barrels/day) 852 710
639 631 Gas (bill. cubic feet/day) 1.4 1.7
2.4 2.6 Electricity (mill, MKH, fiscal years)
67.9 72.9 75.6 83.0 Construction (millio
n tons) Cement (local sales exports-imports)
23.1 24.1 25.7 28.1 Steel (production, rebars)
4.053 3.169 3.472 3.483
Agriculture(million metric tons) Wheat
6.40 6.40 6.20 6.15 Rice (milled) 3.7 3.9
3.6 3.7 Sugar 1.4 1.3 1.4 1.4 Cotton (t
housand metric tons) 233 200 310 315
Ministry of Foreign Trade Ministry of Petro
leum, Ministry of Foreign Trade (Elect. figures
for fiscal years) EFG-Hermes, Ezz Steel
US Dept. of Agriculture, cotton is marketing
year Aug.-Sep.
29
Current Economic Situation
TRADE AND INVESTMENT US Calendar year US milli
ons 1999 2000 2001 2002 U.S. Export
s to Egypt 3000.8 3333.9 3564.4 2866.2
U.S. Imports from Egypt 617.6 887.7 882
1351.9 US Trade Balance with Egypt 2383.2 2
446.2 2682.4 1514.3 U.S. FDI (stock) 2210
1998 2537 2959 Includes temporary import
of Egyptian antiquities museum touring
exhibition, valued at 445 million.
urce U.S. Department of Commerce.
30
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt prior
    to their trip touching on each of the following

  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

31
University Conditions
  • Cairo University http//www.cu.edu.eg/
  • Cairo University has successfully been
    undertaking its mission of delivering education,
    research and cultural duties over the years. It
    is considered as the mother university among
    other younger universities in Egypt  
  • Cairo University is also offering its education
    and research facilities to Arab and foreign
    students and scientists and has become well known
    world wide.
  • Cairo University has 100 scientific Research
    Centers and units of Private Character. There are
    also a hospital for the students, a printing
    press, a central library as well as libraries for
    the faculties.
  • Currently, Cairo University includes 23 Faculties
    and Institutes serving about 155,000 students
    with 3,158 faculty members, 2,361 assistant
    lecturers demonstrators and 12,233 employees.

Source http//www.egyptsearch.com/search/search.c
gi?catEducationUniversities
32
University Conditions
  • Ain Shams University http//net.shams.edu.eg/
  • Ain Shams University, as the third Egyptian
    university, was founded in July 1950 under the
    name of "Ibrahim Pasha University".
  • When it was first established, Ain Shams
    University comprised a number of distinguished
    faculties and academic institutes, which were
    later developed into university.
  • The university includes 14 faculties and 3 high
    institutes.

Source http//www.egyptsearch.com/search/search.c
gi?catEducationUniversities
33
University Conditions
  • Other Egyptian Universities
  • Ain Shams University AINSHAMS UNIVERSITY
    -FACULTY OF ENGINEERING
  • American University in Cairo Assiut University
    Cairo University Information Page
  • City University - Egypt
  • City University Computer Science Department
    Egyptian Universities Network
  • Mansoura University misr university for
    science and technology Sheffield Hallam
    University SunSITE Egypt The Arab Academy for
    Science and Technology

Source http//www.egyptsearch.com/search/search.c
gi?catEducationUniversities
34
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt
  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

35
National Development Priorities of the Government
  • KEY ECONOMIC TRENDS AND ISSUES
  • Macroeconomic
  • Fiscal Developments
  • Monetary Developments
  • Privatization
  • Balance of Payments
  • Direction and composition of trade
  • Impact of the War in Iraq
  • MAJOR LEGISLATIVE DEVELOPMENTS

Source http//usembassy.egnet.net/etr2003.pdf
36
KEY ECONOMIC TRENDS AND ISSUES
  • Macroeconomic Outlook
  • Egypt's economic performance and reform program
    in the 1990's gained plaudits from international
    observers for increasing growth while sharply
    reducing inflation and the budget deficit.
  • The combination of external shocks in 1997-98
    (terrorist attacks, oil price collapse, Southeast
    Asian economic crisis) and 2001 (September 11)
    with a slowdown in reform efforts has reduced
    growth sharply since 1999.

37
KEY ECONOMIC TRENDS AND ISSUES
  • Macroeconomic Outlook
  • Real growth for the fiscal year ending June 30,
    2002 (FY 2001/2002, or 01/02) at 3.2 and
    estimated growth for FY 02/03, which ended June
    30, 2003 at 2.5.
  • With annual population growth at around 2, that
    would put real GDP per capita growth at
    under 1.
  • Inflation estimated at 2.4 for FY 01/02 and a
    slightly higher 3.9 over the 12 months from May
    2002 to May 2003.
  • Foreign debt increased slightly in 2001 and early
    2002 as a result of the Egyptian government's
    floating of a 1.5 billion Eurobond offering and
    other borrowing, but remains comfortable at under
    30 billion, or roughly one third of GDP.

38
KEY ECONOMIC TRENDS AND ISSUES
  • Fiscal Developments
  • The growing size of the budget deficit is one of
    the biggest challenges facing the government and
    a potential threat to economic recovery.
  • In 2002, the government revised its budgetary
    accounts to show three increasingly broad
    measures of the budget and deficits
  • A narrow budget that includes only line
    government agencies and programs
  • A broader definition that includes transfers to
    or from independent state-owned agencies,
  • A third definition that also includes the social
    insurance funds (social security), currently in
    surplus because of Egypt's growing working-age
    population.

39
KEY ECONOMIC TRENDS AND ISSUES
  • Monetary Developments
  • The Government has been seeking a new monetary
    and foreign exchange policy since it abandoned in
    mid-2000 its fixed peg of LE 3.4/, in place
    since the early 1990s.
  • The peg had been successful in reducing inflation
    to low single digits, but proved untenable in the
    late 1990s as the pound became overvalued by at
    least 35 and Egypt's balance of payments
    position deteriorated.

40
KEY ECONOMIC TRENDS AND ISSUES
  • Privatization
  • The slowdown in the Egyptian privatization
    program, evident since mid-2000, has been a
    source of concern for international rating
    agencies, that consider the pace an indicator of
    the governments willingness to move forward on
    economic reform.
  • Senior officials, including the Prime Minister
    and Minister of Public Enterprise, continue to
    emphasize Egypts commitment to the program.
  • The Ministry of Public Enterprise (MPE) announced
    in late 2002 an effort to gradually privatize
    some state-owned enterprises by participation of
    private investors in capital increases for the
    companies.

41
KEY ECONOMIC TRENDS AND ISSUES
  • Balance of Payments
  • Egypt's Balance of Payments (BOP) has continued
    to improve over the past year.
  • The overall BOP deficit of 447 million in FY
    01/02 was smaller than FY 00/01's deficit of 871
    million which we had reported as the best in
    several years.
  • Direction and composition of trade
  • The European Union (EU) as a bloc remains Egypt's
    largest trading partner, typically accounting for
    around 35-40 of imports and exports.
  • When implemented, Egypts Partnership Agreement
    with the EU could result in a significantly
    larger volume of trade.
  • The U.S. comes next (and is Egypt's largest
    trading partner as a country), accounting for
    around 20 of imports and 10-15 of exports.
  • Asian countries account for around 25 of both
    imports and exports.

42
KEY ECONOMIC TRENDS AND ISSUES
  • Direction and composition of trade
  • Asian countries account for around 25 of both
    imports and exports.
  • Countries in the Middle East take 13 of exports
    and account for about 6 of imports, while
    Africa, Latin America and Australia account for
    less than 5 each of imports and exports.
  • Egypt's leading merchandise export is crude oil
    and petroleum products (2.2 billion in 2002),
    followed by finished goods (chiefly textiles and
    apparel), and raw materials (cotton and other
    agricultural products).
  • Chief U.S. exports to Egypt include agricultural
    commodities (usually around 1 billion annually),
    capital goods, and equipment.
  • The value of U.S. exports shrank over the last
    two years, from nearly 3.8 billion in 2001 to
    under 2.9 billion in 2002, largely in line with
    the drop in overall Egyptian imports.

43
KEY ECONOMIC TRENDS AND ISSUES
  • Impact of the War in Iraq
  • The Egyptian government, private sector
    forecasters, and we expected the war in Iraq to
    have a major negative impact on Egypt's economy.
  • Estimates of that impact ranged from 2 billion
    to as high as 10 billion.
  • The impact was expected to fall most heavily on
    tourism (predictions of 1-3 billion in losses).

  • In fact, largely because major combat operations
    in Iraq ended so quickly, the impact in all these
    areas was much less than expected.
  • Suez Canal revenues actually rose significantly
    and tourism recovered very quickly after a sharp
    dip in March 2003.
  • War risk premiums were never imposed.

44
MAJOR LEGISLATIVE DEVELOPMENTS
  • Egypt's parliament, the People's Assembly (PA),
    approved several key pieces of economic
    legislation in 2003.
  • New Banking Law
  • It enshrines the principle of a market-determined
    foreign exchange rate and defines the
    governmental and Central Bank roles in monetary
    policy.
  • Unified Labor Law
  • Provides comprehensive guidelines for the
    recruitment, hiring, compensation, and
    termination of employees in Egypt.
  • Telecom Law
  • Expands the powers of the National Telecom
    Regulatory Authority to issue licenses and
    permits, set standards for equipment, determine
    tariffs, and mediate disputes between telecom
    service providers. Also, it protects users
    rights, establishes a universal services fund,
    and provides for the disclosure of information to
    promote transparency.

45
National Development Priorities of the Government
  • SECTORAL TRENDS AND PRINCIPAL GROWTH SECTORS
  • Services
  • Tourism
  • Suez Canal
  • Banking
  • Capital Market
  • Insurance
  • Energy
  • Manufacturing
  • Agriculture
  • Transportation and Infrastructure
  • Information Technology and Telecommunications
  • ECONOMIC COOPERATION
  • Regional Initiatives
  • U.S.-Egypt Trade and Investment Framework
    Agreement (TIFA)
  • U.S. Economic Assistance
  • U.S. Support for Trade and Investment

Source http//usembassy.egnet.net/etr2003.pdf
46
SECTORAL TRENDS AND PRINCIPAL GROWTH SECTORS
  • Services 50 of Egypt's GDP (tourism and Suez
    Canal)
  • Tourism
  • Tourism is Egypt's largest foreign exchange
    earner, as well as a key engine of growth
    direct and indirect share of GDP is 11.
  • The tourism sector rebounded sharply from a steep
    decline after the 1997 terrorist attack.
  • Suez Canal
  • Revenues had been stagnant for the past several
    years at around 1.8 billion annually because of
    increased global reliance on other means of
    transportation (chiefly pipelines and air) for
    trade. Probably only part of the increase in
    revenues can be sustained through the next fiscal
    year.
  • Banking
  • Positive events in the Egyptian banking sector
  • new management at the largest banks efforts
    to improve supervision and capital adequacy
    renewed talk of decreasing government ownership
    in the sector a new banking law
  • likely to force a major consolidation of the
    sector

47
SECTORAL TRENDS AND PRINCIPAL GROWTH SECTORS
  • Capital Market
  • The Cairo and Alexandria Stock Exchange (CASE)
    experienced a bull market in the first half of
    2003 after a very quiet 2002, but continued
    growth will hinge on regional stability and the
    pace of economic reform.
  • Insurance
  • Egypt insurance industry remains very small
    relative to other middle-income developing
    countries, with annual premiums accounting for
    only about 1.1 of GDP.
  • Energy
  • The oil and gas sector officially accounts for
    around 7 of GDP.
  • Gas exploration, development, and production have
    been among the brighter spots in the economy over
    the past three years.
  • Oil production and exports still play an
    important role in the Egyptian economy.
  • Manufacturing
  • Egypt's manufacturing sector accounts for
    approximately 20 of GDP. Main sub-sectors
    include metallurgy, cement, fertilizers,
    textile/clothing, food processing, and other
    consumer goods.

48
SECTORAL TRENDS AND PRINCIPAL GROWTH SECTORS
  • Transportation and Infrastructure
  • Egypt Air, the country's airline company, had a
    tumultuous year of personnel and structure
    changes.
  • Reduced tourism, higher operating costs in the
    wake of new post-September 11 security and
    insurance requirements, the war in Iraq, the
    pound's devaluation, and the global outbreak of
    the disease SARS all affected Egypt Airs
    operations over the past year.
  • Information Technology and Telecommunications
  • The government has identified development of the
    information technology (IT) industry as a
    national priority, and the Egyptian Government
    and private sector are eager to engage with U.S.
    firms in this area. Information technology (IT)
    in Egypt continued to grow in 2003 despite the
    overall sluggish economy.

49
ECONOMIC COOPERATION
  • Regional Initiatives
  • Association Agreement with the European Union
    increased access to the European market 615
    million Euros in project assistance grants 1.1
    billion Euros in loans from the European
    Investment Bank to help modernize Egyptian
    industry.
  • Member of the Common Market for Eastern and
    Southern Africa (COMESA) since mid-1998, and is
    committed to eliminating tariffs with COMESA
    members entirely by 2004.
  • Aghadir Agreement
  • Goal establish a free trade area with Tunisia,
    Morocco, and Jordan.
  • U.S.-Egypt Trade and Investment Framework
    Agreement (TIFA)
  • Goal facilitating the concrete measures to
    establish freer trade.
  • Work in Progress on government procurement,
    customs reform and administration,
    sanitary/phytosanitary issues, and agricultural
    trade.

50
ECONOMIC COOPERATION
  • U.S. Economic Assistance
  • Over 25 billion in economic assistance since
    1975.
  • Results the foundations for economic growth
    infrastructure (water, wastewater, power, and
    telecommunications) favorable economic policy
    environment for private sector development.
  • New areas of concentration development of the
    information technology sector, strengthening
    Egypts capacity for human resource development,
    trade policy capacity building, financial sector
    reform, and continuing efforts to enhance Egypts
    business and export competitiveness.
  • U.S. Support for Trade and Investment
  • The Overseas Private Investment Corporation
    (OPIC), the U.S. Export-Import Bank (Ex-Im Bank)
    and the Trade and Development Agency (TDA) are
    committed to supporting the growth of
    U.S.-Egyptian bilateral trade and investment.
    These agencies provide loan and insurance
    products and services.

51
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt
  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

52
Graduate Employment and Job Market
  • Unemployment is officially estimated at 9.9 in
    FY 02/03, up from 9 in FY 01/02 and 9.2 in FY
    00/01.
  • Other observers suggest the effective rate of
    unemployment is significantly higher.
  • Underemployment and reliance on the informal
    economy (often estimated at one third to one half
    the size of formal GDP) are also major features
    of Egypt's economy, as in most developing
    countries.
  • Government figures estimate that, out of a total
    work force of 20.2 million and total employment
    of 18.2 million, 6.9 million individuals are
    employed in the "irregular private sector,"
    compared with only 5.1 million in the formal
    private sector, 5.3 million in the government,
    and 900,000 in state-owned enterprises.

53
Graduate Employment and Job Market
  • Egyptian governmental and private estimates put
    the number of job seekers entering the labor
    market annually at 500,000-700,000.
  • Even during the high growth years of the 1990s,
    employment creation did not fully meet the demand
    for jobs.
  • The sluggish growth of recent years has widened
    the gap between the number of job seekers and
    available employment, particularly for the better
    educated.

54
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt
  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

55
Ease of Entrepreneurship
  • Top websites
  • www.socialfundofegypt.org
  • http//www.sfdegypt.org/index_e.asp
  • www.sedo.org
  • US Agency for International Development (USAID)
    http//usembassy.egnet.net/usaid.htm
  • Investing in Egypt
  • http//usembassy.egnet.net/Invest.htm
  • Economic Trends Report - Egypt PDF
  • Investment Climate Report - Egypt, July 2003
    PDF
  • Country Commercial Guides for EGYPT
  • Background Notes Egypt U.S. Government
    Sites
  • Egyptian Government Sites
  • Selective Economic Web sites
  • Non-Governmental Sites
  • American Embassy
  • http//usembassy.egnet.net/

56
University of Arizona Egypt Orientation
SessionJanuary 28, 2004
  • A broad and general understanding of Egypt
  • Background information,
  • Government and politics,
  • Economic progress and development efforts over
    the last decade,
  • Current economic situations,
  • University conditions,
  • National development priorities of the
    government,
  • Graduate employment situation and the job
    market,
  • Ease of entrepreneurship development and small
    business support,
  • U.S.-Egypt relations and general perceptions of
    attitude towards Americans in-country and why.

57
US-Egypt relations and general perceptions of
attitude towards American in-country and why.
  • POLITICAL ISSUES AFFECTING THE BUSINESS CLIMATE
  • Nature of Political Relationship with the United
    States
  • The United States and Egypt enjoy a strong and
    friendly relationship based on shared mutual
    interest in Middle East peace, stability and
    regional security, combating international
    terrorism, strengthening trade relations, and
    revitalizing the Egyptian economy. Multinational
    exercises, U.S. assistance to Egypt's military
    modernization program (valued at 1.3 billion
    annually), and Egypt's role as a contributor to
    various UN peacekeeping operations continually
    reinforce the U.S.-Egyptian military
    relationship. Egypt is our indispensable partner
    in the quest for regional peace, and it works
    closely with the U.S. to that end.

Source http//usembassy.egnet.net/etr2003.pdf
58
Have A Good Trip
  • Weather
  • Cairo has only two seasons summer and
    'not-summer, a period that stretches roughly
    from September to April or May.
  • January and February (10-20C/50-68F) can be
    overcast with the occasional shower, but the
    months immediately either side are comfortably
    warm, with daytime temperatures leavened by
    breezes.
  • Weather forecast
  • http//www.egyptdaily.com/

Source http//www.lonelyplanet.com/destinations/a
frica/cairo/facts.htm
59
Have A Good Trip
  • Restaurants
  • The Egyptian Cuisine is Mediterranean most like
    the Greek..
  • A wide variety of international fast food
    (Arby's, McDonalds, KFC, and Pizza Hut) and theme
    restaurants (Planet Hollywood, Chille's) operate
    in Cairo.
  • Continental cuisine, American, and Egyptian
    Cuisine are available.
  • Some addresses

Source http//www.virtualtourist.com/vt/1ea6ae/2/
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