Exporting to Egypt
Egypt has a young and growing population of nearly 100 million people, the largest in the Middle East and North Africa (World Bank, 2018). Its consumer market is therefore sizeable, presenting significant opportunities for UK businesses.
Egypt occupies a strategic position for trade. It is home to the Suez Canal, a vital trade route between Asia and Europe and one of the key arteries of the world economy.
Economic growth in Egypt is strong and set to increase to 6% by 2023. As a result of economic reform, foreign reserves have increased, unemployment has declined and there has been significant investment in infrastructure.
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Egypt have identified particular opportunities for UK businesses in the following sectors:
There is considerable demand for education technology from both government and the private sector. There is a particular need for information and communications technology in schools, which are being upgraded with modern facilities such as computers, multimedia laboratories and internet connectivity.
Vocational or technical education is a key part of the Egyptian government’s reform plans. There are opportunities for UK companies to provide vocational education, training in employability skills, and services for certifying qualifications. There is also demand for training in leadership and management, and in English language skills.
Oil and gas
Gas market liberalisation
Egypt is rolling out a new regulatory system to liberalise the local natural gas market and pave the way for private sector companies to import and distribute gas within the country. The government plans to charge companies a tariff for using its infrastructure.
Range of business opportunities
You’ll find business opportunities in a range of areas in the sector, including exploration and field development, refineries and petrochemicals projects. There is also a need for operations and maintenance services and support with capability and capacity building, training and sustainable development.
New feed in tariff scheme
Egypt intends to supply 20% of generated electricity from renewable sources by 2022, with wind providing 12%, hydropower 5.8%, and solar 2.2%. To achieve this, the government has introduced a ‘feed in tariff’ scheme for wind and solar energy production with capacity of 50 MW or less (International Renewable Energy Agency, 2018).
Demand for renewable energy
Egypt has the largest population in Africa and is expected to continue growing. In 2018, it had a population of 97 million people (IMF, 2018). This creates an increasing demand for renewable energy.
Climate and land
Egypt has an abundance of land available for renewable energy companies to be set up on. It is full of natural resources, and has the appropriate climate, especially for wind and solar farms.
Growth in Egypt’s healthcare market will be driven by increases in the country’s population, demand for prescription medicines and growing health awareness. National institutions are struggling to meet the needs of the rapidly growing population, but the increased demand creates opportunities for businesses.
Healthcare reform is a priority for the Egyptian government and the UK has agreed to support the introduction of a new national healthcare insurance scheme. The need for services and facilities is likely to increase, presenting opportunities to provide goods, services and training in both urban and rural areas.
Economic and regulatory reforms have driven interest and investment in Egypt’s healthcare market from multinational healthcare providers. UK companies will find opportunities in projects relating to hospital construction and design, medical training and IT consultancy for the new healthcare framework and institutes.
Construction is one of the greatest contributors to Egypt’s domestic economy. There are also plans for major residential developments outside of Cairo, as well as new industrial zones, tourist infrastructure and a new airport city at Cairo International Airport.
Transport development is a priority for Egypt’s government and a number of large scale projects are planned. These include plans to develop the country’s ports and to upgrade and extend the national rail network. There are numerous opportunities for UK companies to work on these and other transport projects.
Water and wastewater
Egypt’s water and wastewater sectors have much to offer UK companies. There are plans for public-private partnership projects in water infrastructure, as well as for the development and expansion of wastewater treatment plants and water desalination facilities.