Egypt

In 2008 Egypt’s economy grew by 7 percent

Egypt is North Africa’s largest market with the highest population in the Arabian world. Thanks to its reform-oriented economic policy, Egypt succeeded in managing the effects of the global economic crisis.

With a gross domestic product of USD 127.9 billion and 72 million inhabitants, Egypt is North Africa’s largest market and the country with the highest population in the Arabian world. Thanks to its reform-oriented economic policy, Egypt succeeded in raising the volume of FDI from USD 20 billion in 2000 to USD 50 billion in 2007. In the 2007/2008 fiscal year alone, further foreign direct investment of USD 13 billion flowed to Egypt.

In view of the current challenges, the Egyptian government is trying to provide additional support for the country’s industrial development with a USD 2.7 billion stimulus package concluded at the beginning of 2009. In addition to investment in infrastructure, it includes cuts in tariffs and taxes on imports and purchases of investment goods.

On the occasion of Minister Rachid’s visit to Germany on 6 May 2009, the BDI organised a high-level roundtable in Berlin aimed at intensifying bilateral economic ties. The event gave German entrepreneurs the opportunity to discuss Egypt’s current economic situation and perspectives as well as concrete projects and concerns with the Minister within a smaller circle.

In 2008 Egypt’s economy grew by 7% and with a 4% rise in GDP expected for 2009 it has been proving exceptionally stable in the current global economic crisis. In particular, the crisis appears to be having little impact on the building industry. In the first quarter of 2009, Egypt recorded growth of approx. 15% in the building industry, as only one of three countries worldwide. During the first three months of this year demand for building materials has even risen by 20%.