pdf version - PM Communications

PM COMMUNICATIONS 

REPORTING 

29th July 2007 

Egypt 

Modernisation 

leads 

the way 

Produced for The Sunday Telegraph by 

PM Communications who take sole responsibility for the contents


REPORTING 

2 

A mind for reform in Egypt 

Contents 

03 Foreign Investment 

Reforms make Egypt the 

ideal choice for investors 

looking to integrate in 

multiple sectors 

04 Location, location 

Egypt’s information 

technology sector is the 

new place to be 

05 The stage for 

innovation 

Egypt’s most 

technologically advanced 

mobile operator offers 

unrivalled services 

06 Orascom Telecom 

One of the region’s largest 

telecom experts specialises 

in maximising markets of 

low penetration 

08 Banking consolidation 

With increased 

transparency and 

delegation of powers, FDI 

is on the rise 

10 A shot in the arm 

Pharmaceuticals are 

boosting the Egyptian 

economy 

12 Real estate 

Home is where the heart is 

in the real estate market 

14 Oil and gas 

This year alone, exports 

will exceed 74 million tons 

This and other 

PM Communications 

reports can be read 

online at 

www.pmcomm.com 

Project directed 

and coordinated by: 

Barbara Jankovic, Rachel Sanders 

and Adam Jones 

Prime Minister Nazif has 

embarked on a series of 

fiscal reforms, leading to an 

upturn in Egypt’s economic 

fortunes 

The Egypt that incumbent Prime Minister 

Ahmed Nazif inherited on taking 

office in July 2004 was in fiscal disarray, 

with plummeting economic activity and 

staggering living costs. For this reason, 

when President Mohamed Hosni Mubarak 

invited Dr Nazif to assemble his cabinet, 

it was with one single focus – sweeping 

economic reform. 

This Dr Nazif set about with relish, introducing 

several key initiatives to reduce 

taxes and tariffs on foreign 

investment, simplify procedures and 

breathe new life into Egypt’s stuttering 

privatisation process. The results were 

almost immediately tangible.A new taxation 

edict was passed in 2005, which 

saw corporate tax rates slashed from 40 

per cent to 20 per cent. Dr Nazif succeeded 

in stabilising the Egyptian pound, 

which had lost over 50 per cent of its value 

as a result of the previous administration’s 

ill-fated 2003 decision to liberalise 

its exchange rate, leading in turn to a 50 

per cent leap in the price of imported 

items. As a result of Dr Nazif’s reform 

programme, the growth curve in Egypt 

has turned sharply upwards, capped by a 

tripling of foreign investment to $6.1 billion 

during the last financial year, and a 

6.9 per cent increase in real GDP during 

the same period – the highest rate 

achieved since 1999. 

Born in Alexandria in 1952, the 2004 

appointment of Dr Nazif as premier was 

seen as a sea change in Egyptian politics, 

which had had its share of critics inside 

the country and from abroad following 

what were perceived as flawed presidential 

elections in 2005.A studious man 

with a pedigree in the field of ICT,Dr Nazif 

had previously served as first minister of 

communications and information technology 

from 1999 to 2004, during which 

time his penchant for reform was evidenced 

in the hugely successful liberalisation 

of the sector. As one Egyptian 

commentator puts it,“Dr Nazif stands accused 

of not having enough interest in politics, 

an accusation that I find reassuring. 

We have had plenty of politicians in this 

country.What we need now is someone 

reliable and incorruptible.” 

Indeed,Dr Nazif’s record thus far speaks 

for itself, as decentralisation invites increased 

foreign investment,public-private 

partnerships wax and an open economy 

breeds competitiveness,the Egyptian economy 

is enjoying its highest ebb in decades. 

With a population of some 78 million and 

its long-standing status as a centre for 

commerce that links Asia,Africa and Europe,Egypt 

is well poised to take its place 

at the heart of global business. 

DR AHMED NAZIF Prime Minister of Egypt 

‘The essence of the role 

of state is to serve the public’ 

With reforms and modernisation 

well underway, Egypt is once 

again becoming a regional economic 

power,and attracting investment from 

abroad. Dr Ahmed Nazif explains his 

administrations achievements to date 

and its national and regional goals. 

How would you evaluate the results 

of reform, and the current 

business environment in Egypt 

For the last two decades, Egypt has 

been on the path of reform and modernisation. 

However, the last three or 

four years have witnessed a remarkable 

increase in the pace of reform. 

When the new cabinet was formed, 

we created a programme of comprehensive 

political, economic and social 

reforms. 

We took decisive action to regain 

the confidence of the business community.We 

implemented tax reforms 

and brought them down by half, but 

the figures were not the only change 

we made, also the way we treat investors.We 

simplified the procedures 

for establishing a company by creating 

the one -stop shop.This new approach 

had a strong impact and was 

highly successful. In the first year, the 

growth rate grew and the currency became 

stable. 

What are the main investment 

opportunities you would highlight 

in Egypt 

In addition to the traditional sectors 

which are available in Egypt, we are 

opening new sectors which we had not 

tackled before,such as services,where 

it is possible now to invest in the long 

term through public-private partnerships.Previously,investments 

in water, 

roads, electricity, oil and gas and construction 

were carried out by the government.Now 

we have opened these 

sectos for private investors as well.We 

are also developing tourism and the 

concept of second homes on the red 

sea, while the IT and telecommunications 

field is also very dynamic. 

How would you assess the importance 

of Egypt as a peacekeeper 

in the region, and a role 

model for stability and modernisation 

Egypt has always been perceived as 

the leader in the region and the centre 

of culture and arts for the Arab 

world. We have the most populous 

country in the region and until recently 

we had the strongest economy, 

until oil prices went up and strengthened 

the economies in the Gulf area. 

Nevertheless,the Arab countries have 

always looked to Egypt,and what happens 

in Egypt is quickly reflected on 

its neighbours. Nowadays, Egypt has 

become one of their preferred destinations 

for business. 

Moreover,Egypt plays the role of regional 

peacekeeper.We played an important 

part in the Palestine-Israel 

conflict, and in Lebanon and Darfur. 

We want to enhance peace and cooperation 

in the region because it is 

the basis for any kind of growth and 

development to happen.

Egypt 

Modernisation leads the way 

Attractive ground for 

foreign investment 

Reforms make Egypt the ideal choice for investors 

looking to integrate in multiple sectors 

With a supportive business environment 

and a community of qualified 

professionals, Egypt is a fertile breeding 

ground for foreign investment.Recently reformed 

government policies and investment 

laws have fortified and revitalised the business 

environment in several sectors. “We 

have revived the privatisation 

program,which has had a significant 

positive impact in terms of 

expanding the scope for private 

sector contribution, both local 

and foreign,” says Mahmoud Mohieldin, 

Egypt’s Minister of Investment. 

“procedures to 

improve the investment climate 

in Egypt have led to $6 billion in 

foreign direct investment,” he 

explains. 

One of the latest breakthroughs 

is that the government 

has begun to pay special attention 

to public-private partnerships 

(PPPs) as an effective driver 

MAHMOUD 

MOHIELDIN 

Minister 

of Investment 

for growth.“The private sector should be 

encouraged to join new sectors to help citizens 

feel the direct impact of developments,” 

says Mr Mohieldin. The PPPs’ 

contacting rules and legal verification of 

projects are the main pillars of their success. 

Some of the major beneficiaries have 

been electricity and energy, as seen in the 

New Cairo Water Treatment Plan and the 

West Delta Irrigation Project, and in technology 

in the formof telecommunications 

and software giant Alkan Group. Mr Mohieldin 

says that new projects have been 

proposed to build 2,200 schools, 50 hospital 

and healthcare facilities, new housing, 

and roads and railway lines. “Egypt is the 

choice of multinational companies 

across the major investment sectors:construction,agriculture,finance, 

heavy industries and the 

fast-growing tourism business.” 

Another of the most important 

reforms has been lower tax 

rates across the board,along with 

lower customs duties and streamlined 

procedures to get new companies 

up and running. Egypt’s 

central location makes it a bridge 

UK investors poured $36.5 billion into the Egyptian economy in 2005 alone 

between the continents of Europe,Asia 

and Africa.The UK has 

taken full advantage of this connection,investing 

$18 billion in diverse 

Egyptian sectors in 2005. 

The goal of Mr Mohieldin’s ministry is to increase 

this figure to $25 billion by 2011. Mr 

Mohieldin believes that London plays a pivotal 

role as a centre for financial services,funds 

and portfolio management. “The fact that 

London is such a cosmopolitan city makes it 

very easy to be familiar with the norms and 

traditions of other countries, which actually 

speeds up the pace of work with other partners,” 

he asserts, adding that familiarity with 

London is also very common among the leaders 

of the business community. 

Mr Mohieldin himself is personally familiar 

with the UK, as he received a Diploma 

in Quantitative Development Economics 

from Warwick University in 1989 and a Master 

of Sciences in Economic and Social Policy 

Analysis from the University of York in 

1990. In 1995, he returned to the University 

of Warwick for his Ph.D. in Economics. 

He then began his work in the Egyptian administration, 

holding such positions as Senior 

Economic Advisor to the Minister of 

State for Foreign Affairs and Senior Advisor 

to the Minister of Foreign Trade. He has 

been Egypt’s Minister of Investment since 

2004,and under his leadership,market capitalisation 

has amounted to more than 80 

per cent of GDP. 

Looking to the future,Mr Mohieldin hopes 

for more opportunities for multi-million 

pound investments in all sectors.“There has 

never been a better time to take a new look 

at Egypt and what it offers businesses in the 

21st century.” 

3 

Building bridges for successful relations 

MOHAMED 

NOSSEIR 

Chairman 

of BEBA & Alkan 

Egypt and the UK’s long history 

of business partnerships 

now has a key group supporting 

today’s largest investors.The 

British Egyptian Business Association 

(BEBA) was founded in 

1996 with 100 members,and today 

has a membership of over 

300 companies working together 

to foster and promote 

an environment that simulates 

better trade and business links 

between the two countries. 

BEBA’s goals include facilitating 

a business lobby and access 

to British Embassy and 

Government resources, encouraging 

networking among Anglo-Egyptian 

parties and strengthening cultural links 

between Britain and Egypt.BEBA Chairman 

Mohamed Nosseir believes this final goal 

to be of paramount importance. 

“I believe that the closer we get 

culturally, the more successful 

we will be.” BEBA hosts seminars 

on specific trade and business 

concerns in both Egyptian 

and British companies and Mr 

Nosseir has initiated a program 

called “Residential Tourism”to 

allow foreigners setting up businesses 

to own property in Egypt. 

In addition to acting as Chairman 

of BEBA, Mr Nosseir is a 

self-made entrepreneur and 

Chairman of Alkan Holdings 

Group, one of the largest and 

most successful private groups 

in the region.The group has been operating 

since 1974 – with the holding conglomerate 

emerging in 1999 – and today is 

a massive enterprise with investments in 

nearly every sector. 

Alkan CIT operates in 13 countries in 

the fields of broadband and satellite 

telecommunication,GSM and CDMA networks 

infrastructure and geographical information 

systems. In textiles, Almatex 

‘I believe that the closer 

we get culturally, 

the more successful 

we will be’ 

acts as a private free zone 

and is responsible for the 

production of high-quality 

Egyptian cotton yarn, 

which is almost entirely 

directed to export markets in Europeand 

the US. Alkan can even take you abroad 

with Alkan Air,a pioneer in luxury Air Taxi 

and Air Ambulance services and the largest 

seller of private business jets and propeller 

planes in Egypt. Its medical branch 

represents international companies such 

as GE and Kodak. Alkan Medical is constantly 

striving to acquire new multinational 

and worldwide brands, specializing in reselling 

a broad spectrum of quality medical 

products and solutions. 

Alkan hopes to introduce its range of services 

to other countries to take maximum 

advantage of market opportunities.Despite 

all this prestige,Mr Nosseir prefers to use 

BEBA as his preferred 

communication channel to 

reach potential buyers in 

the UK.“BEBA has acted 

as a catalyst and Egypt is 

marketed very well in England,” he explains. 

His latest challenge in Egypt was to complete 

the construction of the $745 million 

Cairo Financial Centre, similar to Canary 

Warf.To potential investors,Mr Nosseir extends 

a warm welcome:“I am ready to back 

them up and utilise all my contacts and 40 

years of experience to make them feel 

comfortable here.It is a very good time to 

come and start a business in Egypt.”


REPORTING 

4 

Strategic location and enormous resources 

Egypt’s information and technology sector soars to new heights 

with strong leadership and the world at its feet 

In Egypt,“location,location,location” refers 

to the Information and Communications 

Technology (ICT) sector rather than real 

estate – the modern age is truly here. 

Minister of Information and Communications 

Technology,Tarek Kamel, is passionate 

about the field:“I love every aspect of ICT. 

It is not only my job, it is my hobby, which is 

the perfect combination.” Mr Kamel’s enthusiasm 

has taken the form of a mission “to 

maintain the rapid growth of Egypt’s burgeoning 

ICT sector at 20 per cent a year until 

2010,” by which time he hopes that Egypt 

Egypt’s ICT sector is flourishing and 

predictions are for sustained growth 

will have firmly established itself as one of 

the most hi-tech countries in the Middle 

East.Mr Kamel has been highly effective since 

assuming his position in 2004, with annual 

GDP growth reaching 7 per cent.Mr Kamel 

credits Prime Minister Nazif’s reforms for 

the growth of the sector. 

Mr Kamel’s expertise is evident in the increases 

in many areas of the sector. By February 

2007,mobile phone subscribtion grew 

by 37 per cent and the Egyptian government 

abolished or reduced customs on several ICT 

products by more than 75 per cent. In the 

future, Mr Kamel envisions 

the export side of Egypt’s 

ICT sector prospering, and 

predicts growth from $300 

million to nearly $1 billion. 

In the meantime,the Ministry 

of Information and 

Communications Technology 

hopes to continue sharing 

and exchanging views 

with the global community. 

Regional and international 

organisations like the Information 

Technology Industry 

Development Agency (ITI- 

DA) play an important role 

in local development, contributing 

to existing government 

efforts in the ICT field. 

One of the biggest advantages 

of Egypt’s growing ICT 

sector is its prime situation in an internationally 

renowned IT hub, connecting the 

Middle East and North Africa with Europe, 

Asia and the Americas. Cutting-edge technical 

endeavors are able to be witnessed by 

a mammoth global audience, opening markets 

for the export of Egypt’s latest ICT 

products and services.Supervising this evolution 

is ITIDA.The agency is not financed 

by the Egyptian government, but rather by 

private communication and IT giants such as 

Telecom Egypt and Vodafone Egypt. ITIDA 

Chairman Mohamed Omran believes that 

Public and private sector joining forces 

ITIDA lays groundwork for unification within the ICT 

sector and sets high goals for foreign investment 

Mohamed Omran spent years as a private 

businessman before becoming 

Chairman of ITIDA and dedicating his time 

to the public sector.“It was a personal challenge 

for me,” Mr Omran admits,“to adapt 

from being a private businessman counting 

profits and losses in my telecommunications 

and IT companies, to being a 

government official responsible for developing 

the Egyptian industry at large.” 

However,Mr Omran has risen to the challenge, 

and says he has adjusted his “mind 

and heart to look at the community and 

its benefits,rather than the benefits of my 

own group of companies.” 

Upon its inception in 2004,ITIDA was 

placed in charge of laying the groundwork 

for the electronics industry and prioritising 

the exportable services and products 

that Egypt excels at.Though Egypt was a 

late-comer in software development at that 

time,ITIDA has monitored growth in leaps 

and bounds.“We have just about exceeded 

6 million users, which is still not enough 

in a country with a population of about 

75 million.” Mr Omran believes the reason 

for this is a lack of Arabic content on 

the internet to attract Egyptian users en 

masse.Confronted with this problem,the 

Ministry of ICT has supported the collaboration 

with some of the world’s leading 

PC manufacturers. Every month this 

year, ITIDA is providing 25,000 homes 

with super-speed internet access. 

As the general public gets better connected, 

ITIDA has a specific list of goals 

for public investment and private and public 

sector unification. The first of these 

goals is to establish a national e-signature 

infrastructure.The second is 

to establish a modern Intellectual 

Property Rights (IPR) 

office for software and database 

products.This goal is especially 

important when it 

comes to foreign investment. 

“IPR is an important issue for direct investments,” 

Mr Omran explains. “Without 

a proper IPR and the prevention or 

minimization of piracy, nobody would 

come to invest here.” The final goal is to 

continue to develop the ICT sector in 

Egypt.To aid this,an international training 

centre for communication expertise,and 

IT companies throughout Egypt,has been 

established. 

‘We are in daily 

contact with all the 

major ICT agencies 

and NGO’s 

throughout Europe’ 

When monitoring foreign investment, 

ITIDA values Egypt’s relationship with the 

UK and has high hopes for the future.ITI- 

DA has been working closely with the 

Egyptian-British Chamber of Commerce 

in London and the UK trade and investment 

authorities.“We are in daily contact 

with all the major ITIDA-like agencies and 

NGOs throughout Europe,the US and in 

South East Asia like Singapore, India, China 

and Malaysia,” says Mr Omran. 

Egypt’s exports in the ICT sector are 

currently around $250 million per annum, 

and could increase to $350 million by the 

end of 2007.ITIDA’s strategy will provide 

more than 35,000 specialised 

IT jobs and 15,000 public and 

private subsidiary opportunities 

by 2010. 

For public and private 

companies from the UK looking 

to invest in Egypt,Mr Omran 

hopes that investors can see beyond 

the traditional images of pyramids, sand 

and sun. “Egypt is a country offering a 

lot of outsourcing services for the UK 

and its industries,” he says.He hopes for 

continued government support. “We 

stand by our companies’ sides,and when 

they need help on site, wherever it may 

be, we do whatever it takes to help and 

support them.” 

TAREK KAMEL 

Minister of Information 

and Communications 

Technology 

Egypt can become the ICT 

hub for the entire world.“We 

are strategically located and 

have enormous resources to 

accomplish this goal by providing 

software development 

centres,R&D support groups 

and business process outsourcing 

centres,” he explains. 

“By being on the international 

communication cable 

routing with Alexandria and 

Suez, we have every potential 

to become a main ICT pillar 

worldwide.” The Egyptian 

government has recently encouraged 

private businesses 

to lay even more cables between 

Asia and the Middle 

East, and all the way to Europe 

and the US, linking 

Egypt’s infrastructure to the entire world. 

In edition to an ideal location,a youthful, 

tech-savvy population is another of Egypt’s 

advantages. Roughly 60 per cent of Egypt’s 

population is under 25 years of age,and university 

students are increasingly studying 

technology degrees to improve their future 

prospects.Nile University,a non-profit,privately 

owned institution of higher learning 

founded in 2006,is devoted to business development 

and graduate education and research.The 

Egyptian Education Initiative was 

launched in 2006 to improve education in 

Egypt through the effective use of ICT. In 

addition, Omran explains, Egypt is known 

for its comprehensive language skills.“I believe 

that our Egyptian Arab pronunciation 

and the Arabic language in general is a very 

rich language enabling our people to speak 

with neutral foreign accents.” Egyptian Arabic 

is understood by all the Arab nations, 

while the reverse is not necessarily true.This 

gives Egypt a unique advantage for when it 

establishes services in neighbouring Arab 

countries. 

Additionally, the flourishing ICT sector 

continues to receive consistent government 

support. Private businesses and foreign direct 

investments are encouraged.The government 

has won accolades from the World 

Bank and International Monetary Fund for 

its aim of reforming Egypt’s antiquated trade 

procedures. 

Egypt’s geographical and linguistic 

advantages make it an ideal ICT centre

Egypt 


Etisalat – setting the stage for innovation 

Egypt’s latest and most 

technologically advanced 

mobile operator offers 

unrivalled services 

First to establish mobile telephony in the 

UAE in 1982, and fibre optics in 1984, 

UAE telecoms service provider Emirates 

Telecommunications Corporation (Etisalat) 

landed Egypt’s third GSM operator license 

last year. It expects to acquire a third of the 

market, representing 10 million subscribers, 

within the next three years. Ranked by Middle 

East magazine as the 6th largest company 

in the region and one of the Financial 

Times Top 500 Corporations, Etisalat plans 

to invest $1.4 billion on building its new network 

in Egypt - the most populous country 

in the Arab world - where penetration is still 

below 20 per cent. 

Etisalat paid almost double the expected 

price,$3 billion,for the license,which was the 

first to be offered in Egypt in eight years. 

Trouncing 11 competitors to join Mobinil and 

Vodafone as the third mobile operator in the 

country,Etisalat also agreed to pay 6 per cent 

of its annual revenues to the National Telecommunication 

Regulatory Authority, in addition 

to the investment it will carry out to build its 

network. Having launched on May 1st of this 

year, the company stated it will sell shares in 

an initial public offering on the Cairo and 

Alexandria Stock Exchanges in 2009. 

Chairman Mohamed Hassan Omran says 

the bidding process was well organised and 

transparent,and that Etisalat had been studying 

the Egyptian market with interest 

for some years.“We have 

witnessed a lot of development 

in Egypt.With the new government 

and the innovative mindset 

they are building, things are 

changing in a very positive way,” 

he comments, adding that the 

open economy is drawing a number 

of new investors such as Italian 

San Paolo Bank, which 

MOHAMMAD 

HASSAN OMRAN 

Chairman 

of Etisalat 

recently won the tender for the 

Bank of Alexandria. 

Etisalat’s bid represented the 

largest foreign direct investment 

in Egypt in 2006,which some analysts 

have said should amount to 

a positive surplus of 5.3 per cent 

in the government’s projected budget and have 

significant impact on both the fiscal and external 

balance for FY 2006-07.In addition,Etisalat-Egypt 

will hire roughly 2,000 Egyptian 

employees over the next few years.This is in 

line with the company’s philosophy of contributing 

to the countries in which it operates,says 

Mr Omran,which today amount to 

14 throughout the Middle East,Asia and Africa. 

“Everywhere we go, we focus on adding 

value in that specific country. Many changes 

are taking place in the telecom sector and 

customer needs are not restricted to connectivity 

anymore. They need 

more services, which definitely 

creates challenges and opportunities 

for us. we are working to 

expand further.” 

This includes allying with other 

providers in content, radio, 

gaming, music, sports and banking,he 

says,adding,“According to 

our philosophy;when we add value,we 

gain more value.” In Egypt, 

the company was the first to offer 

mobile television, high-speed 

Internet access and video calling. 

It is also the first operator in Egypt 

to offer a 3.5G network.By 2009, 

the company intends to have its 

network rolled out over 90 per 

cent of Egyptian territory. Etisalat’s reputation 

for providing the most advanced telecom 

infrastructure had won it over 400,000 

clients in Egypt by the end of its first month 

of service – a figure it hopes to boost to three 

million by the end of 2007. 

Established in the UAE in 1976, Etisalat is 

5 

a unique example of a public-private partnership, 

and one of the first created in the 

global telecoms sector, notes Mr Omran, 

who says that this allowed the company to 

become innovators not only in the UAE but 

throughout the region. In 1984, Etisalat laid 

the first subaquatic cable in the Persian Gulf 

linking the UAE with Qatar and Bahrain, later 

adding cables to India and Pakistan. 

Etisalat was the only company from the Middle 

East to sign the original GSM Memorandum 

of Understanding in 1987 before GSM 

networks were launched anywhere on the 

globe.In the early 1990s,the company drew 

up a 20-year plan that focused on mobile telephony 

and the Internet, which, according 

to Mr Omran, led to the UAE becoming a 

regional Internet hub. 

In Egypt, Etisalat holds 66 per cent of the 

new licence in a consortium that includes 

Egypt Post,The National Bank of Egypt and 

CIB.Mr Omran says that working with local 

partners is Etisalat’s modus operandi, and 

that partners in Egypt were carefully selected 

for the strengths they could offer the new 

venture. He notes that both Egypt Post and 

the National Bank have wide distribution networks 

already established in the country 

while CIB is a young and innovative bank,with 

profound experience and capability in the 

economic sector.


REPORTING 

6 

Confident investment calls for Orascom Telecom 

One of the region’s largest and most diverse telecom experts 

specialises in maximising markets of low penetration 

AS liberalisation has spread across the region, 

Middle Eastern telecoms markets 

have experienced a great deal of change in recent 

years.This has led to a newly competitive 

environment and increasing rates of market 

penetration in the industry,releasing new opportunities 

for operators and investors alike. 

Established in 1998,Orascom Telecom is considered 

among the largest and most diversified 

telecommunication companies in the area. 

It designs,builds and operates complete communications 

infrastructures.The company has 

GSM networks in seven emerging markets 

across the Middle East,Africa 

and South Asia that have seen 

Subscriber numbers 

exceeded 56 million 

and revenues 

topped £603 

million in the 

first quarter 

of 2007 

remarkable growth across the board.Its subsidiaries 

cover Algeria (Djezzy),Pakistan (Mobilink),Egypt 

(Mobinil),Tunisia (Tunisiana),Iraq 

(IraQna), Bangladesh (Banglalink) and Zimbabwe 

(Telecel Zimbabwe). 

Naguib Sawiris,Chairman and CEO of Orascom 

Telecom Holding,says,“I believe that Egypt 

can be the telecommunications hub for the 

region, especially because of its unique geographical 

location. Recently, we acquired the 

licence for the first fibre-optic cable in two 

landing stations here in Egypt.This will allow 

us to connect the cables that we have in Europe 

with the assets that we have 

in Pakistan.We will be 

the only operator 

worldwide that will 

connect most of its 

footprints on its 

own cable.” 

The holding’s 

first-quarter 

results for 

2007 reflect 

the vitality 

of the sector.Total subscribers exceeded 56 

million,an increase of 61 per cent over March 

2006, and revenues topped LE 6,845 million 

(£603 million), a rise of 22 per cent over the 

same period.Net income showed an increase 

of 7 per cent over March 2006 to reach LE 

970 million (£85.5 million),and the group’s earnings 

before interest, taxes, depreciation and 

amortization (EBITDA) margin stood at 43.3 

per cent. 

As at the end of March 2007, Orascom 

boasts a total population under licence of approximately 

460 million with an average mobile 

telephony penetration of approximately 

29 per cent.“I would like to see Orascom hitting 

100 million subscribers,” comments Mr 

Sawiris regarding the outlook for the next five 

The company’s dominance 

in telecoms is due in part to 

the diversity of its operations 

and business acumen across 

seven emerging markets 

years.“The biggest company 

in the world now is Vodafone 

with 200 million 

subscribers. We are currently 

approaching 60 million 

and by the end of next 

year we could reach the 

100 million mark.So we would be half the size 

of Vodafone and yet we are only eight years 

old, not 20 years old like the competition.” 

Orascom is traded on the Cairo and Alexandria 

Stock Exchange and the London Stock 

Exchange.Its Egyptian mobile subsidiary,Mobinil, 

is among Egypt’s five largest companies by 

market capitalisation and also one of the five 

most heavily traded companies by value. 

The company boosted its global exposure 

by acquiring stakes in Hutchison Telecom in 

2005.Together, the two enterprises control 

mobile operations in 15 countries, representing 

a licenced area covering a population 

of two billion people.In July,it announced the 

receipt of $793 million (£395 million) in cash 

as dividends from the proceeds of Hutchison 

Telecom’s divestment of its subsidiary in India. 

Orascom Telecom has positioned itself as 

a leader in the region in part from the diversity 

of its operations.To complement its existing 

GSM and internet services, in January 

this year it launched OTV,an Egyptian TV channel 

featuring international TV shows and films. 

“OTV is a local satellite channel very much 

focused on the Egyptian population,” says Mr 

Sawiris.“Some other Arab countries are watching 

OTV because it is very open.If the fundamentalists 

are one extreme,then we want to 

be the other extreme. I want them to watch 

a movie and see what love and sex are all about. 

Currently, we are considering introducing 

channels for music and movies, plus we are 

looking for a partner to join us to launch a 

news channel.” 

The expansion policy of Orascom Telecom 

is renowned for its readiness to take risks in 

markets with high population and low penetration 

rates.“It’s the size of the market that 

matters. It is better to operate in one country 

with 150 million people, 

like Pakistan,than in 30 countries 

with five million.This is 

because you will then have 

only one subject to deal 

with,one CEO,one regulator 

and one country risk.We 

are all looking for growth and that is why the 

low penetration is important,” comments Mr 

Sawiris. 

“British companies have done very well 

here in Egypt,especially in the oil and gas with 

BG Egypt, pharmaceuticals with Glaxo- 

SmithKline,and telecoms with Vodafone,” Mr 

Sawiris adds.“Vodafone has done a great job 

here,better than in many other countries.They 

helped educating many Egyptians and building 

a new industry. Egyptians are very innovative 

and resourceful.Also, they are loyal to 

the company and you cannot buy them with 

money; they would rather have an opportunity.” 

NAGUIB 

SAWIRIS 

Chairman 

and CEO of 

Orascom 

Telecom 

Holding 

‘The clock is ticking; investors should come now’ 

NAGUIB Sawiris,CEO of Orascom Telecom 

Holding provides an overview of 

the telecoms sector in Egypt, the company’s 

position and opportunities for foreign 

investors. 

This last year has been quite exciting 

for the telecoms sector… 

Yes, we have seen the entrance of the 

third mobile operator with a huge investment. 

They paid a high licence fee and they 

seem to be spending lots of money.Time 

will tell,but for the moment they are stimulating 

the economy. For instance in advertising, 

the billboards and sites are 

becoming more expensive and the contractors 

are difficult to find.All this is creating 

a boom in the economy. 

Has your strategy changed with the 

arrival of a third operator 

No.Actually I am not a big fan of 3G.We 

have not taken the licence as of yet,but we 

are under a lot of pressure to do so.Opinions 

vary,but personally I do not think 3G 

is useful. On the contrary, I find it very uneconomical.But 

we might be forced to take 

it because of frequency constraints. Nevertheless, 

should we decide to acquire it, 

we will have a different approach regarding 

the consumer and this new technology. 

Do you have plans for further expansion 

in Europe 

Yes, we do.We look at under managed 

assets that would allow us to create synergies 

if we took them over.We are present 

on both sides of the Mediterranean 

and we would like to be perceived as the 

Mediterranean operator.We are very interested 

in the French market and will aggressively 

seek opportunities there. 

What advice would you give to potential 

investors from the UK 

We have never had a better government. 

The clock is ticking and many opportunities 

are being lost.For instance,three years 

ago you could buy companies at half the 

market cap and you could buy land at onefifth 

of the current price.We are only eight 

years old and we have created $16 billion. 

So investors should come now,because in 

two or three years the opportunities will 

become very scarce.

Mobinil: the strongest mobile 

network in Egypt 

Backed by Orange and Orascom Telecom Holding and 

11 million clients, Mobinil heads a dynamic, evolving market 

THE Egyptian Company for Mobile Phone 

Services, Mobinil, is investing LE 2 billion 

(£178 million) this year to upgrade and update 

its network in preparation for fiercer 

competition.With the launch of a third mobile 

operator,Etisalat Misr,the nine-year dominance 

of the Egyptian mobile market by Mobinil 

and Vodafone was opened to competition in 

May 2007 and all three companies 

are banking on the growth potential 

of a very lucrative market. 

Penetration currently stands 

at around 23 per cent – considered 

low compared to other 

parts of the region. In the UAE, 

it is 140 per cent and even in Morocco, 

with a similar per-capita 

income, the penetration rate is 

50 per cent. 

“The telecom environment is dynamic, 

evolving and doing a lot of catching up,” comments 

Alex Shalaby,Chairman of Mobinil.“We 

are happy to be part of these changing times. 

The market is big enough for three players. 

Etisalat will have to work very hard to please 

‘The market is big 

enough for three 

players; we intend 

to maintain our 

leadership in 

Egypt by 

continuing to 

provide the best’ 

and attract customers because the customers 

of both Mobinil and Vodafone are already getting 

a quality service at a competitive rate measured 

by international standards.” 

Mr Shalaby adds:“I hope there will be no 

price war because even though it may seem 

beneficial for the consumer, at the end of 

the day it leads to uneconomical models of 

pricing and offering services with 

less than viable rates. All this 

makes the market less attractive 

to invest in.” 

“It is our intention to maintain 

our market leadership in 

Egypt by continuing to provide 

the best quality service to our 

existing customers and tailor 

our products, services and tariffs 

to changing market needs,” affirms Mr 

Shalaby. “Today, we have 11 million subscribers 

from practically zero only nine 

years ago.” During the first quarter of 2007, 

active subscribers increased by 53 per cent 

year-on-year. 

Mobinil boasts the strongest mobile network 

Offering 99% coverage in Egypt, Mobinil’s 

number of active subscribers increased 

by 53% in the first quarter of 2007 

in the country,with coverage reaching 99 per 

cent of the population.It was the first operator 

to extend its services to underground stations 

in Cairo and the first telecom company 

to receive the ISO 14001 quality certificate in 

Egypt and the Middle East. Initiatives to meet 

the needs of local companies include the wireless 

email solutions on offer,such as the Mobinil 

Egypt 


Access Card, BlackBerry and iMate services 

and devices.Also, Mobinil has roaming agreements 

with 300 operators in 120 countries. 

The network has benefited from years of experience 

in an international context from its 

major shareholders, Orange and Orascom 

Telecom Holding – both worldwide leaders 

in telecoms. 

The Egyptian economy is heavily reliant on 

revenue from tourism.Mobinil’s support of the 

tourism industry is part of its wider belief in 

the importance of taking corporate responsibility 

seriously and aiding the growth and 

prosperity of the nation’s economy.The company 

offers a special tourist pre-paid service 

designed for visitors to Egypt who need an inexpensive,short-term 

phone connection with 

access to international calls. 

On a more regional scale, Egypt is rapidly 

growing as an IT hub, boosted by the 

600-acre Smart Village near Cairo. Mr Shalaby 

says,“The Smart Village is a brilliant idea. 

There may be larger examples in Europe 

and the United States, but for Egypt, it is a 

wonderful start.It is a world-class complex 

and houses some of the biggest names in 

the industry for both telecoms and IT.The 

two are converging very rapidly and the distinction 

between them is no longer an easy 

task.To have that kind of a brain power in 

a setting such as the Smart Village is a tribute 

to the government,and it increases the 

confidence in Egypt as a destination for investment.” 

7


REPORTING 

8 

Consolidation of the banking sector 

Attitudes have changed and the economy today is in good 

hands. With increased transparency and delegation of powers, 

FDI has risen by 9.4 per cent in the past three years 

The most important element 

that has improved in Egypt is 

the general attitude,” says Youssef 

Boutros-Ghali, Egypt’s Finance 

Minister, of the leap in FDI,“the 

government has become much 

more investor-friendly.” Since 

2004, the Egyptian government 

has implemented reforms in the 

finance sector which have contributed 

to a 6.9 per cent rise in 

GDP.According to Mr Boutros- 

Ghali,“The business environment 

in Egypt today has fewer complications,fewer 

problems and less 

bureaucracy.” The basic reforms 

have been a reduction in income 

YOUSSEF 

BOUTROS-GHALI 

Minister of 

Finance 

With an aggressive economic 

reform programme and 

a well diversified economy, Egypt 

has been placed on the international 

investment map.With FDI 

shooting from $2 billion to $6 billion, 

Egypt is shortly expected to 

be Africa’s largest recipient of foreign 

investment. Of all the sectors 

leading reform, banking is 

perceived as the most dynamic in 

its pace of change and the appearance 

of powerful key players. 

In this environment,Arab African 

International Bank emerges as a 

leader,with a portfolio of achievements 

and a growth rate that challenges 

industry norms despite rising 

competition. Profitability of 64 per cent in 

net profit and 76 per cent in net loans throughout 

the past four years speaks volumes.With 

its merger and acquisition of Misr America 

International Bank,AAIB has vigorously completed 

its organic growth, marking the first 

successful merger and acquisition in the private 

sector in Egypt. 

tax and a reduction in Egypt’s corporate tax 

rates from 42 per cent to just 20 per cent. 

The system has been simplified, introducing 

practical concepts like self-assessment and 

sample auditing. “We wanted to transform 

our tax authority into a modern, contemporary 

tax authority, as opposed 

to an antiquated predatory function 

of the state,” explains Mr 

Boutros-Ghali.These reforms also 

apply to Egypt’s customs laws; 

tariff lines have been reduced from 

13,000 to 6,000 and tariff brackets 

have been lessened to only six. 

Egypt’s modern economy is 

now healthier than ever and the 

world community has quickly taken 

notice.Domestic investments 

have increased to 21 per cent of 

GDP over the past three years, 

and balance and payment accounts 

are in a $3.3 billion surplus,boasting 

a stable exchange rate. The 

only increase has been in the inflation rate, 

due to adjustments in domestic prices in response 

to subsidies in this year’s budget. 

Egypt’s Central Bank has been modernised 

and is now free to establish its monetary 

policy independently from the government. 

AAIB: growth with distinction 

Stratospheric growth puts AAIB at the head of the class 

HASSAN ABDALLA 

CEO and 

Managing Director 

of AAIB 

The multinational banking institution 

has been acknowledged 

for its commanding growth rates, 

innovative edge and its soaring 

profitability. In 2006, it was chosen 

by FT Banker’s Magazine as 

‘Bank of the Year’,and Euromoneys 

‘Best Bank in Egypt’ in 2007. In 

tandem,AAIB’s Meris-Moody rating 

has moved from an “A” positive 

outlook to an “A+” stable 

outlook. 

As an investment and commercial 

bank,AAIB’s lines of business 

reflect core competencies 

in investment and corporate banking, 

alongside its breakthrough 

strides in retail activities, expanding product 

range and its geographical presence on local 

and regional markets. 

AAIB has the potential to become one of 

the biggest banks in the region, with a position 

of international stength. Up until 2006, 

AAIB was cementing its base in Egypt while 

growing multiple times faster than the market 

average.AAIB is broadening its regional 

By privitising select public sectors,“We are 

cleaning up the banking portfolio,” explains 

Mr Boutros-Ghali.“We have already pumped 

in 10 billion pounds and are ready to pump 

in another 10 billion.” 

As Hassan Abdalla of Arab African International 

Bank states,“"There has been a clear 

change in policy,starting with taxes,customs, 

the procedures to establish a company, the 

ability to have a properly functioning foreign 

exchange market and the 

restructuring of the financial 

market.Confidence in local 

currency has been 

noticeably restored. More 

importantly, these reforms 

have,to a considerable extent,addressed the 

mindset of the people. " 

In 2005,British investments in Egypt reached 

$18 billion,and FDI is expected to reach $25 

billion by 2011. Mr Boutros-Ghali predicts 

broad potential for investment in sectors 

such as petrochemicals,gas,textiles,retail,trade 

and insurance. “By simplifying procedures, 

we have addressed about 80 per cent of corruption 

and obscurity in the tariff system,and 

we have managed to eliminate 80 per cent 

of the problems investors encountered with 

Established in 1964, AAIB is championing a legacy of growth 

presence by building on its legacy in the UAE, 

which was established in the early 1970s. 

“There is still room for growth that requires 

targeting untapped sectors,” says Hassan Abdalla,vice 

chairman and managing director of 

AAIB. 

AAIB’s focus lies in being a worthy competitor 

for foreign market players,while sustaining 

record results and remaining 

headstrong.AAIB boasts many international 

“The business 

environment has fewer 

complications and less 

bureaucracy” 

customs and taxes,” making investment in 

Egypt easier than ever.Mr Boutros-Ghali sees 

great potential in Egypt’s cooperation with 

the UK. The UK treasury has established 

Public Private Partnerships (PPPs) with Egypt 

in a concerted effort to lift some of the burden 

from Egypt’s national budget.The PPPs 

are a means of accelerating economic growth. 

So far, it has worked, with Egyptian exports 

increasing by 25 per cent, exceeding the 

growth of government investments. 

In addition, the 

British are helping to institute 

the PPP model in the construction 

of 50 schools in 

Egypt, with a view to expanding 

the PPP model into areas such as hospitals, 

roads, bridges, water treatment and 

sewage plants. “There is a symbiotic relationship 

between addressing a problem and 

finding its solution,and the government is fully 

equipped to handle these issues,” asserts 

Mr Boutros-Ghali. Predictions for the next 

20 years are that Egypt will be “the Italy of 

today” thanks to furtherbureaucratic reforms. 

“Until recently,we used the inherited classification 

of the Ottoman Empire, but,” Mr 

Boutros-Ghali explains,“times have changed.” 

clients and major international funds.“We have 

a good relationship with British Financial Institutions 

and we collaborate with them all 

the time,” 

Mr Abdalla remains interested in London 

as the financial capital of Europe and invites 

investors to come to the market,noting that 

the first movers will reap the benefits of a 

tantalizing economy with ever-unfolding potential.

Egypt 


Cutting-edge 

trading at its best 

Leading the way in global markets and investment diversification 

Since becoming the first Arab Stock Exchange 

to be inducted into the World country is heading.” 

international community as to where the 

Federation of Exchanges in 2005, the Cairo Another contribution to CASE’s stability 

and Alexandria Stock Exchanges (CASE) has has been an equilibrium in its exchange rate. 

experienced positive growth and reform. Since 2003,the black market has been eliminated 

and oil prices have increased liquidi- 

Long before these recent reforms took place, 

however, CASE has had one of the longest ty in the entire region. “The majority of 

and most storied histories in the financial emerging markets globally, including Egypt, 

world.The Alexandria Stock Exchange was are performing very well,” Mr Shawky says. 

officially established in 1883 and by the 1940s “We are now on the international investments 

agenda.” 

was ranked as fifth in the world.The Cairo 

Exchange was established in 1903 and has While the diversification of sectors has affected 

the volatility of the over- 

followed Alexandria’s stellar reputation 

ever since. Since 1997, 

all market, CASE remains quite 

despite having two locations, 

stable.“The current market structure 

is vastly different in terms 

CASE has had just one Chairman 

and one Board of Directors. 

of active stocks and investments,” 

Today,CASE is looking to increase 

says Mr Shawky. Foreign, Arab 

its number of institutional investors, 

offering long-term stadividuals 

are all included in CASE’s 

and Egyptian institutions and inbility 

and market savvy. 

investor structure, providing a 

As evidence of the economic 

remarkable cushion for the 

reform program, the daily trad- 

volatility of the market. Region- 

ing average over the past four 

years has reached 25,000 to 

30,000 transactions per day, 

adding up to LE 1 billion. According 

to Maged Shawky, the 

current CASE Chairman, timing 

has played an important part.“Dr 

Nazif’s government implemented a comprehensive 

reform program to which they 

have been committed to in both pace and 

time,” he explains.“This gave a very important 

and clear message to the domestic and 

MAGED SHAWKY 

Cairo and 

Alexandria Stock 

Exchange 

al institutions and institutions 

from Europe and the US are also 

playing a very important role 

in establishing professionalism. 

CASE has also introduced discipline 

disclosure rules, which 

make it easy to track any company 

without injecting any regulatory measures.In 

January 2007,new Egyptian Accounting 

Standards were implemented by the Capital 

Market Authority, assuring more transparency 

and international cooperation. 

Symbiotic relationships are highlighting the potential in public-private partnerships 

Approximately 40 per cent of the total value 

traded is by foreign investors, with the 

UK playing a major role in FDI. “We look 

forward to increasing further our cooperation 

with the UK and invite British investors 

to come to Egypt and discover the vast potential 

of our markets,” says Mr Shawky. 

CASE also collaborates with such high 

profile institutions as Deutsche Bank,ABN 

Amro and Dow Jones.These relationships 

add value and prestige and offer opportunities 

for branding strategy. “Sitting with the 

big players and learning from them is important 

for positioning Egypt as a market and 

for its reputation,” says Mr Shawky. 

In addition to being named the World’s Best 

Performing Stock Exchange in 2004 and 

2005, CASE continues to adapt to the latest 

global trends in order to maintain efficiency, 

such as online training and short 

selling,which Mr Shawky predicts will make 

a substantial difference in CASE’s market. 

9 

Privatisation 

and consolidation 

Reforms come full circle as 

CBE reports record growth 

Central Bank of Egypt (CBE) continues 

to grow, strengthening its regulatory 

powers in 2007.CBE is committed 

to restructuring and privatising Egypt’s 

four state-owned banks:Bank of Alexandria,National 

Bank of Egypt,Banque Misr 

and Banque du Caire,which account for 

roughly half of all loans. 

Egypt’s Monetary Policy Committee 

(MPC) is currently monitoring developments 

to weigh the effect of accelerated 

growth and inflation in the sector. The 

MPC has been reducing interest rates 

since 2005 – both overnight lending rates 

and overnight deposit rates have both decreased.Because 

of this monitoring,CBE 

has been able to maintain a stable differential 

between Egyptian pounds and US 

dollars. The decision of the US Federal 

Open Market Committee to keep its interest 

rates unchanged makes CBE able 

to remain stable. 

CBE proudly posted a $3.3 billion surplus 

for fiscal year 2005-2006, which it 

hopes to continue and even increase this 

year.The surplus resulted from an overall 

increase in net inflow in capital transactions.A 

6.6 per cent rise in revenues 

of the nearby Suez Canal oil fields also 

contributed to the surplus. 

The rise of the general public’s disposable 

investment income thanks to a 

cut in income taxes,a growing economy 

and thriving job market mean more deposits 

overall. Since 2004, privatisation 

and consolidation of the banking sector 

has truly come to the forefront of the 

agenda.The government has been confident 

in attracting FDI in the improved 

economic environment and better regulatory 

systems overall. Record-breaking 

transaction levels have exceeded 

expectations already this year.


REPORTING 

10 

Pharmaceutical industry gives the 

economy a shot in the arm 

‘Our main competitive advantage is hard work; not accepting 

anything incomplete is the best way to do business’ 

From minor backaches to post-op recovery, 

where would modern medicine be 

without pharmaceuticals Pharmaceutical 

production is one of the oldest industries in 

the world, and Egypt is home to one of the 

longest-standing and most well-respected 

pharmaceutical production industries today. 

From its humble beginnings 

in 1908,it is now a $1.6 billion 

market. 

Egypt is the largest producer 

and consumer of 

pharmaceuticals in the 

MENA region, with annual 

growth second only to 

South East Asia and China. 

The industry is closely supervised 

by the Ministry of 

Health from product analysis 

to cost, with governmental 

pricing policies 

maintaining affordability. 

According to Dr Sarwat 

Bassily,founder and CEO of 

three of Egypt’s largest and 

most successful pharmaceutical 

companies, “Medical 

awareness is increasing 

in Egypt.” A population that 

increases by approximately 1.3 million people 

each year and an evolving government contribute 

to the ever-growing industry,as Prime 

Minister Dr Ahmed Nazif’s recent reforms 

have made the country an attractive place 

for investors.“The cabinet under the leadership 

of Dr Nazif is the best we have experienced 

for the last 40 years;it is organised 

in a positive pro-business manner,” says Dr 

Bassily.Today, the public sector holds 17 per 

cent of the pharmaceuticals industry in Egypt, 

DR SARWAT BASSILY 

Chairman and MD of Amoun 

while foreign private sector companies represent 

the rest. In 2005 the total consumption 

of pharmaceuticals reached $500 million. 

Dr Bassily is currently CEO of Amoun 

Pharmaceuticals,whose share was valued at 

$8.3 billion this year and made a net profit 

of $158 million. Dr Bassily has come a long 

way since 1961, when he 

started in the pharmaceutical 

business.“I did not plan 

anything,it just happened by 

chance,” he says. “When 

President Nasser nationalised 

many things in Egypt, 

that was the same day I started 

my business life as a pharmacist.” 

In 1976,Dr Bassily was finally 

able to look to the private 

sector.“After the death 

of President Nasser, the 

open door policy was introduced 

and I was the first 

person to apply to make a 

private sector company for 

the importation and distribution 

of pharmaceuticals.” 

Two years later, he began 

manufacturing with Advanced 

Biochemical Industries,which was acquired 

by Glaxo in 1989. From there he 

started another company called Amoun Pharmaceutical 

Industries Company (APIC),which 

he also sold to Glaxo. Instead of emigrating 

or freezing his assets as many others have 

done, in 1991 he started a new national investment 

in the same field,overseeing a new 

incarnation of Amoun,which is in the process 

of being sold to an American consortium. 

“Every time we sold, we used the profits to 

Egypt’s 

population 

grows by around 

1.3 million 

people per year, 

increasing 

the customer 

base for 

pharmaceutical 

companies 

Pharmaceutical sales 

in Egypt today form a 

multi-billion pound 

industry 

build a bigger company.Without these acquisitions, 

we would not have reached our 

current level.” Dr Bassily has great predictions 

for the future as well.“We will sell our 

third company and build something magnificent.” 

With the sale of Amoun, Dr Bassily 

will continue as chairman and managing director,imparting 

years of experience to a new 

generation of business leaders. 

“What is less than ideal, I reject immediately,” 

says the self-proclaimed perfectionist, 

“Our main competitive advantage is hard 

work; I believe that not accepting anything 

incomplete is the best way to do business.” 

Amoun manufactures products under license 

for multinational companies, representing 

6.3 per cent of the whole 

pharmaceutical sector. “We are aiming to 

reach 7 per cent and although we are close 

to this,is not an easy task because the competition 

is very fierce.” The number of companies 

in the private sector is higher than in 

previous years. Out of 10.5 million jobs, only 

400,000 are in the public sector. Dr Bassily’s 

factories have more than 2,000 employees. 

It was the first company in Egypt to be honoured 

with the United Nation’s UNIDO 

prize for innovation in Africa. 

As the trend of privitisation increases, 

the landmark sale of Amoun will truly augment 

the industry’s growth,increasing the 

Egyptian pharmaceutical industry’s global 

presence. 

Testing positive for 

pharmaceutical excellence 

Being the number-one privately owned 

pharmaceutical company in Egypt 

wasn’t enough for Amoun Pharmaceuticals 

CEO Dr Sarwat Bassily; he set his 

sights on providing medication to the 

world.“I worked in private pharmacies 

for 16 years and was in direct contact 

with people who were suffering due to 

the difficulties they had in accessing medicines. 

So, I dedicated my life to breaking 

up this pharmaceutical monopoly.” 

Amoun currently produces and exports 

its products to 19 countries in sub- 

Saharan Africa,central Asia,the Middle East 

and Europe. Dr Bassily credits Amoun’s 

facility for its widespread success. “We 

produce and will keep producing accessible 

products for accessible prices – ideal 

for patients and doctors.” In addition 

to their far-reaching distribution points, 

Amoun is the first Egyptian pharmaceuticals 

company to open sister companies 

in the USA, Romania, Russia and Kenya. 

Dr Bassily hopes to increase Amoun’s 

UK trade in the future,as it holds the only 

UK export licence in Egypt. 

Amoun was founded as a distribution 

company, but its expertise doesn’t end 

there.“We apply the latest technology in 

our manufacturing plant designed according 

to all FDA standards,” explains 

Dr Bassily.The pharmaceutical giant recently 

established its third state-of-theart 

manufacturing plant in Egypt featuring 

sprawling research and development departments, 

and it boasts a market share 

of 4.62 per cent. 

With a 190 per cent increase in net 

profits from 2005-6,Amoun is the fastestgrowing 

pharmaceutical company in Egypt. 

With its recent sale to a consortium 

comprising Citigroup, Capital International 

and Concord International Investment,Dr 

Bassily completes his third sale 

of a major pharmaceutical company, cementing 

his reputation for quality products 

over the past 30 years as CEO.“We 

have made big steps toward the development 

of the country,” says Dr Bassily, 

“This deal will be a marriage of capabilities 

and contacts;we have constant growth 

that rates as one of the best in the world.”

Staying Ahead of the Competition 

MINISTRY OF PETROLEUM 

Egyptian General Petroleum Corp. 

(EGPC) 

Tel.: 2703 1438/ 2703 1439 

Fax: 2702 8813/ 2703 1457 

Egyptian Natural Gas Holding Co. 

(EGAS) 

Tel.: 2405 5845/ 2405 5846 

Fax: 2405 5876/ 2261 1176 

www.egas.com.eg 

Egyptian Petrochemicals Holding Co. 

(Echem) 

Tel.: 2262 2237/ 2262 2231 

Fax: 2263 6060 

www.echem-eg.com 

Egyptian Petroleum 

Companies 

A Breakthrough on the 

World Track 

Petroleum Projects and Technical 

Consultations Co. 

(Petrojet) 

Joseph Tito Street, Haikstep, 

Cairo, Egypt 

PO Box 2048 El Horeya , Heliopolis 

Tel.: 2622 6999/ 2623 0740 

Fax: 2623 0788/ 2623 0808 

www.petrojet.com.eg 

Ganoub Al Wadi Petroleum Holding Co. 

(Ganope) 

Tel.: 097/ 230 2666/ 2999 

Fax: 097/ 230 5974 

www.ganope.com 

Engineering for the Petroleum and 

Process Industries 

(Enppi) 

1A Ahmed El-Zomor Street 

8th District, Nasr City, Cairo, Egypt 

Tel.: 2276 2200/ 2274 8001 

Fax: 2274 4981/ 2275 9768 

www.enppi.com 

Egyptian Mineral Resources Authority 

(EMRA) 

Tel.: 2482 9935/ 2685 2914 

Fax: 2482 0128 

www.egsma.gov.eg 

Petroleum Marine Services Co. 

(PMS) 

1B Anwar El Mofty Street 

Nasr City, Cairo, Egypt 

Tel.: 2405 4802/ 4801 

Fax: 2405 4803/ 4815


REPORTING 

12 

Real estate draws capital to Egypt’s cities and coasts 

‘This is a time of golden opportunities, there are many 

people who regret not investing’ 

Egypt’s real estate boom is now halfway into 

its fourth year.Throughout 2006,prices 

continued to soar while both Egyptians and 

foreigners scrambled to enter the lucrative 

market.New developments on the outskirts 

of Cairo,on the North Coast and on the Red 

Sea are mushrooming, and prime properties 

appreciated by as much as 60 per cent last 

year.The trend was so strong that 

some developers didn’t even need 

to advertise. 

One of the factors driving the 

boom is the country’s rapidly expanding 

private sector, which is 

contributing to the growth of a 

new middle class that can afford 

to invest in housing. Greater liquidity 

in the banking sector has 

supported this trend and banks 

and mortgage finance companies 

have responded to the government’s 

emphasis on home ownership 

by creating new credit 

instruments.The number of people 

buying homes through mortgage lending 

in Egypt rose sharply in 2006,and more than 

700 enquiries a day are being received by the 

Mortgage Finance Authority, which estimated 

that EGP 1 billion was taken in mortgages 

last year. 

‘We are planning to create 

a different model of 

integrated communities’ 

We have great assets, phenomenal land 

banks and are listed on the stock exchange.We 

have some huge advantages, and 

there are very large opportunities in the market 

right now to work with in the real estate 

development field,” states Maher Maksoud, 

managing director of Six of October Development 

& Investment (Sodic),one of Egypt’s 

most successful development companies.His 

words reflect the optimism of a sector that 

is booming in the country.Mr Maksoud says 

AHMED MAGHRABY 

Minister 

of Housing 

This frenetic movement has not gone unnoticed 

by the financial community.Three international 

companies are now looking to 

move into the market,and two Egyptian companies 

are finalising mortgage lending studies. 

Meanwhile, the Egypt Financial Services Project, 

the Egyptian Mortgage Finance Association 

and the Egyptian Banking Institute are 

collaborating in providing new 

mortgage finance training courses 

to both companies and bank 

staff.There are currently 12 banks 

and two mortgage finance companies 

operating in the country, 

and the government is hoping to 

double that number this year,while 

increasing loans to EGP 5 billion. 

Changes in property law that allow 

foreigners to possess freehold 

deeds have also contributed significantly 

to the boom,and are behind 

the rise in new coastal 

developments. International developers, 

especially from the Gulf 

region,are rolling out projects in various parts 

of the country as residential tourism begins to 

take off.The government wants to encourage 

this trend, says Minister of Housing Ahmed 

Maghraby,and to attract developers from outside 

the region.“The new tenders that we have 

that real estate in Egypt is currently experiencing 

a “disproportionately positive environment.” 

The country’s large and rapidly growing population 

is driving a demand for housing in the 

country that has already been frustrated for 

more than 15 years, according to Mr Maksoud,who 

says that an increase in private sector 

employment opportunities and Egypt’s 

burgeoning middle class were the missing 

pieces of the puzzle.Whereas historically real 

estate was affordable for only 1 per cent 

of the population, it is now within reach of 

10 per cent.Now Egyptians can afford to buy 

homes,and with banks experiencing improved 

liquidity and providing new credit instruments,they 

are doing so at a rapidly increasing 

rate. 

“Across the board there is a significant 

increase in demand and the ability to satisfy 

that demand because people have the incomes 

to be able to buy real estate.Economic 

development in general, particularly the 

growth of the private sector,has 

seen large numbers of massive 

private companies increasing 

their employment. The smaller 

private sector is also creating a 

new class and a whole new purchasing 

power.” 

Retail and office buildings and 

service facilities like cinemas, 

schools and hospitals are on the 

rise, driven by a population hungry 

for western lifestyles. Moreover, 

real estate continues to be 

a very large investment vehicle in 

the Arab world,and in Egypt in particular.With 

the rise in oil prices, 

surplus funds throughout the region are being 

pumped back into local markets, and real 

estate is considered a good hedge against high 

rates of inflation. “All of these factors,” says 

Mr Maksoud,“are setting the scene for a very 

successful future in real estate development 

in Egypt and across the region.” Today, Sodic 

is one of the few Egyptian development companies 

that can offer a complete package of 

services,including engineering,construction, 

sales and marketing. 

of Egypt. Consequently, a new law is now 

awaiting parliamentary approval that will continue 

to allow municipalities to issue building 

permits,but which places the responsibility for 

the engineering specifications on the project 

designer.According to Mr Maghraby,this “will 

be a major change in respect to the way building 

permits are currently issued in Egypt.” 

While British investment in second homes 

in Egypt is on the rise,Mr Maghraby encourages 

new investors to take the plunge.“We 

have been really happy to see that British investors 

are recognising the potential of our 

market and we would like to see even more 

of them coming to Egypt.This is a time of golden 

opportunities,and there are many people 

who regret not investing earlier.” 

Real developments increase Cairo’s new estates 

One of the many groundbreaking projects being undertaken by Sodic 

The Egyptian reputation for lavish style and building expertise spans centuries 

issued for major plots of land have attracted 

the biggest names in the real estate business 

from the Arab world, such as Kharafi, Emaar, 

Shaheen and Damac,” he comments.“we are 

very happy with these developments but we 

would like to see more international investors 

present in our market as they still represent 

a minority.” 

Mr Maghraby says the government is also 

working to make more land available, adding 

that procedures for obtaining land have been 

simplified and made more transparent,as have 

licensing procedures for new construction.Although 

obtaining licenses is relatively straightforward 

now in new town and tourist areas, 

Mr Maghraby says that further efforts are required 

to streamline the process for the rest 

MAHER MAKSOUD 

Managing 

Director, SODIC 

In 2007,Mr Maksoud says the company will 

focus on establishing itself as Egypt’s leading 

real estate developer, and will place priority 

on new projects in Greater Cairo, followed 

by the North Coast,Alexandria and the Red 

Sea.He points out that opportunities in Cairo 

continue to be significant given that the city 

was designed for only three million 

and today has a population of 

over 17 million. “Our two main 

projects are on the western and 

eastern sides of Cairo. On the 

west side we have a four million 

square metre land plot which we 

are developing into a world-class 

mixed-use development under the 

name Allegria.On the east side we 

have around one million square 

meters, which will be developed 

into a residential,commercial and 

retail area. Both projects will be 

co-developed with Solidere international 

with the objective of 

creating vibrant town centres for the sixth 

of October and Katameya areas. 

We are planning to create a different model 

of integrated communities,” Mr Maksoud 

concludes, “By this, I mean developments 

which will include not only the typical Egyptian 

model with a golf course and some villas 

around it, but also town centres, services, 

apartments,town houses and office buildings. 

Our dream is to have a regional presence by 

the end of 2008.”

Egypt 


13 

Market Visionaries: Talaat Moustafa Group has built completely self-sufficient 

cities such as Al Rehab and Madinaty 

Providing the highest 

standard housing in Egypt 

Talaat Moustafa Group is the leading real estate and tourism 

investment organization in the Middle East and north Africa 

Hisham Talaat Moustafa, Chairman of Talaat 

Moustafa Group (TMG),confirmed 

that private sector efforts effectively contributed 

in showing real estate investment as 

one of the most important industries in the 

development and investment sectors in Egypt 

today. Real estate added extra value to the 

national economy in 2005/2006 as it achieved 

a developing rate of 14.2 per cent, 

which led to a boom in development 

rates,which reached 6.9 per 

cent.Also the construction sector 

alone increased by 5 per cent, 

bringing in an estimated by 31 billion 

EGP ($5.4 billion). 

Mr Talaat Moustafa says that 

the future of demand in the Egyptian 

real estate market is promising 

because young people (up to 

30 years old) represent 60 per 

cent of the population.The annual 

demand of housing in Egypt is estimated 

at 450 thousand residential 

units, meaning that this 

huge demand will continue in the 

coming 30 years. 

As for supply,TMG is responsible 

for building 250 thousand residential 

units annually.This huge demand is a result 

of the population growth rates and also the 

accumulation of the unsupplied housing demands 

from previous years. 

Mr Talaat Moustafa confirms that the huge 

demand in Egypt is far from being supplied 

which means that megaprojects have a very 

promising future in Egypt. This is what encourages 

international companies to invest 

in Egypt. 

The chairman proved that international investments 

could succeed in Egypt through 

his companies’ megaprojects, one of which 

HISHAM TALAAT 

MOUSTAFA 

Chairman of Talaat 

Moustafa Group 

is Madinaty, a venture that started just a few 

months ago.Previously Al Rehab began construction 

in 1996. 

Today Al Rehab is an integrated small city 

built on ten million square meters. It is the 

first city to be developed by the private sector 

in Egypt.It is also considered to be a model 

of national integrated development as it 

contains all the needs of modern 

society such as schools, 

malls,transportation,medical 

services, movie theaters, 

banks,police and fire stations, 

craft service areas and other 

services and activities that 

achieve self sufficiency for the 

city inhabitants. 

Al Rehab has reached a total 

population of 120,000 inhabitants, 

which Mr Talaat 

Moustafa described as a big 

challenge, confirming the 

Egyptian private sector’s activity 

in real estate development. 

Mr Talaat Moustafa added 

that after this successful experiment 

of coping with global events through 

the strong competition between huge economic 

corporations, he is thinking of repeating 

this experiment on a larger scale. 

Thus Madinaty was born, with an area almost 

equal to that if Washington D.C.It spans 

8,000 acres east of New Cairo and boasts a 

population of 600,000 inhabitants in 120 residential 

units. The total investment cost 

reached $14 billion over 20 years of developing 

the city into what it is today. 

This project attracts $5 billion of foreign 

investment through the projects established 

in the city. 

The group’s trademarks are luxury, comfort and world-class quality 

A team of specialised experts in the group, 

responsible for the megaservices provided 

in Madinaty,claim to have participated with 

the largest specialised American companies 

in determining places and types of services.They 

also work on providing economic 

statistics for these services through large 

specialised international offices in order to 

share these activities and services with international 

investors like such as WTC,Office 

Park, Technology Park, City Center, 

Exhibition Center, Medical Center, Mega 

Mall and Sports Center. 

The experts team added,“We intend to 

offer the services throughout New Cairo, 

not just to the Madinaty project.We also 

expect that these services will extend and 

eventually reach Cairo.” Mr Talaat Moustafa 

adds, “We are working now on creating a 

new construction, residential and serving 

pole through which Egypt will enter into 

strong competition with cities and countries 

that witnessed the huge construction 

boom in Dubai in the United Arab Emirates, 

in Qatar and in King Abdullah City in 

Saudi Arabia.” 

TMG, also known by its slogan, “Future 

builders”, is considered one of the largest 

integrated economic groups in the Middle 

East.The group’s activities and fields of varies 

and includes construction, manufacturing 

TMG has a 

reputation for 

using top 

professionals 

in planning, 

executing, 

managing and 

maintaining 

its many 

properties 

construction materials, real estate development 

and tourism projects. 

Some of its most important real estate 

projects are Al Rehab, Madinaty, and integrated 

towns such as Al Rabwa,May Fair and 

Virginia Beach Village.The Four Seasons Sharm 

El Sheikh, the Four Seasons Nile Plaza that 

overlooks the Nile and the Four Seasons San 

Stefano on the Alexandria Corniche in the 

second largest Egyptian city are considered 

its most prominent tourism projects. 

Mr Talaat Moustafa earned the praise of 

both Arab and international circles for his 

group’s accomplishments, the most recent 

of which was the award given to him by Vice 

President Dr Ahmed Nazif at the Cairo Investment 

Conference in December 2006. 

There, tourism projects like the Four Seasons 

Nile Plaza and Four Seasons Sharm El 

Sheikh took first place as the top hotels and 

tourism resorts in the Middle East and 

worldwide. 

Mr Talaat Moustafa likewise participates 

in political activities, public services and 

nongovernmental organizations through his 

membership in political foundations, authorities 

and organizations such as the Shura 

Council, the General Federation of 

Egyptian Chamber of Commerce, the National 

Democratic Party and the Supreme 

Council of Tourism. 

www.talaatmoustafa,com


REPORTING 

14 

Minister of Petroleum Sameh Fahmy speaks about 

An interview with Eng. Sameh Fahmy, Minister of Petroleum. 

Egypt’s petroleum exports will reach as much as $12 billion, with 

output forecast to rise from its current 74.5 million tons equivalent 

to surpass 84 million tons of crude oil and natural gas next year 

NATURAL GAS 

One of the new main 

pillars of the Egyptian 

economy 

The coming statement could briefly 

describe our priorities for the natural gas 

resources exploitation.The recent 

discoveries of natural gas deposits have 

brought Egypt’s gas reserves to 72.3 

trillion cubic feet (tcf) and have given a 

substantial boost to our gas sector. Egypt 

has joined the international export 

market of piped gas with the inauguration 

of the Arab gas pipeline to Jordan.This 

link will eventually extend to Syria, 

Lebanon and Turkey. 

Focusing on LNG, we have started 

exporting LNG as of January 2005. 

Currently, Egypt is among the world's 

sixth largest exporters of natural gas and 

we project to have 30 per cent of our 

domestic production allocated for 

exportation during 2007. 

Egypt currently possesses three LNG 

trains and the fourth is in the planning 

phase. 

So I could conclude that out of the 

whole natural gas possession and due to 

the high demand of our local gas 

customers and reasonable gas prices, we 

decided to go with a policy whereby we 

keep one third of our gas for the next 

generation, one third goes to local 

consumption and a third is exported. 

Last but not least, as for the Egyptian 

gas reaching Turkey and the possibility of 

unlocking the true potential of the 

European market, I have to say that over 

Mubarak Liquefaction & Export Complex in Damietta 

history, currently and even in the future, 

our bilateral dealings are great evidence 

that the European market has been and 

will remain unlocked. 

ECONOMIC REFORMS 

An investment climate now 

in synch with the highest 

international standards 

As part of the international arena, we have 

to realise the fact that the global economy 

is always in fluctuation mode, reflecting on 

individual states either positively or 

negatively.Accordingly, concerted efforts 

have always been and continue to be made 

by the Egyptian government to keep our 

business climate synchronised and 

investments oriented with the 

international code of practice to achieve 

the best for our welfare. 

Egypt currently has several multinational 

firms operating within the different 

activities of the hydrocarbon sector, with 

total foreign direct investments of almost 

$3 billion. 

The Egyptian government is studying the 

ways and means of controlling the subsidy 

issue taking into consideration the 

socioeconomic aspect. For example, the 

availing and replacing trend is currently 

under way, i.e. LPG by natural gas and 

diesel by CNG, to guarantee better quality 

energy yields that will revamp the local 

environment and in the meanwhile have 

less burden on the treasury.This is 

currently our common vision that must be 

accomplished over the coming half decade. 

As for the Supreme Council for Energy, it 

will be responsible for producing and 

setting energy policies and establishing 

the optimal ways and means of 

implementing those policies, in addition 

to the follow-up of its implementation, 

coupled with coaching efforts within the 

application process.The Supreme Council 

is formed of several ministries as follows: 

Ministry of Defence, Ministry of Finance, 

Ministry of Petroleum, Ministry of 

Electricity, Ministry of Economic 

Development, Ministry of Foreign Affairs, 

Ministry of Environment, Ministry of 

Investment, Ministry of Housing, Ministry 

of Trading and Industry, Ministry of 

Transportation and Minister Omar 

Soliman. 

Eng. Sameh 

Fahmy, 

Egypt’s Minister 

of Petroleum 

and a member 

of the World 

Energy Council 

foresees Egypt 

taking a major 

role as a 

regional energy 

epicentre as the 

nation’s 

petroleum 

sector is 

experiencing a 

dynamic period 

of growth, 

highlighting the 

country’s 

substantial 

potential for 

energy exports 

and the bright 

prospects for 

natural gas 

expansion in 

particular 

PETROCHEMICALS 

A 20-year masterplan aims 

at $10 billion in investment 

to avail 14 new complexes 

and create 100,000 jobs 

It is a fact that the frequent attempts 

in augmenting our natural resources 

will reflect positively on our GDP.We 

have started focusing on developing 

the petrochemical industry as an 

engine for national development. 

In 2002, the government established 

the Egyptian Petrochemicals Holding 

Company 

(ECHEM) and charged it with 

developing and implementing a master 

plan for the sector. 

The plan outlined so far, envisions 

investment of more than $10 billion 

over the next 20 years. 

This will go towards the completion 

of 14 complexes, with an estimated 

output up to 15 million tons per year. 

This will aim to create value-added 

natural industries, provide feedstock 

for existing concerns, and meet 

domestic needs, as well as earning a 

projected $3 billion from exports. 

In addition, the plan will help tackle 

Egypt's unemployment problem by the 

creation of more than 100,000 job 

opportunities. 

The petrochemical industry requires 

both high investments and 

technologies. 

Currently we have several of the 

planned projects underway, including 

the construction of the first integrated 

petrochemicals complex at Kafr El 

Sheikh.

Egypt 


the nation’s resources, reforms and UK relations 

15 

OIL 

Enhancing oil recovery and 

increasing exploration to 

spur new discoveries of 

deep hydrocarbon reserves 

The decrease of oil resources is a 

common phenomenon within the oil 

industry in general. 

The Gulf of Suez fields started 

operation five decades ago.The Murgan 

oil field, which was put on production in 

1967, is regarded the greatest as well as 

the oldest one in the area. Over time, 

these fields have witnessed a decrease in 

its production but efforts are being 

exerted to invest in enhanced oil 

recovery and increase exploration, 

although this in turn presents a problem 

as the general costs of exploration and 

production have increased dramatically, 

along with oil prices skyrocketing, 

accordingly the prices of rigs have tripled, 

coupled with the increase of equipment, 

fuel and human resources. 

Egypt frequently needs to attract 

foreign direct investment (FDI), as it has 

potential hydrocarbon reserves in less 

accessible areas such as deep waters, 

creating a need for huge investments, the 

latest technologies and highly trained 

manpower.Also, current infrastructure 

requires revamping to increase efficiency. 

Research and development activities 

must continue, as the implementation of 

technological advances in the industry 

will provide financial benefits. 

It is worth mentioning that the 

different sources of hydrocarbons 

discoveries maintain the equilibrium 

between demand and supply. 

GLOBAL ENERGY SUPPLY 

The geopolitical foresight 

to achieve energy security 

and supply diversification 

for worldwide markets 

It is worth mentioning that the challenges 

in the hydrocarbon industry worldwide 

are getting more substantial due to the 

shortage of refining plants, lack of 

qualified manpower and skyrocketing oil 

prices. It is really sometimes called a stale 

situation. 

I could say that it is time to have a 

multilateral vision to achieve common 

goals among our nations and I believe 

that we started this trend by having the 

First Roundtable Ministerial Meeting in 

Egypt and it produced a very bright 

outcome. 

EGYPT AND THE UK 

Two nations sharing a 

long-standing common 

vision of successful 

mutual cooperation 

The unique relationship between both 

nations has been and will remain 

successful.This is due to the common 

vision we have shared for a long time, 

coupled with the mutual interest we 

always seek. 

We have to realise our current mutual 

cooperation within the upstream 

operations, as for the downstream 

activities, we always have room for more 

cooperation to take place. 

Prospectors eye the glint of 

Egyptian gold once again 

After an absence of 

almost 50 years, the first 

experimental gold bar 

in Egypt was produced 

in April 2007 

In the ancient Egypt of the Pharaohs, 

gold was one of the first metals to 

be explored. 

Indeed, the world's reputedly oldest 

geological map, dating from around 

1200 B.C., shows Egyptian gold mines 

in the country's Eastern Desert area. 

But there has been no major mining 

in Egypt for millennia, which means 

that the potential for sub-surface 

discoveries – gold in particular – is 

substantial. 

Centamin Egypt, an Australianbased 

company led by an Egyptianborn 

geologist has revisited the 

Eastern Desert and is soon to be 

rewarded for its efforts. 

Since 1994, the company has been 

developing the Sukari deposit, which 

after exploration of a small part of the 

concession, holds proven 

resources of 10 million 

ounces of gold so far. 

A $216-million 

processing plant to be 

built this year will allow 

production to commence 

by 2008. 

Aside from the logistical difficulties 

of mining in remote areas, the 

Egyptian government's existing profitsharing 

requirements may have also 

helped to keep mining companies 

away. But the current reform 

movement, initiated in 2004 by the 

Egyptian Ministry of Petroleum jointly 

with the International Financial 

Corporation (IFC) the World Bank, 

are likely to provide a new legal 

framework and mining code that will 

Production in 2008 

is expected to reach 

eight tons, against 

seven tons 

throughout the 

entire 20th century 

encourage more activity in this sector, 

potentially bringing in massive 

investments and providing a huge 

source of employment. It is worth 

mentioning that the new technologies 

in mineral resources exploration have 

played a major role in boosting this 

industry. 

Indeed, mining companies are 

already beginning to enter the lists. 

Another Australian mining company, 

Gippsland Ltd, is also 

drilling in the Eastern 

Desert, as is Cyprusbased 

Matz Holding, 

which has concluded the 

development of a mine 

thought to contain total 

good reserves.The 

Egyptian Mineral Resources Authority 

(EMRA) has issued a bid round for 

nine gold blocks last year and which 

resulted in six Gold exploration 

agreements in the Eastern and 

Western deserts, at an area of 6800 

km 2 , with investments of about $29 

million.Aside from the obvious 

attraction of gold and other noble 

metals, the main national productions 

in terms of volume output are iron 

ore, phosphates and salt.

The great pharaoh Tutankhamen, 

or King Tut to his friends, 

was buried under a beautiful 

mask made of 7 kilos of pure 

gold. And he wasn't the only one 

to get the golden handshake into 

the afterlife. Countless other 

pharaohs were immortalised with 

golden trinkets and masks 

throughout their prosperous era. 

Egypt is once again prospering, 

but instead of producing golden 

works of art, the country is 

preparing to produce gold 

commercially, and aims to 

produce 8 tons of gold ingots in 

the year 2008 alone. That's one 

ton more than what was produced 

in the entire 20th century. 

Welcome to the prosperous 

21st century. 

Egypt is once 

again a 

gold producer... 

a success story

pdf version - PM Communications

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?