2005
EBIZGUIDE
- EGYPT
CREDITS It is always good to know who worked hard to produce this guide. Many wonderful stories and people are present, here is the list:
PRODUCTION Producer: Pascal Belda Regional Project Direction: Corinne Semaille and Frederic Van de Vyver Local Project Director: Natalia Anguas Research and Market Development: Nicholas Bruneau Associate Production: Pierre-Etienne Vannier and Wendy Fleury Advertising Agency: Look Advertising
EDITION Written by: eBizguides Edited by: eBizguides Art Direction: Armando Resino Architecture and Design: AndrĂŠs Sbrancia and Armando Resino Photos: all pictures by eBizguides and Xtreme Photography
ACKNOWLEDGEMENTS We would like to thank the following people for their collaboration and support: H.E. Mohammed Hosni Mubarak, President. H.E. Ahmed Nazif (outgoing communications minister), Prime Minister - H.E. Sameh Fahmy, Minister of Petroleum - H.E. Youssef Amin Wali, Former Deputy Prime Minister and Minister of Agriculture and Land Reclamation - H.E. Yussef Boutros-Ghali (outgoing foreign trade minister), Minister of Finance - H.E. Rashid Mohammed Rashid, Minister of Industry and foreign trade - H.E. Mokhtar Khattab, Minister of Public Business Enterprise - H.E. Muhammed Ibrahim Sulieman, Minister of Housing, Utilities and Urban Communities - H.E. Mahmoud Abouzeid, Minister of Irrigation and Water Resources - H.E. Muhammed Al Beltagui, Former Minister of Tourism - H.E. Essam Sharaf, Minister of Transport - Mrs Iman Orfy, International Relations, Ministry of Petroleum - Mr. Hussien Mahmoud El Gibali, President of Board, Ministry of Housing - Mr. Hisham Mohamed Kandil Minister’s office Ministry of Irrigation & Water Resources - Mr. El Sayed Mehrez, Technical office, Ministry of Tourism - Mr. Mohamed El Deeb, Chief Cabinet, Ministry of Transport - Eng. Raafat Radwan, Head of Information Centre. Mr. Ian Boag, Head of Delegation European Union - Mr. Nagui T. El Fayoumi, Executive Director Egyptian Exporters Association - Mr. Gamal El Nazer, Chairman Egyptian Businessmen Association - Mr. Mohammed Youssef, Secretary General Egyptian Businessmen Association - Mrs. Laila El-Maghraby, Executive Director British Egyptian Business Association. We would also like to thank the chairmen of the following companies for the sponsorship and support and without whom this Ebizguide would not have been possible: Ministry of Petroleum - Suez Cement - Osman Group - Conrad Cairo Hotel - Gafi - Natural Gas Vehicles - Sokhna Port - Al Chark Insurance - Egoth - Flash Tour - General Company for Land Reclamation - Omar Effendi - Plastic Pipes Products - Atic Holding - Pico Modern Agriculture - Future Pipe Industries - Le Meridien Heliopolis - Alexandria Commercial and Maritime Bank - Fedex Express. We would like to higlight the efforts of: Mrs. Sarah Broberg - Magic solutions - Mr. Ahmed Abou Obia - Mr. Manuel Gordillo Suarez - Mr. Saeed El Lord - Faisal and all our friends in Egypt.
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EBIZGUIDE
- EGYPT
Index Did You Know?................................................................................................5 Egypt Fact File..................................................................................................7 General Information.............................................................................9 to 48 Business Resources.........................................................................................31 The Egyptian Economy ...................................................................49 to 200 Investment & Legal Framework.......................................................................49 The Country Economy....................................................................................65 Agriculture.....................................................................................................71 Energy & Mines..............................................................................................83 Finance........................................................................................................103 Industry & Trade..........................................................................................121 Transport & Infrastructure............................................................................139 Telecommunication......................................................................................153 Tourism.......................................................................................................165 Construction & Real Estate...........................................................................183 Top Companies...........................................................................................197 Tourism & Leisure..........................................................................201 to 249
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EBIZGUIDE
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- EGYPT
EBIZGUIDE
- EGYPT
Did You Know? * In Arabic, Egypt is called “Misr”, and Cairo “Al-
* Bread was consumed in Egypt 5000 years ago.
Qahirah” (the Victorious). * Wearing a wedding ring on the fourth finger of the * With a population of 15 million, Cairo is the world’s
left hand, dates back to ancient Egypt, where it was
second biggest capital (after Mexico City).
believed that the vein of love ran from this finger directly to the heart.
* Egypt has the largest population of all Arabic countries.
* In ancient Egypt, priests plucked every hair from their bodies, including their eyebrows and eyelashes.
* Egyptian Arabic is by far the most commonly understood dialect in the Arabic world. This is mainly due to
* During mummification, Ancient Egyptians used to
the wide distribution of Egyptian films and TV pro-
stick a hooked instrument up a person’s nose, whisk it
grams.
around, and remove the brain through the nose, leaving the skull intact.
* Only 2% of Egyptian land is farmable - the rest is desert.
* The Great Pyramid of Giza is the only remaining of the Seven Wonders of the Ancient World.
* In Egypt, no less than three calendars are beeing handled: the Gregorian, the Islamic and the Coptic.
* For 4400 years, until the Eiffel Tower was built in 1889, the Great Pyramid was the tallest building in the
* Egypt’s Christians, the copts, claim to be the true
world.
descendants of ancient Egyptians, because they didn’t mix with Arabic newcomers.
* The Giza Pyramids were originally white-coloured, with the top 10 meters covered with gold.
* Since Pharaohs’ times, Egypt has been reclaiming land from the desert. Over the last 150 years, 4000
* The Nile is one of the few rivers in the world to run
km of land have been reclaimed in the Delta, on the
from south to north. Upper Egypt is therefore the
lakes and in the desert (Toshka and Salam Canal pro-
South, Lower Egypt the Delta. Upstream is south,
jects).
downstream north.
* When the construction of the High dam risked to submerge the famous Temple of Ramesses II, the giant construction was saved by sawing it into over a thousand transportable pieces, and reassembling them at a new site 60 meters higher than their original site.
5
EBIZGUIDE
- EGYPT
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EBIZGUIDE
- EGYPT
Egypt Fact File Area:
Total:1,001,450 sq km - land: 995,450 sq km water: 6,000 sq km
Location:
Northern Africa, bordering the Mediterranean Sea, between Libya and Israel, and the Red Sea north of Sudan, and includes the Asian Sinai Peninsula
Geographic coordinates: Area comparative: Capital: Population:
27 00 N, 30 00 E Slightly more than three times the size of New Mexico Cairo 74,718,797 (July 2003 est.)
Population growth rate:
1.88%
Official language:
Arabic
Land boundaries:
2,665 km
Border countries:
Gaza Strip 11 km, Israel 266 km, Libya 1,115 km, Sudan 1,273 km
Coastline: Maritime claims: Continental shelf: International airports:
2,450 km Contiguous zone: 24 NM - territorial sea: 12 NM 200-m depth or to the depth of exploitation Cairo, Alexandria, Luxor, Aswan, Hurghada, Sharm AlSheikh.
Main cities: Governing System: GDP real growth rate: Currency: Exchange rate: Inflation rate: Industries:
Cairo, Alexandria, Luxor, Aswan. Democracy, Republic, 26 governorates 3.2% (2002 est.) Egyptian Pound (EGP) 6,11= 1 USD 4.3% Textiles, food processing, tourism, chemicals, hydrocarbons, construction, cement, metals.
Measures:
Metric system
Fiscal year:
1 July - 30 June
Time: Working Hours:
GMT +2 Sunday to Thursday: 9h to 13h - 13h30 to 17h00
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EBIZGUIDE
8
- EGYPT
GENERAL INFORMATION ABOUT EGYPT
GENERAL INFORMATION
“The best and shortest road towards knowledge of truth is Nature.” Egyptian proverb
9
GENERAL INFORMATION ABOUT EGYPT INTRODUCTION
their traces. Pharaonic, Coptic and Muslim monuments stand side by side and display the blending of all foreign
Egypt is a formidable land whose history goes back to more than five thousand years. It is the museum of history and the melting pot of the greatest civilisations throughout
influences into a uniquely Egyptian feature.
HISTORY
the ages. On its land the Pharaonic, Greek, Roman, Jewish, Christian and Islamic civilisations flourished.
Egypt produced one of the earliest and most magnificent
Egypt’s strategic position at the crossroads of Europe,
civilisations the world has ever witnessed. Unification of
Africa and Asia has made it a place of exchange since
the lands of Egypt took place some 5000 years ago during
ancient times.
the archaic period.
Egypt’s well-established political stability has led to an
The Old Kingdom
increasing role as a regional leader on all levels. Politically, Egypt is a pacifying factor and a strong defender of peace
The Pharaohs of the Old Kingdom are the first kings that
in the Middle East conflict. Economically, it has become a
have become generally familiar. Djoser (2668-2649 BC),
“hub” for the region and Africa at large. Through an
king during the third dynasty, had the first monumental
important package of reform measures adopted for two
stone structure built, the step pyramid at Saqarra. During
decades, Egypt has changed into a dynamic, high growth
the fourth dynasty, the great pyramids of Giza for the
economy. These reforms have put in place a market-
kings Cheops, Chephren and Menkaure were built. The
based, liberal, privately led economy that is truly capable
fifth dynasty (2498-2345 BC) saw the dominance of the
of facing global competition in the twenty-first century.
solar cult based upon the god Ra of Heliopolis. This period is considered by many historians as the high-water mark
At a historical level, Egypt is known as one of the greatest
of achievement.
civilizations of the past. For ancient Greeks it was a source of all wisdom. Roman emperors marvelled at such monuments as the pyramids, and in Egyptian statues and obelisks were sent to Rome. The worship of Egyptian gods and goddesses like Isis and Osiris spread as far as Britain. Fascination with Egypt began in the late 18th century and a vast number of ancient towns, temples and tombs have since been excavated. No country in the world can boast of many impressive ancient remains as Egypt. The Ancient Egyptians have indeed left a wonderful legacy of art, architecture and literature. At a cultural level, Egypt is among the most endowed countries in the world, with the prestigious remains of ancient Pharaonic civilisation. But it is also enriched by the testimonies of its many foreign rulers: Persians, Greeks, Romans, Arabs, Turks as well as French and Brits all left
10
Pharaoh of the old kingdom
GENERAL INFORMATION ABOUT EGYPT The first Intermediate Period (2181-2040 BC) including
with Octavian (subsequently the Emperor Augustus),
dynasties seven to eleven is considered an uneventful
Cleopatra and Mark Anthony committed suicide and
period with no notable rulers.
Egypt became a province of Rome.
During the Middle Kingdom (2040-1782 BC), the country
The Byzantine Period (AD 293-642). Following the division
was reunified and trade resumed. Nubia was conquered
of the Roman Empire in AD 293, Egypt came under the
and land reclamation projects were pursued inside Egypt,
control of the eastern emperors who, from AD 330, ruled
notably in the Fayoum area.
from their capital at Constantinople (Byzantium). This period saw the spread of Christianity in Egypt, but diffe-
Little is known about the turbulent Second Intermediate
rences with the Roman Church led to persecution, and in
Period (1782-1570 BC). Central authority was weak and
AD 451 Rome conceded autonomy to the Copts, as the
the country was invaded by Asian tribes known as Hyksos.
Christians of Egypt came to be known.
It was not until the New Kingdom (1570-1070 BC) that
Islam was introduced in Egypt in the mid seventh century.
Ahmose I, of the eighteenth dynasty, finally expelled the
The country was conquered in AD 640-1 and Al-Fustat,
Hyskos and reunified Upper and Lower Egypt. The empire,
(near present-day Cairo), became the capital, replacing
which then developed, extended to northern Syria, and
Alexandria. The Ummayads and then the Abbasids from
became a major power in the region. For 500 years the
Baghdad administered the country, until in AD 868 Ibn
country prospered and famous king’s such as Thutmose
Tulun declared independence and established the short-
and Amenhotep ruled the land.
lived Tulunid dynasty.
The Third Intermediate Period (1069-525 BC) produced no
With the Abbasids’ rule re-established in AD 905, Egypt
notable monarchs or major achievements by the
was governed from Baghdad until AD 969 when the
Egyptians. Regional and foreign rulers diluted the power
Fatimid era was established. A new capital, al-Qahira or
of the country. The Late Period (525-332 BC) included the
Cairo, was constructed replacing the adjacent capital Al-
invasion and brief occupation by the Persians. Their rule
Fustat. Palaces, mosques and educational establishments,
was unpopular and the Egyptians encouraged the Greek
including the al-Azhar University, were built. The Fatimid
states in their wars against the Persian Empire.
period was also a great commercial and industrial era for Egypt, a time of great prosperity.
Alexander the Great (332-323 BC) was the first ruler of Egypt in the Greco-Roman Period (332 BC- AD 293).
During the eleventh and twelfth centuries, repeated
Alexander’s nine-year rule was sufficient for him to adopt
attempts were made by Christian Crusader armies to
local customs. He installed himself as Pharaoh and
reclaim the Holy Land from Islamic rule. In AD 117 Salah
became very reliant on the oracle at Amoun’s temple in
ad-Din (Saladin) expelled the intruders, and became the
Siwa. It was during this dynasty that the great library of
first Ayyubid to rule the country.
Alexandria was established. The latter kings fell under the influence of Rome, and in 54 BC Julius Caesar took
The Mamluke era - which saw a caste of soldier slaves
Alexandria. Cleopatra VII, the last of the Ptolemies; conti-
take over power - lasted from 1250 to 1517. During this
nued to rule Egypt under the protection of Caesar, and
period, Egypt again became dominant in the region and
later under Mark Anthony. Following a decisive battle
extensive trade relations were built. However, egyptian
11
GENERAL INFORMATION ABOUT EGYPT trade was dealt a serious blow when Vasco da Gama dis-
During the Second World War, Cairo became a centre of
covered the Cape of Good Hope route around Africa
international intrigue and a home for exiled royalty from
(1497), considerably reducing Egypt’s income from the
the Balkan states.
spice trade. After the war, nationalism and resentment of British interIn 1517 the Ottoman Turks conquered the country,
ference culminated in the military coup of 1952 and the
although the Mamlukes retained considerable autonomy
forced abdication and exile of King Farouk. The driving
and Cairo remained an important commercial centre. In
force behind the coup was Gamal Abdul Nasser, who
1798 Napoleon landed in Alexandria intending to disrupt
became president in 1954. Nasser would dominate Egypt
British commerce with India, routed the Mamlukes at
and the Middle East with his blend of Arab nationalism
Imbaba and occupied Cairo. However, he was defeated by
and socialism.
Nelson at the battle of the Nile and, abandoning his army, returned to France. The French were swiftly defeated by a
In 1967 the Six-Day War resulted in a catastrophic defeat
combined Ottoman-British invasion.
for Egypt with Israel occupying the whole of Sinai, and even briefly crossing the canal.
One of the most significant figures in recent Egyptian history was Mohammad Ali (ruled 1805-1849). Appointed
Nasser’s successor was Anwar Sadat, later principally
viceroy by the Ottomans, he destroyed the last vestiges of
remembered for his major peace achievements in the
Mamluke power. In theory Mohammad Ali was a servant
region, but also leader during the next war against Israel.
of the Ottoman Sultan, however, his control over Egypt
Sadat also developed his “open door” policy, allowing
was absolute. He confiscated lands and with European
foreign investment in the country and reducing govern-
help built railways, factories and irrigation canals. He also
ment involvement in the economy.
revolutionised agricultural patterns by introducing cotton to Egypt, which subsequently became a major source of
In 1979, following the US-brokered Camp David agree-
income.
ment, the Israelis agreed to withdraw from the remainder of Sinai, and Egypt recognised Israel’s right to exist. This
Completed in 1869 by the Khedive Ismail (1863-1879),
move outraged Arab opinion and economic links with
the Suez Canal was to become another major source of
Egypt were weakened, resulting in a heavy reliance of the
revenue for Egypt, and it remains so today. But Egypt got
country on American funds, of $ 2bn per annum. But the
so heavily indebted that, although nominally indepen-
rise in foreign, non-Arab, involvement in Egypt resulted in
dent, in practice it became a British colony, ruled by British
the emergence of Islamic militants, culminating in 1981 in
officials.
the assassination of President Sadat.
After the First World War and the demise of the Ottoman
His successor, Hosni Mubarak continued the peace pro-
Empire, Britain declared Egypt a protectorate, a status
cess and Israel completed its withdrawal from Sinai in
that the country retained until 1922 when independence
1982. Two years later, Mubarak’s party was elected in the
under Fouad, the sixth son of Ismail, was granted. The
first multi party elections and in 1987 Mubarak was re-
British nevertheless retained control of the canal, the legal
elected president of Egypt; an achievement repeated in
system, defence and communications.
1993.
12
GENERAL INFORMATION ABOUT EGYPT
The Unknown soldier's memorium in Cairo
Probably the turning point in Egyptâ&#x20AC;&#x2122;s economy was the
vate sector is thriving, the Egyptian stock exchange flou-
Gulf War in 1992 when Egypt supported the West against
rishes and has ambitions to return to being one of the five
Iraq. As a result of this support the West cancelled signifi-
largest in the world.
cant outstanding debts. Meanwhile, the annual US aid given to Egypt as a result of the Camp David agreement
GOVERNMENT
continued, tourism boomed, canal revenues were very healthy and Egyptian expatriates in the Gulf and Saudi
Constitution: ratified September 11-1971.
Arabia continued to remit significant amounts of money.
Suffrage: 18 years of age; universal and compulsory.
Today Egypt is gravitating towards the West. It has
The Arab Republic of Egypt
become a model form of an emerging market and an example of success in the implementation of the policies
Egypt is an independent republic operating under the
of the International Monetary Fund. Exchange controls
constitution of the Arab Republic of Egypt. President
have been abolished, bureaucracy is being eased, the pri-
Mohammed Hosni MUBARAK (since 14 October 1981) is
13
GENERAL INFORMATION ABOUT EGYPT Minya, Al Qahirah, Al Qalyubiyah, Al Wadi al Jadid, Ash Sharqiyah, As Suways, Aswan, Asyut, Bani Suwayf, Bur Sa’id, Dumyat, Janub Sina’, Kafr ash Shaykh, Matruh, Qina, Shamal Sina’, Suhaj. July 23rd was chosen as the Egyptian National Day to celebrate the revolution of 1952, which overthrew Egypt’s last king, Farouk. Beside the National Democratic Party or NDP, President Mubarak’s governing party, other parties are present, but the formation of political parties must be approved by the government. Despite a constitutional ban against religious-based parties, the technically illegal Muslim Brotherhood constitutes Mubarak’s potentially most significant political opposition; Mubarak tolerated limited political activity by the Brotherhood for his first two terms, but moved more President Mohammed Hosni Mubarak
aggressively since then to block its influence.
the chief of State, while Prime Minister Ahmed Nazif, out-
The Egyptian flag represents three equal horizontal bands
going Communications Minister (since july 2004) is the
of red (top), white, and black with the national emblem (a
head of government. The People’s Assembly nominates
shield superimposed on a golden eagle facing the hoist
the President for a six-year term; the nomination must
side above a scroll bearing the name of the country in
then be validated by a national, popular referendum. A
Arabic) centered in the white band; similar to the flag of
national referendum was last held 26 September 1999
Yemen, which has a plain white band; also similar to the
(next to be held NA October 2005). The prime minister is
flag of Syria, which has two green stars, and to the flag of
appointed by the President.
Iraq, which has three green stars (plus an Arabic inscription) in a horizontal line centered in the white band.
The bicameral system consists of the People’s Assembly or Majlis al-Sha’b (454 seats; 444 elected by popular vote, 10 appointed by the president; members serve five-year terms) and the Advisory Council or Majlis al-Shura - which functions only in a consultative role (264 seats; 176 elected by popular vote, 88 appointed by the president. The Arab Republic of Egypt is divided into 26 governorates (muhafazat, singular - muhafazah); Ad Daqahliyah, Al Bahr al Ahmar, Al Buhayrah, Al Fayyum, Al Gharbiyah, Al Iskandariyah, Al Isma’iliyah, Al Jizah, Al Minufiyah, Al
14
The Egyptian Flag
GENERAL INFORMATION ABOUT EGYPT Geography
dynasty from North Africa. There had been earlier settlements, notably the Roman fortress of Babylon, and Fustat,
At crossroads between Africa, Asia and Europe, Egypt
which was established by the Arab army that conquered
stretches over more than a million square km. More than
Egypt for Islam in 642. However the Fatimids established
94% of the land area is barren desert, which has induced
the core of Cairo as it is today; their mosque and univer-
90% of the population to squish into just 3% of the total
sity of Al-Azhar is still Egypt’s main centre of Islamic study,
land area, the fertile Nile Valley and Delta.
while the three great gates of Bab an-Nasr, Bab al-Futuh
Egypt borders Libya in the west, Sudan in the south, the
and Bab Zuweila continue to straddle two of Old Cairo’s
Mediterranean Sea in the north, and the Red Sea and
main thoroughfares.
Israel in the east. The eastern region, across the Suez
Under the rule of subsequent dynasties Cairo swelled and
Canal, is Sinai. This region slopes up to the high moun-
burst its walls, but at heart it remained a medieval city for
tains of Mt Katherine (Gebel Katarina at 2642m/8666ft is
900 years. It wasn’t until the reign of Ismail, grandson of
Egypt’s highest point) and Mt Sinai. Along Egypt’s
Mohammed Ali, in the mid-19th century that Cairo
Mediterranean coast there are countless white-sand bea-
started to change in any significant way. Before the 1860s
ches, some developed as tourist resorts but many still pris-
Cairo extended west only as far as what is today Midan
tine and isolated. North of Cairo the Nile splits into a
Opera. The future site of modern central Cairo was then
series of tributaries that flow into the Mediterranean.
a swampy plain subject to the annual flooding of the Nile. The Revolution of 1952 put an abrupt end to 70-years of
Climate
British occupation of Cairo. Since the Revolution, Cairo has grown spectacularly in population and urban planners
Egypt’s climate is hot and dry most of the year. During the
have struggled to keep peace. In the 1960s and 1970s the
winter months - December, January and February -
west bank of the Nile was concreted over with new
average daily temperatures stay up around 20°C (68°F) on
suburbs like Medinat Mohandiseen (Engineers’ City) and
the Mediterranean coast and a pleasant 26°C (80°F) in
Medinat Sahafayeen (Journalists’ City), while expansion
Aswan. Maximum temperatures get to 31°C (88°F) and
continued north. More recently, population pressure has
50°C (122°F) respectively. Winter nights only get down to
meant that the rocky Muqattam Hills - which had traditio-
8°C (45°F), a very Egyptian version of chilly. Alexandria
nally halted the city’s eastward spread - have been leap-
receives the most rain with 19cm (7.5in) each year, while
frogged, and the once-barren desert is now a vast and
Aswan is almost bone-dry with just 2mm annually.
messy construction site for a series of satellite cities.
Between March and April the khamsin blows in from the Western Desert at up to 150kph (93mph).
PEOPLE
Capital
Population
Cairo is not a Pharaonic city, though the presence of the
Egypt’s total population, with a growth rate of 1,88%, is
Pyramids leads many to believe otherwise. At the time the
estimated at over 74 million. Today, about 98% of the
Pyramids were built, Egypt’s capital was Memphis, 22km
population is packed into about 35 000 Km an area equi-
(13.5mi) south of the Giza plateau.
valent to the Netherlands - but with eight times the popu-
The core foundations of the city of Cairo (then called Al-
lation. With an average of 1700 people per inhabited km.
Qahira) were laid in 969 by the Fatimids, an early Islamic
Egypt is the most densely populated country in the world.
15
GENERAL INFORMATION ABOUT EGYPT Altogether, 33,9% of the population is under the age of
Education
14 and 61,9% is between 15 - 64 years old. Life expectancy for the total population is 70,41 years. In average 3
Providing education is one of the governmentâ&#x20AC;&#x2122;s top prio-
children are born per woman.
rities. Literacy is estimated at about 57,7%. This number hides certain gaps in the educational system, particularly
Ethnic groups
those between men and women, rich and poor, and rural and urban residents. The poor still have literacy rates at
In terms of ethnic groups, 99% the population consists
about half that of the rich, and while literacy is on the rise
mostly of Eastern Hamitic stock (Egyptians, Bedouins, and
in rural areas, it still lags behind urban governorates by
Berbers), 1% is made up by Greeks, Nubians, Armenians
about 30 percentage points. Recent research shows,
and other Europeans (primarily Italians and French).
however, that the gender gap is slowly closing, with
Women gathering for education
GENERAL INFORMATION ABOUT EGYPT female enrolment up over all levels of education. In urban
Gestures, greetings and other public interactions in Egypt
areas, female enrolment in secondary school is slightly
have their particularities. For example, a person who holds
higher than that of males. Youth illiteracy has been steadily
his or her hand up with the palm facing away and fingers
declining among 15-24 years olds, with some 70% of
moving (“goodbye” to Westerners) means “come here”.
Egyptians in that age group now literate.
Other hand gestures include the palm facing one’s face while bobbing up and down, which means “wait a
Women in Society
minute”, or “take it easy”. Always avoid to use the “thumbs up” sign, as it is considered offensive in the Arab
Until the 1920’s, all respectable middle-class and upper-
world. Men will kiss men in greetings, and women will
class women wore the veil - which had no religious signi-
kiss women, but members of the opposite sex do not kiss
ficance. By 1935, however, veils were a rarity in Egypt
in public. Remember that the left hand is considered dirty
compared to neighbouring countries. This trend was once
and not used unless necessary.
again reversed in the course of the last 20 years, and the veil is now worn by a majority of women, although great
Culture
tolerance prevails towards each one’s personal choice. Egyptian women massively began to enter into businesses
In “The One Thousand and One Nights”, a mention is
and professions at a very early stage after the social
made of Cairo as “the mother of the world”, a phrase
changes effected in the course of the July Revolution.
that Egyptians nowadays tend to modify to “Mother of
However, women still do not have equality with men,
the Arab world”. And as far as popular culture is con-
either in law or by custom; and no matter how much they
cerned, Egypt can indeed still claim to be in the forefront:
may rule the roost in the home, Egyptian public places are
throughout the Arab world, Egyptian films and television
still fundamentally male preserves.
are screened, books by Egyptian writers are read, the
SOCIETY AND CONDUCT Egyptians have a strong attachment to their family, and
country’s singers are given airtime on the radio and, to a lesser extent, its theatre is respected.
Literature
respect for parents and elders is so strongly ingrained that it is uncommon for children - male and female - to leave
Most of the writings of the ancient Egyptians, such as the
home before marriage; and these days, few urban
Book of the Dead, deal with magic and religion. Modern
Egyptians can afford to marry before the age 25, so that
Egyptian literature dates back to the beginning of the
economy comes to reinforce the tradition.
20th century; it was in 1914 that Muhammad Hussein
Beyond the family, people are very committed to their
Haykal wrote Zaynab, a work considered by some to be
immediate community. Village solidarity is replaced in the
the first modern Arabic novel. Modern literature in Egypt
big towns by the hara (alley) as the main unit of social
is synonymous with the name of Cairene novelist Naguib
bonding. Regional loyalties persist strongly as well. Each
Mahfouz. In 1988, Mahfouz became the first Arab to win
major town and province has its acknowledged characte-
the Nobel Prize for literature. Mahfouz’s major work in
ristic; people from Alexandria are known for their tough-
the 1950s was The Cairo Trilogy (Palace Walk, Palace of
ness and willingness to fight, while Cairenes are seen as
Desire and Sugar Street).
slick, fast-talking and immoral.
His younger contemporaries - like Abdel Rahman al Sharqawi (Egyptian Earth), Sonallah Ibrahim (Les Années
17
GENERAL INFORMATION ABOUT EGYPT de Zeth) and Nawal al Saadawi (Woman at point Zero)
lism of the black-and-white Cairo Central Station to the
among others, have created a tradition of modern story-
more recent “The Emigrant”, as an allegory about corrup-
telling, heavy in allegory and rich in folklore.
tion, ignorance and injustice, set in ancient Egypt. Part of Chahine’s success has been due to his ability to convince
Music
European film bodies to provide money or facilities, which also guaranteed him an international audience. Chahine’s
With what is undoubtedly the richest and most varied
work was recognised by a lifetime achievement award at
musical tradition in the Near East, Egypt is the high place
the 1997 Cannes Film Festival.
of the Eastern music industry, and the banks of the Nile attract the most inspired artists of the Arab world.
Language
Evidence of Egypt’s previous domination of the Arab cultural scene is provided by the music of the late Egyptian
Arabic is the official language, but English and French are
singer Umm Kalthoum. Her songs are still played on radio
widely spoken in educated circles.
throughout the Arab world in much the same way that the Beatles are played in the West.
Religion
Among the latest sounds to be heard in the country (excluding imports from the West) is shaabi (people)
Islam is constitutionally established as the official religion
music, a sound developed by singer Ahmed Adawiya in
of Egypt, with about 94% of the population belonging to
the 1970s which mixes protest lyrics with a strong back
the Sunni Muslim sect. Egypt is one of the most important
beat. In contrast to shaabi, al-jeel (“the generation”)
centres of Islamic theological study in the world, with
music is a fusion of disco and local rhythms, its lyrics
Cairo’s al-Azhar University at its heart. The Coptic
generally confined to love and nostalgia. Mohammad
Christians make up the remaining 6%.
Foad and Ehab Tawfiq are two names to listen out for.
Cinema Much of Egypt’s claim to cultural supremacy in the Arab world has been due to the phenomenal success of the movie industry, which developed in the mid-20 century and peaked in the 1960s, when a new film was released almost every day of the year. With subjects ranging from historical epics to back-alley melodramas, one of the most popular film forms was the musical, whose plots were often copied from Hollywood. Salah Abou Seif made some of Egypt’s most important post-revolution films, and won the Critics’ Prize at the 1956 Cannes Film Festival with La sangsue. Youssef Chahine has been directing films on a regular basis since the 1940s and has done more than anyone to bring credibility to Egyptian cinema. Chahine has created a broad body of work, from the rea-
18
One of the numerous mosque in Cairo
GENERAL INFORMATION ABOUT EGYPT HEALTH
of large quantities of items requires an export license. Egyptian-made items over 20 years old are not permitted
Egypt has a reputation of beign an unhealthy place to
to leave the country. Nor are foreign made items deemed
visit. In many respects this reputation is well earned; pollu-
to have “historic value”. Export of carpets, Egyptian-made
tion can be bad, weather can be hot and conditions may
or not, is restricted. Travellers may be requested to show
not always be as hygienic as one would wish. Doctors and
bank receipts as proof of payment for other valuable
health clinics in Europe and America will advise a number
items. Excess pounds may be changed back at the airport
of inoculations. Long-term protection against typhoid,
on showing valid bank receipts.
hepatitis and tetanus is worth considering for regular travellers, and there are occasional outbreaks of polio and
Visa & passports
meningitis. For the business traveller in Egypt, the biggest issue is the
All travellers entering Egypt must have the appropriate
cleanliness of food and drink. Careful attention to
travel documents: a passport with at least 6 months to
hygiene, avoidance of some foods (especially uncooked
run and a valid visa. Lost or stolen passports must be
vegetables and salads) and strict abstinence from any-
reported to the police immediately. New passports can be
thing but bottled water should ensure a healthy stay in
issued in a matter of hours at the consular office of your
Egypt.
embassy in Egypt but procedures will require a copy of the
Evidence of yellow fever and cholera immunisation may
police report verifying the loss. Tourist visas are also rou-
be required from persons who have been in an infected
tinely issued at Cairo International Airport and the Port of
area up to six days prior to arrival.
Alexandria, but may also be acquired in advance at any
TRAVELERS USEFUL INFORMATION
Egyptian Consulate. Visas can be renewed at the Mugama’a (Cairo’s central administrative building on Maydan at-Tahrir). Visas are
Customs
usually considered valid for 15 days after the expiry date, but if not renewed then a letter of apology from your
A visitor is allowed to enter the country with 250 grams
embassy must be presented to the Mugama’a or you will
of tobacco, or 50 cigars, one litre of alcohol and personal
have to pay a small fine.
effects. Duty-free purchases of liquor (3 bottles per person) may be made within a month of arrival twice a year at ports of entry or at the tax-free shops in Cairo, Luxor or Hurghada. People travelling with expensive elec-
EGYPTIAN EMBASSIES AND CONSULATES ABROAD
tronic equipment may be required to list these items so that authorities can ensure that they will be exported
Australia
upon departure.
Embassy of the Arab Republic of Egypt Darwin Avenue 1, Yarralumla, 2600, Canberra, Australia
On departure
Tel: +61 2 62734437 - 62734438 Fax: +61 2 62734279
Although the traveller is free to buy and export reasonable quantities of Egyptian goods for personal use, the export
19
GENERAL INFORMATION ABOUT EGYPT Belgium
Fax: +49 30 4771049
Embassy of the Arab Republic of Egypt
E-mail: embassy@egyptian-embassy.de
Avenue de l’Uruguay 19, 1000 Brussel, Belgium
Website: www.egyptian-embassy.de
Tel: +32 2 6635800 - 6635824 Fax: +32 2 6755888
India
E-mail: embassy.egypt@skynet.be
General Consulate of the Arab Republic of Egypt Narayan Dabholkar Road 32, 400006 Bombay, India
Canada
Tel: +912 2 3676422 - 3676407
Embassy of the Arab Republic of Egypt
Fax: +912 2 3634558
Laurier Avenue 454 , East Ottawa, Ontario, Canada Tel: +61 3 2344931 - 2344935
Ireland
Fax: +61 3 2344398 - 2349347
Embassy of the Arab Republic of Egypt
E-mail: egyptemb@sympatico.ca
Clyde Road 12, Ballsbridge - Dublin
Website: www.egyptembassy.ca
Tel: +35 31 6606566 - 6606718 Fax: +35 31 6683745
Denmark
E-mail: embegypt@indigo.ie
Embassy of the Arab Republic of Egypt
Website: www.embegyptireland.ie
Kristianiagade 19, 2100 Copenhagen, Denmark Tel: +45 3 5437070 - 3 5437152
Italy
Fax: +45 3 5433649
Embassy of the Arab Republic of Egypt
E-mail: egypt.emb@get2net.dk
Via Salaria 267, 7133 Rome, Italy Tel: +39 06 8440191
Finland
Fax: +39 06 8554424
Embassy of the Arab Republic of Egypt
E-mail: ambegy@hotmail.com
Munkkiniemen Puistotie 25, 55 Helsinki, Finland Tel: +35 89 4777470
Japan
Fax: +35 89 47774721
Embassy of the Arab Republic of Egypt 4-5,1 Chome Aobadai Meguro Ku Tokyo 153, Japan
France
Tel: +81 3 37708022 - 37708023
Embassy of the Arab Republic of Egypt
Fax: +81 3 37708021
Avenue d’Iena 56, 75116 Paris, France
E-mail: egyptemb@mc.kcom.ne.jp
Tel: +33 1 53678830 Fax: +33 1 47230643
The Netherlands
E-mail: egypt_embassy_paris@hotmail.com
Embassy of the Arab Republic of Egypt Bad Huis Weg 92, 2587 The Hague, Netherlands
Germany
Tel: +31 70 3544535 - 3542000
Embassy of the Arab Republic of Egypt
Fax: +31 70 3543304
Stauffenberg Str. 6 / 7, 10785 Berlin, Germany
E-mail: ambegnl@wanadoo.nl
Tel: +49 30 4775470
20
GENERAL INFORMATION ABOUT EGYPT Saudi Arabia Embassy of the Arab Republic of Egypt
FOREIGN EMBASSIES IN EGYPT
Mohamed Ben Taghlab St., Ulaya Dist, 94333 - Riyadh 11693, Saudi Arabia
Embassy of Australia
Tel: +966 1 4658425 - 4625846
World Trade Center, 11th Flr, Boulac
Fax: +966 1 4652800
Tel: +20 2 5750444
E-mail: egyembrd@concept.net.sa
Fax: +20 2 5781638
Spain
Embassy of Austria
Embassy of the Arab Republic of Egypt
5 Wissa Wassef, El Nil St, Giza
Velazquez 69, 28006 Madrid, Spain
Tel: +20 2 5702974
Tel: +34 91 5776308 - 5776309
Fax: +20 2 5702979
Fax: +34 91 5781732
Embassy of Belgium United Arab Emirates
20 Kamel El Shinnawi St., Garden City
Embassy of the Arab Republic of Egypt
Tel: +20 2 7947494
Diplomatic District, 4026 Abu Dhabi, UAE
Fax: +20 2 7943147
Tel: +971 2 445566 Fax: +971 2 449878
Embassy of Canada
E-mail: egemb_ad@emirates.net.ae
26 Kamel El Shinnawy St., Garden City Tel: +20 2 7943110
United Kingdom
Fax: +20 2 7963548
Embassy of the Arab Republic of Egypt South Street 26, W1Y 6DD Mayfair, London,
Embassy of Denmark
United Kingdom
12 Hassan Sabri St., Zamalek
Tel: +44 2074992401 - 4993304
Tel: +20 2 7396500
Fax: +44 207 3553568 - 491154
Fax: +20 2 7396588
E-mail: etembuk@hotmail.com
Embassy of Finland United States of America
3 Abu El Feda St., Zamalek
Embassy of the Arab Republic of Egypt
Tel: +20 2 7352801 - 7361487
3521 International CT. N.W, Washington D.C. 20008,
Fax: +20 2 7355170
USA Tel: +1 202 8955400
Embassy of France
Fax: +1 202 2444319 - 2445131
29 Charles De Gaulles St., Giza
E-mail: embassy@egyptembdc.org
Tel: +20 2 5703919 / 6
Website: www.embassyofegyptwashingtondc.org
Fax: +20 2 5710276
21
GENERAL INFORMATION ABOUT EGYPT Embassy of Germany
Embassy of Spain
2 Berlin St. Off Hassan Sabri, Zamalek
41 Ismail Mohd St., Zamalek
Tel: +20 2 7399600
Tel: +20 2 7356437
Fax: +20 2 7360530
Fax: +20 2 7352132
Embassy of Great Britain
Embassy of Sweden
7 Ahmed Raghab St., Garden City
13 Mohd Mazhar St., Zamalek
Tel: +20 2 7940852 / 8
Tel: +20 2 7361484
Fax: +20 2 7940859
Fax: +20 2 7354357
Embassy of Ireland
Embassy of Switzerland
3 Abou El Feda St., Zamalek
10 Abd El Khalek Tharwat St., Downtown
Tel: +20 2 7358547
Tel: +20 2 765719 - 5758284
Fax: +20 2 7362863
Fax: +20 2 5745236
Embassy of Italy
Embassy of United States of America
15 Abd El Rahman Fahmy St., Garden City
8 Kamal El Din St., Garden City
Tel: +20 2 7940658
Tel: +20 2 7973300
Fax: +20 2 7940657
Fax: +20 2 7973200
Embassy of Japan Cairo Centre Bld, Kasr El Aini, Garden City Tel: +20 2 7953963
GOVERNMENT, MINISTRIES AND OFFICES IN EGYPT
Fax: +20 2 7963540
Cabinet of Ministers Embassy of The Netherlands
Magles El Shaab St., Kasr El Aini St., Cairo
18 Hassan Sabri St., Zamalek
Tel: +20 2 7958014 / 35 / 36
Tel: +20 2 7395500
Fax: +20 2 7356449
Fax: +20 2 7365249
E-mail: primemin@idsc.gov.eg
Embassy of Norway 8 El Gezirah St., Zamalek
Ministry of Agriculture and Land Reclamation
Tel: +20 2 7363955
Shooting club, Dokki, Giza
Fax: +20 2 7370709
Tel: +20 2 7615967 / 72 Fax: +20 2 7614263
Embassy of Portugal
E-mail: primemin@idsc.gov.eg
1 ElSaleh Ayoub St., Zamalek
Website: www.agri.gov.eg/webh.htm
Tel: +20 2 7350779 Fax: +20 2 7350799
22
GENERAL INFORMATION ABOUT EGYPT Ministry of Communication and Information Technology
Ministry of Foreign Affairs
Ahmed Orabi St., Mohandesien, Giza, 12651
Tel: +20 2 5749816 - 5749817
Tel: +20 2 3444544
Fax: +20 2 5749533
Fax: +20 2 3444543
E-mail: minexter@idsc1.gov.eg
E-mail: egov@mcit.gov.eg
Website: www.mfa.gov.eg
Maspero, Cairo
Website: www.mcit.gov.eg
Ministry of foreign trade Ministry of Culture
8 Adly St., Cairo
2 Shagaret El Dor St., Zamalek, Cairo
Tel: +20 2 3919661 - 3916629
Tel: +20 2 7380761 / 2
Fax: +20 2 3903029
Fax: +20 2 7356449
E-mail: minecon@idsc1.gov.eg
E-mail: mculture@idsc.gov.eg
Ministry of Health and Population Ministry of defence and Military production
Magles El Shaab St., Kasr El Aini St., Cairo
23 July St., Kobri El Kobba, Cairo
Fax: +20 2 7951527
Tel: +20 2 4192183 / 2602566
E-mail: moh@idsc.gov.eg
Tel: +20 2 7941507 - 7957046
Fax: +20 2 2916227 E-mail: mod@idsc.gov.eg
Ministry of Housing Utilities and Urban Communities
Ministry of Education
1 Ismail Abaza St., Kasr El Aini, Cairo
4 Ibrahim Naguib St., Garden City, Cairo
Tel: +20 2 7951454
Tel: +20 2 7947363 - 7959739
Fax: +20 2 7921384
Fax: +20 2 7962952
E-mail: mhuuc@idsc.gov.eg
E-mail: Moe@idsc.gov.eg Website: www.emoe.org
Ministry of Industry and Technological development
Ministry of Electricity and Energy
2 Latin America St., Garden City, Cairo
Abbassia, Nasr City, Cairo
Tel: +20 2 7921190 / 67
Tel: +20 2 4012361 - 4012362
Fax: +20 2 7955025
Fax: +20 2 7356449 E-mail: egy@idsc.gov.eg
Ministry of Information Maspero Corniche El Nil, Cairo
Ministry of Finance
Tel: +20 2 5757155 - 5787120 - 5789349 / 542
Lazoughly Square, Justice & Finance Bldg, Cairo
Fax: +20 2 5748781
Tel: +20 2 7941055 - 7957027 Fax: +20 2 7957537 E-mail: mofinance@idsc1.gov.eg
23
GENERAL INFORMATION ABOUT EGYPT
El Sheikh Rihan St., Cairo
People’s Assembly and Shura Council Affairs
Tel: +20 2 7957500 / 11 - 7921999
Magles El Shaab St., Kasr El Aini St., Cairo
Fax: +20 2 5792031
Tel: +20 2 7926334
E-mail: ali@iscmi.gov.eg
Fax: +20 2 7957681
Ministry of Interior affairs
E-mail: parli@idsc.gov.eg
Ministry of Irrigation and Water Resources
Ministry of Petroleum
Gamal Abd Elnasser St., Warak, Cairo
El Mokhayyam El Da’em St.Nasr City, Cairo
Tel: +20 2 5449417
Tel: +20 2 6706401 / 2 / 3 / 5
Fax: +20 2 5449410 / 28
Fax: +20 2 6706419
E-mail: abouzeid@mwri.gov.eg
E-mail: mop@egyptonline.com
Ministry of Justice
Ministry of Planning
Lazoughly Square, Justice & Finance Bldg, Cairo
Salah Salem St., Nasr City, Cairo
Tel: +20 2 79581038
Tel: +20 2 4014526 / 7 / 8
Fax: +20 2 7958103 - 7955700
Fax: +20 2 4014705
E-mail: mojeb@idsc.gov.eg
Website: www.mop.eg.gov
Ministry of Local Administration 4 Shooting Club St., Dokki, Cairo
Ministry of Public Enterprise (Privatization)
Tel: +20 2 7497470
Magles El Shaab St., Kasr El Aini St., Cairo
Fax: +20 2 7497788
Tel: +20 2 7959788 - 7957579
E-mail: mlocmng@idsc.gov.eg
Fax: +20 2 7955882 E-mail: Mops3@idsc.gov.eg
Ministry of Manpower and Immigration 3 Youssef Abbas St., Nasr City, Cairo
Ministry of Social Affairs and Insurance
Tel: +20 2 2609890
19 AlMaraghy St., Agouza, Giza
Fax: +20 2 2609891
Tel: +20 2 3370039 - 3375404
E-mail: mwlaboy@idsc1.gov.eg
Fax: +20 2 3389101
Website: www.emigration.gov.eg/
E-mail: sheon@misaegy.com
Ministry for Military Production 5 Ismail Abaza St., Cairo
Ministry of State for Administrative Development
Tel: +20 2 7953063 - 7952428
Salah Salem St., Nasr City
Fax: +20 2 7953617
Tel: +20 2 4024152 - 4024167
E-mail: mmpisscc@idsc.gov.eg
Fax: +20 2 4031076 E-mail: tanmiaed@hotmail.com
24
GENERAL INFORMATION ABOUT EGYPT Ministry of State for Environment Affairs
Ministry of Waqfs (Religious Trust)
30 Misr-Helwan road, Maadi (Behind Maadi Sofitel)
Tel: +20 2 3929403
Tel: +20 2 5256452 / 3
Fax: +20 2 3900362
Fax: +20 2 5256490
E-mail: mawkaf@idsc1.gov.eg
Sabry Abou Alam St., Bab El Louk, Cairo
E-mail: icc@eeaa.gov.eg Website: www.eeaa.gov.eg
Supreme Council of Antiquities 6 El adel Abu Bakr St., Zamalek
Ministry of State for foreign affairs
Tel: +20 2 7365645 - 7358761
8 Adly St., Downtown, Cairo
Fax: +20 2 7357239
Tel: +20 2 3910008 - 3935147 - 5749810
E-mail: ib_wr@yahoo.com
Fax: +20 2 3908159 E mail: rabia_rashed@hotmail.com
GAFI 8 Adly St,. Downtown, Cairo
Ministry of State for Higher Education and Scientific Research
Tel: +20 2 3900597 - 3915627
101 El Kasr El Einy St., DownTown, Cairo
WebSite: www.gafi.gov.eg
Tel: +20 2 7921275 / 6 Fax: +20 2 7941005
Fax: +20 2 3907315
GETTING AROUND
E-mail: info@egy_mhe.gov.eg
By road Ministry of Supply and Home Trade 99 Kasr El Aini St., Downtown, Cairo
Roads are generally in a good state, and you can drive to
Tel: +20 2 7957598 - 7950360
all the major towns in Egypt from Cairo, but huge dis-
Fax: +20 2 7946165
tances and local driving habits have to be taken into con-
E-mail: miceu@idsc.gov.eg
sideration. Driving in Cairo is an experience in itself: streets are permanently crowded, traffic lights and other
Ministry of Tourism
rules are not respected, and drivers fight their way
Abassia Square Borg Misr Travel, Cairo
through the sahma (traffic jam) by honkin their horns res-
Tel: +20 2 6828439 - 6828456 - 6837665
tlessly. Therefore, it is recommended to take the taxi as an
Fax: +20 2 2859551
alternative. All airports in Egypt have a taxi service to city
E-mail: minster@visitegyptgov.eg
centres, operated on a flat fee basis. In Cairo, you can
WebSite: www.tourism.egnet.net
either take a curbside limousine or a one of the official Cairo taxis, fees are quite similar. The Airport Bus Service
Ministry of Transport
operates from Terminal 1 and drops you downtown, in
105 Kasr El Aini St., Cairo
Mohandeseen and along the Pyramids Road in Giza.
Tel: +20 2 7955562 / 3 / 6 / 7 / 8
Another alternative in Cairo could be the Metro. Clean
Fax: +20 2 7955564 E-mail: transport@idsc.net.eg
25
GENERAL INFORMATION ABOUT EGYPT and efficient, it is an easy way to get around and truly the
Aswan- Araw Airport
“miracle of Cairo”.
Tel: +20 97 480333 - 482440
For longer distances, air-conditioned buses link most parts
Fax: +20 97 481272
of Egypt to Cairo and Alexandria. Seats may be reserved up to two days in advance.
Cairo International Airport Tel: +20 2 2914255 / 66
By air
Arrival Hall 1. Tel: +20 2 2914277
Egypt has one national carrier for internal flights, Egypt
Arrival Hall 2.
Air. EgyptAir flies daily from Cairo to Alexandria, Luxor,
Tel: +20 2 2914288
Aswan, Abu Simbel, Sharm al-Sheikh and Hurghada, and twice a week to Al-Khargah Oasis.
Hurghada Airport Tel: +20 65 442592 - 442831
Railways
Fax: +20 65 443976
The Egyptian State Railway is a government-owned
Luxor
system founded in 1851 which services the entire Nile
Tel: +20 95 374655
Valley down to Aswan, the Red Sea cities of Suez and Port
Fax: +20 95 376761
Said, the Delta and Northern Coast cities of Alexandria (two stops) and Marsa Matruh. There are at least half a
Sharm El-Sheikh
dozen trains a day on major routes. Fares are inexpensive,
Tel: +20 69 600302
tickets must be purchased at the main railway stations.
Fax: +20 69 601148
The privately-owned Wagon-Lit train company runs three fast turbo-trains a day from Cairo to Alexandria (2 hours).
AIRLINES
Booking should be done in advance at Ramesses Station, Cairo or at Alexandria station.
OTHER USEFUL INFORMATION AIRPORTS
Air Canada 26 Mahmoud Bassiouni St., Downtown Tel: +20 2 5792980 Fax: +20 2 5743342 E-mail: itcsales@itcgroup.com
Air France Alexandria - El Nouzha Airport
2 Talaat Harb Square, Downtown
Tel: +20 3 4278764 - 4271036
Tel: +20 2 5758899
Fax: +20 3 427 2020
Fax: +20 2 771744 E-mail: mail.cai@airfrance.fr
Alexandria Borg al Arab Airport Tel: +20 3 4591486 / 7 Fax: +20 3 4591484
26
GENERAL INFORMATION ABOUT EGYPT Alitalia
Gulf Air
Nile Hilton Hotel, Tahrir Square
64 Gameat El Dowal El Arabia St., Mohandeseen
Tel: +20 2 5785823 / 4 / 5
Tel: +20 2 7611119
Fax: +20 2 5786924
Fax: +20 2 57490955 Website: www.gulfair.com
American Airlines 20 El Gihad St., Mohandiseen
Kuwait Airways
Tel: +20 2 3455707 - 3470033
24 Ibrahim El lakany, Roxy, Heliopolis
Fax: +20 2 3455707
Tel: +20 2 6904813 / 4 / 5
E-mail: aa_Egypt@emeco.com
Fax: +20 2 6904589
British Airways
Lüfthansa
1 Abd El Salam Arif St., Tahrir Square
6 El Seiekh el marsafy Zamalek
Tel: +20 2 5780742 / 1
Tel: +20 2 7398339
Fax: +20 2 5747674
Fax: +20 2 7357599 E-mail: caigrteamc@dlh.de
Continental Airlines 26 Mahmoud Bassiouni St., Downtown
Malaysia Airlines
Tel: +20 2 5758939 - 5784658
Nile Hilton, Tahrir Square
Fax: +20 2 579129 - 5743342
Tel: +20 2 5799714 Fax: +20 2 5799715
Delta Airlines C/o Five Continents
Turkish Airlines
Jeddah Tower
Nile Hilton, Tahrir Square
17 Ismail Mohammed St., Zamalek
Tel: +20 2 5749009
Tel: +20 2 7369409 - 7351948
Fax: +20 2 5749600
Fax: +20 2 7369626
E-mail: sales@turkish-eg.com
EgyptAir
BANKS
9 Talaat Harb St., Downtown Tel: +20 2 3932836 - 3922835
(see Finance section page 103)
Fax: +20 2 3927664
Alexandria Commercial & Maritime bank
Website: www.egyptair.com.eg
85 El Horreya St., Alexandria Tel: +20 3 3927307
Emirates Airlines
Fax: +20 3 4972397
18 Ahmed Abdul Aziz St., Mohandeseen Tel: +20 2 3361555
American Express Bank
Fax: +20 2 7484138
4 Syria St., Mohandiseen, Giza
Website: www.emirates.com
Tel: +20 2 7608228 - 3312500 Fax: +20 2 7608227
27
GENERAL INFORMATION ABOUT EGYPT Arab Bank PLC
Chase Manhattan Bank
50 Gezirat El Arab St., Mohandiseen
3 Ahmed Nessim St., Giza
Tel: +20 2 3029070 / 1
Tel: +20 2 7610393
Fax: +20 2 3029065
Fax: +20 2 7610498
Banque du Caire
CIB
6 Mostafa Abou zahra St., Nasr City
23 Charles de Gaulles St., Nile Tower, Giza
Tel: +20 2 2646700
Tel: +20 2 7481797
Fax: +20 2 4055390
Fax: +20 2 5683844
Bank Misr
Citibank
151 Mohammed Farid St., Down Town Cairo
4 Ahmed Pasha St., Garden City
Tel: +20 2 39111159 / 3914239
Tel: +20 2 7951876
Fax: +20 2 3935381
Fax: +20 2 7922776 / 82
Bank of Alexandria
Delta International Bank
49, kasr El Nil St., Downtown, Cairo
1113 Corniche El Nil
Tel: +20 2 3919686 - 3911999
Tel: +20 2 5753492
Fax: +20 2 3907793
Fax: +20 2 5742892 Website: www.deltainternationalbank.com
Bank Paribas 3 Latin America St,. Garden City
Deutsche Bank
Tel: +20 2 7948324 / 5
23 Kasr El Nil St.
Fax: +20 2 7958156
Tel: +20 2 3922341 - 3921373
Website: www.bnpparibas.com
Fax: +20 2 3922341 E mail: deucai@tedata.net.eg
Barclays International 12 Midan El Sheikh Youssef, Garden City
Egyptian American Bank
Tel: +20 2 3662620 / 00
4/6 Hassan Sabri St., Zamalek
Fax: +20 2 3662810
Tel: +20 2 7382661 - 7380126
Website: www.barclays.com
Fax: +20 2 7380450 Website: www.eab-online.com
Central Bank of Egypt 31 Kasr El Nil St., Downtown
Egyptian British Bank
Tel: +20 2 3926211 / 3926108
3 Abu El Feda St., Zamalek
Fax: +20 2 3925045
Tel: +20 2 7354849
E-mail: research@cbe.org.eg
Fax: +20 2 7364010
28
GENERAL INFORMATION ABOUT EGYPT Mibank
Tel: +20 2 7923172 / 3
54 El Batal Ahmed Abd El Aziz St., Mohandessin
Fax: +20 2 3931415 - 3931504
Tel: +20 2 7610120 - 40 Fax: +20 2 7489796
PICTURES
National Bank of Egypt
Egypt is a photographer’s paradise, and there are no res-
1187 Corniche El Nil St., Downtown
trictions on photography anywhere in Cairo. Photography
Tel: +20 2 5749101 / 2 / 3 / 4
is forbidden in security zones, often curiously defined, and
Fax: +20 2 5747614
a variety of rules pertain to Pharaonic monuments.
Société Générale
CALENDAR
2 El Kamel Mohamed St., Zamalek Tel: +20 2 7362564 - 7360276
In addition to the Gregorian calendar used throughout
Fax: +20 2 7365804
the world, the Middle East and the Islamic world in
CREDIT CARD EMERGENCIES American Express Nile Tower Building
general also observes the Islamic or Hijra calendar (calculated from the Prophet Muhammed’s flight to Medinah), and Egypt even handles a third calendar, the Coptic.
OFFICIAL PUBLIC HOLIDAYS
21 Giza St. Tel: +20 2 5703411 / 2
January 7: Coptic Christmas (Christians only).
Fax: +20 2 5703146 / 7
March 26: Sinai Day.
Website: www.americanexpress.com
May 1: Labour Day. June 5: Suez Canal Day.
Cash Cards
July 23: Independence (Revolution) Day.
1187 Corniche El Nil
October 6: Armed Forces Day.
Tel: +20 2 5794101 Fax: +20 2 5748394
Other holidays include: Eid Al Fitr (Small Bairam): follows lunar calendar (3 days).
Diners Club
Eid Al Adha (Big Bairam): follows lunar calendar (4 days).
21 Mohd Mazhar St., Zamalek
Mouled El Nabi: follows lunar calendar (1 day).
Tel: +20 2 7382638
Shamm El Nessim: first Monday after Coptic Easter.
Fax: +20 2 7382637 Website: www.dinersclubme.com
MasterCard / Visa Card 153 Mohamed Farid St. Bank Misr Tower
29
GENERAL INFORMATION ABOUT EGYPT
30
BUSINESS RESOURCES
BUSINESS RESOURCES
“If you search for the laws of harmony, you will find knowledge.” Egyptian proverb
31
BUSINESS RESOURCES AUTHORITIES & AGENCIES
Center for Export Development 106 Gameat El Dowal St., Mohandeseen
Cabinet Information & Decision Support Centre (IDSC)
Tel: +20 2 7493919 / 21
1 Magless El Shaab St., Downtown
E-mail: egexport1@idsc.net.eg
Fax: +20 2 7484056
Tel: +20 2 7929292 Fax: +20 2 7929222 E-mail: info@idsc.gov.eg
Egyptian General Petroleum Corp. (EGPC) 4 Palestinian St., New Maadi
Capital Market Authority
Tel: +20 2 5184960 / 1
20 Emad El Din St., Downtown
Fax: +20 2 7065014 - 5184963
Tel: +20 2 5741000 - 5743111 Fax: +20 2 5794176
General Authority for Investment & Free Zones (GAFI)
Customs Authority
8 Adly St., Downtown, Cairo
4 Teheran St., Nasr City
Tel: +20 2 3900597 - 3915627
Tel: +20 2 4035557 - 4033703
Fax: +20 2 3907315 - 3901017
Fax: +20 2 4012191 - 2612672
E-mail: Gafi-promotion@Gafinet.org Website: www.gafinet.org
Central Bank of Egypt 31 Kasr El Nil St., Downtown
Egyptian International Trade Point
Tel: +20 2 3926108 - 3926211
96 Ahmed Orabi St., Mohandessin
Fax: +20 2 3925045
Tel: +20 2 3033477
E-mail: research@cbe.org.eg
Fax: +20 2 3033480 E-mail: Pbromtrans1@idsc.net.eg
Commercial Representative Office Tel: +20 2 3471890 / 6
General Authority for International Fairs & Exhibitions
Fax: +20 2 3451840
Exhobition Land., Nasr City
E-mail: techoff@tamseel-ecs.gov.eg
Tel: +20 2 2607819
96 Ahmed Orabi St., Mohandessin
Fax: +20 2 2607848
Egyptian Environmental Affairs Agency (EEAA)
Website: www.goief.gov.eg
30 Masr Helwan Road., Maadi Tel: +20 2 5256450 / 45
General Organization for Exports and Imports
Fax: +20 2 5256454
1 Marouf St., Downtown
E-mail: khalil@eeaa.gov.eg
Tel: +20 2 5756130 - 5756095 Fax: +20 2 5741618
32
BUSINESS RESOURCES Sales Tax Authority
Club D’Affaires Franco-Egyptien
26 Obour Building, Salah Salem Road, Nasr City
1 Wadi el Nil St., Mohandessin
Tel: +20 2 4034893 - 4034896
Tel: +20 2 3469417 / 8
Fax: +20 2 4034897
Fax: +20 2 3469417
Website: www.salestax.gov.eg
E mail: cafe@cafe.org.eg
Stock Exchange
Egyptian Businessmen’s Association
4a El Sherefein St., Downtown
Nile Tower, Giza St., Giza
Tel: +20 2 3928698 - 3961495
Tel: +20 2 5723020 - 5736030
Fax: +20 2 3924214
Fax: +20 2 5737258
Website: www.egse.com
E-mail: eba@eba.org.eg
Telecom Egypt 26 Ramsis St., Downtown, Cairo
Federation of Egyptian Chambers of Commerce
Tel: +20 2 5777551 - 5781414
4 Falaky Square, Bab El-louk, Down Town
Fax: +20 2 5744244 - 5793444
Tel: +20 2 5796066 - 7953677
E-mail: akil.beshir@telecomegypt.com.eg
Fax: +20 2 7951164
Website: www.telecomegypt.com.eg
E-mail: fedcoc@menanet.com
BUSINESS ASSOCIATIONS
Federation of Egyptian Industries 1195 Corniche El-Nil, beside Conrad hotel, Downtown
Alexandria Business Association
Tel: +20 2 5796590 - 5797074 / 5
52 Horreya Av., Attarin, Alexandria
Fax: +20 2 5796593/ 4
Tel: +20 3 4848978 Fax: +20 3 4872206
German-Arab Chamber of Commerce in Egypt
American Chamber of Commerce in Egypt
21 Soliman Abaza St., Gameit El Dewel El-Arabia,
33 Soliman Abaza St., Dokki, Giza
Tel: +20 2 3368183
Tel: +20 2 3381050
Fax: +20 2 3368026
Fax: +20 2 3380850 - 3381060
E-mail: info@ahkmena.com
E-mail: edirector@amcham.org.eg
British Egyptian Business Association (BEBA)
Mohandessin
INFORMATION CENTERS
124 Nile St., Agouza, Giza, Postal code 12411
Middle East Library for Economic Services
Tel: +20 2 7603550 - 7617486
6 Soliman Abd al-Aziz Soliman St., Agouza
Fax: +20 2 7606083
Tel: +20 2 3351141
E-mail: beba@beba.org.eg
Fax: +20 2 7606804
Website: www.beba.org.eg
Website: www.egyptlaus.com
33
BUSINESS RESOURCES Central Agency for Public Mobilisation and Statistics (CAPMAS)
World Bank
Salah Salem St. (in front of Obour buildings), Nasr City
Tel: +20 2 5741670
Tel: +20 2 4020574
Fax: +20 2 5741676
Fax: +20 2 4024099
Website: www.worldbank.org
Website: www.capmas.gov.eg
1191 Corniche El Nil, WTC, Boulaq
INSURANCE COMPANIES
The Egyptian Centre for Economic Studies
Al Chark Insurance
World Trade Center, Boulaq, Corniche El Nil
15 Kasr El Nile, Downtown
Tel: +20 2 4619037 / 8 / 9
Tel: +20 2 5881201 - 5769808
Fax: +20 2 4619045
Fax: +20 2 5784817
Website: www.eces.org.eg
E-mail: chairman@alchark.com
MULTILATERAL INSTITUTIONS
Allianz Insurance 92 Tahrir St., Saredar Bldg, Dokki Tel: +20 2 7605445
African Export-Import Bank
Fax: +20 2 7605446
1191 Corniche El Nil, WTC, Boulaq
E mail: allianz@allianz.com.eg
Tel: +20 2 5780282 / 5 Fax: +20 2 5780279 / 8
Egyptian Reinsurance Co. 7 Abd Ellatif Boltia St., Garden City
Council of Arab Economic International Finance Corp. (IFC)
Tel: +20 2 7944428 - 7940141 Fax: +20 2 7954359
1191 Corniche El Nil, WTC, Boulaq Tel: +20 2 5799900 - 5796565
National Insurance
Fax: +20 2 5792211
41 Kasr El Nil St., Down Town
Website: www.ifc.org.eg
Tel: +20 2 3917500 - 3910731 Fax: +20 2 3901933
International Labour Organization (ILO) 9 Taher Hossein St., Zamalek
Royal & Sun Alliance Insurance
Tel: +20 2 7350123
22 Al Thawra St., Dokki
Fax: +20 2 7360889
Tel: +20 2 7610467
Website: www.ilo.org
Fax: +20 2 7609685
Organisation of Arab Petroleum Exporting Countries (OAPEC) 2 Abdelkader Hamza St., Downtown Tel: +20 2 7942547 / 7942660 Fax: +20 2 7942601
34
BUSINESS RESOURCES SECURITY / GUARD SERVICE
Professional Conference Services International 6 Omar Ibn al-Khattab, Mohandessin
4 S Sphinx Enterprises
Tel: +20 2 3364030 - 3379543
53 Mustapha El Nahas St., Nasr City
Fax: +20 2 3379543
Tel: +20 2 2723276 - 2750010
E mail: pcsi@link.net
Fax: +20 2 2723274 Website: www.4ssphinx.com
IT SPECIALISTS
Group 4 Falck
Extreme Solutions
7 El Sherka El Porseida St., Heliopolis
20 El Obour Buildings, Salah Salem St., Nasr City
Tel: +20 2 6905700 / 800
Tel: +20 2 2632552 - 4028626
Fax: +20 2 2918628
Fax: +20 2 2632552
Website: www.group4fack.com
Website: www.extremesolutions.com
CONFERENCE & SERVICES
E-mail: info@extremesolutions.com
Xerox Cairo International Conference Center
2 Lebanon St., Mohandessin
Nasr Road, Nasr City
Tel: +20 2 3444918 - 3477735
Tel: +20 2 2634637 / 2
Fax: +20 2 3033888
Fax: +20 2 2634640
Website: www.xerox.com
Website: www.cicc.egnet.net
LEGAL REFERENCES
Cairo International Fairs Mamdouh Salem St., Nasr City
Helmy & Hamza Law Office
Tel: +20 2 2607819 / 5 / 4 / 3 / 2
1191 Corniche El Nil, WTC, Boulaq
Fax: +20 2 2605048
Tel: +20 2 5791801 Fax: +20 2 5798108
Conference Organising Bureau 14 El Khalil St., Mohandessin
Shalakany Law Office
Tel: +20 2 3023642 - 3027672
12 Maraashly St., Zamalek
Fax: +20 2 3027672
Tel: +20 2 7353334
E-mail: cobshahi@intouch.com
Fax: +20 2 7370661
Nile Conference Centre
Eldib Advocates
12 Samir Saeed Ahmed Midan Pasha, El Manial
20 Aisha El Taymoria St., Garden City, Downtown
Tel: +20 2 3632591 - 3622521
Tel: +20 2 7934000
Fax: +20 2 3632591
Fax: +20 2 7934777
E-mail: nilecc@link.net
E-mail: cairo@eldib.com.eg
35
BUSINESS RESOURCES OFFICE SUPPORT
Professional Driver Mr. Saeed El Lord
Associated Business Center
Private Professional Driver
22a 305th St., New Maadi
Cellular: +20 12 3468949
Tel: +20 2 7027854 Fax: +20 2 7021631
Alkan Car Hire 2 Messaha Square, Dokki
Multilingua
Tel: +20 2 3490140
11 El Sabak St., Heliopolis
Fax: +20 2 3499253
Tel: +20 2 6401344 Fax: +20 2 6401344
Avis
E-mail: hanywf@aucegypt.edu
16a Maamal El Sukkar St., Garden City
RENT A CAR
Tel: +20 2 7947400 Fax: +20 2 7962464
Crossroad
Budget Rent-A-Car
1 El Shaheed Tarek Khalef St., Heliopolis
Km 28 Cairo - Alex Desert road
Tel: +20 2 6204457
Tel: +20 2 5391501 / 3
Fax: +20 2 6225511
Fax: +20 2 5391506
E-mail: crossroad122@hotmail.com
Rawas Car & Limousine Rental Cruise
4 Midan Tahran, Dokki
4 / 5 El Laselky St., New Maadi. 1st floor
Tel: +20 2 7495313 - 7499891
Tel: +20 2 5201661
Fax: +20 2 7499891
Fax: +20 2 5201661
REAL ESTATE
Hertz Egypt Km 28 Cairo - Alex Desert Road, Safari
Alia S.A.E
Tel: +20 2 5391380 / 2 / 3
39 Gameat El Dowal El Arabia, Mohandessin
Fax: +20 2 5391379
Tel: +20 2 3800358
Website: www.hertz.com
Fax: +20 2 7603491
Omam Car Rental
Al Gomhoria Real Estate
Genena Mall, El Batrawi St., Nasr City
20 Ahmed Hisham St., Zamalek
Tel: +20 2 4053939 - 2610416
Tel: +20 2 7354914 - 7381384
Fax: +20 2 4026922
Fax: +20 2 7381384
E-mail: omam2000@hotmail.com
E-mail: info@algamhoria.com
36
BUSINESS RESOURCES Atlas Real Estate
Website: www.look.com.eg
El Hegaz St., Heliopolis Tel: +20 2 6239372
Magic Solutions
Fax: +20 2 6242504
2 Zamzam St., Dokki, Giza
E-mail: mkhabeeb@hotmail.com
Tel: +20 2 7492251
GRAPHIC DESIGNERS/ ADVERTISING AGENCIES
Fax: +20 2 7492251 Website: www.ms.com.eg
A.R Publication Look Advertising
2 Dr Taher Hossein St., Zamalek Tel: +20 2 7353131 Fax: +20 2 7355151 E-mail: ar@ar.com.eg
Global Advertising 69 Abd El Aziz Fahmy St., Heliopolis 2 Al Esraa St., Mohandessin
Tel: +20 2 2404540 - 6357665
Tel: +20 2 3464078 / 9
Fax: +20 2 6357665
Fax: +20 2 3479284
E-mail: global_advertising1@yahoo.com
BUSINESS RESOURCES PUBLICATIONS
Golden Lines Shipping 17 El Posta St., Manchaia, Alexandria
Business Today Egypt
Tel: +20 2 4802733/ 4805573
www.businesstoday-eg.com
Fax: +20 2 4811505 E-mail: goldenlines@hotmail.com
Egypt Today www.egypttoday.com
CARGO
Business Monthly
Cargo International Co.
www.amcham.org.eg
2/ 13 El Saoudaia Building, New Maadi Tel: +20 2 7035448 - 7034971
Cairo Times
Fax: +20 2 7031710
www.cairotimes.com
E-mail: ah_cargo@intouch.com
The Croc
Cargo Point
www.cairocafe.com.eg
47 Abd El Moneam Riad St., El Agouza
PACKERS & MOVERS
Tel: +20 2 3053519 - 3475430 Fax: +20 2 3475430 E mail: cargopoi@soficom.com.eg
AGS - Worldwide Movers 2 El Gabbal El Akhdar, 10th district Nasr City
COURIER SERVICES
Tel: +20 2 4115533 - 4112012 Fax: +20 2 4110033
Aramex - International Courier
E-mail: sales@agsegypt.com
31 Mesadaq St., Dokki Tel: +20 2 3388466
Apple Service
Fax: +20 2 7482990
3 Omar Bakeir, Heliopolis
Website: www.aramex.com
Tel: +20 2 6375304 - 6430840 Fax: +20 2 6430840
Egyptian Post
E-mail: applefrc@hotmail.com
21 Kasr El Nil, Downtown
SHIPPING Egyptian Co. for Shipping 32 El Haram St., Giza Tel: +20 2 3827883 Fax: +20 2 3847753
38
Tel: +20 2 3931492 - 3938818 Fax: +20 2 3952763
BUSINESS RESOURCES DHL International
New Universal Pharmacy
16 Lebanon St., Mohandessin
12 Brazil St., Zamalek
Tel: +20 2 3029801 / 2 / 3
Tel: +20 2 7354896
Fax: +20 2 3029811
HOSPITALS
Fedex Express Anglo - American Hospital Next to Cairo Tower, Zamalek Tel: +20 2 7356162 / 5 / 4 Fax: +20 2 7354304
Hayatt Medical Centre 16 a Maamal al sokkar St., Garden City Down Town
6 Minis St., Corba, Heliopolis
PO Box 2471, Heliopolis
Tel: +20 2 2907017 / 27
Tel: +20 2 2687888 / 999
Fax: +20 2 4175832
Fax: +20 2 2687555 Website: www.fedexegypt.com
Cleopatra Hospital 39 Cleopatra St., Salah El Din Square, Heliopolis
UPS
Tel: +20 2 4143931
7 Hussein Zohdy St., Golf Area, Heliopolis
Fax: +20 2 4178602
Tel: +20 2 4141456 Fax: +20 2 4141457
El-Salam International Hospital (BUPA)
Website: www.ups.com
Corniche El Nil, Maadi Tel: +20 2 5240250
MEDICAL SERVICES (24 HOURS PHARMACIES)
Fax: +20 2 5240066
Shaalan Surgi Center 10 Abd El Hamid Lotfi Street, Mohandessin
El-Ezaby
Tel: +20 2 7603920
1 Ahmed Tayseer St., Heliopolis 11
Fax: +20 2 7605180
Tel: +20 2 4148467 - 4180838
USEFUL LINKS Hindam Road 9 Midan Al Mahatta Maadi
www.highway.idsc.gov.eg/library
Tel: +20 2 3593844
Information & Decision Support Center
Atallah Pharmacy
www.presidency.gov.eg
13 Sherif St., Down Town
Egyptian Presidency
Tel: +20 2 3938917 - 3939029
39
BUSINESS RESOURCES www.sis.gov.eg
Date of creation: 1983
Egypt State Information Service (SIS)
Number of employees: N/A
www.edara.gov.eg Governmental Services
Alexandria Business Association began its activities under
www.shoura.gov.eg
the auspices of the Alexandria Chamber of Commerce to
Egyptian Shoura Assembly
provide support for the private sector, promote the interests of businessmen, provide networking opportunities,
www.assembly.gov.eg
consolidate business and social ties amongst them and
Peopleâ&#x20AC;&#x2122;s Assembly
represent the sector to the Government. This concept soon developed beyond advocacy to encompass commu-
www.sfdegypt.org/en
nity service.
Social Fund for Development The Alexandria Business Association was registered in
www.economic.idsc.gov.eg
March 1988 as a non-profit, non-government organiza-
Egyptian Economic Bulletin
tion. Their member database includes approximately 350 members. ABA is working on several projects including a
www.highway.idsc.gov.eg
joint project with USAID to implement the micro and small
Egypt Information Highway
enterprises development in Alexandria. This project, which employed more than 650 people through 29 bran-
www.highway.idsc.gov.eg/govern
ches, has already created 220 000 jobs in Egypt. Besides,
Egypt Governorates Net
the ABA members have established the Alexandria Center for International Arbitration in 2001; implemented the
www.cairo-airport.com
school-to-work program with the Ministry of Education in
Cairo Airport
1999; Mubarak-Kohl Initiative of October 1991, to assist
MAIN COMPANIES
the Egyptian government in its efforts to restructure its technical education and training system; Global Learning and Observation to Serve the Environment (GLOBE) pro-
Alexandria Businessmen´s Association (ABA)
ject; School Desks project; feeding the poor project; and the development of the 21st Century Information Technology Centers to develop Egypt technologically with
Mr. Mohamed Abdel Fattah Ragab
main focus on youth.
Chairman 52 Horreya Avenue, Alexandria
ABA has several committees ranging from agriculture to
Tel: +20 3 4848978
legal affairs to charity. They offer managerial, technical,
Fax: +20 3 4872411
export, IT and environmental training courses. They also
E-mail: aba@aba.org.eg
seem to hold regular events and / or discussions / semi-
Website: www.aba.org.eg
nars; however the information on their website about these events was in Arabic.
40
BUSINESS RESOURCES American Chamber of Commerce
Baker & Mc Kenzie Law Firm / Helmy, Hamza & Partners
Mr. Hisham Fahmy Executive Director
Mr. Taher Helmy
33, Soliman Abaza St., Dokki, Cairo
Managing Partner
Tel: +20 2 3381050
World Trade Center, 1191 Corniche El Nil, 18th Floor,
Fax Number: +20 2 3389895
Cairo
E-mail: edirector@amcham.org.eg
Tel: +20 2 5791801 / 6
Website: www.amcham.org.eg
Fax: +20 2 5791808 E-mail: info@bakernet.com
Date of creation: 1982
Website: www.bakernet.com Date of creation: 1949 (1985 in Cairo)
The American Chamber Of Commerce In Egypt (AmCham Egypt), one of the largest and most active overseas affiliates of the U.S. Chamber of Commerce, has successfully
Baker & McKenzie is a leading global law firm with 66
helped to enhance economic and investment relations
offices in 36 jurisdictions. The Cairo office of Baker &
between the United States and Egypt since 1982. it
McKenzie was established in 1985, making it the longest
currently has over 1000 members consisting of U.S. com-
established formal international affiliation in the Egyptian
panies doing business in Egypt and Egyptian companies
legal market. They have been involved in the country’s pri-
doing business in the U.S.
vatisation and debt conversion programs, working on the
The mission of AmCham Egypt is to promote the develop-
very first privatisation transaction in the early 1990s and
ment of commerce and investment between the United
most recently on Telecom Egypt’s IPO.
States and Egypt. The United States has been Egypt’s leading foreign trade and investment partner since the
Baker & McKenzie participated in the drafting of nume-
launch of Egypt’s Open Door Policy and the signing of the
rous key legislation over the past 15 years. From Law 203
Camp David Accords in the late 1970’s.
of 1991, the “Privatization Law” to the recent “Telecommunication Act”. Their team acted, between
Activities between the two include trade in goods and ser-
others, for ABN AMRO Rothschild in the Telecom Egypt
vices, capital inflows and significant transfer of aid.
IPO, Merrill Lynch in the electricity privatization, and
Additionally, political factors such as promoting peace in
Merrill Lynch / Morgan Stanley on Egypt’s first sovereign
the Middle East and maintaining a stable region, which
bond issue.
serves both nations’ interests, also play an important role. Bilateral relations have been marked by upward trends in trade, investment and supportive partnerships and agreements, despite short-term fluctuations. Further enhancement of trade and investment ties is, no doubt, of benefit to both countries, but even more beneficial to Egypt as it fist within the current phase of economic reform.
41
BUSINESS RESOURCES British-Egyptian Businessmen´s Association (BEBA)
membership to other organisations, joint functions and integrated services.
Mr. Mohamed Nosseir Chairman
Cairo Capital Club
124, Nile St., Agouza - Cairo Tel: +20 2 7491421 / 7491401
Mr. Niazi Charabi
Fax: +20 2 7606083
General Manager
E-mail: beba@beba.org.eg
9 Rostom Street, Garden City - Cairo
Website: www.beba.org.eg
Tel: +20 2 7953999 Fax: +20 2 7954264
Date of creation: 1996
E-mail: gm@cairocapitalclub.com Website: www.cairocapitalclub.com
Dedicated to the development of strong business associa-
Date of creation: 1997
tions to encourage and support local and foreign private
Number of members: 1280
business groups, the BEBA was founded in 1996 by a group of prominent British and Egyptian business executives recognized the need to develop Egypts’ export
The Cairo capital club is located in prestigious garden city,
industry in order to compete in the new “World Order”.
the heart of Cairo’s financial district. A private elevator
In order to assist British investors BEBA adapted and deve-
serves their 2,000 sq. meters of air-conditioned premises
loped the services provided to its members. These include:
on the top three floors of the one of Cairo’s most modern
proactive matchmaking between Egyptian and British
high-rise.
companies; a quarterly magazine; lobbying the Egyptian
The Club was established to provide the top most echelon
government on behalf of its members, especially on
of Cairene with the highest possible level of private city
general business issues; an online database; assistance
club service. As an extension of office and home, the club
and consultation services provided to individual members.
is well prepared to meet all executive and social require-
In addition, BEBA holds sectorial workshops and seminars
ments, it is a unique outlet where members may meet,
to debate topical issues, participates in trade fairs and
conduct business, entertain or dine while guaranteed the
hosts visiting trade missions and UK government officials.
most exclusive service in an atmosphere that is second to none in Egypt.
In order to increase the effectiveness of BEBA it is essential for the British and Egyptian membership to grow and to introduce new ideas and experiences to increase the profile of the association in Britain and Egypt. To develop
Cairo International Convention & Exhibition Centre (CICC)
these challenges BEBA seeks to develop greater links with UK and Egyptian organizations such as the Egyptian
Ambassador Salah Selim
British Chamber of Commerce, The Arab British Chamber
Chairman of the Executive Board
of Commerce, Trade Partners UK and British Trade
Nasr Road, Nasr City
International. It is intended that BEBA will offer reciprocal
Tel: +20 2 2634637 / 2634631
42
BUSINESS RESOURCES Fax: +20 2 2634640
governmental, non-profit organization that aims at mobi-
E-mail: chairman@cicc.egnet.net
lizing the efforts of the Egyptian businessmen to contri-
Website: www.cicc.egnet.net
bute efficiently to the economic and social development in Egypt. EBA has over 450 members who all hold key
Date of creation: 1989
positions in their companies, which range across the
Number of employees: 400
entire private sector and cover all economic fields. The members are involved with more than 1300 companies in fields such as tourism, IT, export, import, industry and
Cairo International Convention & Exhibition Centre (CICC)
trade. EBA strives to include a complete composite of the
has the capability to set up international and local confe-
Egyptian business community.
rences and conventions, and exhibitions. With almost 58,000 sq. m. of state of the art conference facilities, the CICC is the only comprehensive conference centre in the country.
Egyptian Exporters Association Expolink
In May 2004, a 5000 sq.m new Exhibition Hall was inaugurated to host the International Telecom Union Africa
Mr. Nagui El-Fayoumi
forum 2004; The CICC provides space and know how for
Executive Director & Board Member
holding trade exhibitions and international fairs.
90 Rd. 105, Maadi - Cairo Tel: +20 2 527 1010
The Centre is at ten - minutes drive from Cairo
Fax: +20 2 527 1015
International Airport, which make it close to any of the
E-mail: nfayoumi@expolink.org.eg
five star hotels and to the Cairo International Exhibition
Website: www.expolink.org
Grounds. Sector: Organization Date of creation: 1997
Egyptian Businessmen’s Association (EBA)
Number of members: 850
Mr. Mohamed Youssef
Egyptian Exporters Association (EEA) is a non-profit orga-
Secretary General
nization founded by the Egyptian private sector exporters
21 Giza St., Nile Tower - Giza
with a common belief in the potential of Egyptian exports.
Tel: +20 2 5723020 - 5736030
Since EEA was developed as a forum for exporters to
Fax: +20 2 5737258 - 5733855
gather and increase their business, their primary goal is to
E-mail: mohamed@eba.org.eg
develop Egyptian non-traditional exports and increase
Website: www.eba.org.eg
Egyptian exporters’ competitive advantage, helping them reach and compete in targeted markets with sophisticated
Sector: Organization
and enhanced products or services matching international
Date of creation: 1975
market demands. EEA’s mission is to become a world
Number of employees: 10
class, member-based export development organization
The Egyptian Businessmen’s Association (EBA) is a non-
that supports sustained export growth, thereby increasing
43
BUSINESS RESOURCES employment opportunities and achieving equitable eco-
Ireland Ltd. to produce a Master Plan for rapid develop-
nomic prosperity for Egypt. EEA plays an effective role in
ment of the SE zone.
export policy reform providing decision makers with researches alternatives and solutions to remove export barriers and enhance export incentives.
General Authority For Investment and Free Zones
General Authority for Economic Zones North West Gulf of Suez
Dr. M. El Ghammrawi Chairman 8, Adly Street, Cairo
Eng. Mostafa Shaarawi
Tel: +20 2 3901017
Chairman & President
Fax: +20 2 3907315
5th Settlement, El Teseen St., - New Cairo
E-mail: Gafi-promotion@Gafinet.org
Tel: +20 2 6172155
Website: www.gafinet.org
Fax: +20 2 6172156
www.InvestinginEgypt.com
E-mail: wafaa.mohamed@sezone-egypt.com Sector: Investment and Legal Framework Date of creation: 2003
Date of creation: 1971
Number of employees: 30 GAFI is the gateway to investment in Egypt. Since its estaThe General Authority for Economic Zones has been cre-
blishment in 1971, GAFI has maintained its leading role in
ated to manage the development and operation of the
facilitating investment procedures and servicing the busi-
Special Economic Zone adjacent to the Port of Sokhna,
ness community in Egypt.
about 45 km southeast of Suez City, close to the Southern entrance of the Suez Canal. The area allocated to the SE
It is the sole governmental agency responsible for:
zone is 90 km with another 100 km for future expansion.
- Incorporating companies registered under Law 8 / 1997
The Egyptian Government has invested heavily in the
and Law 159/1981 under one roof, since the merging of
construction of the modern Port of Sokhna, the provision
the companies department with GAFI.
of water, electricity and natural gas to the boundaries of
- Establishing representative offices for foreign companies
the area, in addition to the ongoing upgrading of Cairo-
in Egypt. The latterâ&#x20AC;&#x2122;s activities are limited to market study
Sokhna highway. The concept is to act as a one stop shop.
or production possibilities, without practicing any commercial activity.
The Government is especially concerned that this project, the first of its kind, should be implemented to the highest
GAFIâ&#x20AC;&#x2122;s strategy consists in promoting and attracting
standards, to be competitive with the other free zones
Foreign Direct Investment (FDI) necessary for implemen-
and special economic zones in the Middle East - North
ting sectorial development plans; activation and develop-
Africa region, and to serve as a model for future develop-
ment of the free zones; developing and fostering investment
ment of other SE zones in Egypt. The General Authority
in the industrial zones and governorates, in accordance
for SE zones has engaged International Development
with development plans strategies; providing information
44
BUSINESS RESOURCES needed for local and foreign investors and decision
Look Advertising
makers. Dr. Hazem Dera
“GAFI is Egypt’s “One Stop Shop” for investment, easing the way for investors worldwide to take advantage of the unparalleled opportunities of this promising market, and supporting investment companies from the first contact and during their life - cycle.”
CEO 2 El Esraa St., Off Lebanon, Mohandessen - Cairo Tel: +20 2 3464078 Fax: + 20 2 3479284 E-mail: advertising@look.com.eg Website: www.look.com.eg Sector: Advertising
Dr. M. El Ghammrawi
Date of establishment: 1980 Sales Turn over: $ 50 million Number of employees: 84
BUSINESS RESOURCES Look Advertising part of Lowe Worldwide; one of the top
Magic Solutions
10 global advertising networks, with deep knowledge of the local market, is fully capable of servicing its clients at
Mr. Mohammed Al - Ayouti
the highest global standards.
General Manager
Being a regional hub for the Middle East and North Africa,
2 Zamzam St., Dokki - Giza
Look Advertising is currently handling some of the most
Tel: +20 2 7492251
reputable multi national clients for the whole region, and
Fax: +20 2 7492251
in some cases stretches its coverage to other markets
E-mail: info@ms.com.eg
including Europe and Asia Pacific.
Website: www.ms.com.eg
Through more than 170 offices worldwide, Look and its parent company Lowe is well known for its creativity, as
Sector: Web & Internet
they are considered one of the most awarded agencies
Date of creation: 2002
per dollar spent. Their services include: Consumer understanding, brand
MAGIC Solutions is a fast-growing Internet solutions com-
campaigns, strategic planning media planning and buying
pany based in Cairo, Egypt. Our line of work includes con-
as well as BTL activities.
sulting for e-business, creating & extending online strate-
BUSINESS RESOURCES gies, developing interactive web services & portals, deve-
a wide range of countries and gained with some of the
loping corporate websites, and online marketing & pro-
world’s largest event organisers.
motion. The company was founded just two years ago,
IEP has a Head Office in London and an office in Cairo.
and today, our clients cover Egypt, the Gulf, North
The London office is responsible for international events
America and Europe. Our professional team has the
and the continual research which contributes to the suc-
necessary expertise to cater for the different needs of dif-
cess of all IEP events. IEP London has established a strong
ferent industries & markets.
network of agents worldwide and throughout many industries and has formed strategic partnerships with very
International Event Partners Ltd.
many international suppliers. The IEP Cairo office focuses on promoting and organising events in the Middle East and North Africa (MENA) region tailored to local needs in the host country, and aimed at producing sustainable and real local solutions to local problems. This ensures that IEP conferences will always achieve sustainable results by bringing together key decision makers from the Public and Private sectors.
Cairo
Our mission is to be the foremost event organiser in our
Mr. Raymond Cahill
chosen markets, to create value for all of our event parti-
Chairman
cipants and host nations through our commitment, preci-
1B, Road 199, Maadi, Cairo.
sion and professionalism and to deliver events that exceed
Tel: +20 2 7545550
the expectations of participants and host governments.
Fax: +20 2 7546106
IEP is organising Egypt Invest 2004, the 2nd International
E-mail: egypt@i-ep.com
Investment & Trade Forum, in Cairo on 23rd -25th
Website: www.i-ep.com
November 2004. This pioneering event, which has received strong Government and Business sector support,
London Head Office
is in its second year and in 2004 aims to promote Foreign
Mr. Dan Morrissy
Direct Investment into Egypt and to develop the growth of
Managing Director
international trade with this high - potential emerging
298 Queens Lane, Muswell Hill, London N10 1DN, United
economy.
Kingdom Tel: +44 208 8159570
IEP invites you to attend Egypt Invest 2004 and explore
Fax: +44 208 8159571
the enormous business opportunities that Egypt has on
E-mail: uk@i-ep.com
offer. Please contact us for more details or visit
Website: www.i-ep.com
www.egyptinvest.com . More information at “www.winne.com”
Sector: Conference and Exhibition organisation International Event Partners Ltd (IEP) was founded by Dan Morrissy and Raymond Cahill, who together share over 15 years of extensive conference management experience in
47
BUSINESS RESOURCES
48
INVESTMENT & LEGAL FRAMEWORK
INVESTMENT & LEGAL FRAMEWORK
“True sages are those who give what they have, without meanness and without secret!” Egyptian proverb
49
INVESTMENT & LEGAL FRAMEWORK EGYPT: A BASE FOR A PROMISING FUTURE
Aqaba Gulf and the Northern lakes, with very important commercial ports in Alexandria, Damietta, and Suez.
Egypt occupies the North Eastern Corner of Africa. It is
Deserts
bounded from the north by the Mediterranean Sea and
A vast area of deserts surrounds Egypt; rich in mineral
from the east by the Red Sea and Sinai Peninsula. Egypt
resources such as iron, ore, phosphates, limestone,
therefore represents an ideal gateway to Europe, Africa,
gypsum, talc, lead and zinc. These deserts also have a
the MENA region and the rest of the world.
great potential for tourist attraction in the oasis, and the
The Suez Canal, that links the Red Sea to the
safari areas. The GOE exerts considerable efforts through
Mediterranean, is a vital linkage to both Egypt and the
a number of major projects such as Toshka, to maximize
world. This strategic location puts Egypt at the crossroads
the potential of the desert in order to increase the inha-
of global trade and makes it a major commercial and
bited area and the cultivatable land; in addition to the
transhipment destination.
increasingly expectations of discovering more and more of
Accordingly Egypt can act as a hub to a competitively
petroleum wells.
international market of more than one billion people. Due to this geographic location, Egypt’s time zone
MARKETS
(GMT+2) permits it to be in a permanent contact with all businesses and financial centres across the world.
A wide Local Market
Land of Wealth
The growing purchasing power of about 70 million
Egypt has a total area of about one million square km,
people, and 6 million tourists visiting Egypt annually,
with an uncountable and diversified natural wealth.
make the Egyptian market the largest in the region. Therefor there is a great potential for investment in the field
The River Nile
of capital, intermediate and consumer goods. Facilitated
Egypt is endowed with the River Nile, has been flowing
access to regional and international markets due to
for thousands of years, creating its civilization, enriching
Egypt’s proximity to Arab and African countries, Egyptian
its soil and building its political and economic societies.
products have a golden opportunity to penetrate the regional and international market. As a member of WTO,
Cultivated Land
and free trade areas and partnership agreements, Egypt
Egypt has a long history of agriculture activities and a well
has the ability to liberalise its foreign trade regime and
organized irrigation system. It has a fertile cultivated land
accelerate its effort to integrate the global economy.
and the highest crop productivity in the region. This helps Egypt to grow plenty of different crops, and meet with
The Arab countries market
domestic and international demand especially in Europe during the off seasons.
The bilateral Free trade agreements between Egypt and certain Arab countries, over the past few years, aimed at
Sea Coasts
enhancing trade exchange and boosting Egyptian exports
Egypt’s seacoasts are more than 2400 km long over the
(Libya 1990, Syria 1991, Tunisia 1998, Jordan 1998,
Mediterranean Sea, Red Sea, Suez Canal, Suez Gulf,
Morocco 1998, and Lebanon 1999). The agreements were also viewed as significant steps towards a long
51
INVESTMENT & LEGAL FRAMEWORK hoped for Arab Common Market, which is strongly
automatic. There is no list restricting the areas in which
expected to promote the inter - Arab trade.
investors can participate, and no discrimination between local and foreign investors. There is complete freedom
EU Market (The partnership agreement)
with regard to land ownership and the repatriation of profits. The process is now one of registering new projects
The EU is the major trading partner, and currently
rather than approving them.
accounts for about 28% of Egyptian exports, and 27% of
Macroeconomic management is now based on fiscal dis-
its imports. Italy, Germany, France, and the UK are Egypt’s
cipline in a fully liberalized and free market framework.
main EU trading partners and account for over 70% of EU /
Egypt is now adopting an aggressive export promotion
Egyptian trade. According to the Egypt - EU Partnership
drive. Egypt’s liberalized trade regime encompasses full
Agreement, a free trade area will be established during a
decontrol of the foreign exchange market, a flexible and
12 - year transitional period from the date of application
market determined exchange rate, a reduction in tariff
of the agreement. The agreement aims at increasing the
rates and the elimination of all non-tariff barriers. Egypt is
flow of foreign capital, expertise and technology to Egypt.
a member of WTO.
According to the agreement, manufactured goods originated in Egypt are exempted from tariffs or any other fees
AREAS OF INVESTMENT
of similar effect. More and above, ample quotas of agricultural products will be exempted from custom duties.
National Projects
For exports which exceed these quotas, tariffs will be reduced. A newly established branch of Europe
- Oil and petrochemicals.
Investment bank in Cairo, Egypt opens the door for more
- Fertilizers.
opportunities to invest in Egypt. Through this agreement
- Infrastructure.
and its investment mechanisms, new investors can enjoy
- Information and communication technology.
open access to the EU market, with a purchasing power
- Medicine.
of 379 million people and about $ 1057 billion of
- Industrial activities.
imported goods.
- Services activities.
INVESTMENT IN EGYPT INVESTMENT POLICY
Agricultural Projects - Toshka 200 thousand feddans. - East Owinat 300 thousand feddans.
Foreign Direct Investment (FDI) inflow in Egypt reached $ 2.7 billion in 2002, and $ 3.5 billion in 2003, which is the highest in MENA countries. With a newly adopted flexibility, foreign investment is flowing into projects of all sizes. Speeding up the process of launching investment projects has been at the heart of the country’s strategy over the past year. Law No. 8 in May 1997 abolished the need for investors to secure prior approval for each project. Approvals are now completely
52
- North Sinai 200 thousand feddans.
INVESTMENT & LEGAL FRAMEWORK GUARANTEES AND INCENTIVES PROVIDED UNDER LAW 8 / 1997
Liberalization Process - Starting, early 1990’s Egypt launched programs aiming at reinforcing private development and encouraging
- A project may be wholly owned by foreigners.
export oriented activities.
- Guarantees exist against nationalization and expropria-
- Privatisation program measures.
tion; seizure of a project’s assets can be effected only
- Capital market development measures.
through a court ruling. - Output is not subject to price controls.
Insurance schemes
- Projects are allowed to repatriate their capital and profits.
- The Availability of insurance on investment at both the
- The majority of the board of directors may be non-
national and international levels against non-commercial
Egyptian.
risks.
- Egyptian staff employees can be hired freely.
- Multi Investment Guarantee Agency (MIGA) of the
- Foreign experts’ salaries are exempt from income tax if
World Bank has signed an agreement with Egypt to cover
they stay in Egypt and does not surpass one year.
Insurance Schemes for companies investing at Egypt.
LEGAL & INSTITUTIONAL FRAMEWORK REFORMS IN EGYPT
Several companies investing in Egypt are already enjoying such insurance.
Liberalization of Exchange Market
Egypt performed a diagnostic survey for the investment
- For the economy at large, peace have been rewarding,
climate; Special attention is paid to deficiencies of ena-
Egypt was able to introduce safely the first phase of fiscal,
bling legal and institutional framework, as well as, the
as well as, monetary reform.
effectiveness of investment policies in attracting FDI. All
- Liberalization in-full of the exchange market have been
investment measures to legal & institutional framework
achieved in January 2003.
reforms have been undertaken.
- All economic indicators for the year 2003 support the market stability.
Laws creating a suitable investment environment
- Egypt had surplus in both the balance of payment as well as the current account. - Exports are increasing in quantity and value.
- Export Encouragement Law.
- Products proved to be competitive.
- Money Laundering Law.
- Tourism arrivals are the highest since ten years.
- Intellectual property Rights Law. - Commercial Chamber Law.
Disputes Settlements
- Labour Law. - Special Economic Zone Law.
- Disputes settlements are solved through court channels
- Mortgage Law.
according to international law.
- Banking Law.
- A minor permanent committee at GAFI solves Taxes and Custom problems.
53
INVESTMENT & LEGAL FRAMEWORK - A permanent ministerial committee for investment affairs has been formed, presided by the Deputy Prime
New Chapter added to the investment law including
Minister, so as to solve investment disputes amicably outside court channels.
“The cabinet may approve extra incentives for foreign
- Out of 315 case discussed during 16 ministerial mee-
companies that are internationally renowned, which aims
tings, 274 have been solved and 14 decree became as
using Egypt as a base for production and export to
general rule.
neighbouring markets, as well as the companies working
- Disputes between private parties are solved through
in hi-tech. Industries and the international companies spe-
judicial system.
cialized in developing international trade, and zones.”
- International arbitration is possible through relevant legal documents.
Free Zone Policies
Competition safeguard
Upgrading of Foreign Direct Investment in the Free Zones through:
- The Government of Egypt is in process of issuing a new
- Private management for the free zones.
competition law, to ensure proper functioning of the mar-
- More Logistics centres in the area (packaging, transpor-
kets, particularly the monitoring of firm restrictive busi-
tation, loading unloading and storage...etc.)
ness practices, such as mergers, acquisitions and take
- Hosting Companies specialized in investment promotion
over, as well as, monopolies.
- Marketing of Free Zones.
Entry & establishment Facilitation
Development of current free zones:
A new chapter to investment law will be added under the
- Expanding the establishment of pre fabricated factory
title “Facilitation Investment Procedures” that aims at
buildings to satisfy the demand of some investors to start
facilitating investment and achieving transparency in addi-
activities promptly as well as the establishment of the
tion to the actual implementation of “One Stop Shop”.
administrative offices that may be rented to the projects until the buildings are ready.
Incentive issues
- Constructing updated world - class storage building to support trade and storage.
Directional incentives to meet specific development
- Inviting international companies to participate in develo-
objectives, such as:
ping work and establishing of infrastructure and marketing to implement projects.
- Location development (Industrial zones, New communities, Special economic zones and New Valley).
Privatisation
- Transfer of intangible assets, technologies, know-how, and export oriented projects.
- The Cabinet may approve additional incentives for the
- A Ministerial Committee headed by the prime minister
companies which invest in the modernization of a public
has been formed in order to increase exports competitiveness and facilitate the export procedures.
54
INVESTMENT & LEGAL FRAMEWORK sector company or a public enterprise or the companies which are owned by a bank. - A database for the privatisation investment opportunities with the cooperation of the Ministry of Public
SETTING UP A BUSINESS IN EGYPT ACCESS TO LAND
Enterprises (The responsible party for the privatisation process) has been set - up.
Land can be allocated to projects through four entities:
- New systems for privatisation:
- The governorates.
- Increase companyâ&#x20AC;&#x2122;s capital.
- Organization for development of any of the new
- Selling public sector share to anchor investor.
communities. - General Authority for Tourism Development.
This diagram is a summary on the Investment Laws in
- General Authority for Construction & Agricultural
Egypt
Development.
REGISTRATION PROCESS AND PROCEDURES TO INVEST IN THE COUNTRY
!"#$%&'$"&()*+%
- Investors have to fill in an application and a contract form. - Application and contract are submitted to Legal Department to be reviewed. - After the review of the Legal Dept., both the application and the contract are submitted to the lawyers syndicate to !"#$%&'$"&()*+% ,-./0(1223
)*+ 1420(12/1
56$78*9 :7-"-'87(;-"$
authenticate the lawyerâ&#x20AC;&#x2122;s signature. - The Notarisation Department authenticates the document.
A/(B"C/$;D"E',0"F3+0 A'1%"E%>3GGGG(0> ?-'6*"8$% !"7->6->*&8-"()*+% !"45?"@3+=3+'0("0'<(, !"*?"-.>3:("3.",'$'+1(, "!"63">/,03:"%/01(,
- The Legal Department has to issue a ministerial decree for incorporation. - Registration in the commercial Registry. - A branch of a foreign company in the free zones follows the same above mentioned procedures. - A branch office that is not established under the Investment Law has to register in the commercial registry.
Fees and Expenses !"9*"< !"#$%"&'$$()"*")+, !"-.%/,0+1'$""23.(,"45")+, !"6(7"&'$$()"85")+,
=>$$(;-"$% !"91:("$1;("(<(:=013. !"63">/,03:,
Notarisation fees for companies whatever their legal form equals 1/4% of the paid up capital, provided that such fees shall not exceed 500 Egyptian pounds if legalized in
55
INVESTMENT & LEGAL FRAMEWORK Egypt or the equivalent in foreign currency if legalized by
objectives, capital, address of head office abroad and
the Egyptian Authorities abroad.
address in Egypt, and specific information relating to the office manager. The application must include the follo-
Minimum foreign investment
wing documents: the constitutive documents of the company, certified at an Egyptian embassy abroad, as well as
- For corporate companies (Joint Stock companies
a translated summary; and a resolution from the board
and Limited Liability Companies) minimum capital is L.E
authorizing business activity in Egypt and appointing the
500000.
manager of the office, also duly certified together with a
- For partnerships, partnership limited by shares and indi-
translation.
vidual establishments the minimum capital is L.E 300000. - However, the capital has to be appropriate with the size
Registration for a Branch office
of the project.
CORPORATE LAW AND ENTITIES
A foreign company may register a branch office, provided that it has a contract (with either private or public sector) to carry out work in Egypt. A branch office may engage in commercial, financial, industrial and contractual activities,
Foreign investors interested in Egypt may establish a
but, under the branch registration, these will be limited to
representative office, branch, or scientific office, or may
the scope of its contract for work to be executed in Egypt.
merge with an Egyptian entity through direct or indirect portfolio investments.
To establish a branch office, the approval of the Investment Authority must be obtained. A branch office
Registration for a Representative Office
must also register at the Commercial registry. The application must be accompanied by the following documents:
Foreign companies can establish representative or liaison
the companyâ&#x20AC;&#x2122;s articles of incorporation; a certified
agencies, scientific and technical bureaus, or other offices
balance sheet for the most recent fiscal year; corporate
through which to carry out market surveys and feasibility
resolutions authorizing the establishment of the Egyptian
studies that do not entail commercial operations.
branch, appointing its manager and allocating the necessary capital for its operations; and a copy of the con-
A representative office may be registered under the
tract it has signed with respect to its activities in Egypt.
Companies law (159/1981) or the Commercial Agencies
Registration is valid for a period of five years. The com-
Law (120/1982). If a representative office is registered
pany must also be registered on the central register of
under the Companies Law, it must be entered on a spe-
foreign companies maintained in the Companies
cial register in the Companies Department. If the office is
Department.
registered under the Commercial Agencies Law, the foreign company must appoint a commercial agent to
Compliance with Egyptian Laws
register its representative office. However, registrations lapses immediately if the company ceases to have a
Branches must comply with Egyptian laws, including those
commercial agent.
governing companies, taxation, labours, social insurance
In both cases, the company must submit an application
and foreign exchange. In particular, the following conse-
containing the following information: name, nationality,
quences of registration must be noted: the branch must
56
INVESTMENT & LEGAL FRAMEWORK have an Egyptian auditor; financial reports must be sub-
Ministry of Health, which will issue a ministerial decree
mitted to the Companies Department on an annual basis;
authorizing the establishment of the office (if the com-
the branch may not employ foreigners in excess of 10%
pany wishing to establish the Scientific Office has licensed
of its work force (although this stipulation does not
its products to a company in Egypt, part of the license fee
extend to management), or pay them more than 20% of
must be paid in Egyptian pounds to cover local expenses).
the total payroll; The branch is subject to a 40% corporate
All employees of a scientific office, including the manager,
income tax on profits arising from its operations in Egypt
must be Egyptian.
(branches of foreign companies as well as consulting engineers in new communities and reconstruction project
Egyptian companies
enjoy a holiday from certain taxes); At least 10% of its net profits must be distributed to employees (up to a
Among the various forms of business organizations pre-
maximum of the total annual payroll); Annual records
vailing in the Egyptian private sector, the most widespread
must be kept audited tax returns submitted annually.
vehicle for foreign investment is the joint stock or Limited Liability Company. A foreign investor may incorporate an
Registration for a Scientific Office
Egyptian joint stock or limited liability company under three regimes: Law 8 / 1997 on investment guarantees
To register the scientific office of a pharmaceutical manu-
and incentives (the Investment Law), Law 159 / 1981, as
facturing company, a letter in the companyâ&#x20AC;&#x2122;s name must
amended by Law 3 / 1998 (the Companies Law), and the
be addressed to the Ministry of Healthâ&#x20AC;&#x2122;s Pharmaceutical
Capital Market Law (95 / 1992). Generally, foreign inves-
Authority. The letter must be endorsed by an Egyptian
tors prefer to form companies under the Investment Law,
consulate abroad, and include: the name of the individual
which makes them eligible for certain benefits and privi-
who shall carry out the procedures to establish the scien-
leges outlined below.
tific office, as well as the name of the office manager who must be an Egyptian citizen and either a physician or
Joint Stock Company (JSC)
pharmacist; the names of at least three pharmaceutical products produced by the company and registered in
- Constitutive documents: Articles of incorporation and
Egypt (in the event of there being no registered pharma-
statutes, as issued by Ministerial Decree 231 / 1995, are
ceutical products, the company should address a further
the constitutive documents for JSCs. Founders need only
letter to the Pharmaceutical Authority requesting the
notify the Companies Authority. The company is deemed
registration of at least three pharmaceutical products).
to be formed 15 days later.
This letter must include: a description of the products; the
- Minimum Share Capital: Minimum issued share capital
name of the individual who will register them; and a list
for JSCs whose shares are not offered to the public is
all the companyâ&#x20AC;&#x2122;s pharmaceutical products.
LE250,000; if the shares are offered to the public the public minimum share capital is LE500,000 (joint stock
Upon registration of the products with the Pharmaceutical
companies dealing with securities, formed under the
Authority, the manager needs to submit to the Ministry of
Capital Market Law, are subject to higher minimum
Health an application to open a scientific office. The
capital requirements), Cash capital must be placed in a
manager must also present plans of the proposed pre-
blocked bank account 15 days after the company is ins-
mises to the Pharmaceutical Authority, which will then
cribed on the Commercial Registry.
inspect the premises. The matter is then referred to the
57
INVESTMENT & LEGAL FRAMEWORK - Value of Shares: must be no greater than LE1,000 and
for the first two full fiscal years. There are no other restric-
no less than LE5 (preference shares may be issued). All
tions on share transfers unless specified in the statutes.
types of shares must be registered. The Capital Market
Companies constituted under the Investment Law are not
Law authorizes the issuance to each shareholder.
subject to restriction. If transfers of founding or subscri-
- Number of shareholders: a minimum of three founding
bersâ&#x20AC;&#x2122; shares are affected within the first two years of for-
shareholders. For companies founded in free zones areas
mation of company, the approval of the prime minister or
the minimum share holding is two (founding shareholders
his designated delegate is necessary.
may be natural persons or legal entities). There is no
- Management: A board of directors with an odd number
maximum limit.
of members not inferior to three, manages a joint stock
- Purpose: There are no restrictions on intended commer-
company.
cial purposes provided they do not conflict with public
- Employee participation in management: Regardless of
policy or morality. However, the purpose of JSCs consti-
the percentage of foreign ownership, employee participa-
tuted under the Investment Law must be among those
tion in management is required. One of three alternative
listed in said law, or otherwise provided for by the Council
methods proposed in the Companies Law must be
of Ministers.
chosen.
- The name of the company: should indicate its activity or
- Profit distribution: At least 10% of net profits must be
objectives, and must not include the names of any of sha-
distributed to the employees, up to maximum of the pay-
reholders unless such names are registered trademarks.
roll. The rules relating to the distribution of profits to
- Debentures: negotiable debentures or bonds may be
employees are now the same for all JSCs regardless of the
issued by a JSC. They must be of equal value and rights.
law under which they are formed. At least 5% more of
Debentures convertible into shares may also be issued.
net profits must be placed in legal reserve which may be
Existing shareholders will then have priority rights to subs-
used to cover losses / increase capital though bonus shares.
cribe to these debentures. Debentures may be issued to the public.
Limited liability Company
- Stock Exchange Registration and Trading; Public Subscription: Stock exchange registration is required
- Constitutive documents: Statutes are the constitutive
within one year of formation if shares are on public offer;
documents for LLCs. Ministerial Decree 231 / 1995 pro-
otherwise, after the third year of published accounts. Law
vides model statutes for the Companies Law; While GAFI
159 / 1998 and Decree 251 / 1998 allow for trading the
offers the same for Investment Law companies.
shares of a newly incorporated company on the Stock
- Minimum Share Capital: The minimum share capital of a
Exchange at over par value before publication of financial
limited liability company is LE50,000. The share capital
statements for one year, provided that the company is
must be fully paid up at incorporation and placed in a
listed on the Stock Exchange, has deposited its shares at
blocked bank account until the company is recorded in
the Central Depository or with a book - keeper, and has
the Commercial Registry.
published a financial report.
- Value of shares: Shares must be of equal value and
- Transfer of Shares: Founding shares and shares issued
cannot have a nominal value inferior to LE100. No share
for contributions in kind of companies formed under the
certificates are issued for limited liability companies.
Companies Law may not be transferred (except to other
- Number of shareholders: A minimum of two founding
founders) before the publication of financial statements
shareholders is required and maximum of fifty sharehol
58
INVESTMENT & LEGAL FRAMEWORK ders is permitted (shareholders may be natural persons or
the entity to be determined by the Ministry of Interior by
legal entities).
registered mail within one month of their appointment. A
- Purpose: A limited liability company may not carry out
work permit from the ministry of Interior is no longer
insurance, banking or savings activities, deposit taking or
required. An expatriate who wishes to work in Egypt must
investment of funds on behalf of third parties.
obtain a work permit from the Ministry of Manpower and
- Name: The name of the company may refer to its activi-
Training. Work permits are usually granted for a period of
ties and may include the name of one or more sharehol-
ten months, and may be renewed.
ders. - Debentures: limited liability companies may not issue
Employment Contracts
debentures. - Stock Exchange Registration and Trading; Public
An employment contract must be, drawn up in Arabic in
Subscription; Stock exchange: limited liability companies
three copies, one copy of each for the employer, the
may not offer shares to the public.
employee and the Social Insurance Office. The employ-
- Transfer of shares: Shareholders wishing to transfer their
ment contract must include certain information specified
shares to third parties must first offer them to existing
in the Labour Law. If an employee is hired on probation,
shareholders, who have a period of one month to pur-
the employment contract should indicate the probatio-
chase the shares on a basis proportional to their own hol-
nary period, which cannot exceed three months. A con-
ding (the statutes may require that no transfer of shares
tract may be drawn up or for a definite or indefinite
be effected except upon the other shareholder’s
period time. A fixed term contract, if renewed, will there-
approval).
after be construed as indefinite (this rule applies to
- Management: Lilacs are managed by one or more mana-
Egyptian nationals only).
gers, of which at least one must be Egyptian. There must also be a supervisory council if the number of sharehol-
Health Care and Pension Payments
ders exceeds 10. - Employee participation in Management: there is no
All companies in the Egyptian private sector must provide
requirement that employees participate in management.
free health care for their Egyptian employees either
- Profit distribution: profits are distributed to LLC emplo-
through the Medical Insurance Plan of the Ministry of
yees when capital reaches LE250, 000. At that time, the
Social Insurance or privately. Every company in the
applicable rules are the same as for a joint stock company.
Egyptian private sector must also contribute to the
KEY LABOR LAWS AND PERMITS
Pension Insurance Fund of the Ministry of Social Insurance.
Dismissal and Termination Work Certificates and Permits An employee cannot be dismissed unless a grave fault has All Egyptian workers (with some exceptions, such as those
been committed. Article 61 of the Labour Law sets out a
performing “casual jobs” taking six months or less to
list of such faults.
complete) must obtain a work certificate. Under Law No.
As a general rule, an employer cannot lawfully dismiss an
231 of 1996, Egyptians working in representative and
employee unless the matter has first been brought before
branch offices of foreign companies need only to notify
the local Conciliation Committee at the Ministry of
.
59
INVESTMENT & LEGAL FRAMEWORK Manpower and Training and hearing has been held. The Conciliation Committee seeks to help the parties settle
THE FOREIGN EXCHANGE LAW
their dispute. The Egyptian labour courts have discretion in assessing an employment dismissal compensation award on the basis
Entities Authorised to deal in foreign currency
of their review of the facts of each particular case. An employee is usually entitled to thirty days notice of dis-
The Decree lists the banks that are authorised to deal in
missal or one month’s salary instead of the thirty days
foreign currency. This includes almost all banks currently
notice. In addition, previous court decisions have an
licensed to operate in Egypt and makes allowance for any
“unjustified dismissal” payment, which could be between
new banks which might be authorised in the future to
one to three months’ salary for each year of employment.
deal in foreign currency (the “Banks”) Banks under the
The labour law sets out a number of grounds of termina-
Decree are permitted to buy foreign currency on their
tion without notice, including expiration of the contrac-
own accounts and on behalf of third parties. Banks are
tually fixed period retirement or resignation of the
the only entities allowed to transfer currency outside
employee, death of the employee, employee’s total inca-
Egypt. It should be noted that branches of foreign banks
pacity to work.
are currently permitted to deal in foreign and local currency.
Working hours
The Law permits the establishment of foreign currency exchange dealers (the “Dealers”). Dealers are authorised,
An employee shall not work more than eight hours in one
under the law, to buy and sell foreign currency for their
day, or 48 hours a week. Every employer must grant
own accounts. However, Dealers are not authorised to
employees a weekly rest, which cannot be less than
transfer foreign currency outside Egypt.
twenty four hours.
The Law prohibits individuals or entities from dealing in
Where the added work is intended to prevent a serious
foreign currency unless such dealing is going through
accident or cope with an unusually heavy workload, the
banks or dealers.
employee must be paid overtime.
Maintaining foreign currency Leave and Holidays In accordance with the Decree, both natural and legal perAn employee is entitled to annual paid leave of 21 days
sons may maintain foreign currency. The term “maintain”
after a full year of service. An employee is usually entitled
is defined under the decree as meaning that there is no
to thirty day’s notice of dismissal or one month’s salary
obligation to remit foreign currency into Egypt or sell
instead of the 30 days notice.
foreign currency to Banks or Dealers in Egypt. Foreign
The labour Law sets out a number of grounds of termina-
currency accounts may be held with any approved bank in
tion without notice, including expiration of the contrac-
Egypt. The funds kept in foreign currency accounts may
tually fixed period, retirement or resignation of the
be used in Egypt or overseas. Companies, which are
employee, or the death of the employee or the emplo-
formed pursuant to the Investment Law, are allowed to
yee’s total incapacity to work.
maintain all of their foreign currency. According to the Law, foreign currency generated from tourism or exports no longer need to be remitted into Egypt, and may be
60
INVESTMENT & LEGAL FRAMEWORK maintained abroad at the owner’s discretion. Also foreigners
hedging and subject to the approval of the central bank
selling movable capital are no longer required to deposit
of Egypt.
it in a blocked bank account. This liberalisation comes in stark contrast to pre - existing legislation, and is designed
TAXATION
to encourage foreign investment.
Income Tax Finally, as a matter of policy, any foreign currency that is brought into Egypt by foreign parties for the purpose of
- The standard rate of corporate income tax is 40%, for
capitalising Egyptian entities must first be converted into
projects arising from industrial and export activities the
Egyptian pounds through Banks, unless the approval of
rate is 32%.
the Ministry of Economy is obtained to do otherwise. The
- Personal taxation
only exception to this policy is found in the Investment
Individuals pay up to a maximum of 40% on their income.
Law, which permits projects to maintain the foreign
This tax is levied on the various sources of income.
currency brought into Egypt to capitalise such projects.
Customs Purchase of foreign currency The maximum customs rate is 40% except for a few The decree authorizes the purchase of unlimited amounts
exceptions such as passenger cars and alcohol where the
of foreign currency from any of the Banks or dealers. In
rate can go up. Exporters are eligible to tax relief on
accordance with the Decree, Banks and dealers are
imports under either the duty drawback, or temporary
allowed to sell foreign currency either as cash or as
admission or tax rebate systems.
transfer abroad to individuals, or to private or public sector companies. Furthermore, Banks and Dealers are
Free Zones Incentives
authorized under the Decree to sell foreign currency for the purpose of transferring outside of Egypt stock divi-
All free zones extend lifetime investment incentives, in
dends and interest from Egyptian bonds.
addition to complete exemption from all Egyptian income
Profit and dividend remittances by a company formed
taxes, general sales taxes, and other direct or indirect
under the provisions of the Investment Law must still be
taxes. There are no restrictions on investment activities
approved by the Investment Authority but, as a general
and no custom duties or charges are levied on imports or
rule, foreign investors in projects with adequate foreign
exports of intermediate and final products. Additionally,
currency, whose earnings for visible or invisible exports
projects are exempted from regulations related to import
cover all their requirements, are permitted to transfer
export activities. They are subject only to a duty of 1% of
their annual net profits outside Egypt.
the value of goods entering free zone warehouses, and
The decree has introduced the concept of “forward
1% of the annual value added for manufacturing or
exchange transactions” whereby foreign currency may be
assembly projects. Free-Zone investors may sell their pro-
purchased at an exchange rate established at the time of
ducts on the Egyptian market after paying a reduced
agreement, with payment and delivery at a specified
tariff, based on imported components alone.
future date. However, such contracts are possible for approved bank only, exclusively for the purpose of
61
INVESTMENT & LEGAL FRAMEWORK Tax holidays and other exemptions
Rights and obligations of Patent-Holder The patent holder has the exclusive right to exploit the
- Exemptions from regulations pertaining to worker parti-
invention, including the right to pledge and assign or
cipation in management are in place.
license the patent.
- Five - year exemption from corporate tax, starting from
The patent holder must exploit the patent (or be subject
the first financial year after activities start.
to compulsory licensing for failure to do so), and pay spe-
- Five - year exemption for income and distributed profits,
cified annual fees to the Patent Office. After fifteen years,
starting from the first financial year after the start of busi-
any applicable renewal (ten years for pharmaceutical pro-
ness activity.
cess patents), the patent holder’s monopoly ends and the
- Twenty - year exemption on income profits starting from
invention enters the public domain.
the first financial year of business in Kharga, Baris, Farafra, Siwa, East Owaynat, and Toshka.
Industrial Designs
- Ten - year tax holiday for projects in new urban commu-
A separate office and register is maintained in connection
nities, industrial parks and remote areas, as well as land
with industrial designs. The protection accorded by the
reclamation projects.
Law is for a period of five years from the date of registra-
- Customs duties flat rate of 5% on imported equipment.
tion, renewable for two similar periods of five years each.
- Exemption from stamp duties, registration and notarisation fees on project contracts for five years effective as
International Agreements
the date of registration in the Commercial Registry.
Egypt is a signatory of the Paris Convention of 1883 for
PATENTS, TRADEMARK AND COPYRIGHT
the protection of industrial properly. If a patent application is made in a member country of the Paris Convention or in any other country offering reciprocal treatment, the applicant may apply for a patent in Egypt within one year
Egypt became a member of the World Trade Organisation
of the related application abroad. Egypt is a signatory to
(WTO) and thus a signatory to Trade Related Aspects of
the Strasbourg Convention of March 1971 for the inter-
Intellectual Properly Rights (TRIPS), in June 1995 with an
national classification of patents. Egypt is also a signatory
Egyptian Law pursuant to the Constitution.
of the Hague Convention of 1925 concerning the interna-
Egypt has been a member of WIPO since is formal
tional deposit of industrial designs.
establishment in January 1996.
Trademarks Patents and industrial designs Period of Protection and Renewal Law No. 132 of 1949 on Patents and Industrial Designs, as
Law No. 57 of 1939 as amended (the “Trademark Law”),
amended, is closely modelled on the British Patent law,
allows trademark holders.
and allows investors to obtain patent protection for fif-
Protection for ten years from the date of application,
teen years from the date of application, and may, in some
renewable indefinitely for similar periods. Any renewal
instances, be renewed for one additional five year period.
must be specifically applied for, and the procedure involved is the same as that for the first registration of the trademark. (Trademarks may also be protected if they relate to services).
62
INVESTMENT & LEGAL FRAMEWORK Ownership of a trademark
Copyright
A trademark is deemed to be owned by the person who
The Copyright Law No. 354 of 1954 generally defines
operates the registration. Ownership cannot be cha-
copyright protection to include, among other things:
llenged if the registered owner has used the trademark for
architectural designs, speeches, theatrical pieces musical
a continuous period of five years from the date of regis-
works, photographic works, cinematographic works,
tration.
maps, and works for broadcast on television or radio. Law No. 38 of 1992 amended the Copyright Law so as to bro-
Trade Statements
aden the scope of its protection to include video tapes
The Trademark Law also provides protection for the public
and computer software. Law No. 38 of 1992 also incre-
against false or misleading trade statements, including
ased the penalties which apply in cases of copyright infrin-
any description or statement relating to:
gement.
- The number, measurement, weight, components and
Period of Protection
contents of goods.
Protection under the Copyright Law ends fifty years after
- Date of manufacturing and expiry on food products.
the death of the author. In the case of a legal entity, the
- The area or country where the goods were manufac-
protection period begins on the date of the first publica-
tured or produced.
tion. In certain circumstances in the field of photographic
- The name and other details of a manufacturer or pro-
and cinematographic works the protection ends after a
ducer.
period of fifteen years from the date of the first Publication.
www.winne.com
!"#$%&'()*#+),$-./01*,()0.$20*3,.4
THE EGYPTIAN ECONOMY
THE EGYPTIAN ECONOMY
“You will free yourself when you learn to be neutral and follow the instructions of your heart without letting things perturb you. This is the way of Maat.” Egyptian proverb
65
THE EGYPTIAN ECONOMY GENERAL OVERVIEW
toms) will affect the longer-term prospects of Egypt’s economy.
Economic growth and reform in Egypt has slowed in
Egypt’s tourism sector, its largest foreign exchange
recent years due to external shocks and government
earner, posted record-breaking tourist arrivals in 2003 of
delays in implementing necessary reforms. However, there
over 6 million travelers, proving that Egypt’s tourism
is cause for optimism about the Egyptian economy.
industry is healthy and back on course. Egypt also regis-
Overall economic growth for FY02/03 ended June 30,
tered higher oil export earnings due to higher world oil
2003 is estimated at approximately 2 percent. Major
prices, and an all-time record for Suez Canal revenues due
reforms have been undertaken, if not fully implemented,
largely to increased military traffic. Gas production conti-
in the past two years including a more flexible exchange
nues to grow and is proving its great export potential.
policy and banking sector reforms. This renewed interest
Limited exports via a pipeline to Jordan have begun, while
in reform activism indicates the government’s proactive
liquefied natural gas (LNG) exports should be online
stance and dedication to developing a more attractive
within the next two years. Other sectors including cons-
business environment for foreign investment. If reform
truction, heavy industry, and durable goods saw a slow-
momentum continues over the next year without being
down in recent years, though there were signs of a
undermined by exogenous shocks, the prospect of a
possible recovery in 2003, particularly in cement and steel.
modest economic turnaround is expected and the growth
The banking sector has witnessed significant reforms over
rate for FY03/04 could reach 3-4 percent. The govern-
the last two years, prompted by a series of loan defaults
ment’s ability to undertake key reforms (e.g., fiscal, cus-
and problems with foreign exchange availability.
Oil export infrastructures
THE EGYPTIAN ECONOMY GDP
According to the World Bank, aggregate GDP in Egypt stands at over $100m with GDP per capita at approxima-
Compared to other lower-middle income countries,
tely $1500, fitting the criteria of a lower-middle income
Egypt’s external debt indicators are exceptionally good
country. Consequently, Egypt offers a unique set of
and boast favorable maturity profiles. Egypt’s outstanding
opportunities to potential investors.
debt stock and debt service obligations continue to fall relative to current account receipts and GDP. Egypt’s
Key Sectors
external debt burden has been declining for several reasons: Paris Club debt restructuring, prudent fiscal and
Egypt has a well-diversified economy, with no single
monetary policies, and economic reform measures. Total
sector contributing more than 21 percent of GDP. Such a
debt as percentage of exports fell from 311.1 percent in
solid economic base reduces vulnerability to external
the early 1990s to about 154.2 percent in 2002/03.
shocks, and has enabled Egypt to attract foreign invest-
During 2002/03, the balance of payments witnessed a
ments in a variety of fields, as shown in the figure below
deficit of 6.3 percent of GDP. The current account deficit,
pertaining to composition of GDP 2002/03.
after widening to 3 percent of GDP in 1997/98, fell to 2.4 percent of GDP in 2002/03 and was close to balance in
Tourism
2000/01. These trends were supported by healthy capital The Egyptian economy is reliant on services, with nearly
inflows and foreign exchange reserves.
half of GDP coming from this sector. Tourism is a key ser-
Selected Macroeconomic Indicators
vice sector, accounting for approximately 11 percent of GDP and about 15 percent of employment. Tourism in Egypt’s accounts for 25 percent of the Middle East tou-
97/98
98/99
99/00
00/01
01/02
02/03
Real GDP Growth Rate (%)
4.1
5.4
59
3.4
3.2
3.1
Average Annual Inflation (%)
3.8
3.8
2.8
2.4
2.4
3.2
3.40
3.40
3.45
3.85
4.34
5.13
Nominal Interest Rate
8.80
8.82
9.09
9.09
7.80
8.31
Energy
Unemployment (%)
8.2
8.1
9.0
9.2
9.0
9.9
The energy sector is one of the major components of
Fiscal Deficit (%)
-1.0
-2.9
-3.9
-5.6
-5.9
-6.2
Current Account (% of GDP)
-2.9
-1.9
-1.2
-0.04
0.7
2.3
Foreign Debt (% of GDP)
33.2
31.2
28.2
28.5
92.8
35.6
Avg. Annual Foreign Exchange Rate (LE/$)
rism market and Egypt has generally enjoyed growth rates higher than the world average of 7 percent. Total tourism receipts for 2002/03 increased by 23 percent to $2,236m compared to $1,820 the year before. During the first quarter of 2003/04, earnings increased by 43 percent to reach $1,633m compared to $1,139 for the corresponding quarter of 2002/03.
Egypt’s trade balance. A vital source of foreign exchange,
Source: Ministry of Foreign Trade; Central Bank of Egypt.
the energy sector can be divided into three main industries: petroleum or oil, natural gas, and electricity. While oil has played a crucial role in Egypt’s economy over the past several decades, the combination of maturing oil wells and the rise of natural gas have diminished its importance in recent years. Recently, a number of subs-
67
The waters of Egypt have always been very generous with its habitants: Fishing in Fayoum
tantial natural gas discoveries have pushed the gas
Telecom and IT
industry into the spotlight as a viable substitute for oil and a major export product. Concerning electricity, Egypt has
The Egyptian government has recognized that the expan-
been steadily increasing its electric energy capacity and
sion of the communication and information technology
coverage in recent years to meet increased demand.
(CIT) industry is a crucial component of its plans for social
Private sector projects and regional cooperation could
and economic progress. IT in Egypt continued to grow in
well make Egypt an important electricity hub.
2003 despite the lethargic economy. As of April 2004 the total number of companies working in the IT field reached
Agriculture
1034 companies, indicating a 55.7 percent growth from 363 in December 2000. The Egyptian IT market can be
Agriculture retains a significant role in the Egyptian eco-
broken down into three sub-sectors. Approximately 47
nomy as it has for millennia. Today, the sectorâ&#x20AC;&#x2122;s contribu-
percent of the Egyptian IT market is dominated by the
tion to GDP is approximately 20 percent; it employs
hardware industry. IT services account for around 39 per-
roughly 34 percent of the labor force; and its products
cent, while data communications equipment totals only
amount to about 22 percent of total exports. In addition,
10 percent of the IT market.
the agricultural sector supplies Egyptâ&#x20AC;&#x2122;s most important industries (food and textile) with raw-materials, and
Industry
expands the market for industrial goods such as pesticides, chemical fertilizers, equipment and machinery.
Industry plays an even bigger role in GDP than agriculture, accounting for approximately 19 percent of GDP in
68
THE EGYPTIAN ECONOMY 2002/03. Over the past decade the sector has consistently
Trade
achieved growth rates of over 10 percent annually. Its main sub-sectors include cement, fertilizers, food proces-
Egypt has a wide and diverse market for exports and
sing, metallurgy, textiles/clothing, and other consumer
imports. Its leading merchandise export is crude oil and
goods. Textiles/clothing and agro-industry are the main
petroleum products, followed by finished goods com-
contributors to industrial output. Chemicals, iron and
prised mainly of textiles and apparel, and raw materials
steel sub-sectors are highly dynamic and offer opportuni-
such as cotton and other agricultural products. Steel
ties for investors.
exports grew at the beginning of 2003 thanks in part to the depreciation of the Egyptian pound and US and EU
Construction and Real Estate
restrictions on other steel imports. Cement producers also witnessed a surge in exports to international markets.
The construction and real estate sector represents one of
Leading imports include capital goods, machinery and
the main facets of Egypt’s development process. The
agricultural commodities. Thanks to efforts by the
construction sector supports various secondary industries
Egyptian government to discourage the import of so
ranging from cement and steel to furniture and electricity.
called luxury goods by placing extremely high tariffs on to
Over the last twenty years, the construction industry in
discourage their import, consumer goods account for only
Egypt has expanded to meet the increasing demand of
about one-sixth of all imports.
housing, infrastructure and industrial project development, forming a multibillion-dollar sector in the Egyptian
Transport and Infrastructure
economy. The transport sector in Egypt was run by the state until
Finance and Insurance
the mid-1990s, when the government opened it up to private investment. By the end of the decade, private sector
Egypt’s banking system is among the oldest in the region:
investment was at least partially funding virtually all areas
its first bank, the National Bank of Egypt, was established
of transportation infrastructure. This sector is comprised
in 1898 and existed until 1960 when it became the
of roads and bridges, the Metro network, railroads, the
Central Bank of Egypt (CBE). The CBE is the monetary and
Suez Canal, sea ports, and airports.
banking supervisory authority in Egypt. The banking sector has undergone major reforms in the past two years
Opportunities for Growth
in an attempt to bring it inline with international banking standards. After a slow start to the millennium, the capital
Egypt has strong factors in its favor. Foreign debt and
market has witnessed an upsurge, reaching the highest
debt service remain low, with most debt long-term and
trading levels since its inception. While the insurance
concessional. Egypt’s foreign exchange reserves are
industry in Egypt is still in its infancy, it has vast potential
capable of covering more than ten months of imports,
for growth. The introduction of a number of private sector
and the outlook for some sectors of the economy, parti-
insurance companies will ensure that the industry conti-
cularly tourism and gas, is promising. While the country’s
nues to grow.
economic prospects will continue to be subject to global and regional shocks, promising opportunities for growth and development exist, particularly in tourism, trade, energy, agriculture, and IT.
69
THE EGYPTIAN ECONOMY STOCK EXCHANGE
was mainly led by the Telecom sector which enjoyed good inflows from foreign institutions. Compared to emerging
Both emerging and developed markets recorded a strong
Europe and Africa (EMEA) peers, Egyptian stocks trade at
performance in 2003, with the former largely outperfor-
a relative valuation discount.
ming the latter. The performance of the Egyptian market
This, in turn had a positive impact on the liquidity of the
was highly correlated to the emerging markets in 2003
Egyptian market, with volume traded picking up by 70%
and is expected to be the same for 2004. In fact, Egypt
(from 707.2 million to 1,201.6 million) and the number of
has even outperformed many of the emerging markets,
transactions jumping to 1,205,775 in 2003 versus
with the CASE 30 Price index recording 1155.51 points at
739,649 in 2002.
the end of December 2003, an increase of 133%.
`Whether the Egyptian market would continue to perform
Moreover, the index has surged by another 19% in the
well in 2004, is actually a function of the performance of
first three months of 2004 to culminate at 1393.48 points
both the global and emerging markets, the pace of the
on 31 March 2004.
structural reform as well as the beginning of an economic
The devaluation of the Egyptian pound (EGP fell around
recovery.
33% against the US$ in 2003) associated with the floata-
The recent improvement in the current account and the
tion that took place on 29 January 2003, the low interest
balance of payment points to an export-led recovery for the
rate, the sound corporate earnings, the surge in both
Egyptian market and thus an increase in the GDP growth
emerging and developed markets, together with the good
rate. Additionally, the government is currently working on a
inflows from foreign institutions were basically the main
new fiscal policy that would stimulate the economy.
drivers behind the outstanding performance of the Egyptian market in 2003. The rally that took place in 2003
More information at: â&#x20AC;&#x153;www.winne.comâ&#x20AC;?
Dr. Mokhtar A. Khattab, Minister of public enterprise, working on developing foreign investment in Egypt
70
MAIN SECTORS
OF THE
ECONOMY: AGRICULTURE
AGRICULTURE
“All seed answer light, but the colour is different.” Egyptian proverb
71
MAIN SECTORS
OF THE
OVERVIEW
ECONOMY: AGRICULTURE and output markets and eliminate land-use controls for most crops. This strategy ultimately led to the comprehen-
As in all ancient societies, agriculture was the main eco-
sive economic and social reform program the government
nomic activity in Egypt. The harvests in Egypt were richer
adopted for the entire economy in 1990. The govern-
than in most other countries at the time, allowing for a
ment’s updated agricultural strategy for the 1990s was an
larger percentage of urban dwellers and other production
extension of the previous program. Its main objectives
capacities, hence the vast cities, massive temples, and the
were to increase agricultural productivity of land and
overall wealth of the ancient state. Today, agriculture
water through more efficient use of these limited
remains one of Egypt’s most important economic sectors.
resources, thus the development of the “Mega Projects”
Its contribution to GDP is approximately 20 percent; it
as explained below; reduce unit costs of production, and
employs roughly 34 percent of the labor force; and its
as a result increase output and farm income. The strategy
products amount to about 22 percent of total exports. In
of the 1990s also removed some of the obstacles that had
addition, the agricultural sector supplies Egypt’s most
hindered the prosperity of the sector. Liberalizing prices
important industries (food and textile) with raw materials,
and trading of many inputs and commodities as well as
and expands the market for industrial goods such as pes-
allowing farmers to choose their cropping patterns helped
ticides, chemical fertilizers, equipment and machinery.
produce greater productivity and growth. The agricultural sector has grown significantly in output and income with
In the 1980s, the Egyptian government initiated an agri-
the advent of modern technology, improved crop strains
cultural strategy to promote price liberalization in input
and seeds, high-yield genetically engineered crops, credit
For thousands of years this gesture took place in the weat fields near Luxor
MAIN SECTORS
OF THE
services and the introduction of post-harvest technology
ECONOMY: AGRICULTURE World-Class Cotton
and marketing services in a fully privatized, market and Egyptian cotton is considered the worlds finest, but the
export-oriented economy.
international market has experienced the lowest prices in Although Egypt’s agriculture sector maintains steady
nearly 20 years and domestically over the last decade.
growth rates of 3-4 percent annually, it has experienced a
Egyptian cotton has witnessed a marked decline in culti-
decline in the percentage of GDP and employment. From
vated area, production and domestic consumption. Only
FY 86/87 to FY 01/02 agriculture’s contribution to GDP
700,000 feddans are currently planted with cotton, down
has declined from 20 percent to 16 percent, while the
from more than 1.5 million in the 1970s. Additionally,
number of agricultural workers fell from 33.8 percent of
competition from China, the world’s largest cotton pro-
total labor force to 27.2 percent from FY 90/91 to 01/02.
ducer and consumer and a new member of the World
As the country continues to grow and other sectors com-
Trade Organization, also poses challenges for Egypt’s rural
prise a larger percentage of GDP and employment,
cotton farmers who even now struggle to break even. The
Egypt’s agricultural sector may look to maintain and
government is looking for ways to increase production
expand its domestic and export market production in
and market share, including promoting the visibility and
addition
awareness of Egyptian cotton and developing a logo for
to
developing
more
agriculture,
based
products made from 100% Egyptian cotton. The logo has
processing activities.
been registered in 33 countries to date, and is underway Egypt’s main agricultural products include cotton, rice,
in 13 more. A registration manual has been printed in
maize, wheat, corn, sugar, meat, beans, fruits and vege-
English and Arabic to increase awareness of the logo.
tables. In the world market, several crops cultivated in
Licensing agreements for use of the logo have been
Egypt enjoy various degrees of relative advantage,
signed with companies in the US, Turkey, Portugal, India
namely: cotton, wheat, rice, maize, sugarcane as well as
and China. Cotton growers, traders, ginners, yarn spin-
some vegetables and fruits, such as tomatoes, potatoes,
ners, fabric producers and retailers are all eligible to apply
onion, garlic, melons and water melons. Citrus, particu-
for a license. The Egyptian government is also negotiating
larly, are among the fruits that enjoy relative advantage in
with international companies to promote Egyptian exports
agricultural markets.
and cotton exports in particular.
Agricultural Developments 1981/82-2001/02
Diversified Horticultural Sector Egypt’s horticultural sector has undergone radical
Item
1981/82
2001/02
Cultivated Land (Million Feddans)
6.2
8.4
Crop Area (Million Feddans)
11.2
14.35
Value of Agricultural Production (LE bn)
5.8
80.5
Value of Agricultural Exports (LE bn)
0.47
3.4
Wheat Production (Ardab/Feddan)
9.8
18.2
Source: Ministry of Agriculture
changes over recent years following the modernization of infrastructure, expansion in land reclamation and investment in facilities, particularly those related to pre and post harvest. Additionally, the government’s proactive position regarding economic reforms and privatization has helped increase the country’s fruit, vegetable and flower exports. Fruit and vegetable output has increased dramatically by 250 percent and 180 percent, respectively since the mid1980s, and now stands at 6.5m tons and 14.5m tons.
73
MAIN SECTORS
OF THE
ECONOMY: AGRICULTURE
Further expansion of the sector is planned in light of pro-
and up to 300,000 of white sugar are to have been
posed free trade agreements with the EU and various
imported in the same period.
Mediterranean countries. Regarding exports, cotton is Egypt’s second most valuable The government’s long-term commitments to policy
product (behind petroleum). Cotton, cotton yarn, clothes,
reform and liberalization coupled with outside assistance
and cotton textiles amounted to $614m in FY 2000/01,
have led to increased grain and vegetable production,
up from $496m the year before. Rice, Egypt’s next largest
thereby helping balance Egypt’s food supply and demand.
agricultural export, has witnessed a surge in recent years from $42m in FY 99/00 to $79m in 2000/01. The other
Imports vs. Exports: A Delicate Balance
main export crops include citrus fruits and potatoes. For years, Egyptian farmers faced export barriers that hin-
Despite its strides in agricultural productivity, however,
dered the production of less traditional crops. The lack of
Egypt remains a large food importer. Food usually
established marketing practices posed a challenge and
accounts for approximately 10-15 percent of Egypt’s
poor packaging and storage facilities led to the loss of
imports depending on market prices, and the country
produce during transport. However, Egypt’s Association
spends nearly $500bn annually on wheat imports alone.
Agreement with the European Union will be the catalyst
Over the course of FY 2003/04, Egypt is expected to
for major change in the sector. An agricultural products
import over 6.5m tons of wheat from major suppliers such
exchange market was established and advanced scree-
as the US, Russia, Australia, France, Germany and
ning, wrapping, packing and storing techniques were
Sweden. It also imports large quantities of corn from the
introduced. Improvements in infrastructure, including
world market (4.4m tons in 2000-01) for use mainly as
upgraded airports and storage facilities have facilitated
poultry and livestock feed. In addition, while Egypt con-
the export of crops. Also, in accordance with the agree-
sumes approximately 2.3m tons of sugar annually, it only
ment, agricultural exports will no longer be subject to
produces about 1.5m tons. In the year 2000-01, Egypt
tariffs. Moreover, the agreement and the development of
imported between 520,000-800,000 tons of raw sugar
land reclamation “Mega Projects” will likely lead to large
Balance of Payments: Exports by Commodity Groups, 2000/01-2003/04 US$ millions Us $ millions
200/200 1
2001/20 02
2000/2001
2002/20 03
2001/2002
2003/ 2004
2002/2003
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Cotton
53.0
21.0
30.1
40.4
19.7
13.5
25.7
24.3
29.7
44.1
57.9
67.5
89.1
Cotton yarn
29.8
21.1
37.5
32.9
39.6
34.3
30.0
43.1
34.5
35.3
45.8
37.5
31.2
Ready-made clothes
62.2
50.2
59.8
60.6
58.8
35.6
43.8
49.0
43.2
37.7
74.7
62.7
64.1
Cotton textiles
29.2
28.0
22.0
36.0
31.4
17.9
27.1
32.5
29.0
22.0
22.9
46.2
41.5
Central Bank of Egypt
74
Q1
MAIN SECTORS
OF THE
ECONOMY: AGRICULTURE
increases in fruit and vegetable exports. In addition, Egypt
Delta, the North Sinai Development Project or the El-
has great potential as a high value crop source for the
Salam Canal, and the massive South Egypt Development
entire Mediterranean where horticultural and flower crops
Project also known as the Toshka Project. The Ministry of
will be delivered fresh to widespread markets. Given its
Agriculture and Land Reclamation and The Ministry of
proximity to major trade markets, Egypt’s agricultural
Water Resources and Irrigation share the objective of
sector is well-positioned to emerge as a key regional
maximizing water and land efficiency. Public investments
exporter of both primary and secondary food products.
are under way and continued support of small farmers of the new lands will help to achieve the socio-economic
Reclaiming the Desert
goals of the land reclamation programs.
The Egyptian government has undertaken several major
Arguably the largest of such projects, the Toshka project,
land reclamation projects aimed at increasing the culti-
located in Egypt’s far south, aims to irrigate some
vable land from the current 5 percent to 25 percent over
500,000 feddans of arable arid soil with water from Lake
a period of twenty years. These “Mega Projects” include
Nasser. Since 1997, the government has been building a
the Western Delta through the Nasser Canal, the Eastern
massive pumping station and irrigation canals to transport
Toshka Project, Aiming at increasing the inhabitable areas in Egypt
MAIN SECTORS
OF THE
ECONOMY: AGRICULTURE
the water for the project. The pumping station was inaugurated in October 2002 and all of its 21 pumping units were installed and tested by the end of 2002. However, few are actually in operation as the water demand for cultivation remains low. The main canal has been completed since 2000 and construction continues on four 28 km branch canals. The first two are near completion, the third is approximately 50 percent finished, and work on the fourth has recently begun. The Kingdom Agricultural Development Corporation (KADCO) owns 120,000 feddans, to be managed by the U.S. firm Cadiz/Sun World, with the objective of growing fresh fruits and vegetables for export to Europe in the winter months. No other major investors are yet involved, although several Egyptian government-sponsored entities are doing field tests in the Toshka region. The new lands are expected to comple-
Water Purification station
ment public investment by garnering nearly 80 percent of total new investment and studies have shown that the
East Oweinat desert reclamation projects and the East
internal rate of return on investment in agricultural pro-
Port Said port/ industrial development project.
duction in Toshka project ranges from 15-18 percent.
A number of new initiatives were passed to launch major agricultural projects and boost private investment. The
Opportunities for Growth
projects include boosting the production of sugar beets and sunflower oil for the local market, increasing produc-
The Egyptian government has acknowledged that incre-
tion of various types of fertilizer for the international
ased foreign investment is an essential part of its strategy
market, and erecting a number of new grain silos. In the
for attaining and sustaining high economic growth rates.
area of land reclamation and new land development, the
Therefore, it has adopted several incentives and measures
government anticipates the projects will increase export
to promote investment. Concerning agriculture, such
opportunities and capacity and provide job opportunities.
initiatives
and
Food processing for both domestic and export markets is
Guarantees Law 8 of 1997, which is designed to allocate
an industry with substantial potential for growth. Egypt
investment to targeted economic sectors and to promote
also has a good market for fisheries, particularly at Nasser
decentralization of industry from the crowded geogra-
Lake, Burollus Lake, Karoon Lake and several other
phical area of the Nile Valley. Under law 8, investments in
positions.
include
the
Investment
Incentives
various fields are assured approval including those in agricultural and water resource areas such as land reclama-
In the coming years, Egypt hopes to enhance its business
tion; fish, poultry and animal production; refrigerated
climate and create an attractive environment for private
transportation for agricultural products and processed
investment. The move toward more support for skills
food; and water pumping stations. Additional incentives
development and agricultural support services in techno-
include significant tax breaks for projects in the govern-
logy transfer and research should also complement public
ment-sponsored â&#x20AC;&#x153;Mega Projects,â&#x20AC;? including Toshka and
investment.
76
MAIN SECTORS
OF THE
MAIN COMPANIES Future Pipe Industries S.A.E. (FPI)
ECONOMY: AGRICULTURE “The Future Pipe Group is currently enjoying growth that will soon incorporate new manufacturing facilities in the Far East and the United States.”
Mr. Fouad Makhzoumi
Mr. Fouad Makhzoumi
General Company for Land Reclamation, Development & Construction (GCLR)
Chairman Tel: +20 2 3022243 / 34
Eng. Ahmed Hassan Abd El-Latief
Fax: +20 2 3022206
Chairman
E-mail: sales@fpi.com.eg
52, El Fayoum St., Dar El Salam - Cairo
Website: www.futurepipe.com
Tel: +20 2 3203430 Fax: +20 2 3202086
Sector: Industry
Website: www.gclr.com.eg
Date of creation: 1998 Number of employees: 300
Sector: Land reclamation - construction Date of creation: 1959 Number of employees: 2950
The Future Pipe Group is a globally operating group of
Sales turn over: EGP 43.4 million
companies specialized in high performance reinforced
Capital: EGP 50 million
polyester, glass reinforced epoxy systems, polyethylene and concrete pipe as well as storage tanks, floats for the dredging industry. The Group has manufacturing facilities
The Public Co. for Land Reclamation (GCLR) is one of
strategically located in the Netherlands, Houston, Dubai,
Egypt’s top industrial companies. It is one of the pionee-
Abu Dhabi, Lebanon, Saudi Arabia, Egypt and Qatar, as
ring companies in the fields of construction, land reclama-
well as sales offices in London, Paris, Madrid, Singapore
tion and increasing the amount of cultivatable land. The
and Washington.
company performs land reclamation projects comprising land survey works, land levelling and excavation works,
FPI Egypt started its activities in 1999 with the opening of
building roads, waterways and drainage stations, cons-
a factory in the 6th of October City. This factory is consi-
truction of hosting stations, drainage stations and power
dered as the group’s most advanced fibreglass pipe
stations, building bridges, viaducts and canal locks. The
manufacturing plant. FPI Egypt provides complete fiber-
GCLR has worked extensively on the Toshka Project for
glass pipe system solutions with a comprehensive range of
more than five years and has developed several projects in
products covering Glass Reinforced Epoxy, Polyester and
Sinai. The GCLR has projects in Libya, Saudi Arabia, and
Vinylester resin pipes. FPI Egypt is currently dedicated to
Iraq, and is currently working to expand its activities to
the Egyptian and North African markets and is mainly
Sudan and Greece.
involved in the Power Generation, Oil and Gas,
Apart of the Land reclamation and infrastructure works,
Petrochemical, Municipal water and sewage markets.
the company’s activities also include works of irrigation
77
MAIN SECTORS
OF THE
ECONOMY: AGRICULTURE
(applying covered water draining systems and adopting
its production, quality and marketing goals. HEIA serves
improved irrigation systems), public construction and
producers, exporters, suppliers of horticultural products,
general works (road networks, drinking water networks,
as well as affiliated companies such as equipment and
sewerage system networks, electricity networks, etc),
packaging manufacturers, and provides a forum where
construction works and housing projects (schools, fire
members benefit from representation.
fighting centers, community development centers, com-
HEIA offers its members a wide range of services, inclu-
mercial malls, rural clubs, etc), and marine, ravine and
ding: transfer of technology, certified quality control, cer-
aqueducts dredging (execution of bay quays and shore
tified management consultancy, local & international trai-
protection, aqueducts dredging works, etc). GCLR is also
ning in several production, handling and export areas,
developing new activities in land reclamation and cons-
local coordination and international market networking,
truction inside and outside of Egypt. The company’s main
research and development, information dissemination
workshops occupy about 10,000 square meters of the
through numerous publications, CDs, videos and newslet-
company headquarters at Dar El-Salam in Cairo.
ters, and educational and social development of the Egyptian horticulture community, including establishing two vocational secondary schools and a gender program
The Horticultural Export Improvement Association
that has educated and trained more than 1530 female
Mr. Wael El Shenawi
HEIA is a sector driven association, providing services not
Executive Director
only to its members, but to the sector at large. It is suc-
22, Syria St., Mohandeseen, Giza.
cessfully cooperating with many local, regional and inter-
Tel: +20 2 3383080
national organizations.
workers over 3 years.
Fax: +20 2 3381940 E-mail: info@heia.org Website: www.heia.org Date of creation: 1996 Number of employees: 50
“HEIA’s main achievement was the inauguration of the first Refrigerated Perishables Terminal at Cairo International Airport in 2003, yielding an increase of 40% in exports. Also, the creation of a “Fruit Academy” is another point on HEIA’s ambitious agenda.”
Mr. Wael El Shenawi
In 1996, several visionary horticultural exporters recognized the need for a forum to share information on technology for their horticultural operations, equipment, packaging and thus formed the Horticultural Export
National Water Research Center
Improvement Association HEIA. In very few years, that group has expanded to over 320 members, and the name
Prof. Dr. Mona El Kady
of the association has now become a guarantee to access
Chairperson
modern production technology, state of the art post har-
Fum Ismailia Canal PO Box 74 Shoubra El-Keima 13411,
vest handling practices and to connect the industry to
Cairo
market information which will allow the industry to reach
Tel: +20 2 4446180
78
MAIN SECTORS
OF THE
ECONOMY: AGRICULTURE
Fax: +20 2 4446761
logy, and develop software management tools based on
E-mail: m.elkady@nwrc-eg.org
physical mathematical models to support water planners
Website: www.nwrc.gov.eg
and decision makers.
Sector: Water Resources and Irrigation
Strategic research studies are focused to support policy
Date of creation: 1975
makers and risk management, develop short and long
Number of employees: 3326
term planners and generate scenarios for strategic planning, as well as develop a program for utilising the water resources of the country in the most efficient and cost
The Ministry of Water Resources requested the esta-
effective way, and propose measures for environmentally
blishment of the Water Research Centre in 1975. In 1994,
sound development
the WRC was re-organized as â&#x20AC;&#x153;National Water Research
system. Regionally the NWRC acts as the co-ordination
Centreâ&#x20AC;? (NWRC).
unit for African water resources network as a member of
of the irrigation and drainage
other water resources networks in Europe and other The NWRC was established to develop research strategies
countries. On the international scale NWRC has esta-
to comply with the national water plans and policies. The
blished a wide network with several international organi-
NWRC also researches for needs-driven solutions to water
sations and association such as USAID, UNDP, UNESCO,
related problems, develop monitoring systems for surface
WWC and many others.
and ground water at the national level, transfer techno-
MAIN SECTORS
OF THE
Pico Group Mr. Alaa Diab
ECONOMY: AGRICULTURE “PICO currently plans to increase its production by 20% during 2004, and by 100% during the 4 following years.”
Mr. Alaa Diab
President 3, Shagaret El Dorr St., Zamalek, Cairo Tel: +20 2 7371000
SEKEM
Fax: +20 2 7360852 E-mail: adiab@picocorporate.com
Dr. Ibrahim Abouleish
Website: www.picoengineering.com
Chairman 3 Cairo-Belbeis Desert Road, P.O.Box 2834 El-Horreya,
Date of creation: 1975
Cairo, Egypt
Turn over: EGP 1 billion
Tel: +20 2 6564124 / 5
Number of employees: +2150
Fax: +20 2 6564123 E-mail: sekem@sekem.com Website: www.sekem.com
PICO group is one of the leading private sector consortiums of companies in Egypt. It consists in a highly diver-
Date of creation: 1977
sified group of companies with a spectrum of businesses
Sales turn over: 150 million
including agriculture, petroleum, real estate, investment,
Number of employees: 2000
and food industry. The group includes as well PICO Engineering Company (PICO Engineering, PICO Industrial, PICO Machinery, PICO Projects) handling the sales services
SEKEM (literally “Vitality from the Sun”) was established
for the capital engineering goods representing interna-
in 1977 by Dr. Ibrahim Abouleish on 125 acres of desert
tional well-known companies.
land 60km north-east of Cairo.
One of the main company of the Group, Modern Agriculture Company, employs around 1100 people wor-
Using biodynamic methods of agriculture, under the gui-
king 4250 acres of newly reclaimed land all situated in the
dance of the German agronomist G. Merckens, the land
Egyptian desert. It produces quality fruits and vegetables
was used to produce a wide variety of crops and medicinal
according to EEC standards for health and hygiene from
plants for local and export markets, and to develop agri-
soil to shelf. PICO is specialized in off-season fruits and
culture methods to suit the different Egyptian Climates. It
exotics, and is growing to include herbs and ornamental
was not long before SEKEM began to diversify into cotton
plants in its production. It focuses on filling a certain niche
production,
in the European market. Throughout the years, PICO
processing.
herbal
medicines,
textiles
and
food
showed a real pioneer spirit (first company to plant banana crops in the desert, to grow asparagus, to develop
A steadily increasing group of biodynamic farms in Egypt
the “fertigation”, combination of fertilization and irriga-
have served as the base for a modern development of
tion, to perform plant propagation in Egypt’s first priva-
Egyptian agriculture, and SEKEM has implemented a net-
tely owned tissue culture laboratory, as well as in green
work of more than 800 farms. The harvest includes high
house and open field nurseries, etc) and has witnessed a
quality crops, herbs, fruits and vegetables.
stable growth by five folds over the past 7 years.
80
MAIN SECTORS
OF THE
The combination of traditional skills and knowledge with the consequent application of modern economic concepts has enabled the implementation of practical solutions to pressing local problems. Through the provision of quality healthcare by Egyptian doctors, the SEKEM day-clinic and its mobile units improves the physical health of the local rural population.
“Furthermore SEKEM projects like its education and vocational training facilities, and its Academy for Science and Applied Arts have liberated human potential, advanced individual self-awareness and developed social abilities.”
Dr. Ibrahim Abouleish More information at: “www.winne.com”.
ECONOMY: AGRICULTURE
MAIN SECTORS
82
OF THE
ECONOMY: AGRICULTURE
MAIN SECTORS
OF THE
ECONOMY: ENERGY
ENERGY
“If one tries to navigate unknown waters one runs the risk of shipwreck.” Egyptian proverb
83
MAIN SECTORS
OF THE
INTRODUCTION
ECONOMY: ENERGY
Nearly 75 percent of oil output is refined domestically and Egypt is the second most important refining center in
The energy sector is one of the major components of
Africa (behind South Africa). Nine oil refineries are
Egypt’s trade balance. A vital source of foreign exchange,
capable of processing 727,700 barrels per day (b/d) of
the energy sector can be divided into three main indus-
crude. The El Nasr Petroleum Company refinery located in
tries: petroleum or oil, natural gas, and electricity. While
Suez is the largest refinery with a capacity of 146,300 b/d,
oil has played a crucial role in Egypt’s economy over the
followed by The Cairo Petroleum Refining Company at
past several decades, the combination of maturing oil
145,000 b/d. Egypt’s refining capacity of fuel oil and
wells and the rise of natural gas have diminished its
naphtha currently exceeds domestic demand, while kero-
importance in recent years. Recently, a number of subs-
sene and diesel are partially imported to meet demand. In
tantial natural gas discoveries have pushed the gas
an attempt to boost exports, major efforts are being
industry into the spotlight as a viable substitute for oil and
implemented to increase refinery capacity. The govern-
a major export product. Concerning electricity, Egypt has
ment intends to invest $2.5bn to build five new refineries
been steadily increasing its electric energy capacity and
including a 35,000 b/d hydrocracker at the El-Nasr
coverage in recent years to meet increased demand.
Petroleum Company refinery in Suez. In addition, a private
Private sector projects and regional cooperation could
sector project is building a $1.5bn refinery in Alexandria
well make Egypt an important electricity hub.
projected to yield approximately 100,000 b/d, all destined for export.
Oil: a Slick Decline As the country’s largest foreign exchange earner, petroleum and refined products represent approximately 8 percent of GDP, while crude oil exports provide about 52 percent of foreign exchange receipts from merchandise exports. Crude oil production has been declining for some years, from a high of more than 920.000 barrels per day (BPD) in 1995 to less than 631,000 BPD in 2002 and an average of 628,000 BPD in the first quarter of 2003. Crude oil reserves have steadily declined from about 4 billion barrels in the early 1980s to 2.8 billion barrels in 2002, with projections of 2.6 billion barrels in 2005. Item (000) tons
February 2003 January 2004 February 2004
Petroleum production (Including condensates)
2859
3043
2850
Petroleum consumption
1728
1846
1660
Petroleum exports (mn.$)
176.8
202.3
170.2
SOURCE: IDSC. 2004
84
The Middle East Oil Refinery
MAIN SECTORS
OF THE
ECONOMY: ENERGY
Domestic consumption grew steadily throughout the
power plants to gas (which now generates 63 percent of
1990s to reach 460,000 BPD in 2001, steadily depleting
all electricity). Gas accounted for 48 percent of all hydro-
the available surplus of Egypt’s largest single merchandise
carbon usage in Egypt in 2002.
export. However, demand has declined recently due to the reductions in subsidies for petroleum products consumption and the increased use of Compressed Natural Gas (CNG) as fuel for motor vehicles. In addition, large gas discoveries have encouraged the substitution of oil for gas in domestic households and industrial usage as well as power generation. Although there have been a few major oil discoveries recently, including the largest oil discovery in the Gulf of Suez in 14 years with estimated reserves of 80 million
The Egyptian Jordanian Pipeline
barrels and an expected average flow rate of 40,00050,000 b/d discovered by BP in late May 2003, oil reve-
Egypt is the world’s third largest consumer of natural gas
nues and export volumes have been trending downward.
behind Australia and India, with daily natural gas con-
While Egypt is currently a net oil exporter, domestic
sumption of about 2.6 billion cubic feet (bcf) in 2001/02.
demand and maturing oil fields have led to concern that
Following the switch from oil to gas by Egypt’s thermal
the country could become a net importer of oil by 2005-
power plants, the plants now accounts for 62 percent of
2010. Therefore, the government has taken steps to pro-
total natural gas consumption, followed by the sectors of
mote increased exploration, enhanced oil recovery and an
petroleum, cement and ceramics, industry, fertilizers, and
increase in the consumption of gas. A number of new bid
domestic and CNG.
rounds covering gas exploration blocks across the country have been launched by the Egyptian government in the
Gas Production and Consumption
Western Desert and Upper Egypt as well as the Gulf of Suez, the Sinai coast and the Nile Delta along the Mediterranean coast.
Item (000) tons
February 2003
January 2004
February 2004
Gas production
1610
2000
1870
Gas consumption
1580
1910
1770
60
65.0
61.6
The Egyptian Gas: an Emerging Giant Natural gas is likely to be a long-term driver of Egypt’s energy sector thanks to major recent discoveries. Over the last five years, production of natural gas has increased by approximately 75 percent to reach more than 3 billion cubic feet per day (BCFD) in August 2003. Reserves have almost tripled over the past ten years to approximately 58.5 trillion cubic feet (TCF). In order to conserve scarce
Electricity usage from gas (%)
crude oil for export and utilize the growing gas surplus, Egypt has successfully converted 81 percent of its thermal
Source: IDSC. 2004.
85
MAIN SECTORS
OF THE
ECONOMY: ENERGY
To enhance the domestic gas market, a franchise system
three privately-owned power plants that were constructed
was introduced in 1997 operating according to a BOOT
a BOOT projects. The current generating capacity of these
arrangement: build, own and operate gas transmission
plants is 15.3 Gigawatts (GW), but by 2010 output is
and distribution systems, transferring gas from the
expected to increase by 9.3 GW. The majority of Egypt’s
national grid system for sale and distribution to power
electric generating capacity is thermal (79 percent), while
generation plants, industrial, commercial and residential
the Aswan High Dam contributes the remaining 21 per-
customers. Today there are eight gas distribution compa-
cent in hydroelectric power.
nies serving all areas of the country. Another project that will utilize gas for domestic consumption is the
Electricity Generated and Utilized
BP/AGIP/GASCO natural gas liquid plant under construction in Port Said. Expected to go on line in mid-2004 at a total cost of $315m, it will have a production capacity of
Item MWh
March 2003
February 2004
March 2004
Electricity generated
7301
7107
7683
Total utilization of electricity
6112
6344
6531
280,000 tons of propane (for export and for manufacturing of heavier compounds); 330,000 tons of butane (mainly for domestic consumption); and one million barrels of condensates annually. With the new natural gas discoveries currently outpacing domestic demand, the Egyptian government is working hard to find export markets and develop export capacity for its gas. Egypt has had success with a modest gas
Source: IDSC. 2004.
export deal to Jordan via a new pipeline from El Arish on Egypt’s north Sinai coast to the Jordanian city of Aqaba.
Electricity is essential for Egypt’s expanding manufactu-
Gas exports to Jordan are expected to generate gross
ring and industrial sectors. Electric energy consumption in
revenues of $200m annually by 2005 as the pipeline is
2001/02 was around 75 billion KWH, with 36 percent
extended throughout Jordan. Egypt is also discussing
consumed by industry. The demand for electricity has
future gas sales to Lebanon, Syria, and Cyprus through an
been increasing by 6.7 percent annually over the last ten
extension of the Jordanian pipeline. In addition, exports to
years, and by 2012 is forecast to reach 135 billion KWH.
Turkey by pipeline are also a longer-term prospect. In addition, the Suez Canal offers a 35 percent discount to
Egypt’s first BOOT power generating company, the
LNG tankers, with even higher discounts for the largest
Intergen plant at Sidi Krir near Alexandria, began opera-
LNG tankers.
ting in 2002. Two additional BOOT power plants both owned and operated by EDF for France and rated at 680
Electricity: A Regional Partnership
MW, also began operating in 2002: one plant near Ain Sokhna on the Red Sea coast and a second one in East
Over the past decade, electricity coverage has been
Port Said, at the entrance to the Suez Canal. No other
extended across Egypt allowing nearly every inhabitant
BOOT plans are planned for the near future due in part to
access to electricity. The network includes five regional
the 2001 presidential decree forbidding the funding of
state-owned production companies, eight distribution
BOOT projects with locally raised funds in light of their
companies and one transmission company. Egypt also has
high use of foreign currency. A subsequent decline in the
86
MAIN SECTORS
OF THE
ECONOMY: ENERGY
issurance of BOOT contracts occurred, although recent
are also seen as a hindrance to the adoption of CNG,
government statements about reigniting economic
which could be used as fuel for vehicles, while they also
investment hint that BOOTs may fall back into favor.
keep many outdated and inefficient fuel burning vehicles on the road. According to reports, the pollution caused by
On the regional level, the electrical interconnection pro-
these vehicles costs the Egyptian economy an estimated
ject to link Egypt, Jordan, Syria, Lebanon, and Turkey is
LE15bn annually, the equivalent of 5 percent of GDP.
proceeding on schedule. The grid will allow participants to buy and sell electricity during peak times of demand.
The government is making an effort to address these pro-
Egypt’s current grid is interconnected with Jordan, Syria,
blems by extending a scheme to convert cars to CNG and
Lebanon, Turkey and Libya, and will eventually be con-
by introducing higher-octane fuels more widely at petrol
nected to Iraq, Tunisia, Algeria and Morocco. Ideally, the
stations. There has also been speculation that the govern-
long-term goal is to create a ring around the
ment is planning to gradually substitute high-subsidy fuels
Mediterranean and Egypt’s central position among parti-
for those less-subsidized.
cipating countries, its dominant electricity grid and technical expertise, could well make it the point of control for
Opportunities for Growth
the southern grid. Egypt’s petroleum sector still has what it takes to pull in
The State Vs. Energy Subsidies
investors. The oil and gas sector continues to account for the bulk of foreign investment in Egypt, including industry
Domestic pricing policies play a problematic role in oil and
giants as well as several leading independent producers.
gas supply and demand. Egypt has long subsidized several
In 2003, approximately 50 companies expressed interest
varieties of fuel, particularly diesel and regular gasoline.
in the sector including key foreign companies such as
This is understandable in a country that produces oil, but
British Petroleum, Shell, Apache, ENI, RWE-DEA, and
petroleum industry figures are leading to an unsustainable
Centurion Energy. A number of other US-based explora-
policy. For example, the price of petrol (gasoline) at the
tion, drilling, and oilfield services companies also work in
pump is well below world market prices (at one Egyptian
Egypt, and this sector continues to present some of the
pound/liter, about $0.16/liter or $0.60/US gallon at
best trade and investment opportunities in Egypt.
current exchange rates). Diesel, a significant proportion of
Gas exploration development and production have been a
which is imported, is only $0.40/liter, almost certainly
boom to the economy in recent years. In an effort to uti-
below the cost of production. In addition, as Egypt’s oil
lize its gas surplus for both exports and domestic con-
production is declining the country will soon be consu-
sumption, in 2002 the government created the Egyptian
ming more than it produces.
Petrochemicals Holding Company (ECHEM) to develop and implement a petrochemicals industry master plan.
Also, as mentioned earlier, Egypt must import the majo-
The plan envisions the establishment of up to 14 plants on
rity of its kerosene, diesel and high-octane gasoline
Egypt’s coastline to produce intermediate petrochemicals
because, while the oil produced in Egypt is appropriate for
such as propylene and linear alkyl benzene (LAB), as well
heavy fuels such as gas oil, it is not a high enough grade
as end-use consumer items. ECHEM estimates it needs
to make light fuels. The importation and subsidisation of
$1bn in foreign investment to implement the plan. The US
these fuels is becoming increasingly costly, especially in
Trade and Development Agency is funding two feasibility
light of the depreciation of the Egyptian pound. Subsidies
studies for petrochemical plants in Egypt.
87
MAIN SECTORS
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ECONOMY: ENERGY
To advance development in the electric sector, new and
transmission link between Egypt and Congo through
high-tech investments through 2007 are expected to
which Egypt will have access to the excess capacity gene-
reach about LE23.2bn. Approximately LE1.7bn will be
rated by Congo’s huge Inga Dam.
allocated to conclude outstanding projects and LE3.2bn for upgrading existing power plants. In addition, LE15bn
Non-traditional sources of energy are vastly under
will be set aside for the construction of new power plants,
explored in Egypt. Egypt’s large stretches of uninhabited
with about LE3.4bn allotted for training and regional con-
land and ever clear skies lend themselves well to solar and
trol centers. Over the period from 2007-2012, total
wind power production, which currently accounts for just
thermal energy generation is forecast to reach 8375 MW
1 percent of Egypt’s total capacity. These renewable
with foreign and local investments of about $3bn and
energy sources could supply additional and more environ-
LE8bn, respectively. There are also plans for an electrical
mentally friendly electric power and help reduce Egypt’s dependence on oil and natural gas.
Sokhna Port, Gulf of Suez
MAIN SECTORS
OF THE
MAIN COMPANIES
ECONOMY: ENERGY
Last but not least, Al Chark is a prominent insurer for power plants and mega construction projects, like high
Al Chark Insurance co.
rise buildings, tunnels, flyovers, airports and major infrastructure networks, as well as high-tech industries, with its
Mr. Anwar Zekry
total investments amounting to EGP 2,8 billion in 2004.
Chairman 15, Kasr El Nil St,. Downtown, Cairo
Al Chark has a rating of A-Excellent by A.M.Best, which
Tel: +20 2 5753638
demonstrates the company’s sound credibility in meeting
Fax: +20 2 5784817
its obligations towards its clients or international business
E-mail: ins_chark@frcu.eun.eg
partners.
Website: www.alchark.com Sector: Insurance
BP Egypt
Date of creation: 1931 Capital: EGP 500 million
Mr. Heisham Mekawi President and General Manager Address: 14 Road 252 Digla Maadi Cairo Egypt
Al Chark Insurance Company, founded in 1931, is one of
Tel: +20 2 7062345
the cornerstones of the insurance industry in Egypt and
Fax: +20 2 7062317
the Middle East region. Al Chark was the first insurance
Website: www.bp.com
company to start the life insurance business in Egypt, and currently accounts for 37% of the total life and 20% of
Sector: Oil and Gas
the total non-life premiums in the Egyptian market. Al Chark Insures a potential Oil and Gas portfolio in the
BP has been the largest hydrocarbon producer and the lar-
Egyptian market which accounted for one third of the
gest direct foreign investor in Egypt for more than 40
total non-life premiums in 2003.
years. BP Egypt has invested more than $14 billion and produced more than 4,7 billion barrels of oil and gas.
As a result of the continuous developments in this field of business, Al Chark, backed by sound reinsurance markets,
The main area of activity is concentrated in the Gulf of
is a key insurance partner for the potential Oil and Gas
Suez and the Western Desert through GUPCO, the joint
companies operating in Egypt.
venture Company between BP and EGPC. BP Egypt is currently consolidating its position as one of the main pla-
Among the activities insured are exploration, production,
yers in the new phase of Egypt’s hydrocarbon industry
construction of gas pipelines as well as the further trans-
with the development of gas business in the Nile Delta.
mission of gas operations. Meanwhile, a growth in the insurance requirements is anticipated, in light of the
While current gas production is devoted to the domestic
export agreements which have recently been concluded
market, BP’s goal is to play a key role in the development
with a number of regional and European countries.
91
MAIN SECTORS
OF THE
ECONOMY: ENERGY
Gas). BP is also engaged in NGLs (Natural Gas Liquids).
Egyptian Holding Company for Petrochemicals (ECHEM)
Although not directly involved in retail fuels’ marketing in
Mr. Sherif Ismail
Egypt, BP Egypt has a 40% interest in the Natural Gas
Executive Deputy Chairman
Vehicles Company (NGVC). NGVC sells compressed
3 el Mokhayam El Dayem Street. Nasr City, PO BOX 113
natural gas (CNG) as an alternative fuel for cars, taxis and
Al Andalus, Cairo
microbuses.
Tel: +20 2 4032145
of an export market based on LNG (Liquefied Natural
Faxr: +20 2 2634000 E-mail: chairman@echem-eg.com
BG Egypt
Website: www.echem-eg.com
Mr. Oscar Prieto
Sector: Oil & Gas
President
Date of creation: 2002
Building 23, Road 216, Digla, Maadi, Cairo.
Number of employees: 150
Tel: +20 2 5211301 Fax: +20 2 5197577 Website: www.bg-group.com
The Egyptian Petrochemical Holding Co was established in 2001 and put into action in January 2002 by H.E. Eng.
Sector: Natural Gas.
Sameh Fahmy, Minister of Petroleum. With a clear vision of the next few decades, the newly born organisation was assigned the task of developing a sophisticated petroche-
BG Egypt is part of BG Group plc, which is a leading player
mical industry seeking to place Egypt prominently on the
in the global energy market, particularly natural gas, with
global map of this industry.
operations in 20 countries over five continents. BG operates in four key business sectors: Exploration and
Outlined in a 20-year, three stage master plan set by the
Production, Liquefied Natural Gas (LNG), Transmission
ministry of Petroleum, Echem strategy comprises an
and Distribution, Power Generation.
export oriented approach to develop Egypt’s petrochemi-
The company’s core skills include exploration and produc-
cals industry and attract investments in excess of $ 10
tion, transmission, through pipeline systems or LNG lique-
Billion. This includes the establishment of 14 new com-
faction and transport, as well as the creation and distribu-
plexes representing 24 new petrochemical projects and
tion of energy through gas-fired power generation.
50 production units, forecasted to secure $ 7 billion in
In Egypt, BG has upstream interests in two areas offshore
annual revenues $ 3 billion of which are from exports, and
the Nile Delta: Rosetta and West Delta Deep Marine
designed to generate 100,000 new employment opportu-
(WDDM). Rosetta and the first WDDM fields, Scarab
nities.
Saffron supply the domestic market. The Simian Sienna and Sapphire fields in WDDM are under development to
As a bonus facility availed to the investors, 30 million
supply the Egyptian LNG (ELNG) export project.
square meters of land in 7 governorates are reserved for
BG has signed agreements for sale of the discovered gas
petrochemical projects: Alexandria, El Beheira, Kafr El
into both the domestic market and for export.
Sheikh, El Dakahlia, Damietta, Ismalia, and Suez. These
92
MAIN SECTORS
OF THE
ECONOMY: ENERGY
locations fulfil the criteria sought by keen investors in
The scope of EGAS is to supervise all natural gas activities,
terms of size, shape, terrain, ground structure, infrastruc-
encourage investments and propose plans to develop
ture, access to road, port utilities, local labor in addition
natural gas industry, participate in exploration, develop-
to coast proximity and access to feedstock.
ment and production of natural gas in compliance with the prevailing laws and regulations, conduct techno-eco-
“Echem is young of age, however, experience, creativity and manpower, came together to provide solutions to encourage foreign investment and efficiency.”
nomic studies for gas projects, manage sales gas transmis-
Mr. Sherif Ismail
industry database, study and determine optimum loca-
sion and distribution systems and coordinate all related activities, develop LNG project individually or with national and international partners, develop natural gas tions for gas projects and to attain the best for people’s life and assets as well as for the environment.
Egyptian Natural Gas Holding Company (EGAS) Eng. Mohamed I. Tawila
Egyptian General Company Corporation (EGPC)
Chairman 85 Nasr road, 1st district, Nasr City, Cairo,
Eng. Ibrahim Saleh
PO BOX 8064, Nasr City, 11371, Cairo
Chairman
Te: +20 2 4055845 / 46
Palestine St part 4, New Maadi, Cairo
Fax: +20 2 4055876
Tel: +20 2 5184960
E-mail: chairman@egas.com.eg
Fax: +20 2 5184963
Website: www.egas.com.eg
E-mail: isaleh@egpc.com.eg Website: www.egpc.com.eg
Sector: Petroleum & Gas Date of creation: 2001
Sector: Oil & Gas
Number of employees: 590
Date of creation: 1962 Number of employees: 1557
In view of natural gas industry vital role to the country’s economy and according to the vision of the Ministry of
The Egyptian General Petroleum Corporation (EGPC) is
Petroleum, EGAS was established on August 2001 as an
one of the major governmental entities for the Ministry of
entity focusing on the natural gas chain of activities. By
Petroleum that controls the oil industry in Egypt. It is
adopting an effective action plan to organize and dili-
active in the upstream, downstream sectors. The EGPC
gently handle the activities of the natural gas resources of
has full responsibility for all sectors of the Egyptian petro-
Egypt and adding value to the Egyptian economy, EGAS is
leum industry and holds the sole right to import and
fulfilling local market demand for gas, export commit-
export crude oil and other petroleum products.
ments and long term strategic requirements.
Government’s role in the industry is through the offices of the Egyptian General Petroleum Corporation (EGPC),
94
MAIN SECTORS
OF THE
which was created in 1962. For the next ten years follo-
ECONOMY: ENERGY
Egyptian LNG
wing its creation, EGPC carried out exploration and production in joint ventures with multinational companies.
Mr. Khaled Abd El Badei
After 1973, production-sharing agreements superseded
Chairman
joint ventures.
2 Port Said Road, Maadi, Cairo Tel: +20 2 2766352 Fax: +20 2 6706419
Egyptian Electricity Holding Company
E-mail: info@egyptianlng.com Website: www.egyptianlng.com
Dr. Eng. Mohamed Awad Chairman
Sector: Oil & Gas
Tel: +20 2 4030681
Date of creation: Dec. 2003
Fax: +20 2 4029828 E-mail: Ayounis@moee.gov.eg Egyptian LNG is a company founded and sponsored by Date of creation: 1976
British Gas Asia Pacific Holdings Pte Limited (BG), the
Number of employees: 1600
Malaysian National Oil Company (Petronas), the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Corporation (EGPC). The company is
Electricity generation and transmission is the responsibility
developing a $2 billion, two-train liquefied natural gas
of the Egyptian Electricity Authority (EEA), established in
(LNG) plant on approximately 400 feddans of land located
1976, reporting to the Ministry of Electric Power.
some 3 kilometres from the town of Idku and 40 kilome-
Egypt’s current installed capacity is 16.6 GW, with plans
tres east of Alexandria on the Egyptian Mediterranean
to increase this capacity by 9.3 GW by 2010. 84% of
coast.
Egypt’s generating capacity is thermal, with the remaining 16% hydroelectric.
The Egyptian LNG Plant is located near Idku, east of Alexandria, next to the Rosetta Gas Plant. The Plant is
In July 2000, a new law was issued to change the
adopting the Phillips optimised cascade process. With the
Egyptian Electricity Authority (EEA) into an Egyptian joint-
first train, Egyptian LNG plant will have a capacity of 3.6
stock (holding) company under the name of the “Egyptian
million tons per annum (mtpa) of LNG, the equivalent of
Electricity Holding Company” (EEHC).
5 billion cubic metres (bcm) of gas. Gas supply for the
The EEHC has twelve affiliated companies, vertically inte-
LNG plant will come from the WDDM fields of Simian,
grated and responsible for generation (five companies)
Sapphire and neighbouring fields. The upstream investors
and distribution of electrical energy (seven companies)
made a strategic decision to build the pipelines tying the
over different geographical areas of Egypt, as well as a
first WDDM field development to shore to a larger capa-
Transmission Network Company responsible for operation
city than required by the supply to the National Grid. This
and maintenance of the Unified Network.
strategic capacity pre-investment for the LNG project will
95
MAIN SECTORS
OF THE
ECONOMY: ENERGY
ensure the cost competitiveness of the scheme. The first
pany, Enppi provides a full range of services to the market
WDDM field development, Scarab/Saffron, began delive-
industries and has executed over 375 projects.
ring gas supplies to the domestic market in 2003. EGPC, EGAS, Petronas and BG have agreed to sell the LNG from
The company organisation is structured to provide the
the first train to Gas de France, who also holds a 5% stake
expertise required for the efficient co-ordination of all
in the LNG project. First deliveries of LNG are planned for
phases of work starting from project development studies
July 2005. Production from the second train, also with a
through completed turnkey facilities.
capacity of 3.6 mtpa, will be sold to BG for utilisation in the US at its Lake Charles terminal. LNG from train 2 will be redirected to Brindisi, Italy as soon as BG’s new receiving terminal there is completed.
“Currently, ENPPI is diversifying its role through taking participation in private sector companies in the fields of Petroleum & Petrochemical Industry.”
Mr. Hani Saleh Engineering for the Petroleum & Process Industries Egyptian Natural Gas Company (GASCO) Mr. Hani Saleh Chairman
Mr. Hany Soliman Aly
1 “A” Ahmed El-Zomor St., 8th District, Nasr City, Cairo
Chairman and Managing Director
P.O.Box: 2521 El-Horreya, Heliopolis, Cairo, 11361
Maadi Ring Road, exit 12, El-Teseen St., settlement, Cairo
Tel: +20 2 2762100 / 150
Te: +20 2 6171520
Fax: +20 2 2744981
Fax: +20 2 6171519
E-mail: gmail@enppi.com
E-mail: gasco@gasco.com.eg
Website: www.enppi.com
Website: www.gasco.com.eg
Sector: Oil & Gas
Sector: Oil & Gas
Date of creation: 1978
Date of creation: 1997
Capital: 7 million USD
Number of employees: 2338
Sales turn over: EGP 396 million
Sales turn over: $ 4,51 million
Number of employees: 1300
Capital: $ 132 million
Engineering for the Petroleum & Process Industries, ENPPI,
The Egyptian Natural Gas Company (GASCO) was esta-
was established in 1978 to provide full integrated engi-
blished in March 1997 according to investment law, to be
neering, procurement, construction and project manage-
a go-between, between upstream gas producers and
ment services for the petroleum, petrochemicals, power
downstream gas consumers. The Company’s shares are
and other related industries. The Egyptian General
held by EGAS 70%, Petrojet 15%, and Egypt Gas 15%.
Petroleum Corporation, (EGPC), is the principal shareholder of the Company with 97% of the total shares.
GASCO has a clear mission focused on:
As a multi-discipline; engineering and contracting com-
- Enhancing the length and capacity of the national gas
96
MAIN SECTORS
OF THE
ECONOMY: ENERGY
grid through the construction of new pipelines.
Abu Dhabi, Lebanon, Saudi Arabia, Egypt and Qatar, as
- Developing gas processing facilities and exporting gas
well as sales offices in London, Paris, Madrid, Singapore
valuable components achieving value to the petroleum
and Washington.
sector. - Maximizing gas utilisation in the different sectors: power
FPI Egypt started its activities in 1999 with the opening of
stations, iron and steel factories, fertilizer plants, cement
a factory in the 6th of October City. This factory is consi-
mills, industrial areas, air conditioning, Local Distribution
dered as the groupâ&#x20AC;&#x2122;s most advanced fibreglass pipe
Companies (LCD) and Compressed Natural Gas (CNG) sta-
manufacturing plant. FPI Egypt provides complete fiber-
tions.
glass pipe system solutions with a comprehensive range of
Aware that natural gas is an integral part of a comprehen-
products covering Glass Reinforced Epoxy, Polyester and
sive energy development plan and the steering wheel for
Vinylester resin pipes. FPI Egypt is currently dedicated to
development in Egypt, GASCO aggressively shares in the
the Egyptian and North African markets and is mainly
implementation of the plan facing the challenges and
involved in the Power Generation, Oil and Gas,
defining the priorities, satisfying the local market require-
Petrochemical, Municipal water and sewage markets.
ments of gas, and making gas available and affordable
The Future Pipe Group is currently enjoying growth that
while maintaining the delicate balance between business
will soon incorporate new manufacturing facilities in the
and the environment.
Far East and the United States.
Future Pipe Industries S.A.E. (FPI)
Middle East Oil Refinery (MIDOR)
Mr. Fouad Makhzoumi
Eng. Mahmoud Nazin
Chairman
Chairman
Tel: +20 2 3022243 / 34
22,El Badia St., Heliopolis, Cairo
Fax: +20 2 3022206
Tel: +20 2 4164597
E-mail: sales@fpi.com.eg
Fax: +20 2 4145934
Website: www.futurepipe.com
E-mail: midor@midor.com Website: www.midor.com
Sector: Industry Date of creation: 1998
Sector: Oil & Gas
Number of employees: +300 Midor Refinery is a modern environmentally friendly grass The Future Pipe Group is a globally operating group of
root Refinery in close proximity to the Sumed pipeline ter-
companies specialized in high performance reinforced
minal at Sidi Krir & Dekhleia Port in Alexandria. The
polyester, glass reinforced epoxy systems, polyethylene
Ownership of the Refineryâ&#x20AC;&#x2122;s in-fence facilities is shared by
and concrete pipe as well as storage tanks, floats for the
MIDOR, which owns the refinery process units, and
dredging industry. The Group has manufacturing facilities
MIDTAP which owns the off-site utilities. The Refinery is
strategically located in the Netherlands, Houston, Dubai,
designed to process 5 million tons of crude oil annually.
97
MAIN SECTORS
OF THE
ECONOMY: ENERGY
The mission of the company is achieving Egypt’s prospec-
Number of employees: 638
tive of having an up to date, state of the art, integrated
The Natural Gas Vehicles Company was incorporated in
oil refinery complex, producing high quality products with
1996 as the first company in the Middle East and Africa to
enhanced economies by further processing left fuel oil
commercialize compressed natural gas (CNG) as an alter-
into light high value products. This has involved having, in
native clean fuel. NGVC’s shareholders are among spear-
addition to MIDOR refinery other affiliated service compa-
heads of the oil and gas industry in Egypt and the world,
nies to supply electricity, water, and operation & mainte-
BP Egypt (40%), Egypt Gas (40%), and ENPPI (20%).
nance services. MIDOR Refinery is also considered unique
NGVC core work is to construct and operate CNG fueling
in its financial model, as a private sector structured com-
stations and conversion centers.
pany, ventured between the state owned “Egyptian
(CCR), Isomerization unit and Delayed Coker. These units
“In the past 8 years, eversince its incorporation, NGVC was able to establish itself as an industry pioneer in Egypt and the region by constructing 44 CNG fueling Stations and 16 conversion center so far, in addition to more than 500 million cubic meters of CNG sales.”
produce high quality petroleum products like high octane
Dr. Mahmoud Badran
Petroleum Corporation” (EGPC) and Egyptian Banks. The Refinery incorporates, among other units, 10 units under license from international companies. (8 from UOP & Conoco-Bechtel, both being American companies, and one from Mannsmann KTI). Those of higher technology are a Hydrocracker, Continuous Catalytic Reforming
unleaded gasoline (95, 98), diesel low sulphur & jet fuel. MIDOR refinery is designed for high operational flexibility to suit market needs. All these factors give MIDOR a high complexity index of 11,3 (Solimon). MIDOR supplies Egypt
The Petroleum Projects & Technical Consultations CO. (PETROJET)
with diesel, LPG, sulphur, and other products. MIDOR also export to Europe products such as gasoline, Jet fuel as
Eng. Hany Dahy
well as petroleum coke.
Chairman & CEO Joseph Tito St., Haikestep, Cairo Tel: +20 2 6336999
Natural Gas Vehicles Company
Fax: +20 2 6230808 E-mail: techpro@petrojet.com.eg
Dr. Mahmoud Badran
Website: www.petrojet.com.eg
Chairman & Managing Director Square 312 , Lewaa , Mohamed Ibrahim El Sheikh Almaza
Sector: Oil & Gas
Heliopolis, Cairo
Date of creation: 1974
Tel: +20 2 2917237
Turn over: EGP 2 billion
Fax: +20 2 2913228
Number of employees: 20,000
Sector: Oil and Gas Date of creation: 1996
Over the past 29 years of experience in the field of petro-
Capital: EGP 100 Million
leum, petrochemicals and various industries, PETROJET
Turn over: EGP 78 Million
ranks as one of the leading construction companies in the
98
MAIN SECTORS
OF THE
ECONOMY: ENERGY
Middle East, providing integrated projects to the Oil, Gas
The backbone of PETROJET comprises more than 20,000
and Petrochemical industry. PETROJET activity cover
engineers, labours and servicing staff, operating and
design, material procurement, and construction of indus-
administering a big volume of assets and facilities such as
trial plants, oil refineries, oil and gas production facilities,
the static equipment fabrication workshops, the fabrica-
gas processing and liquefaction, onshore oil and gas fields
tion yard for offshore structures, the harbor to serve the
development, onshore pipeline, fabrication of offshore
marine spread and fabrication yard, two coating plants for
structures, fabrication of static equipment and pipeline
concrete and polyethylene pipeline coating, and a vast
coating. PETROJET is also actively developing its activities
number of construction equipment.
outside the oil sector in areas such as fertilizers, chemicals, power generation and other
The management philosophy of PETROJET is founded on
industries.
three main pillars: management by results, delegation of authority and freedom to act for each level of organisa-
PETROJET has sustained a strong competitive edge based
tion. Furthermore, as a strong advocate of â&#x20AC;&#x153;the need for
on high quality, cost-effectiveness, and international res-
better environmentâ&#x20AC;?, PETROJET abides to concepts, rules
pect.
and procedures of effective environmental management system along with international standards.
MAIN SECTORS
OF THE
Petroleum Marine Services CO.
ECONOMY: ENERGY
(0,5%). PMS is well known for its sound reputation and competent services among major Egyptian oil and gas
Mrs. Nehad Ismail El-Gawish
operators.
Chairman & CEO Anwar El Mofty St., Dev.& Housing Bank Buildings B. Nasr city, Cairo Tel: +20 2 4054802 Fax: +20 2 4054801 E-mail: mainoffice2000@pmsegypt.com
“PMS shall enhance its position as a major player by developing its core business to a new horizon as competent provider of deep-water marine services.”
Mrs. Nehad Ismail El-Gawish
Website: www.pmsoffshore.com Sector: Petroleum & Gas
Shell Egypt
Date of creation: 2001 Capital: $ 90 Million
Mrs. Iman Hill
Turn over: $ 51 Million
Chairwoman
Number of employees: 1200
6, Hassan El-Shereiy St., Heliopolis, Cairo Tel: +20 2 2904111 Fax: +20 2 2901121
PMS has been holding a unique place on the Egyptian
E-mail: Iman.I.Hill@shell.com
marine and offshore map since 1980 when the Company
Website: www.shell.com
was part of Petrojet, a major construction and technical contractor. In 2001, PMS was separated from Petrojet.
Sector: Oil & Gas
The Company is a customer-focused marine services pro-
Date of creation: 1911
vider that uses its competency and proven technical expertise in assisting customers to achieve their business goals on time at the required level of quality along with
Egypt is one of the first countries in the world where Shell
prime consideration to HSE issues. PMS operates in a wide
is involved in the complete gas value chain, from explora-
range of offshore activities: services (submarine pipeline
tion and development through to production and distribu-
survey, hydrographical survey, transportation of structure,
tion to both residential and industrial customers. As the
etc), Construction (Platforms installation, Jackets laun-
future for gas is in the deepwater offshore fields, Shell has
ching, hook ups, etc), and maintenance (submarine pipe-
invested more than $200 million in a preliminary 5 year
line and platforms maintenance, rehabilitation, interven-
exploration period involving the drilling of five exploration
tion and repair services).
wells. There are positive indications that Shell’s NEMED
PMS has the Quality Management System BS EN ISO
[North East Mediterranean] Deepwater Concession holds
9001: 1994 and will shortly be ISO certified by LIODYS
considerable reserves and already shows good results.
Register of shipping. PMS has also acquired the mem-
Another innovative development for consumers in Egypt is
bership of the Technology Welding Institute.
the use of CNG [Compressed Natural Gas] as a fuel source
The current shareholders of the company are the Egyptian
for motor vehicles. GAS EXPRESS, the brand name for
General Company for Petroleum (32%), Petrojet (66,5%),
Shell’s newly-launched Compressed Natural Gas (CNG)
Enppi (1%), and the Petroleum Housing & Services Fund
business in Egypt has already proved a great success. With
100
MAIN SECTORS
OF THE
ECONOMY: ENERGY
three retail stations opened in 2003, five more planned
The joint venture between SONKER and VHFL will pave
for 2004, and with the full support of the Government
the way for further Foreign direct investments at Sokhna
due to the substantial economic and environmental bene-
Port, which is estimated to reach $ 8 billion by 2020 with
fits of CNG, GAS EXPRESS is set to become the market
hundreds of multinational companies relocating there to
leader in this promising energy of the future.
make use of the port’s state-of-the-art facilities and strategic location on the world’s busiest sea lane, the Gulf of Suez on the Red Sea.
Sonker Captain Ossama Al Sharif
Tharwa Petroleum Company
President & CEO 29 Farid Street, Heliopolis, Cairo, Egypt 11341
Geol. Ahmed Darwish
Tel: +20 2 4149944
Chairman & Managing Director
Fax: +20 2 4148877
2, El Hegaz St., Roxy, Heliopolis, Cairo
E-mail: info@spdc.com.eg
Tel: +20 2 4518313
Website: www.spdc.com
Fax: +20 2 4513918
Sector: Oil and Gas
Sector: Oil & Gas Date of creation: Feb. 2004
Sokhna Port has established itself as the premier container port and logistics centre in the region and is becoming the
Tharwa Petroleum Company is the first Egyptian Joint
port of choice for all bulk and liquid bulk commodities.
stock company established pursuant to the laws of the
The port’s tank farm is currently under development follo-
General Authority of Investment and Free Zones.
wing the signature between the Sokhna Bunkering Company (Sonker) and Vopak Horizon Fujairah Ltd (VHFL)
The main objective of establishing this company is to have
to build and operate the Sokhna Port liquid bulk terminal.
an Egyptian strong entity in the field of exploration and production, which could be able to cooperate and com-
The terminal, expected to be operational by 2006, will be
pete with international companies in the oil and gas field
within Sokhna Port’s free zone 130 km east of Cairo. The
inside and outside Egypt.
terminal will cater primarily to Egypt’s growing bunker fuel market as well as support imports of edible oils and petrochemicals, and exports of petrochemical projects.
Ganoub el Wadi Petroleum Holding CO (GANOPE)
The new joint venture - Vopak-Horizon-Sokhna Ltd (VHSL) is 60% owned by SONKER.
Eng. Hassan Mohamed Aki
SONKER’s Managing Director, Capt. Ossama Al-Sharif and
Chairman
VHFL Chairman, Hussain Sultan signed the agreement at
Block No 1157 Morabbaa El-Wazaraa-Sheraton Residence
a ceremony attended by Egyptian Petroleum Minister, HE
Heliopolis
Sameh Fahmy.
101
MAIN SECTORS
OF THE
ECONOMY: ENERGY
Tel: +20 2 2686596
Segas, a company owned by UNION FENOSA GAS, which
Fax: +20 2 2686599
is 50 % Eni and 50 % UNION FENOSA, is constructing an
E-mail: h_akl@ganope.com
LNG plant in the free zone area of Damietta Port, Egypt.
Website: www.mail.ganope.com
The plant of SEGAS is the biggest single train in the world
Sector: Oil and Gas
to date and it is designed to produce 4.8 million tons of
Date of establishment: 2003
LNG per annum. SEGAS is the first LNG plant in the world
Number of employees: 472
to be supplied with NG from a National gas grid where different sources of NG supply will be gathered. The technology used is APCI liquefaction process. The 35 months
Segas
schedule of the project commenced on November 26th, 2001.
Mr. Gonzalo Fernandez Viejo
The project represents a good boost to Egypt’s economy
Managing Director
as it will generate hard currency revenues of USD 220-250
21 - 23 Charles de Gaulle Street, Nile tower building,19th
millions annually for the Country. The project construction
floor, Cairo
work force is around 7000 people.
Tel: +20 2 5715131 Fax: +20 2 5728646
Safety records of the project are highly commended as its
E-mail: segas@segas.com.eg
results are setting a world class performance standard. All efforts are concerted to achieve the milestone of
Sector: Oil and Gas
November 2004 to make LNG for the first export from
Date of creation: 2001
Egypt. More information at: “www.winne.com”.
H. E. ENG. Sameh Fahmy, Minister of Petroleum during Intergas 2004
102
MAIN SECTORS
OF THE
ECONOMY: FINANCE
FINANCE
“Altruism is the mark of a superior being”. Egyptian proverb
103
MAIN SECTORS
OF THE
INTRODUCTION
ECONOMY: FINANCE Egypt’s four largest banks, the National Bank of Egypt, Banque Misr, Bank of Alexandria and Banque du Caire,
Egypt’s banking system is among the oldest in the region:
are all state-owned and control over 50 percent of ban-
its first bank, the National Bank of Egypt, was established
king sector assets in Egypt. In an attempt to curb the debt
in 1898 and existed until 1960 when it became the
problem, the government replaced the management
Central Bank of Egypt (CBE). The CBE is the monetary and
teams and chairmen of these four banks and replaced
banking supervisory authority in Egypt. The banking
them with bankers with significant experience in interna-
sector has undergone major reforms in the past two years
tional commercial banks. The new chairmen then brought
in an attempt to bring it inline with international banking
in more experienced bankers for the next level of mana-
standards. After a slow start to the millennium, the capital
gement. In addition, the banks’ boards have been restruc-
market has witnessed an upsurge, reaching the highest
tured to include more members with experience in private
trading levels since its inception. While the insurance
sector economics and business.
industry in Egypt is still in its infancy, it has vast potential for growth. The introduction of a number of private sector
Since the modern banking practices of Egypt’s largest
insurance companies will ensure that the industry conti-
banks have been eclipsed by some of their private sector
nues to grow.
competitors, the government has moved to improve the
A MORE COMPETITIVE DOMESTIC BANKING SYSTEM
flow of information throughout the sector. The CBE launched a credit information database and has been pushing for electronic connectivity for all banks’ branches. The new banking law passed in 2003 established more strict prudential guidelines including tighter restrictions on con-
The Egyptian banking sector has experienced several sig-
nected lending and maximum lending levels to individual
nificant events in recent years, including new manage-
clients / families, as well as giving the CBE more supervi-
ment at the largest banks, efforts to improve supervision
sion over changes in banks’ management.
and capital adequacy, moves toward privatization, and a new banking law that will likely lead to a more consolidated sector. Deposits have grown by an average of 11 percent over the past six years. As of June 2003, total deposits with the banking system (excluding CBE) were LE403 billion, of which LE343 billion are time and savings deposits. The profitability of the banking industry has come under fire recently. Several bad debt cases, administrative shakeups, low demand for credit in a weak economy and the lack of foreign exchange are just a few of the challenges the sector has had to handle. In mid-2002, the official level of non-performing debt in the banking system amounted to about 16 percent, though unofficial estimates have claimed it ranges from 15-25 percent, mostly concentrated in the large government-owned banks.
104
An increasing presence of ATM in the cities
MAIN SECTORS
OF THE
ECONOMY: FINANCE
In late 2002, the capital adequacy ratios of all banks were
In a possible effort to consolidate the sector, the new ban-
raised to 10 percent from 8 percent in order to comply
king law sharply raised minimum capital requirements
with Basel II risk management requirements. Six state-
from LE100m to LE500m for domestic banks and from
owned banks struggling to meet the new requirement
$15m to $50m for foreign banks. Non-bank foreign
due to increased provisioning for their bad loan portfolios
exchange offices were also hit with a capital requirement
received help from the CBE in the form of a LE4bn capital
increase from LE1m to LE10m. While foreign exchange
increase. As of June 2003, the capital adequacy ratio for
exposure is very limited and temporary, it is inline with
the banking system was 11 percent as recommended by
international guidelines. The loans-to-deposits ratio in
international guidelines. Although the amount of non-
foreign currency declined to 52.4 percent in June 2003
performing loans totaled 20.2 percent of total loans at the
from 61 percent in April 2002, indicating declining
end of June 2003, they have been fully provisioned from
foreign exchange exposure risks on the side of domestic
the banksâ&#x20AC;&#x2122; side. Overall, banks have observed all provisioning
economic agents. According to estimates, only a small
guidelines and by the end of June 2003 total provisions
number of domestic banks currently meet the new requi-
amounted to 62.3 percent of non-performing loans.
rement, therefore it is possible that of Egyptâ&#x20AC;&#x2122;s total of 57 banks, the majority will be forced to merge, consolidate or close.
The Alexandria based ACMB
105
MAIN SECTORS
OF THE
RECORD GROWTH IN THE CAPITAL MARKET
ECONOMY: FINANCE CASE 30 Price Index, an index of the most actively traded 30 listed stocks, increased 133 percent from 2002-2003, recording a total of 1155.51 points. By the end of March
The two main stock exchanges are the Alexandria and
2004 the index had jumped an additional 19 percent to
Cairo stock exchanges. In 1992, the markets were opened
reach 1393.48 points.
to foreign portfolio investment and the following year they were linked electronically to form the Cairo and
Secondary Capital Market
Alexandria Stock Exchanges (CASE) and screen trading began.
Item
Primary Capital Market
General stock market index
Item Total issued value of shares (100%) % (of total value) of share issue at incorporation % (of total value) of share issue at capital increase
Unit
Jan.-Mar. 2003
Jan.-Mar. 2004
L.E. Bn
3.21
3.34
Change on year ago
Value of traded securities (registered and non-registered securities)
January 2004
February 2004
Change on month ago
845.06
878.43
33.37
L.E. Million
2915
2735
-6.2%
L.E. Million
14.9
25.6
72.0%
(Points)
1021.4
1056.8
35.4
Unit
(Points)
4.1
%
21.7
35.6
13.9
%
78.3
64.4
-13.9
Index of manufacturing companies
Source: Capital Market Authority.
Foreign participation emerged again during 2003 signifiSource: Capital Market Authority.
cantly to record on average 25 percent to 30 percent of total monthly trading value after they recorded levels
The Capital Market Authority (CMA) has the central role
below 20 percent in 2001 and 2002. Several foreign and
in organizing and controlling the market. The CMA over-
local mergers and acquisitions have also helped boost the
sees the activities of listed companies and ensures com-
market, the most notable of which was Heineken’s acqui-
pliance with the law and executive regulations. The CMA
sition of Al Ahram Beverages Co. for $280m, the largest
is also responsible for licensing fund management and
deal in the history of the Egyptian stock market. Other
brokerage activities. As of 2003, the CASE had 978 listed
acquisitions included Asian Paints’ investment in SCIB
companies with a total market capitalization of LE172bn.
Chemicals, Accor’s purchase of the Gezira Sheraton Hotel
Around 540 of these stocks are actively traded.
and Pharco Pharmaceuticals’ purchase of Amriyah Pharmaceutical Co.
After a sluggish start to the millennium due to a number of internal and external factors, the market witnessed a
Vast Potential for the Insurance Industry
turnaround in 2003, especially after the floatation of the Egyptian pound. The total volume of trading increased to
The main drivers of the Egyptian insurance sector are the
1,229,377 transactions in 2003 up from 833,704 the year
Supreme Council of Insurance, the Egyptian Insurance
before and market capitalization jumped to LE171.92bn
Supervisory Authority (EISA), the Egyptian Insurance
in 2003 from LE122.04bn in 2002. In January 2004 CASE
Federation (EIF), a number of insurance companies, and a
recorded its highest number of daily transactions totaling
specialized reinsurance company. Of Egypt’s 18 insurance
11,396, excluding special deals and tender offers. The
companies, eight handle all types of insurance and reinsu-
106
MAIN SECTORS
OF THE
ECONOMY: FINANCE
rance business, five deal only in property and liability insu-
materialized issues, and two days for 14 active stocks that
rance, and five issue only life insurance. The insurance
are not bound by the five percent daily price movement
companies in Egypt consist of one state-owned reinsu-
ceiling, a significant improvement over the 11 days
rance company, Egypt Reinsurance, and three public
needed two years ago. In addition, the newly instituted
sector insurance companies, namely, Misr Insurance, Al
Primary Dealers system will allow financial institutions
Chark Insurance Co., and National Insurance. There are a
registered with the Ministry of Finance to underwrite pri-
number of private insurance companies operating in
mary issues of government securities and activate trading
Egypt, including Mohandes, Pharaonic, Alico, Royal & Sun
in the secondary market through sale, purchase, and
Alliance (previously Al Ahram Insurance Company), just to
repurchase agreements of government securities.
name a few. In an effort to liberalize and modernize the insurance Compared to other middle-income developing countries,
sector, the government has embarked on an insurance
Egypt’s insurance industry remains small, with annual pre-
reform to enhance the EISA’s supervisory role and institu-
miums accounting for only 1.1 percent of GDP, indicating
tional capacity, monitor and regulate the performance of
that the insurance market in Egypt still has enormous
intermediaries, conduct financial examinations, ensure
potential for growth. In 2002/03 total life and non-life
proper market conduct among market practitioners, intro-
premiums totaled LE3bn. Life insurance premiums incre-
duce legislative reforms and establish an information
ased to LE939m compared to LE720m the previous year,
centre to increase public awareness in the sector.
at a growth rate of 30 percent. Non-life insurance pre-
Insurance companies will also be linked to the EISA via an
miums jumped to LE2.1bn compared to LE1.7bn the pre-
electronic highway and will present financials in electronic
vious year, achieving a growth rate of 25 percent.
form. Local and foreign investors, individuals and firms alike, will benefit from such efforts to improve the insu-
The industry is experiencing a boost in investment at a
rance market. The potential for further growth is also
rate of approximately 11.4 percent annually. For 2002/03
immense, especially in life insurance.
investments from insurance companies increased by 9.4 percent to LE14.6bn compared to LE12.8bn the year
Opportunities for Growth
before. Private investment increased by nearly 9 percent to reach LE10.8bn compared to LE9.9bn. Government
Indicators for the Egyptian banking system are strong and
investment achieved the highest rate of growth from
reflect both stability and the potential for rapid, sustained
201/02 to 2002/03, reaching 15.8 percent to total
growth. The new banking law will likely help reform the
LE112m up from LE96.7m.
sector and as a result attract more investment due to improved banking practices and better ability to compete
The Egyptian government continues to introduce mea-
with international financial institutions. In addition, the
sures to bring Egypt’s capital market closer to interna-
new crop of experienced management in Egypt’s top
tional standards to improve the business climate and
banks and their familiarity with commercial banking prac-
attract foreign investors. Companies listed on the CASE
tices will undoubtedly enhance the sector’s prospects for
are required to apply international accounting and disclo-
profitability while implementing more prudent lending
sure standards. Stocks are delisted from the exchange if
practices.
not traded for six months. Settlement of transactions now takes three days for dematerialized issues, four days form
107
MAIN SECTORS
OF THE
ECONOMY: FINANCE
In its bid to become one of the core financial centers in
The Head office of the ACMB is located in Alexandria, but
the Middle East North Africa region, CASE has adopted
the Bank has also branches in Cairo, Port Said, Suez, and
leading-edge technology, improved its rules and regula-
plans to establish new branches in Cairo and Giza. The
tions, as well as the products and services it offers, and
different services provided by the Bank are the following:
has developed alliances with international markets inclu-
complete banking services & special account in Egyptian
ding the World Federation of Exchanges, the Federation
pound and foreign currency; purchase and sale of foreign
of Euro-Asian Stock Exchanges, the African Stock
currencies with best prices and executing operations of
Exchanges Association and the Union of Arab Stock
purchase and sale of shares and bonds; preparation of
Exchanges. In an attempt to boost its competitive posi-
feasibility studies for investors and marketing for invest-
tion, CASE is striving to strengthen its relationship with its
ment projects; establishment of new companies and pre-
customers by offering timely and secure services to inves-
paration of required studies and participation in capitals;
tors, members and market participants as well as promo-
participation in finance of cars and long-life good pur-
ting the confidence and understanding of investors of its
chase with the best facilities; special sales in the bankâ&#x20AC;&#x2122;s
operations.
branches in Cairo, Alexandria, Port Said, Nasr City and
MAIN COMPANIES
Suez.
Alexandria Commercial & Maritime Bank
American Life Insurance Company (ALICO)
Mr. Essam Mohamed Abouhamed
Mr. Mounir Ghabour Hanna
Chairman & Managing Director
Chairman
85, El Horreya Avenue - Alexandria
Pharaonic American Life Insurance Co., ALICO, Cairo
Tel: +20 3 3927307
Center, 12th floor 2 Abdel Kader Hamza St.
Fax: +20 3 4972397
Garden City, Cairo
E-mail: abouhamed@acmb.com.eg
Tel: +20 2 3564693
Website: www.acmb.com.eg
Fax: +20 2 3548656 E-mail: alicoegy@link.net
Sector: Finance & Banking
Website: www.alico-mesa.com
Date of creation: 1981 Capital: $ 18 Million Number of employees: 593
The American Life Insurance Company (ALICO), originally named Asia Life Insurance Company, was founded over 80 years ago in Shanghai, China. After World War II, the
The Alexandria Commercial & Maritime Bank (ACMB) is
Company turned its sights towards the Caribbean, and
the important Bank in the region of Alexandria, and a gro-
subsequently towards the Middle East, Africa, Europe, the
wing player in the Egyptian Banking sector. Regarding the
Far East and the Americas.
shareholding structure, 58,16% of the capital of the Bank is owned by the Government.
108
ALICO is currently among the largest international life insurance companies in the world and one of the largest international insurers in the Middle East Region. ALICO has operations in more than 50 countries, with its main presence in Japan, Europe, the Middle East, Latin America and portions of Africa and the Caribbean. ALICOâ&#x20AC;&#x2122;s branches and subsidiaries provide a wide range of life and health insurance with product lines including traditional life, accident and health, group insurance for large and small organizations, pensions, and annuities. ALICOâ&#x20AC;&#x2122;s policy of developing local talent to meet with quickly to changing customer needs and market conditions. The company has a low risk investment strategy, influenced in part by the conservative guidelines established by foreign insurance regulators.
Arab African International Bank Mr. Hassan Abdalla Vice Chairman & Managing Director 5, Midan Al-Saray Al Koubra, Garden City - Cairo Tel: +20 2 7953255 Fax: +20 2 7955329 E-mail: habdalla@aaibank.com Website: www.aaibank.com Sector: Banking Date of creation: 1964 Capital: $ 144 Million
Incorporated in 1964 as the first Arab multinational bank, Arab African International Bank has been established as a joint venture between the Central Bank of Egypt, and the Kuwait Investment Authority, each with a percentage of 49.37%. Ever since, AAIB has been reputedly known as a distinguished regional commercial and investment bank. Its history and establishment law have entitled it a special
MAIN SECTORS
OF THE
ECONOMY: FINANCE
status in the region. Its strong regional and international
Bank of Alexandria (an Egyptian Joint Stock Company)
presence is not only the function of its long years of expe-
was established as a state-owned commercial bank in
rience but is strengthened by the extensive network of
1957, according to the laws No. 163 of 1957 and its
branches located in the most commercially strategic cen-
Executive Regulations and No. 120 of 1975 and their
tres in the Middle East (UAE, Lebanon) and Europe. The
amendments. The Bank of Alexandria provides the follo-
vigorous restructuring of its Human Resources has further
wing services: financial and economic advice; preparation
enforced AAIB competitive edge. At the beginning of
of feasibility studies; investment trustee; marketing,
2004, AAIB implemented a number of Oracle Financial
selling and purchasing real estates on behalf of clients;
Services Applications to enhance its reporting and deci-
establishing and receiving subscriptions for companies;
sion-making capabilities across its branches. Faced with
central depositary for securities; as well as collecting cou-
impending Basel II requirements, AAIB is consolidating
pons. The Bank provides this wide range of banking acti-
functions including transfer pricing, performance analysis,
vities via its Head Office in Cairo and its 200 units located
cash forecasting, and risk management.
all over the country (Alexandria, Lower Egypt, Upper
Among other objectives, the Bank’s leadership has been
Egypt, Canal, Sinai).
dedicated to introduce and enforce new standards and
the Bank to realize its ambitious potentials. Finally, we
“On the top of it, the Bank plays an eminent role in financing foreign trade through opening documentary credits (export-import), performing all sorts of external transactions as well as issuing local and foreign letters of guarantee.”
have to stress that AAIB is not only keen to keep its long
Mr. Mahmoud Abdel Latif
professional benchmarks to safeguard quality performance on part of its manpower. AAIB is now proud to have a highly professional and motivated team, backed with solid academic standing and practical experience in reputable financial institutions, and fully entrusted to gear
duly earned reputation, but is inclined to proceed further adopting and introducing leading edge techniques in the
These last 2 years, the entrance of private-turned-public
banking industry.
bankers in the management of the Bank of Alexandria allowed a significant modernization process in terms of technology, services, and mentality. As a consequence,
Bank of Alexandria
the bank recorded a remarkable improvement of its results (increase of 850 million EGP between 2002 and
Mr. Mahmoud Abdel Latif
2003).
Chairman 49, Kasr El Nile St., Downtown - Cairo Tel: +20 2 3919686
Banque du Caire
Fax: +20 2 3907793 E-mail: mahmoud_latif@alexbank.com
Mr. Ahmed El-Bardai
Website: www.alexbank.com
Chairman 6 Doctor Moustafa Abaza st., (behind Sonasta) Nasr City,
Sector: Banking
Cairo
Date of creation: 1957
Tel: +20 2 2646616
Capital: EGP 1000 million
Fax: +20 2 4055390
110
MAIN SECTORS
OF THE
ECONOMY: FINANCE
E-mail: elbardai@bdc.com.eg
rage through a large number of domestic branches,
Website: www.bdc.com.eg
foreign affiliations and an effective network of correspondents all around the world.
Date of creation: 1952
Banque Misr operates mainly in Egypt and has a presence
Number of employees: 10777
on international markets (France- Germany - Lebanon). Aside from conventional banking operations, Banque Misr has always in mobilizing foreign and domestic investment.
Banque du Caire was established on 15 May 1952 and
The bank established one of largest computer systems in
has been expanding its network and services all over
Egypt covering virtually all its branches. It also introduced
Egypt and the Middle East counting now more than 230
information network and ATMs to the Egyptian market.
branches, offices and units all over Egypt and five branches in the United Arab of Emirates. Currently, Banque Du Caire has equity participations in Cairo International Bank
Capital Market Authority
in Uganda, Samba in Saudi Arabia, Cairo Amman Bank in Jordan, Banque MISR Europe in Germany.
Mr. Abdel Hamid Ibrahim
Banque du Caire offers a full range of services for indivi-
Chairman
duals and corporates and also has a major micro-lending
20, Emad El Din St., Cairo
program.
Tel: +20 2 5741000 Fax: +20 2 5743111 E-mail: a_ibrahim@cma.gov.eg
Banque MISR
Website: www.cma.gov.eg
Mr. Mohamed Kamel El Din Barakat
Date of creation: 1979
Chairman 151, Mohamed Farid St., Downtown, Cairo Tel: +20 2 3911159
The Capital Market Authority is the government agency
Fax: +20 2 3935381
responsible for regulating Egypt’s securities markets. The
Website: www.banquemisr.com.eg
Authority’s primary mandates are to protect investors and to encourage the development of efficient, orderly, and
Sector: Banking
well-regulated primary and secondary markets for
Date of creation: 1920
securities. The Authority enforces the Capital Market Law (95/1992),
Banque Misr, one of the “big four” egyptian public bank,
its Executive Regulations, and related decisions, including
was founded in 1920 in Cairo by Tala’at Harb. It is the 2nd
the approval of public offering securities issues, licensing
largest bank in Egypt, has many branches across Egypt
of securities intermediaries, protecting the rights of mino-
and a powerful structure aimed at the overseas market.
rity shareholders, and enforcing disclosure in accordance
The Bank is involved almost in all aspects of economic
with Egyptian Accounting Standards, which are based on
activities, utilizing its comprehensive geographical cove
International Accounting Standards. It conducts market surveillance to ensure transparent and fair trading in secu-
111
MAIN SECTORS
OF THE
ECONOMY: FINANCE
rities and to deter fraud, including reviewing disclosures
By end of 2003, 978 companies were listed on the
from listed companies, monitoring securities trading, and
Exchange with a market capitalization of LE 171.92 billion
inspecting brokers and other intermediaries. It facilitates
compared with 1992, where 656 companies were listed
the growth and development of Egypt’s capital market,
with a market capitalization of LE 10.8 billion. The traded
including improving the skills of capital market officials,
value of listed securities rose from LE 18.5 billion in 1998
encouraging the introduction of new financial instru-
to LE 23 billion in 2003. Total volume of trades (listed and
ments, facilitating the implementation of state-of-the-art
unlisted securities) rose from 375 million in 1998 to 1.4
technology, and increasing investor awareness. It also
billion in 2003.
supervises the production of accurate and adequate market data, including technical support and oversight of
A clear testament to the success of CASE, came in April
market information and clearing and settlement systems,
2003, when SEC approved CASE as a designated offshore
the development of periodic statistical bulletins, and the
securities market under regulation of the Securities Act of
distribution of data to the media and investors. The
1933, in recognition of the international standards
current priorities of the CMA are to activate the bond
attained by the Exchange. In 2004, CASE has launched a
market as soon as possible, to attract more international
Corporate Governance and Investor Relations Campaign,
investors, and to diversify the financial instruments avai-
aimed at improving awareness among listed companies of
lable on the Egyptian security market.
the critical importance of these for the health and integrity of the capital markets. New membership rules governing Egypt’s brokerage firms were approved by the CASE
Cairo & Alexandria Stock Exchange
Board of Directors in March 2004. However, they still await approval by the Capital Markets Authority. The rules
Dr. Sameh El Torgoman
set out the terms under which local and foreign members
Chairman
gain access to the market, defining the rules and condi-
4A, El Sherifein St., Downtown - Cairo
tions for factors such as the different types of members
Tel: +20 2 3959200
and their duties, the professionalism of members,
Fax: +20 2 3961499
minimum capital requirements and solvency.
E-mail: yallam@egyptse.com Website: www.egyptse.com
Central Bank of Egypt Date of creation: 1988 Dr. Farouk El Okhna Governor The Cairo and Alexandria Stock Exchanges are among the
31 Kasr El-Nil St., Cairo
oldest Exchanges in the world. The Exchange was first
Tel: +20 2 3926211
established in Alexandria in 1888. Then, in 1903, Cairo’s
Fax: +20 2 3926361
brokers created a second location in the country’s capital. Date of creation: 1961
112
MAIN SECTORS
OF THE
The Central Bank of Egypt (CBE) was established in 1961.
ECONOMY: FINANCE Commercial International Bank
The CBE is an autonomous public legal entity which regulates monetary, credit and banking policy, and supervises
Mr. Hesham Ezz El Arab
its implementation, in accordance with the Banks and
Chairman
Credit Law, the Law of the Central Bank and Banking
23, Charles de Gaulle St., Nile Tower, Giza
System.
Tel: +20 2 7472776 Fax: +20 2 5691853
The Central Bank assumes the responsability of issuying
E-mail: suha.awny@cibeg.com
the country’s banknotes, formulating the monetary,
Website: www.cibeg.com
credit, and banking policy of the country, supervising its implementation, as well as maintaining the stability of the
Date of creation: 1975
Egyptian currency.
Capital: EGP 1.3 billion Number of employees: +1700
The CBE also acts for the government in managing public debt, and advises the government before concluding local & foreign loans and credit facilities.
The Commercial International Bank was established in 1975 as a joint venture between the National Bank of
Banks are supervised by the Banking Control Department
Egypt and the Chase Manhattan Overseas Banking
of the CBE which has made considerable progress to
Corporation (CMOBC).
increase the soundness and to modernize the Egyptian Banking Sector, and to develop its supervisory framework
Since 1999, CIB started to make the diversification of its
and staff using materials, procedures, and techniques
income mix a priority, offering a wide range of retail ban-
obtained from other countries’ supervisory systems. The
king products and services (ladies credit card, consultation
rapid growth of the banking sector during the 1990’s
of the bank account through mobile phone...), capitali-
together with the liberalization of the whole economy
zing on CIB strong corporate base as well. Besides, CIB
added extra burden on the Central Bank of Egypt as the
has been successfully centralized through an IT conversion
sole regulator of the banking industry.
finalized in 2003. Over the last few years, CIB added Commercial International Life Insurance (CIL), CONTACT
The Egyptian Banking Sector comprises 57 banks (28 com-
Car Trading Company, and CorpLease for Financial
mercial banks of which 4 banks are state-owned banks,
Leasing to its affiliates.
26 investment banks of which 11 joint-venture banks and 15 branches of foreign banks, in addition to 3 specialized
CIB now stands at a 5% market share in loans (public
banks). The number of licensed branches of those banks
banks included), with an objective of increasing this share
in Egypt reached 2443 branch.
to 10%, cross-border expansion, stock listing and regional presence. This makes CIB the Egypt’s leading private sector financial institution measured by revenue, net profits, total deposits, loans, total assets, and securities portfolio.
113
MAIN SECTORS
OF THE
EFG Hermes
ECONOMY: FINANCE Fax: +20 2 7382993 E-mail: rrichards@eab-online.com
Dr. Mohamed Taymour
Website: www.eab-online.com
Chairman 58, El-Tahrir St., Dokki, Giza
Sector: Banking
Tel: +20 2 3383626
Date of creation: 1976
Fax: +20 2 3318145
Capital: EGP 750 million
Website: www.efg-hermes.com
Annual Incomes: EGP 102.5 million Number of employees: +800
Date of creation: 1996 Number of employees: 270 The Egyptian American Bank (EAB) is a joint venture between the American Express Bank Holdings (40,83% In 1996, EFG-Hermes was born out of the highly publi-
stake) and the Bank of Alexandria (33,81% stake). The
cized merger between the Egyptian Financial Group (EFG)
remaining shares are held by the Bank’s employees, by
and Hermes Financial. It has centralized its operations at
companies and by private individuals. The EAB has 32
the headquarter office building in Cairo and has deve-
branches located strategically throughout Egypt. Five key
loped its branch network to include offices in Heliopolis,
branches were substantially upgraded in 2002, including
Giza, Alexandria and Port Said coupled with an expanding
the installation of queue management systems.
presence regionally. The Asset Management division has established an office in the UK to assist in managing its
Corporate Banking is the core business of EAB, being its
Middle East and Emerging Africa Fund and further
primary asset generator and driver of growth. Corporate
develop its activities regionally.
Banking is also a principal source of cross-selling of the
In August 2002, EFG-Hermes and CIIC, respectively the
Bank’s consumer products and services, and of its foreign
first and the second investment bank in Egypt, initiated a
exchange volumes. The bank also made great efforts to
strategic alliance, EFG-Hermes buying 100% of Flemings
increase its Consumer Banking division. The EAB conti-
CIIC (an arm of CIIC formed in 1999) and 16% of CIIC,
nued to prudently expand its consumer loan portfolio by
while CIIC took on a 34% stake in EFG-Hermes through a
maintaining its market leadership in providing car loans
capital increase. As the biggest, most competitive invest-
and by introducing unsecured cash loans targeted at the
ment banking houses in the country, some believe that
needs of Egypt’s families. With the establishement of a
the move granted the new superpower over half of the
Private Banking division in 1997, the EAB is also one of
market in one fell swoop.
the few banks in Egypt that provides specialized private banking services to their high net worth clients.
Egyptian-American Bank
In January 2004, The EAB announced the establishment of Egypt’s first private sector mortgage company,
Mr. Roderick Richards
between EAB, the International Financial Corporation,
Managing Director
Deutsche Investitions, HDFC Investments Ltd. (a subsidiary
6, Hassan Sabri St., Zamalek, Cairo Tel: +20 2 7382994
114
MAIN SECTORS
OF THE
of Housing Development Finance Corporation Limited),
ECONOMY: FINANCE HC Securities & Investment
and the Bank of Alexandria. Mr. Hussein Choucry Chairman
Egyptian Reinsurance Company
3, El Zohour St., Mohandessen - Cairo Tel: +20 2 7490380
Mr. Hammam Badr
Fax: +20 2 7490577
Chairman
E-mail: hchoucri@hc-si.com
7,Abdel Latif Boltia St., Garden City ,P.O.Box 950 - Cairo
Website: www.hc-si.com
Egypt Tel: +20 2 7954363 - 7954362 - 7941603 Fax: +20 2 7957483 - 7954360 - 7957041
HC Securities & Investment (“HCSI”), established in 1996
E-mail: egyptre@egyptre.com
has developed its position as one of the leading Egyptian
Website: www.egyptre.com.eg
financial service providers. In 1997, Morgan Stanley Middle East, acquired 27% of the company through a
Sector: Reinsurance
capital increase. The International Finance Corporation
Date of creation: 1957
also owns 10% of the company with the remainder
Capital: EGP 500 million
belonging to private shareholders.
Turn over: EGP 371 million Gross Premium as at 30.6.2003
HCSI is involved in three main activities:
Number of employees: 218 HCSI Investment Banking is engaged in Mergers & Acquisitions, Restructurings, Divestitures, Capital Raising The Egyptian Reinsurance Company (Egypt Re), the first
and Project Finance. The Investment Banking Division
reinsurance company in the Middle East and Africa esta-
identifies, researches and monitors key trends and gene-
blished in 1957, is authorized to underwrite all classes of
rates new ideas that help clients execute such transactions
reinsurance business in Egypt as well as direct and reinsu-
and achieve strategic goals.
rance business in the international market. Egypt Re has been affirmed a rating of BBBpi by Standard and Poor’s
HCSI Asset Management division offers portfolio and
and B++ by A.M. Best for the year 2002. These ratings
mutual fund management services to institutions and high
reflect the company’s very good capitalization, strong
net worth individuals. Investment coverage includes
operating performance and investment returns.
regional markets with a focus on Egypt. HC Brokerage offers domestic and international investors
During the last six years, paid-up capital has been increased
with brokerage services in the Egyptian market.
four folds through capitalization of reserves. Last of which in January 2004, where paid-up capital was increased by
Using Egypt as its base, HCSI provides financial advisory
EGP 75 million to EGP 500 million to further strengthen
and investment banking to an array of Middle Eastern
Egypt Re’s financial base.
clients across the region. Following up on the success of its Turkey operations launched from its Istanbul office in
115
MAIN SECTORS
OF THE
2001, HCSI is in the process of opening a subsidiary in Bahrain.
ECONOMY: FINANCE MISR for Clearing Settlements & Central Depository (MCSD) Mr. Mohamed Soliman Abd El-Salam
HSBC Bank Egypt
Deputy Chairman & Managing Director 70 El Gomhoria St., Cairo
Mr. Abdel Salam El-Anwar
Tel: +20 2 5971509
Chairman
Fax: +20 2 5971670
3, Aboul Feda st., Zamalek
Website: www.mcsd.com.eg
Tel: +20 2 7367425 Fax: +20 2 7364010
Date of creation: 1996
Website: www.egypt.hsbc.com Date of creation: 1982
Misr Clearing, Settlement and Depository (MCSD) is a private company, which is undertaking clearing and settlement of the dealings resulting from the traded transac-
HSBC Bank Egypt S.A.E. was established in 1982 as
tions executed on the stocks in the Egyptian Capital
Hongkong Egyptian Bank S.A.E. and adopted its present
market. Settlement is t+2 for the most active stocks list
name in April 2001 following an increase in shareholding
that has no 5% price limit, t+3 for dematerialized securi-
by the HSBC Group from 40% to 94.5%.
ties that constitute 90% of trading and t+4 for the remai-
HSBC Bank Egypt S.A.E. is one of the largest multinational
ning physical securities.
banks in Egypt, providing a comprehensive range of ban-
The main tasks of MCSD are: undertaking clearing and
king and related financial services through a network of
settlement transactions executed on the stock market and
15 branches and six mini bank units in Cairo, Alexandria,
the other related services; applying the Central Depository
Sharm El Sheikh, Hurghada, Borg El Arab and Sixth of
System in Egypt; Establishing the central registry system;
October City.
executing corporate actions on behalf of issuers; executing pledging operations on the stocks registered in the
HSBC Bank Egypt provides a comprehensive range of ban-
Central Depository System; managing the fund to gua-
king and related financial services to meet the personal
rantee accomplishment of financial and securities settle-
and corporate banking needs of its customers in both
ments; managing the securities lending fund. Other assis-
local and foreign currencies.
tance services consist in: Act as a mediator for Arab and Foreign intermediaries in Egypt; provide custodians service
HSBC offers a wide range of tailored corporate banking
to some financial institutions; train employees in the
services, trade, custody and clearing services as well as
market on the new and novel systems.
corporate finance advisory services to its clients through
The companyâ&#x20AC;&#x2122;s main shareholders include Cairo &
its Investment Banking division that has been operating
Alexandria Stock Exchanges 35% , banks 50% and bro-
since December 2002.
kers 15% .
116
MAIN SECTORS
OF THE
ECONOMY: FINANCE
MISR International Bank
MISR Insurance Company
Mr. Haten Sadek
Dr. Moawad Hassanein
Managing Director
Chairman
54, El-Batal Ahmed Abdel Aziz S.,
44 A Dokki St, Giza
P.O. BOX 218 EMBABA, El-Mohandessin, Giza
Tel: +20 2 7485058
Tel: +20 2 7610120
Fax: +20 2 3368488
Fax: +20 2 7489065
E-mail: www.misr_ins@misrins.com
Website: www.mibank.com.eg
Website: www.misrins.com
Date of creation: 1975
Date of creation: 1934
Total Asset: 6,8 billion
Capital: EGP 750 million
Number of employees: 1200 Misr Insurance, established in 1934 by the pioneer econoMisr International Bank was established in 1975 as a joint
mist Mohamed Talaat Harb, is one of the leading and
venture between several financial institutions. MIBank is
most prominent insurance company in Egypt and the
one of the major banks in Egypt with 28 domestic bran-
Middle East. The Company transacts all types of insurance
ches and two foreign subsidiaries in Germany and Italy,
and reinsurance contracts using bilingual Arabic / English
with a wide spread network globally .
in its operations.
In terms of asset size and shareholders equity, MIBank is considered the sixth largest bank in Egypt and the second
In February 2004, Misr Insurance was rated A (Excellent)
largest among the joint venture banks.
by A.M. Best Co, with a stable outlook. The company’s
The bank offers a full range of Commercial; Retail;
strength lies in its excellent risk management policy, ope-
Corporate and Investment Banking services, including
rating performance and business profile in the Egyptian
term lending; trade finance; joint-venture development;
market. Misr’s professionalism results in retention levels of
venture-capital finance.
35,6% and 97% in life business in 2003. Indicators
Misr International Bank is listed in the London Stock
extracted from the Company’s financial statements
Exchange as GDRs since 1997.
proved the company’s robust and strong financial posi-
In the retail business, thanks to its huge network of
tion. Lately, Misr Insurance Co. has maintained its position
correspondents, the bank offers a range of advanced ser-
as a leader in the non-life market and second-largest
vices in local and foreign currencies, as well as a reliable
player in the life market. The company’s total invested
online banking system.
assets amounted to EGP 6,3 billion on 2003 representing 43% of total investments in the Egyptian insurance market. Experts believe that this position is not vulnerable and the company has the capability to substantially thrive in the future.
117
MAIN SECTORS
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ECONOMY: FINANCE
National Bank of Egypt
National Insurance Company
Mr. Hussein Abd El Aziz
Mr. Mohamed Abou El Yazid
Chairman
Chairman
1187 Corniche El-Nil St., Cairo
41, Kasr el Nil street, Mostafa Square, DownTown - Cairo
Tel: +20 2 5749540
Tel: +20 2 3917500 / 3906306
Fax: +20 2 5746858
Fax: +20 2 3910731
E-mail: nohagalal@nbe.com.eg
E-mail: nice@soficom.com.eg
Website: www.nbe.com.eg
Website: www.ahlya.com
Date of creation: 1898
Sector: Insurance Date of creation: 1900 Number of employees: 2000
National Bank of Egypt (NBE) established in 1898 is the oldest commercial bank in Egypt. Since its nationalization in the 1960’s, NBE assumes the position of Central Bank
The National Insurance Company of Egypt (NICE) was
and handle the usual operations of a commercial bank,
established in 1900. It’s the oldest Life & Non Life insu-
together with its crucial role of supporting the economic
rance company in the Arab World and Middle East with
and social development and assuming the privilege of
branches in Kuwait, Qatar, Saudi Arabia and Palestine.
note issuing. NBE operates in three main sectors, namely
NICE has been a leader in commercial and personal under-
Corporate banking, Investment banking and Retail ban-
writing, with a reputation for earning customer confi-
king, in 353 banking units nationwide and in the main
dence. With solid profitability and financial stability, NICE
financial centers of the world.
stands among Arab Insurance Companies with a BBBpi (good) from Standard & Poor’s.
In spite of the unfavorable economic conditions prevailing in the fiscal year 2002/ 2003 at the international and local
NICE continues to develop new products and services and
levels, NBE has achieved positive results. NBE is ranked
has a capacity to cope with domestic and international
246th out of the top 1000 world banks, and 3rd out of
changes. The Company is focused on having a higher
the 100 Arab banks in terms of total assets.
asset leverage, which makes more asset per premium available for investments.
NBE’s future focus will be to fully comply with the recent banking innovations, update its IT networks, develop its organizational structure, update credit and investment
National Societe Generale Bank
policies, expand its retail banking activities, and introduce new products in the fields of consumer credit, funds-
Mr. Mohamed Madbuly Sayed Ahmed
transfer systems and e-payment channels.
Chairman 5 Champollion St., Downtown, Cairo Tel: +20 2 7707777 Fax: +20 2 7707799
118
MAIN SECTORS
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ECONOMY: FINANCE
Website: www.nsgb.com.eg Date of creation: 1978
National Société Générale Bank was established in 1978 by two giants: Société Générale (SG), one of the strongest and most profitable banks in Europe (16th largest French company by market capitalisation), and National Bank of Egypt (NBE), one of the strongest banks in Egypt. NSGB is currently considered the second largest private bank in Egypt and one of the most secure Egyptian companies. Since its establishment, NSGB has offered Commercial, Merchant and Investment Banking Services. Traditionally, NSGB focused on Corporate banking with large corporate clients but has additionally developed its Investment banking capabilities (trading operations in securities, foreign exchange, money market instruments, acquisitions, and Egypt’s privatisation program) with the strong support of Société Générale worldwide. In 1999, NSGB began to focus on Retail banking by launching individual banking products (Deposits, Loans etc...) and is now considered the largest foreign Bank in Egypt in this field. More information at: “www.winne.com”.
119
MAIN SECTORS
120
OF THE
ECONOMY: FINANCE
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
INDUSTRY & TRADE
“The seed cannot sprout upwards without simultaneously sending roots into the ground.” Egyptian proverb
121
MAIN SECTORS
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ECONOMY: INDUSTRY & TRADE
OVERVIEW
occur. Egypt’s largest trading partner as a single country is the US, accounting for around 20 percent of imports
Egypt has a wide and diverse market for exports and
and 10-15 percent of exports. Asian countries total appro-
imports. Its leading merchandise export is crude oil and
ximately 25 percent of both imports and exports, while
petroleum products, followed by finished goods com-
Africa, Australia, and Latin America each account for less
prised mainly of textiles and apparel, and raw materials
than 5 percent of imports and exports.
such as cotton and other agricultural products. Steel exports grew sharply at the beginning of 2003 thanks in
Egyptian Exports by Region, 2003
part to the depreciation of the Egyptian pound and US and EU restrictions on other steel imports. Cement produ-
Asian Countries &'#
cers also witnessed a surge in exports to international markets. Leading imports include capital goods, machinery and agricultural commodities. Thanks to efforts by the Egyptian government to discourage the import of so-
Arab Countries &&#
African Countries &#
EU !$#
called luxury goods by placing extremely high tariffs on to discourage their import, consumer goods account for only
Russian Federation $ C.I.S '(&#
Other &#
about one-sixth of all imports. Other European Countries %#
Average Exchange Rates LE
US $
April 2003
5.80
March
2004
6.17
April
2004*
Egyptian Imports by Region, 2003
6.17
Euro
6.26
7.59
7.42
Sterling Pound
9.09
11.32
11.21
100 Yen
4.85
5.65
5.78
* Preliminary figures.
The European Union (EU) and the US are Egypt’s top tra-
USA !"#
Russian Federation & C.I.S )#
Asian African Countries Countries &%# &#
Other Countries "# Other European Countries *#
Arab Countries +#
EU !$#
USA )%# Source: CBE.
ding partners, respectively. The EU as a bloc remains Egypt’s largest trading partner accounting for 35-40 percent of imports and exports. It is highly probable that
Regional and International Trade Agreements
upon implementation of Egypt’s Partnership Agreement with the EU a significantly larger volume of trade will
Egypt has been a hub of trade in the Middle East for centuries. Keeping with tradition, Egypt has signed several bilateral and multilateral agreements to promote and
122
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
develop the competitiveness of Egyptian exports, enhance
Euros in project assistance grants and 1.1bn Euros in loans
trade, and improve the balance of trade.
from the European Investment Bank to help modernize Egyptian industry.
Egyptian Exports, 2002-03 Egypt and the US signed a Trade and Investment Exports
(LE m)
Jan-Dec. 2002
Jan-Dec. 2003
Framework Agreement (TIFA) in 1999. The TIFA is the first step in establishing free trade between the two countries.
Total*
21145
36812
Raw materials and cotton
2726
4044
Manufactured & semi-manufactured goods
9568
15868
Free Zones trade
1951
2300
In mid-2002, trade representatives from both countries discussed steps toward liberalizing trade between the US and Egypt. Although an Egypt-US free trade agreement has been tossed back and forth between delegates from both countries for more than five years, it has yet to become a reality. Following the events of September 11 and the war in Iraq, US officials have adopted a more rigid position, announcing that the conclusion of an FTA with Arab countries depends on two factors: achieving political
*Does not include reexported goods
democratization and economic openness. Egypt has made
Source: CAPMAS.
strides on several of those issues, including the deregulation of the pound and the adoption of an intellectual pro-
Egypt has trade agreements with nearly every Arab
perty rights law. It has been estimated that an FTA with
country including Arab League members in connection
the US could boost Egypt’s exports by $1bn in one year
with the Arab Common Market treaty, and the Common
and that Jordan’s FTA with the US has increased the value
Market for Eastern and Southern Africa (COMESA). In
of Jordanian exports to the US to over $400 million in
June 2001, Egypt signed the Partnership Agreement with
2002 from less than $72 million a decade earlier.
the EU as part of an effort to deepen preferential trade liberalization and improve Egypt’s access to its largest export market. It has been submitted to the parliaments
Enhanced Egyptian Export and Import Policies
of the EU member states and the Egyptian People’s Assembly for endorsement. Upon implementation, a free
Trade reform has been on Egypt’s agenda for a number of
trade area will be established during a 12-year transitional
years. While the government recognizes the need to elimi-
period.
nate its remaining non-tarifff barriers and streamline its bureaucracy, several problems remain such as the arbi-
Egypt’s parliament ratified the agreement in March 2003,
trary enforcement of Egypt’s complex standards system.
and five of the EU member states have ratified it so far.
In addition, the competitiveness of products is under-
When all EU members have signed the agreement it will
mined by Egypt’s high tariff rates compared to those of
come into effect thus immediately grating Egyptian expor-
other developing countries. Most tariffs range between 5
ters increased access to the European market, particularly
percent and 40 percent, although Egypt maintains a
for agricultural products. The agreement includes 615m
number of higher tariffs on what are classified as luxury goods including automobiles, tobacco, alcoholic beverages and clothing.
123
MAIN SECTORS
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ECONOMY: INDUSTRY & TRADE
The Egyptian government has developed a strategy to eli-
Diverse Industrial Sector
minate the obstacles exporters face and to maintain a competitive edge in the global market. To this end, a
Egyptâ&#x20AC;&#x2122;s manufacturing sector accounts for approximately
comprehensive list of barriers was drawn up in order to
20 percent of GDP. Its main sub-sectors include cement,
develop a strategy to resolve them. In an attempt to
fertilizers, food processing, metallurgy, textiles/clothing,
resolve export barriers, the government created a EGP
and other consumer goods. An analysis of limited sectoral
400m fund to provide technical and financial support for
information and the recently established manufacturing
the promotion and marketing of exports. In 2002, the
index indicates that the country experienced a slight
Export Law was issued to stimulate the competitiveness of
increase in industrial production and sales in the first half
Egyptian products by eliminating export hurdles. In addi-
of 2003.
tion, the issuance of the Tax Rebate law unified different customs regimes, while a list of the most reliable exporters will help to shorten import procedures under the temporary release customs system.
Computerizing the Egyptian Industry
124
MAIN SECTORS
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ECONOMY: INDUSTRY & TRADE
Niche Market Cornered on Construction Materials
Textiles and Garments Boost Exports The textiles industry is comprised of yarn, textiles, and
Egypt’s construction materials sub-sector has witnessed
ready-made garments and constitutes Egypt’s top export
steady growth in recent years, despite the lethargic eco-
sector. Textiles have vast export potential and offer the
nomy. Egypt serves a niche market in global production of
advantage of easy expansion and prompt results. In 2002
cement, ceramics, steel and reinforced iron. The growth in
exports of ready-made garments and other textile good
cement exports alone reached $162m in 2002 compared
reached $337m, approximately 11 percent of non-oil
to only $17m the year before, indicating a growth rate of
exports. Despite the fact that textiles and clothing are
953 percent. Steel exports have also grown at impressive
Egypt’s primary non-oil export and that it is the largest
levels, reaching $234m in 2004 compared to $136m the
industrial employer, the sector carries the large burden of
previous year at a growth rate of over 70 percent. The
the state. Although the government introduced extremely
government anticipates that by the end of 2006 exports
high clothing tariffs in 2002 to protect Egypt’s state-
of this sub-sector should reach $810m at a growth rate of
owned clothing and textile factories from competition,
22 percent.
the state continues to experience large losses because of outmoded equipment, over-employment and inefficient
Expanding Agriculture and Processed Food Market
operation. However, private clothing manufacturers are balancing the scales. Following the devaluation of the pound, private manufacturers have found that their pro-
The efforts of the Egyptian government to increase the
ducts have become much more internationally competi-
amount of arable land in the country have boosted agri-
tive and they expect exports to increase.
cultural production and processed food products, in part due to the increased number and diversity of exportoriented products. The government projects that this
Export Potential for Chemicals and Pharmaceuticals
sector will grow at an average rate of 20 percent to reach an estimated $1.2bn by 2006.
Chemicals and pharmaceuticals could greatly benefit from export expansion. In 2002, this sector comprised about
The private sector has invested heavily in food processing
$262m, approximately 9 percent, of non-oil exports. By
and the government anticipates an average growth rate
the end of 2006 the government expects to reach exports
of 22 percent to reach a total value of $300m by 2006.
totaling $1.1bn with an average growth rate of 20 per-
The food processing industry has become an attractive
cent.
target for foreign investors in recent years. Notable foreign acquisitions since mid-2002 include Kraft
Egypt’s strong oil industry, which provides raw materials
Corporation’s purchase of Family Nutrition Company and
and manufacturing infrastructure, has helped develop a
Heineken’s purchase of Al Ahram Beverages Company.
strong chemical industry. The primary chemical sub-
Long-term prospects for this industry remain strong, given
sectors include fertilizers, petrochemicals, and polymers,
Egypt’s large domestic consumer base, raw material
among other chemicals.
resources, and proximity to potential export markets in Europe and the Gulf.
125
MAIN SECTORS
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ECONOMY: INDUSTRY & TRADE
The Egyptian pharmaceutical market is the largest in the
Opportunities for Growth
region, worth an estimated $1.27 billion in 2004. Pharmaceutical sector activity centers around two major
To improve trade relations worldwide, and protect the
areas: the introduction of WTO TRIPS - compliant legisla-
rights of exporters and sustain Egyptâ&#x20AC;&#x2122;s exports in foreign
tion on intellectual property rights, and the state of the
markets, the government established six departments
drug pricing system. These issues have caused problems
under the Ministry of Foreign Trade. Through these pro-
between the government, local producers and multinatio-
grams, the Government has been able to attract invest-
nals. Egypt is a leading exporter to Arab, Asian and
ment opportunities worth over $1.6bn and provided data
African regions, although exports have declined in recent
about investment opportunities, procedures and legisla-
years. Rising raw material costs (imported) due to currency
tion in Egypt. The Egyptian Commercial Service (ECS) has
depreciation have acted as a brake on local production
established 71 offices in the capitals and business centers
and out-of-pocket payments for drugs have also increased
of the countries with which we seek to enhance economic
in recent years. Privatization is a growing trend within the
and trade relations.
Egyptian healthcare industry, thus the sector is undergoing considerable change. The private sector now plays
Egypt has growing export potential in a large number of
an increasingly important role in healthcare provision,
sectors due to its competitive advantage in manufacturing
emerging largely as a result of the declining standard of
and its geographical location. Increased export potential is
public sector care.
Factory in tenth of Ramadan
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
possible in numerous service sectors as well including
“Bira Stella” has been part of modern Egypt’s cultural,
commercial services, especially tourism, transportation,
political and social change.
business services and professional services.
At the beginning in the 1970s, the population of Egypt began to explode and tourism became increasingly impor-
The Egyptian government has spent a great deal of time
tant. Demand for Stella beer grew with the crowds,
and resources assessing the future of its exports and their
foreigners and Egyptians, and Al-Ahram Beverages
comparative and competitive advantages. As a result, the
Company started to diversified its production line and
government has outlined a plan to achieve its goal of
launched several non-alcoholic drinks. These new drinks
enhancing and promoting the Egyptian exports during the
complemented Stella Beer in an increasingly diverse com-
coming decade. It focuses on financing research, marke-
petitive market.
ting and training centers and facilitating communication between Egyptian exporters and their counterparts in
In the 90’s, the state monopoly Al Ahram Beverages
foreign markets. In addition, Egypt participates in many
Company was privatised and ABC has quickly become a
specialized international trade fairs, helping to open new
“model of privatisation”. By Modernising production,
markets in Africa and countries in the West.
improving quality control measures, and capitalising on tremendous brand equity, ABC was able to unlock the
Measures have also been taken to promote cost efficiency
potential of a long neglected company and restore to
in exporting to ensure fair competitiveness for the
Egypt’s beer its legendary style and prestige.
Egyptian exports in global markets. Moreover, a new law
.
is being drafted to unify different customs systems such as tax rebates, and temporary release and drawback systems
3TA Pharma Group
to facilitate faster export procedures.
MAIN COMPANIES
Mr. Tarek El-Hady Chief Executive Officer 6 A Giza st., Giza PO Box 64, El Orman
Al-Ahram Beverages Company
Tel: +20 2 7744270 / 1 / 2 / 3 Fax: +20 2 5715161
Mr. Ahmed Zayat
E-mail: t3aphgrp@t3apharmagroup.com.eg
Chairman
Website: www.t3apharmagroup.com.eg
2, Sarwat St., Bein Al Sarayat, Giza, Cairo Tel: +20 2 3312300
Date of creation: 1994
Fax: +20 2 7607169
Capital: EGP 200 million
Website: www.alahrambeverages.com
Sales turn over: EGP 86 million Number of employees: 296
Date of creation: 1897 T3A Pharma Group was established in 1994 as an The “Crown Brewery Company” was founded in 1897
Egyptian Joint Stock Company. T3A expanded its interna-
but the Company became officially known “Al-Ahram
tional activities to include Europe, the Caucasus, Latin
Beverages Company” in 1995. In more than 100 years,
America, and Africa. In order to facilitate product com-
127
MAIN SECTORS
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ECONOMY: INDUSTRY & TRADE
mercialisation, T3A established affiliates in each country
In 1974, Mr. Mohamed Mahmoud Nosseir, founded a
(e.g., T3A Egypt, T3A Côte d’Ivoire, T3A Germany, T3A
group of sizable companies, the Alkan Group of
Uruguay, T3A Kenya etc... ), and currently have 1195 pro-
Companies. Within the thirty years to follow, the Alkan
ducts registered worldwide in 50 countries.
Group grew to become one of Egypt’s leading private sector groups involved in a broad range of economic acti-
T3A strives to be a world-class organization providing
vities.
newly available ethical generic pharmaceutical products.
The interests and activities of Alkan companies are diver-
T3A values reflect personal and corporate respect, care,
sified yet complementing each other. Together Alkan
trust, integrity, transparency, and accountability. The
companies cover a wide range of business fields:
Company is proactive in its contribution to the social and
- Power generation dealership, operators and after sales
environmental implication of their operation, and offers
support.
its stakeholder long term profitable growth and the maxi-
- IT systems integrators and solutions providers, GIS ser-
mization of return on investment.
vices. - Trading agents for more than 100 multinational corpo-
In 2003, T3A has obtained the European Union approval
rations.
for its manufacturing facility.
- Import, marketing and after sales services for avionics and aviation systems and equipment.
“In the years, the company will invest EGP 158 million to open new markets (T3A will export 60% of its total production by the year 2008), and sign cooperation agreements with local and international companies in Egypt and outside.”
Mr. Tarek El-Hady
- Air Taxi services and ground support services. - Installation and maintenance of communication systems including GSM and wireless systems. - Government and corporate relation services. - Pharmaceutical industries. - Industrial spinning of cotton yarns, Finance, investment and consultancy. - Tourism and travel assistance services.
Alkan Group
- Automotive and earth moving equipment dealership and after sales services.
Mr. Mohamed Mahmoud Nosseir
- Construction.
Chairman
- Marine equipment dealership and after sales services.
2 Mesaha Sq. Dokki, Cairo
- Import, marketing and after sales service of medical
Tel: +20 2 7490140 / 1 / 2
equipment and disposals.
Fax: +20 2 7499253
- Communication as licensed operators, distributors,
E-mail: alkanmis@alkan.com
systems supporters and integrators.
Website: www.alkan.com Sector: Telecom/Industry & Trade/ Tourism/ Construction Transport
Americana Group for Foods & Touristic Projects - Egypt
Date of creation: 1974 Turn over: EGP 1 billion
Mr. Moataz El-Alfy
Number of employees: 3000
Chairman
128
MAIN SECTORS
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ECONOMY: INDUSTRY & TRADE
47, El Batal Ahmed Abdel Aziz, Mohandesseen, Giza,
Eastern Tobacco Company
Cairo. Tel: +20 2 3045990
Mr. Mohamed Sadek Ragab
Fax +20 2 4815900
Chairman
E-mail: www.americana-group.com
450, Al-Ahram St., - P.O.Box 1543 - Giza, Cairo
Website: info@americana-group.com
Tel: +20 2 5724965 / +20 2 5729017 Fax: +20 2 5687434
Sector: Food Industry - Restaurants
E-mail: eastern@easternegypt.com
Capital: EGP 500 million
Website: www.easternegypt.com
Number of employees: 12000 Date of creation: 1920 Capital: EGP 375 million The Americana Group for Food & Touristic Projects is a
Sales turn over: EGP 2,5 billion
consumer driven company that has consistently demons-
Number of employees: 12500
trated its ability to expand market share and profitability in the face of declining industry volumes and increasing economic, legislative and social challenges to all facets of
Established in 1920, Eastern Company is a joint-stock
the industry. The company manages food processing and
company, producing an array of tobacco products inclu-
Fast-Food restaurants, including KFC, Pizza Hut, Hardee’s,
ding cigarettes, cigars, water-pipe tobacco and rolling
TGI Friday’s, Subway, Baskin Robbins, Chicken Tikka, Fish
tobacco.
Market and Grand Café. It is a shareholding company listed on the Egyptian stock exchange. The company is
With more than 62 million cigarettes produced each year,
affiliated with Yum International (KFC, Pizza Hut and Taco
Eastern Company is the sole manufacturer of cigarettes
Bell) of the U.S.
in Egypt. Domestic cigarette brands comprise over 95% of EC’s production, with the famous brand Cleopatra domi-
“Americana’s Mission is to maintain its position as the first choice of consumers for its high quality and value products. The company achieves this by using the latest stateof-the-art technology and offering opportunities of career growth to its employees.“
nating the market; the remaining 5% are foreign brands
Mr. Moataz El-Alfy
The state Holding Company for Chemical Industries now
manufactured by EC under agreement with foreign companies. EC runs 21 factories distributed over 7 locations in Egypt. The company started a privatization process in June 1995. owns 66% of the company and 34% are floating in the
At the same time Americana rewards its shareholders with
market.
fair economic returns on their investment and builds solid partnership relations with its suppliers, banks, franchisers,
In 2004, EC announced the launching of four new pro-
joint venture international partners. Hereby, Americana
ducts to its current line of products and the introduction
maintains a friendly and caring position towards its envi-
of a new technology related to tobacco manufacture that
ronment and community.
will make huge savings in costs.
129
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
Egypt Aluminium
Egypt Kuwait Holding Co.
Mr. Zaki Bassiouny
Mr. Moataz Al-Alfi
Chairman & Managing Director
Managing Director
48 Abdel Khaleq Tharwat St., Cairo
14 Hassan Mohammed El Razaz St., Agouza, Giza
Tel: +20 2 3902284 - 3930716
Tel: +20 2 3059506
Fax: +20 2 3906793
Fax: +20 2 3059510
E-mail: info@egyptalum.com.eg
E-mail: info@ekholding.com
Website: www.egyptalum.com.eg
Website: www.ekholding.com
Date of creation: 1972
Date of creation: 1997
Number of employees: 9500
Capital: $ 500 million - Paid 120 million Number of employees: 21
Egypt Aluminum (EGAL) enjoys a monopoly on the local aluminum production market and still exports 55% of its
A dynamic and diversified company, EK Holding was
production. In 2000, EGAL’s production capacity was
founded in 1997 by leading Egyptian, Kuwaiti and other
195,000 t/ yr. The company is currently realizing signifi-
Arab businessmen who recognized the significance of
cant investments (2 potrooms under construction) and has
taking part in Egypt’s emerging investment opportunities
planned to reach a capacity of 245,000 t/yr in the first
and privatization programs. In partnership with world-
quarter of 2004. Although hit by the downturn in the
class businesses, it takes direct equity stakes in companies
construction industry. EGAL still plans to increase its
operating in sectors as diversified as Information
annual production capacity to 300,000 tons by 2008. On
Technology, Telecommunications, Infrastructure, Utilities,
the auction block since 2000, EGAL has completed the
Retail Trade and Insurance. EK Holding has the business
first phase of privatization and is still planning to go com-
stucture and the quality teamwork necessary to seize and
pletely private.
create new opportunities. Its in-house experience of taking ventures from start-up to maturity along with its
The Metallurgical Industries Holding Company, which
strong partnerships with leading international companies
owns 92% of EGAL’s capital, announced in April 2002
have earned it the full support of the Egyptian govern-
that EGAL would increase its capital to EGP 500 million
ment as well as the admiration of the local business com-
from EGP 400 million by issuing one new share for every
munity.
four existing shares at a value of LE 10 per. The stock flashed briefly on the CASE in July 2002 on news of a pen-
EK Holding is bottom-line oriented and is seeking strategic
ding privatization valuation after company officials said
investment opportunities in sectors that offer reasonable
EGAL’s current market price does not reflect its growth
returns. In all activities, it is driven by four basic principles:
potential. EGAL’s shares closed 2002 up 26.64% over
integrating cuttting-edge technologies into its business
their 2001 close.
systems and processes, capitalizing on its extensive influence base at home and in the region, ensuring all its investment decisions are rooted in an in-depth knowledge
130
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
of its industry sectors and investing in its people, consi-
The Middle East (Irak, Jordan, Kuweit, Lebanon, Oman,
dered as the Holding’s most important asset.
Saudi Arabia, Qatar, Pakistan...), and Europe (Romania, Ukraine, Albania).
Egypt International Pharmaceutical Industries Corporation
EZDK
Mr. Ahmed Borhan El- Dine Ismail
Eng. Ahmed Abdel-Aziz Ezz
Chairman & Executive Manager
Chairman & CEO
Tenth of Ramadan City - Industrial area B1,
10, Shehab St., Mohandessin, Cairo
PO Box: 149 Tenth
Tel: +20 2 762 2144 / 55 / 66 / 77
Tel: +20 2 15361663
Faxr: +20 2 762 0844
Fax: +20 2 15364377
Website: www.ezzindustries.com
Website: www.eipico.com.eg Sector: Steel Manufacturing Date of creation: 1991
Date of creation: 1986 Turn over: $ 1.1 billion Number of employees: 6,200
The Egyptian International Pharmaceutical Industries Corporation (EIPICO) was founded in 1991. The Company is currently one of the largest local producer of medicine
EZDK is one of the largest steel producers in the Middle
with 8% market share and has become the Egyptian
East region. EZDK operates some of the most modern
Industry Leader in production, sales and exports with one
steel plants in the world with 5.2 million tons capacity.
of the highest operating margins in the in the Egyptian
EZDK product range includes steel used for construction
Pharmaceutical Industry.
such as rebars, wire rods and wire mesh and flat steel to
EIPICO is active in the major pharmaceutical products such
meet with the expanding needs of the industrial sector all
as Anaesthetics, Analgesics, Antibiotic, Anti-dysenteric,
over the world.
Anti-malarial drugs, Blood substitutes, Cardiacs and vascularetics, Dermatologicals, Geriatrics, Vitamins and mine-
With facilities in Alexandria, Sadat City, the 10th of
rals to name a few.
Ramadan City and in Suez, EZDK is well placed to supply
The Company’s research and development activity is deve-
the regional market and has rapidly become the market
loping a high technology drug delivery system. This policy
leader in the Egyptian Steel industry, with a market share
was implemented by establishing a unit for biotechnology
over 60%.
and genetic engineered products. This unit involves a DNA lab, a protein chemistry lab, a fermentation unit and a
EZDK’s largest projects are new Hot Strip Mills that meet
chromatography and gel filtration lab .
world best standards in Hot Rolled Steel production.
EIPICO products reach more than 35 countries extended
EZDK’s operational performance and consistent product
over Africa (Algeria, Somalia, Kenya, Ethiopia, Sudan...),
quality since it started production in 1987 has won the respect of international steel industry experts.
131
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
Faragalla Group
Future Pipe Industries S.A.E. (FPI)
Eng. Mohamed Farag Amer
Mr. Fouad Makhzoumi
President
Chairman
36 Kafr Abdou St., Rushdy, Alexandria
Tel: +20 2 3022243 / 34
Tel: +20 3 5450200
Fax: +20 2 3022206
Fax: +20 3 5465200
E-mail: sales@fpi.com.eg
E-mail: farag.amer@faragalla.com
Website: www.futurepipe.com
Website: www.faragalla.com Date of creation: 1998 Sector: Food Industry
Number of employees: +300
Date of creation: 1974 Turn over: EGP 890 million Number of employees: 6800
The Future Pipe Group is a globally operating group of companies specialized in high performance reinforced polyester, glass reinforced epoxy systems, polyethylene
Faragalla Group was established in 1974 and includes
and concrete pipe as well as storage tanks, floats for the
companies such as The Egyptian Company for Freezing &
dredging industry. The Group has manufacturing facilities
Beef Processing and The Egyptian Co. for Advanced foods-
strategically located in the Netherlands, Houston, Dubai,
tuff industries. The main goal of Faragalla has been to pro-
Abu Dhabi, Lebanon, Saudi Arabia, Egypt and Qatar, as
duce healthy and quality foodstuff products of interna-
well as sales offices in London, Paris, Madrid, Singapore
tional standards. The success of the company in the field
and Washington.
of Meat and Bakery production led them to expand into other food products such as Frozen Vegetables, Canning
FPI Egypt started its activities in 1999 with the opening of
for Beef, Vegetables, Ready made Salads, Instant Meals
a factory in the 6th of October City. This factory is consi-
and Salad Dressings. Faragalla also expanded into the field
dered as the group’s most advanced fibreglass pipe
of processed cheese, UHT milk, fruit and tomato concen-
manufacturing plant. FPI Egypt provides complete fiber-
trate, natural juices, and soup cubes. In total, Faragalla
glass pipe system solutions with a comprehensive range of
produces more than 480 products through 18 factories
products covering Glass Reinforced Epoxy, Polyester and
occupying more than 150,000m, which represents around
Vinylester resin pipes. FPI Egypt is currently dedicated to
EGP 650 million of annual sales in Egypt, and around EGP
the Egyptian and North African markets and is mainly
85 million of annual sales abroad.
involved in the Power Generation, Oil and Gas, Petrochemical, Municipal water and sewage markets.
“Throughout the years, Faragalla obtained many international awards as a sign of high quality recognition like the Environmental Management system, ISO 14001, the UNIDO Award as one of Africa’s 50 most innovative and successful firms, just to name a few.”
Eng. Mohamed Farag Amer
132
“The Future Pipe Group is currently enjoying growth that will soon incorporate new manufacturing facilities in the Far East and the United States.”
Mr. Fouad Makhzoumi
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
Ghabbour Group
market, and is one of the largest Automotive Company in the middle east.
Dr. Raouf Ghabbour
The company work under the license of Volvo Hyunday
Chairman & CEO
and Mitsubishi and manufatures and distributes a large
Alexandria Desert Road, Km 28, Industrial Zone,
range of automotive vehicules such as small passenger
Abo Rawash
cars, light commercial vehicles, heavy trucks, buses, cons-
Tel: +20 2 5391088
truction equipment, trailers, spare parts, luxury coaches,
Fax: + 20 2 5390044
scooters and motorcycles.
E-mail: wabdelwahab@ghabbour.com
Ghabbour Group is also an important regional player in
Website: www.ghabbour.com
the Middle East bus market with a current aim to expand its export operations to the international markets like
Date of creation: 1950
Europe, Africa and the Near East. Group Chairman & CEO Dr. Raouf Ghabbourâ&#x20AC;&#x2122;s motto is the â&#x20AC;&#x153;highest quality at the most attractive prices while remaining closest possible to
Established in 1950, the Ghabbour Group currently occupies the leading position in the Egyptian automotive
our customers.
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
Juhayna Food Industries CO.
Tel: +20 2 3039640 Fax Number: +20 2 3027190
Mr. Safwan Thabat
Website: www.mansourgroup.com
Chairman 6th October City
Date of creation: 1975
Tel: +20 2 8330738 - 8333655
Turn over: $ 1 billion
Fax: +20 2 8330363
Number of employees: 11,000
E-mail: thabet@juhayna.com Website: www.juhayna.com Founded in 1975, Mantrac Mansour is one of Egypt’s top Sector: Food Industry
private sector conglomerates.
Date of creation: 1987
The group acquired the General Motors distributorship for
Capital: EGP 170 million
Egypt. In 1977, the Mansours established Mantrac, the
Turn over: EGP 500 million
group local dealership of Caterpillar Construction, power
Number of employees: 1200
systems and material handling equipment. The Group deepened its commitment to the automotive industry by investing heavily in the first private sector vehicle factory
Juhayna Food Industries Co. produces food and dairy pro-
in Egypt, operated by General Motors. In 1992, the
ducts (milk, flavoured milk, fermented milk, plain and fruit
Mansour Group entered the consumer goods market
yoghurt, drinking yoghurt), as well as fruit nectars and
handling brands like Philip Morris/Marlboro, and in 1994,
juices.
the national McDonald’s franchise. In 1997, the Group
The company is an industry leader and dynamic regional
acquired the Caterpillar dealerships for six African coun-
organization whose principal business is developing,
tries from Unilever, forming a new company called
manufacturing and marketing dairy and fruit products. It
Unatrac which subsequently extented its activities to a
is one of the most important foodstuff companies in
large part of the Russian Federation and all of Irak. IBM,
Egypt with a production capacity of 1 200 tonnes per day.
Microsoft, HP, 3COM and Compaq also joined forces with
Juhayna Food Industries Co. has 11 wholesale branches
Mansour Group, choosing them as national distributors
throughout Egypt and opens an average of two new
for their line of PC’s and accessories.
offices each year. The company supplies products to McDonalds, and the United Nations Multinational Forces
In cooperation with the El-Maghraby Group, another well-
and Observers (UN-MFO). It also exports to Europe, the
respected Egyptian conglomerate, the Mansour Group
United States, Canada, Africa and the Arab countries.
established the Mansour-Maghraby Investment and Development Company (MMID). MMID is particularly active in Egypt’s financial sector, owning equity in several
Mansour Group
investment banking and insurance firms. MMID also participates in Egypt’s tourism, real estate development and
Mr. Mohamed Loutfy Mansour
marketing sectors, as well as in industrial and information
Chairman
technology projects.
30 lebanon, Mohandiseen
134
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
Metallurgical Industries Company
Date of creation: 1997 Number of employees: 850
Mr. Mohamed Adel El-Danaf Chairman
Novartis AG was established in 1997 following the merger
5, El Tolombat St., Garden City, Cairo
of the two Swiss Pharmaceutical companies Ciba and
Tel: +20 2 7944532
Sandoz .
Fax: +20 2 7957221
Novartis Pharma SAE, an affiliate of the Switzerland based
E-mail: micor2@micor.com.eg
Novartis International is one of Egyptâ&#x20AC;&#x2122;s top three pharma-
Website: www.micor.com.eg
ceutical companies, and Novartis Healthcare ranks second position among the ten leading pharmaceutical manufacturers in Egypt with a focus in three distinct activities:
The Metallurgical Industries Company is a joint stock hol-
- Novartis Pharma for specialized products.
ding company working in ferrous and non-ferrous indus-
- Novartis Consumer Health for over the counter brands,
tries. The affiliated companies in the holding company
health & functional food, infant & baby food, and medical
undertake several activities in different production areas
nutrition.
like steel products range (iron and steel with their diffe-
- Biochemie for generic products.
rent forms-steel pipes with different types and sizes-steel alloys), non-ferrous products, aluminium products, copper
Novartis Pharma produces more than 58 million units for
products, zinc products, chemical products and fertilizers,
approximately 170 distinct pharmaceutical products.
engineering products (Railways wagons and coaches and
Because of a sense of social responsibilities, Novartis
underground metro cars, electricity transmission towers,
Pharma offers lower prices for pharmaceutical products in
steel structures for industrial and construction fixtures), all
Egypt and has been investing in Education and Libraries in
types of cement, river and water transportation services.
the country.
Affiliate companies are primarily state-owned companies that are slated for privatisation. The Metallurgical Industries Co. is therefore responsible for the transition of
Omar Effendi
these companies, which involves their restructuring, merging, and eventual sale on a tender basis.
Mr. Mohamed El Hefnawy Chairman Tel: +20 2 3935410 / 3935406
Novartis Pharma
Fax: +20 2 3923773
Mr. Serge Scotto
Date of creation: 1856
Managing Director
Capital: EGP 17 million
4, El-Sawah St., El Ameriyah, Cairo
Number of employees: 5817
Tel: +20 2 2593990 Fax: +20 2 2574616 Website: www.pharma.novartis.com
Omar Effendi Co. is considered one of Egyptâ&#x20AC;&#x2122;s major public commercial companies with over 83 giant air conditioned, well decorated branches located throughout the
135
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
country. It is considered the leading and largest company
Market (87 showrooms throughout the country). The
that deals in consumer goods all over Egypt. The company
Company’s success is the result of its innovation, research
specializes in a wide variety of goods and commodities, as
and development and strong customer orientation.
well as light transportation, import, export, concession/
As one of the largest carpet manufacturers in the world,
franchise and partial/assembly manufacture. In 1856,
it exports about 70% of its production, mainly to the US
Omar Effendi Co. was established with foreign capital and
and Canada (45% of its exports). The secret to the com-
is currently part of the Holding Company for Trade. In
pany’s success has been constant investment into the pro-
1957 the company was nationalized and in the early
duct and machinery, and flexibility to anticipate and adapt
1980s its stores were among the first to apply interna-
to market needs. The company is currently breaking into
tional quality standards helping the company achieve its
new markets, especially the Chinese one with the
dominance in the Egyptian market.
establishment of OW China.
Oriental Weavers
Ragab Group
Mr. Mohamed Farid Khamis
Mr. Mohamed Abdel Fattah Ragab
Chairman
President & Chairman
8, Zakaria Khalil St., Heliopolis, Cairo
18, Horreya St., Alexandria
Tel: +20 2 2672121
Te: +20 3 4876902 - 4843264
Fax: +20 2 2672241
Fax: +20 3 4846831
E-mail: owc@orientalsgroup.com
E-mail: ragabnet@link.net
Website: www.orientalweavers.com
Website: www.ragabgroup.com
Date of creation: 1980
Sector: Services / Education
Capital: EGP 135 million
Date of creation: 1949
Turn over: EGP 1,172 billion
Number of employees: +4000
Number of employees: 6000
Capital: EGP 2 million Turn over: EGP 3 billion
As the flagship company of the Orientals Group, Oriental Weavers (OW) is one of the most recognized brands in the
The Ragab Group of Companies started its activities in
machine woven rug and carpet industry today. Established
1949 in order to supply superior quality of goods and
in 1980 by a leading Egyptian entrepreneur and industria-
render good service to the end users, adopting the very
list, the company has grown under his leadership to
modern ways and techniques in this concern. Throughout
become one of the largest machine made rug and carpet
the years, the company has continuously grown, espe-
manufacturers in the world.
cially in the last ten years. The company’s activities are
Oriental Weavers is the acknowledged leader in design,
mainly focused in the following fields: vehicles,
quality and innovation within the rug industry. With a
construction machinery and chemical prime material.
simple vision the company became a leading exporter in
Lately, it developed various new activities in agriculture
the world and by far the largest player in the Egyptian
production side, touristic resorts and harbour discharging
136
MAIN SECTORS
OF THE
ECONOMY: INDUSTRY & TRADE
and storing operations. The Group developed in
The Group can be considered as one of the largest raw
Alexandria a unique complex hosting more than 400
material and intermediary goods suppliers in Egypt. It has
shops, 6 cinemas, the Green Plaza Hilton, as well as the
established a strong base of long-term relations with
biggest ballrooms for conferences in Egypt, in addition to
major worldwide producers in the product range it is
50 different coffee shops, restaurants, and large amuse-
handling, with high efficiency and capability to supply
ment parks for children and youngsters. The Group
competitive prices and high quality to its customers.
already developed the most modern equestrian club in Egypt, near Alexandria with wide range of activities like: health club, gymnasium, swimming pool, tennis, squash, volley ball, and various restaurants managed by Hilton International. The Group includes the Egyptian Trading & Industrial Co., Ragab Export & Import Co., International Foreign Trading Co.,
Mohammed
Ragab
Foundation
for
Social
Development, Ragab Farms for Advanced Agriculture, Riada Language School, The Egyptian Touristic Resort, Alexandria Institute of Technology, Amria Bonded Warehouse Co., and Somouha Touristic Centre.
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MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE
TRANSPORT & INFRASTRUCTURE
“The camel went through labor only to give birth to a mouse.” Egyptian proverb
139
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE INTRODUCTION
Suez, and Al Fayy. The total length of highways and roads in Egypt is 64,000 km (40,000 mi). As of January 2004,
The transport sector in Egypt was run by the state until
the number of vehicles on the roads and highways of
the mid-1990s, when the government opened it up to pri-
Egypt totaled nearly 3.5 million, approximately 1.6 million
vate investment. By the end of the decade, private sector
private vehicles, 1.2 million industrial or work trucks and
investment was at least partially funding virtually all areas
other vehicles, and 623,000 transport vehicles.
of transportation infrastructure. Build-own-operatetransfer (BOOT) projects are generally the investment of
In an attempt to establish more solid infrastructure and
choice. Under a BOOT arrangement, a private firm takes
address the growing demand for adequate roads due to
over the building and operation of a government facility,
an increase in the number of cars, the government laun-
including any revenues it earns, for a specified period of
ched a plan to enhance the efficiency and safety of exis-
time. While the trains, airplanes, canals, and other facili-
ting road networks. A number of projects have been
ties remain state property, their services and stations are
implemented to solve traffic congestion, including allot-
managed by the private sector and increasingly by inter-
ting EGP 150m to improve the Kafr El Zayat road in Tanta,
national companies.
and EGP 120m to improve the El Ayat Beni Suef road with the aim of transferring traffic outside residential areas.
Roads and Bridges
Other road improvements aimed at improving traffic flow and shortening the journey time are also being developed.
Egypt has two main highways connecting Cairo with
In addition, the government is undertaking a number of
Alexandria. Other highways connect Cairo to Port Said,
projects to improve transportation networks to neighbo-
Road infrastructure in Sinai
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE ring countries, Libya to the west, Sudan to the south and
Railway Passengers and Freight
Jordan, Syria, Lebanon to the east.
Metro Network Cairo is the first (and to date the only) city in Africa to
Jul. 2002.-Mar. 2003
Jul. 2003.-Mar. 2004*
No. of railway passengers (million)
287
304
Receipts of passengers transport. (EGP m)
423
445
Freight transportation (million tons. km)
3304
3471
Receipts of freight transportation (EGP m)
154
160
Item
operate a metro system. The metro is run by the Egyptian government, which currently operates two lines and is planning the development of additional lines. Line 1 of the Cairo metro opened in 1987 and is 43.5 km long with the capacity to transport 60,000 passengers hourly in each direction over 33 stations. Line 2, which runs from Shoubra past Cairo University ending at El Mounib, is stretched over tracks approximately 19 km long. Line 3, which is currently under study, will run from east at Cairo International Airport to west at Imbaba.
*Preliminary figures. Source: IDSC. 2004.
Railroads
Suez Canal
Over the last 50 years, railroads in Egypt have lost their
Well-known as one of the world’s two great maritime
prestige as a vital mode of industrial transportation.
shortcuts, the Suez Canal provides Egypt with a steady
Today, they are seen as a cheap, effective way to trans-
supply of foreign exchange. Throughout the 1990s,
port Egypt’s 2.3 million daily passengers. Between 1981
however, due to fluctuating global trade patterns, bigger
and 2003, the railway network was expanded to bring the
ships, cheaper oil prices and instability in the region, canal
total length of tracks to 9,100 km, connecting approxima-
revenues have declined. Recent years, however, have
tely 75 percent of the cities, towns and villages throug-
proved the canal remains an important shipping avenue.
hout the country. Despite the potential for increased
Although the number of ships passing through the canal
revenue due to the expansion, low fares and rising main-
has decreased, those taking the shortcut are carrying
tenance costs have led to a spiraling debt that totaled
more cargo and therefore pay more fees. Due to the deve-
LE1.3bn in the year 2001 alone. In addition, the worst rail
lopment of pipelines and bigger ships, oil is no longer the
disaster in Egypt’s history in 2002 forced the government
king of the canal. Nearly 80 percent of the canal’s traffic
to upgrade the monitoring and automatic control system
consists of container ships carrying finished products
for the whole network, as well as improve employee trai-
rather than raw materials between the busy ports of the
ning and implement a passenger insurance policy.
Mediterranean and East Asia.
141
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE Suez Canal Traffic
part of the comprehensive effort to restore the ancient city. In 2001, the port handled over 4,000 vessels and
March 2003
February 2004
March 2004 term
Number of vessels
1362
1279
1399
Oil tankers
224
238
267
General cargo vessels
1138
1041
1132
Total tonnage of passing vessels (million tons)
48.0
45.8
50.7
Receipts for Suez Canal (US$m)
223.9
238.0
253
Item
32m tons of cargo, however, the newer and better equipped ports springing up around the country have been gaining an advantage in the container trade.
Source: IDSC. 2004.
As with tourism, the Suez Canal is greatly affected by external shocks. The repercussions of September 11 resulted in a global recession leading to less shipping trade. At the same time, the drop in oil prices and skyrocketing insurance premiums on ships passing through the canal made the longer route around Cape Horn more eco-
Traffic in the Suez Canal
nomically appealing. But much like tourism, the Suez Canal is highly resilient and remains relevant to global
To the east, the port at Damietta is gaining increased
shipping. Following the privatization of canal shipping
attention. It has been the biggest magnet for transship-
agencies in 1998, there has been a marked improvement
ments since the early 1990, and due to the growing
in canal services that speed the boats through the crossing
importance of transshipment in the area, Damietta is in
procedures. In addition, current expansion efforts started
position to become an important regional hub, hoping to
in 2000 and scheduled to end in 2010 will increase the
take a larger chunk of the 25 million or so containers that
breadth and depth of the canal from its current 58-foot
are expected to pass through central and eastern
draft to 72 feet in order to accommodate very large crude
Mediterranean ports by 2010. In addition, there are plans
carriers and ultra large crude carriers.
to turn the Damietta port into a major center for the export of natural gas. The Damietta for Liquid Gas Export
Sea Ports
project, a $1.6bn Spanish-Egyptian joint venture, includes the building of a liquefied natural gas (LNG) plant and
While Egypt’s sea ports have witnessed declining activity
export facilities at the port.
in recent years, the government hopes that its major port expansions on both the Mediterranean and Red Seas will
The ports around the Suez Canal have also experienced
boost the country’s total capacity from 58.8 tons to over
major developments recently, specifically in BOOT pro-
100 by 2017 The port at Alexandria, the country’s largest
jects. The East Port Said port and industrial complex,
single port, is currently slated for major renovations as
initiated in 1999, is also projected to become a major hub
142
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE in the east Mediterranean able to handle the largest con-
Airports & Airline Companies
tainer ships and some 1.5 million containers annually. Another BOOT project that is already partly operational is
EgyptAir, the country’s airline company, has been under
Sukhna Port, located on the other end of the canal. The
pressure recently. Reduced tourism, higher operating
North Sokhna Port is intended to handle the trade from
costs in the wake of the new post-September 11 security
Africa and Asia coming from the south, while East Port
and insurance requirements, the war in Iraq, the pound’s
Said will handle the European trade from the north. Like
devaluation, and the global outbreak of the disease SARS
East Port Said, Sokhna has an adjacent industrial complex,
have all affected EgyptAir’s operations over the past years.
will serve as an outlet for industrial exports.
In June 2002, a Presidential decree converted EgyptAir into a holding company with seven affiliated companies,
The Egyptian Maritime Transportation Sector 2003
including the airline itself, and ground, cargo, and other support services. The affiliates were set up as semi-autonomous companies with separate management. A spate
No. of Ports
9*
of administrative upheavals and regional shocks to the industry has only added to the problem. The holding company reported losses of LE 321m in FY 2002/ 03. In an
Total Capacity (million tons)
73
effort to cut costs, the national carrier suspended several routes, including Montreal, Beijing, Tokyo and Osaka, and
No. of Frequenting Liners
10550
reduced the frequency of other domestic and international flights. It also dissolved its Shorouk Air charter company, a joint venture with Kuwait Airlines.
No. of Egyptian Vessels
121
EgyptAir saw some recovery by June 2003, however, because of the sharp increase in regional flights to and
Railways
from Cairo carrying Arab tourists. In July 2003, Egypt Air submitted an official request to the Coalition Provisional Annual No. of Cargo Carriages (million tons)
12.8
Annual No. of Passenger Carriages (million)
368
Authority to operate flights to Iraq. The Egyptian government is proceeding with plans for the construction of a third terminal and cargo village at Cairo International Airport. The majority of the project will be
Length of Lines (km)
9700
funded with a $300m loan recently secured from the World Bank. Airport expansion projects at Sharm El Sheikh airport and Hurghada will increase their capacity to
Roads
3 million passengers each. An upgrade of the Luxor and Aswan airports is also underway. Additional airports are Length of Paved Roads (km)
45,34
being planned for Sixth of October City and Borg al-Arab near Alexandria.
* Alexandria, Dekhila, Damietta, Port Said, Suez, Ariesh, Adabia, Safaga, El Sokhna. Source: Ministry of Public Enterprise. 2004.
143
This could be the first place you will see: Cairo´s new Airport terminal
Opportunities for Growth It has been estimated that transportation projects over the
terminals and even entire new airports. Marsa Allam is the
next 30 years will require investments of $150bn and
first built by the Kuwaiti Kharafi Group at an initial inves-
since the state can not finance the entire amount the pri-
tment of $50m., but agreements have already been
vate sector will need to lend a hand. BOOT projects have
signed for new airports in Bahariya and Farafra oases, as
proved successful for renovating airports, building new
well as Alamein.
144
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE Those pushing for greater private sector participation in
The Egyptian airport sector has undergone major changes
aviation argue that Egypt could get a substantial boost
during the last few years. High demand pressures have
just by corporatizing non-aviation services at airports, like
created an urgent need for upgrading airport services
retail outlets, advertising and parking. Increasing the
country-wide, expanding existing airports, and opening
variety and efficiency of airport services could provide a
new ones.
windfall, but whether the sudden rush of BOOT projects
The airport sector in Egypt consists of 18 civil aviation air-
in the air travel sector will last is highly dependent on tou-
ports, serving almost 8 million international traffic passen-
rism-related developments. The high-traffic airports for
gers and 4 million domestic passengers. The number of
monuments and beach tourism are safe investments.
passengers is projected to grow by 5% for the period 2002-2004.
Egyptâ&#x20AC;&#x2122;s maritime sector will undoubtedly increase in importance in coming years, but there are still some stiff
The Egyptian Civil Aviation Authority (ECAA), established
hurdles to overcome. Egyptian ports have traditionally
in 1971, is in the process of transformation from a service
been poorly managed, which makes them slow and the-
authority to an economic entity. The management and
refore expensive. It has been estimated that terminal han-
regulatory roles of ECAA will therefore be split into two
dling charges in the mid-1990s were almost double those
holding companies, Holding Company for Airports & Air
of northern European ports, despite the stark differences
Navigation and the Egyptian Civil Aviation Holding
in labor costs. Additionally, cargo handling practices are
Company.
known to be substandard at best. The shift to private investment and technical upgrades has improved effi-
Cairo Airport Authority independently runs and manages
ciency, thereby reducing the downtime ships spend in
Cairo Airport since 1971. All the other Egyptian Airports
port. It is hoped that under private investment in both
are owned and managed by the Airport Company Holding
Sokhna and East Port Said will flourish but analysts say
Company.
that customs procedures and port bureaucracy still require
The Cairo Airport Authority is now affiliated to the
streamlining if Egypt hopes to compete with other well-
Holding Company for Airports & Air Navigation .
established ports in the area.
MAIN COMPANIES Cairo Airport Authority
EgyptAir Holding Eng. Atef Abd El-Hamid Chairman
Maj. Gen. Hassan Mohamed Hassan
Administration Compartment Cairo Airport, Heliopolis
President
Tel: +20 2 6963001 / 2
Cairo Airport 4th floor. Old Airport, Cairo
Fax: +20 2 4183715
Tel: +20 2 2655355 Fax: +20 2 2914325 Website: www.cairo-airport.com
EgyptAir was established in May 1932 and has become one of the most pioneering airlines in the Middle East and the seventh carrier to be established in the world. EgyptAir has purchased one of the most modern fleet and
145
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE has extended its network to cover major cities around the
Egypt Express is the exclusive Global Service Participant
world linking them to Egypt and the Mediterranean
for FedEx Corporation in Egypt. Egypt Express operates
region.
under the brand FedEx Express, and has more than 18
EgyptAir is currently operating more than 400 weekly
branches or storefront retail offices throughout Egypt.
flights departing from Cairo and other Egyptian cities to 84 international & domestic destinations all over the
Beside the high quality service in retail business, Fedex
world.
mainly focuses on Corporate clients, providing its B-to-B customers with high standards customised services inclu-
To answer to the increasing tourist movement in Egypt,
ding logistics, warehousing, and inventory services for
EgyptAir took several procedures such as a new regular
importers.
route to Marsa Alam, one of the most important cities on the Egyptian tourist plan, and a new regular route to
Egypt Express strive to provide very high quality service
Peking and a third direct flight to Tokyo.
based on the same standards used by Fedex World wide.
Egypt Air continues to support Mediterranean Travel Fair
According to Mr Ogden, Managing Director, what really
in providing transportation to all delegates.
makes the difference between Fedex and its competitors is the people. “Employees are the most important part of our Company. They receive an excellent training and pro-
FedEx Express - Egypt Express - Licensee of Federal Express Corp.
vide an excellent service”. Fedex is working hard to become “the most professional, ethical, and customer friendly Express Transportation Company in Egypt”
Mr. David Ogden Managing Director 19 Khaled Ibn El Walid St, Masaken Sheraton, Heliopolis -
KLM Royal Dutch Airlines (Egypt)
Cairo Tel: +20 2 2687999
Mr. Yeshwant Pawar
Fax: +20 2 2687555
General Manager
E-mail: David.Ogden@EgyptExpres.com.eg
11 Kasr El Nil St., Cairo
Website: www.fedex.com/eg
Tel: +20 2 5805700 Fax: +20 2 5805707
Date of creation: 1998
Website: www.klm.com.eg
Sales Turn over: N/A Number of employees: 274 KLM Royal Dutch Airlines was founded in 1919. KLM is the world’s first scheduled airline and is still operating FedEx has long been a leader in the global economy.
under its original name. The company started its activities
Today, FedEx Express’s network is unsurpassed, covering
in Cairo in October 1930 and has offices in the following
more than 210 countries with on-time, reliable transpor-
locations: Alexandria, Cairo, and Heliopolis.
tation solutions.
146
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE KLM together with Air France concluded an agreement
number 1 European carrier in the Egyptian market. It
that has led to the creation of Europe’s leading airline
offers 17 flights per week, from which 14 are operated
group through a share exchange offer by Air France for
from Cairo to Frankfurt, and 3 flights from Alexandria to
KLM common shares. The new group is called Air France-
Frankfurt. On the Cairo routes, Lufthansa is offering 2
KLM and capitalizes on two well-known brands, strong
perfectly timed flights everyday that suit the different
hubs and complementary networks.
schedule and needs of its customers. On the 15th of
The new entity, which will be the world’s largest airline
March 2004, Lufthansa has introduced a new Business
group by turnover (19.2 billion Euros) and a world leader
Class offering its business travellers the option to work,
in its three core businesses: Passengers, Cargo and
relax or sleep on the sit that can be transformed to the lar-
Maintenance, has the potential to develop powerful
gest bed in its class. In addition to that, Lufthansa is con-
synergies. The complementary nature of the two airlines,
sidered the first airline worldwide to offer its customers
which will each retain their brands and unique values, will
broadband Internet access with a free service portal, the
ensure that the new group is more attractive for passen-
FlyNet service.
gers, as they will gain access to an enhanced offering, and will create substantial shareholder value.
National Authority for Tunnels Lufthansa German Airlines
Eng. Saad Hassan Shehata Chairman
Mr. Peter Emmerich
Ramses Square, Ramses complex, Cairo
General Manager, Passenger Sales Egypt & Director
Tel: +20 2 5742968
Northeast Africa
Fax: +20 2 5742950
6, El Sheikh El Marsafy St., Zamalek, Cairo Tel: +20 2 7398401
Date of creation: 1983
Fax: +20 2 7370475
Number of employees: 750
E-mail: peter.emmerich@dlh.de Website: www.lufthansa.com.eg The National Authority for Tunnels (NAT) is part of the Date of creation: 1959
Ministry of Transport, and was established in 1983. The
Number of employees: 118
role of the NAT is to construct Metro projects and road Tunnels. Since its creation, 63 Km of Metro lines have been implemented with a rate of 3.8 km/year, plus the
Lufthansa started its operations with two weekly sche-
construction of the associated infrastructures. The Greater
duled services from Cairo via Munich to Frankfurt in 1959.
Cairo Metro network (subway), serves a population of 14
The first flights were operated by a Boeing 727 aircraft.
million people and carries about 2.6 million people per
After a modest beginning 45 years ago, Lufthansa has
day. The subway, which cost EGP 11 billion to build,
emerged to the biggest European airline in Egypt.
currently consists of two lines: The Helwan - El-Marg line,
In 1999, Cairo was converted into a “hub station” from
which is 44km; and The Shobra Al-Kheima - Giza line,
where flights were extended to Asmara, Addis Ababa,
which is 19km. In the field of the road tunnels, El Azhar
Khartoum and Sanaa. Today, the German carrier ranks the
road tunnel inaugurated in october 2001, consists in two
148
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE reinforced concrete road tunnels - each 2.6 km long 8.35
designed port capacity is 5.6 Million tons, but the actual
meter diameter - and two lines in each tunnel to connect
port capacity reached 24 million tons in 2003. After a
Opera Square to Salam Salem street.
study of flow of trade-traffic undertaken through the Mediterranean in the late Seventies, Egyptian experts and
The Extension of the line 2 of Greater Cairo Underground
US consultants agreed that a new port should be built
Metro by about 2.6 km is under construction. This exten-
between the two existing Mediterranean harbours of
sion will supposedly be completed in November 2004 and
Alexandria and Port-Said.
inaugurated in January 2005. A third line (34.2 km) from
In 2001, Halliburton KBR and its joint venture partners
Imbaba to the Airport will be implemented in a near
have been awarded the engineering, procurement, and
future. Three other lines have been recommended in pre-
construction contract for a liquefied natural gas (LNG)
vious studies, which would bring the total subway net-
project in the port of Damietta by SEGAS, Union Fenosaâ&#x20AC;&#x2122;s
work to a total six lines. They are: Nasser City - Giza -
special purpose operating company in Egypt. The project,
Pyramids (24km), Nasser City - Heliopolis - Shobra (19
estimated at approximately USD 1 billion, calls for the
km), and Shobra Al-Kheima - Maadi (20 km).
development of a single train LNG complex (with an option for a second train) with a capacity of approximately 5 million tons per annum for the first train. The plant
Damietta Port Authority
is expected to be operational by the fourth quarter 2004. Besides, The Port is currently establishing a management
Admiral Ibrahim Yosef
info system where an E.D.I. technique is being installed to
Chairman
handle inter-departmental data with a further inclusion of
P.O. Box: 13, Damietta
the whole port organization later on.
Tel: +20 2 057 290 005 / 6 Fax: +20 2 057 290 930 E-mail: ibyoussef@ndp.org.eg
Port Said Port Authority
Website: www.emdb.gov.eg/ports E/damietta_E/damietta
Admiral Ahmed El Sadek Chairman
Date of creation: 1987
Mustafa Kamel & Azmy St., Port Said Tel: +20 6 6348251 Fax: +20 6 6348262
Damietta port is situated on the Mediterranean coast,
E-mail: portsaid@idscl.gov.eg
about 23 miles west of Port-Said with a road distance of
Website: www.port-said.com
70 km, and 10 km from the Nileâ&#x20AC;&#x2122;s Eastern branch near the seaside resort Ras El-Bar. The port installations extend on
Port Said East Port is considered one of the most impor-
an area of 11,8 sq. Km. The Port is bordered by an imagi-
tant developments in regional seaports these last years.
nary line connecting the eastern and western external
The port is considered one of the main ports in the region
breakwaters.
as its area is 35 km., and it is a site for a multi-component
The Damietta port is a multipurpose port that started to
project.
operate in 1986, and through which several million tons,
The first stage of the port is 600,000 m., representing
mostly containers, have already been handled. The annual
10% of the total area. It is expected to serve the latest of
149
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE mega-container ships. The port will be able to handle an
zations in the Oil and Gas Sector), the Egyptian German
estimated 1,7 million containers annually by 2007 and is
Aluminum Co - Alutec (Alexandria-based aluminum
envisioned as a major hub port in the East Mediterranean.
manufacturing
This project will create many jobs and is supervised by Port
Development (owning, renting Hotels, Restaurants &
Said Port Authority, and shall be used as a container ter-
Tourist Villages), Sadat Transport Corporation (ship
minal on BOT basis. The port is run by a joint stock
owning), Dynamic Field Systems (commercial activities).
company),
Sadat
for
Tourism
&
Egyptian Company of Foreign and Egyptian investors. The ultimate objective of the project is to create an interna-
The main development priorities of the Group consist in
tional distribution centre that takes advantage of its
the expanding in the Tourism sector (several hotels pro-
unique geographical location, employs state of art tech-
jects throughout the country) and the Oil & Gas sector.
nology and multi-mode transport system to boost economic growth through expanding and diversifying exports
Sokhna Port Development Company
of both goods and services.
Captain Ossama Al Sharif
Sadat Group
President & CEO Headquarter: 29 Farid Street, Heliopolis, Cairo
Dr. Effat El Sadat
Tel: +20 2 4149944
Chairman & CEO
Fax: +20 2 4148877
14, Sizostris St., El Mansheya, Alexandria
E-mail: info@spdc.com.eg
Tel: +20 3 4843014 / 7
Website: www.spdc.com
Fax: +20 3 4843013 - 4846330 E-mail: sadat@sadat.com.eg
Date of creation: 2002
Website: www.sadatmarine.com Sokhna Port and Logistics Centre is strategically located Sadat Group set forth its target to become one of Egyptâ&#x20AC;&#x2122;s
on the coast of the Red Sea at the Gulf of Suez, 130 KM
Multi Investment Group adopting creative and vital pro-
to the East of Cairo. Inaugurated by H.E President Hosny
jects in various fields. It was basically established with a
Mubarak in October 2002, Sokhna Port provides the
strategy to cover different business activity through its
necessary interface for import and export of cargo to and
subsidiaries:
from the Suez Special Economic Zone (SSEZ) and major
International
Shipping
Consultant
&
Commerce Sadat Marine (the maritime element of the
industrial and urban centres throughout Egypt.
group and in many ways the heart of the entire operation. It is considered to be one of Egyptâ&#x20AC;&#x2122;s shipping power
The use of state-of-the-art IT technologies, in addition to
houses offering full shipping services), Aqua Siwa (bottled
world class facilities and equipment ensure the smooth transit and flow of more than 20 million tons of cargo by
water industry, Sparkling /flavored water and soft drinks),
2005 and 90 million tons by 2020. Indeed, Sokhna is the
Alpha Gas Co. (production of gas cylinders LPG, its auxi-
first complex in Egypt to make use of Electronic Data
liaries as well as gas meters. From a commercial perspec-
Interchange (EDI) in all its transaction ensuring fully auto-
tive Alpha Gas is acting as agent for international organi-
mated customs clearance procedures.
150
MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE The Port and its logistics centre offer excellent possibilities for warehousing and distribution to Egypt and the Middle East. Special investment incentives have been put in place to help investors maximize profit and make the most out of the large surrounding consumer markets. Sokhna Port and Logistics Centre enjoys excellent intermodal capabilities by being connected to the Egyptian national rail system, as well as being connected to the main road network. Cairo airport is 130 KM away. An airport is currently being designed in the direct vicinity of the port in the SUEZ. Set to become the most important Port in the region, Sokhna Port and Logistics centre is an excellent choice for business. More information at: â&#x20AC;&#x153;www.winne.comâ&#x20AC;?.
152
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT
TELECOMMUNICATION & IT
“An answer brings no illumination unless the question has matured to a point where it gives rise to this answer which thus becomes its fruit. Therefore learn how to put a question.” Egyptian proverb
153
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT OVERVIEW
Telecommunications in Egypt consist of fixed telephone lines and mobile cellular phones. While the telecommuni-
The Egyptian government has recognized that the expan-
cation sector has been undergoing reforms for some time,
sion of the communication and information technology
deregulation should be complete by 2006. Meanwhile,
(CIT) industry is a crucial component of its plans for social
the number of fixed lines and mobile phone subscribers
and economic progress. IT in Egypt continued to grow in
has increased at an impressive rate. A surge in mobile
2003 despite the lethargic economy. The government
phone usage, spurred by burdensome fixed line proce-
reports that Internet penetration increased from 600,000
dures and drop in prices of mobile phones, has raised the
users in 2002 to over one million by early 2003. The Free
number of mobile phone subscribers from just over
Internet Project and the PC for Everyone Project, both
500,000 in 1999 to more than 6 million according to the
launched in 2002, have dramatically improved Internet
latest data. Projections for 2005 have the number of subs-
penetration rates in the country. As of April 2004 the total
cribers increasing to 7.3 million. Although fixed lines have
number of companies working in the IT field reached
dwindled in popularity their numbers reached 6.9 million
1034 companies, indicating a 55.7 percent growth from
residential main lines in 2002. Projections for 2005 antici-
363 in December 2000. The Egyptian IT market can be
pate that figure to more than double to 12.9 million.
broken down into three sub-sectors. Approximately 47 percent of the Egyptian IT market is dominated by the hardware industry. IT services account for around 39 per-
Telecommunications: a monopolistic situation de facto
cent, while data communications equipment totals only Although there are a total of 40 communication compa-
10 percent of the IT market.
nies operating in Egypt, Telecom Egypt (TE), the Egyptian
Communication and IT Statistics, April 2004
Telecommunications Company, provides the country with all of its public telecommunications services. TE, which serves the countryâ&#x20AC;&#x2122;s 8.2 million fixed line subscribers, has
Number of established companies Information Technology Communication
installed a total of 11.2 million telephone lines, both resi1034
dential and public pay phones, with 100 percent digitisa-
40
tion. As a result, the national average tele-density is around 12.6 percent, increasing to 23.1 percent in big
Capital issued
cities and industrial zones. In an attempt to reel in foreign
Information Technology (LE m)
2118.2
investors and improve its service, TE has made several
Communication (LE m)
2982.2
reforms in recent years including the development of a comprehensive marketing plan, an automated billing and
Capital Investment Information Technology (LE m)
3431.4
Communication (LE m)
5676.4
Information Technology (jobs available)
29,570
Communication (jobs available)
4,677
154
balances and online bill pay. The company has also published an online and hard copy telephone directory in both Arabic and English.
Labor Force (IT Companies)
Source: http://www.mcit.gov.eg/company.asp
collection system as well as an online service with account
Liberalization of telecommunications services started in 1998, when two consortiums of Egyptian companies and international operators were granted licenses for provi-
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT ding GSM900 services in Egypt. In 1999, TRA approved
Vodafone. The GSM network of the two operators covers
one license for establishing a public data network (PDN)
more than 90 percent of the populated area in Egypt.
and another license for providing Internet backbone services. In 2000, TRA approved three licenses for establis-
Mobile Phone Subscribers, April 2004
hing PDNs with their own international gateways. In 2001, TRA approved an additional three licenses to provide PDN and gateway services. It is currently licensing
Company
Subscribers (million)
MobiNil
3.26
Vodafone
2.9
Total
6.16
two VSAT operators, and clearing the spectrum needed for providing wireless broadband fixed services in the 38 GHz band (LMDS) and for providing DCS1800 services. In 2001, the Telecommunications Act was approved to
Source: http://www.mcit.gov.eg/company.asp
allow more liberalized private sector participation in telecommunications services. The partial privatisation of TE is
In 1998, Egypt welcomed the Egyptian Company for
an essential factor for enhancing performance and
Mobile Services, MobiNil, as its first mobile phone ope-
strengthening the government’s commitment to liberali-
rator. MobiNil is Egypt’s largest mobile phone operator
zation and phasing out government participation in ser-
with 3.26 million subscribers as of April 2004 and the lar-
vice provision. However, efforts to find a strategic investor
gest wireless service provider in the Middle East. MobiNil
for the national company have not materialized thus far
has benefited from its partnerships with its shareholders
and the government has put plans for a partial privatisa-
such as Orange and Orascom Telecom. Orascom Telecom
tion of TE via the local and international stock markets on
Holding SAE is the largest regional GSM network ope-
hold for now.
rator, with 18 licenses covering the region. It owns a 28.75 percent stake in MobiNil Telecommunications.
In June 2002, Egypt became a member of the WTO Basic
Orange Group SA is one of the leading providers of wire-
Telecommunications Agreement (BTA), which commits it
free communications worldwide. It owns a 71.25 percent
to allowing greater competition in its telecommunications
stake in MobiNil Telecommunications.
market. In line with this agreement, Egypt has committed to ending Telecom Egypt’s monopoly on fixed line services by the end of 2005, creating a major investment opportunity in the telecom sector.
MobiNil Vs. Vodafone The growth of mobile phone service in Egypt is perhaps a more reliable indicator of IT market growth and potential in Egypt. Despite its weak economy over the past few years, the number of mobile phone subscribers has risen steadily, from 654,000 in October 1999 to 6.16 million in April 2004. Since the beginning of GSM operations in 1998, there have been two private operators, MobiNil and
MobiNil versus Vodafone
155
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT Vodafone Group won the license to become Egypt’s
In the battle between the two GSM operators, the TE-
second mobile phone operator in 1998 as well. In coope-
Vodafone deal may give Vodafone a boost over its long-
ration with a local group of companies, Vodafone entered
time rival. Considering that TE controls all fixed line tele-
the market under the name Click GSM. After one of its
phony in Egypt, the deal could offer Vodafone an advan-
partner companies opted to sell its shares, Vodafone
tage when targeting the public sector, since TE is still
scooped them up, acquiring more than 70 percent
owned by the government.
ownership in the process. Subsequently, a re-branding campaign took place, slowly replacing Click GSM with
Free Internet and PCs for Everyone
Vodafone Egypt. As of April 2004, Vodafone Egypt was serving 2.9 million mobile phone subscribers in Egypt.
As for the Internet market, there are a total of 149 ISPs in Egypt serving a total of approximately 3.2 million Internet
In 2001, TE threw its hat into ring to become Egypt’s third
users. The launch of free Internet in January 2002, helped
GSM mobile telecommunications provider. Believing that
to boost the number of Internet users significantly. This
it needed a mobile unit to enhance its market value as it
revenue sharing deal between Telecom Egypt (TE) and
prepares for privatisation, TE purchased the license for
internet service providers allows users Internet-access with
LE1.9bn. However, after revaluating the feasibility and
no annual or monthly subscription, paying only the price
profitability of a third mobile network in Egypt, TE ultima-
of a regular phone call, which costs LE1 for 60 minutes
tely partnered with Vodafone Group, which operates and
(for a regular local phone call, 1 Unit which is equivalent
owns 67 percent of Vodafone Egypt. The world’s largest
to 6 minutes costs LE0.10).
mobile operator sold 16.9 percent of its stake to TE, while minority shareholders sold 8.6 percent, giving TE a 25.5
ISPs are eligible to apply for a Free Net number from the
percent stake in the company. TE and Vodafone Group
Telecom Regulatory Authority (TRA). More than 50 ISPs
have formed a new consortium, Wataniya, which will be
acquired a number in the “0777” dial-up system after
split 50-50 between the two.
undergoing an auction by the TRA. In partnership with licensed ISPs, Telecom Egypt set up an estimated 150,000 ports, capable of serving 2 million Internet users. The revenues generated are split between the ISP and Telecom Egypt so that the ISPs receive 70 percent of the revenues on each call and TE receives 30 percent. Licensed ISPs will be able to interconnect with TE local telephone exchanges across the country. The aim of the model is to reduce the traffic on TE lines avoiding any congestion by enabling users to log on directly to the ISPs network without occupying space on TE’s lines. The PC for Everyone program was introduced in December 2002 and allows Egyptians to purchase computers via instalment payments on their phone bill. More
Tradition and modernity
156
than 20,000 computers were sold under this program
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT during the first three months of 2003, but increased
Smart Village
prices due to the weaker pound have dampened consumer demand and producer interest somewhat in recent
The presidential decree 355/2000 led to the development
months.
of the largest IT project in the county, the Smart Village located on the Cairo-Alexandria desert road. The high-
The Egyptian government is cooperating with the private
tech business centre is targeted specifically for businesses
sector and foreign partners to address challenges facing
operating in the IT industry with focus on software deve-
CIT advancement including human resource constraints,
lopment, IT consulting services, ICT human resources trai-
inadequate infrastructure, legal and regulatory hurdles for
ning, and business and financial support for new ICT pro-
e-commerce, and lack of public awareness are constraints
jects. It opened in September 2003 and has already
on the sectorâ&#x20AC;&#x2122;s growth. To this end, the Egyptian govern-
attracted the foreign investment the government was
ment and the private sector have established an innova-
hoping for. Top international and Egyptian companies
tive partnership known as the Egyptian Information
have moved into the Village including Alcatel, Microsoft,
Society Initiative. It targets seven main areas for develop-
Compaq, Cisco, Oracle, Qualcomm, Raya Holdings and
ment: infrastructure, IT education, e-government, e-busi-
Telecom Egyptâ&#x20AC;&#x2122;s Xceed call centre.
ness, e-culture, tele-medicine, and adapting the legal framework to the computer age. The rational behind the initiative is not merely about computerizing the existing bureaucracy and promoting a technologically advanced society, but it is about changing the way citizens perceive the government by facilitating access to its services. Laws to govern e-commerce are in the works, including the esignatures law, a key step in making Internet transactions legal in Egypt and thus paving the way to an e-payment system. Smart village conference center
On the intellectual property front, Egypt has made great strides in strengthening its intellectual property rights (IPR)
Opportunities for Growth
regime. In 2002, the country passed a comprehensive IPR law targeting data exclusivity, exclusive marketing rights,
Currently, Egypt is turning into a telecommunications hub
and a patent system. In addition, the law addresses copy-
for the Arab and African region. Telecom Egypt is looking
right protection, trademarks, plant varieties, industrial
for strategic partners to provide financing for the core
design, and semiconductor chip layout design.
backboneâ&#x20AC;&#x2122;s deployment that will facilitate the transformation of voice, data, and video information throughout
To demonstrate its commitment to preserving IPR, the
Egypt and between Egypt and the world. Government
Egyptian government paired up with Microsoft to sign
efforts to encourage private participation in the provision
and a software licensing agreement covering all personal
of services led to a swift rollout of modern telecommuni-
computers owned by the state, and followed this agree-
cation networks throughout Egypt. Access to digital
ment with one to provide licensed software to the
leased lines, frame relay and ATM can be provided in all
Egyptian school system.
cities in Egypt from any of the licensed operators.
157
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT This trend and growing demand for high tech facilities,
E-mail: magdykh@dmsegypt.com
increasing sophistication of e-commerce and e-government
Website: www.dmsegypt.com
infrastructure, as well as the need for IT training provide business opportunities and partnerships, besides the
Sector: Software Development.
growth of the sector offering mobile phone services is also
Date of creation: 1983.
an indicator of the numerous investment opportunities for
Capital: EGP 10 Million.
IT in Egypt. In April 2003, the country joined the WTO
Turn over: approx. $ 100 Million.
Information Technology Agreement, which will lead to an
Number of employees: 200.
eventual phasing out tariffs on all IT products, with an expectation of increased trade in the IT market. DMS is the largest software producer in the health,
Private sector participation in the communication sector
finance, and manufacturing industries in Africa and the Middle East. Calling itself “the Middle East software castle”, DMS achieved very high growth rates in recent
Service Type
October 1999
April 2004
years, with revenues growing at 42% in some years. The company has been an IBM partner offering total solutions
Internet service providers
40
175 - 259 number
Mobile
2
2
Public data network
1
7
Internet backbone providers
1
4
Value added voice services
—
2
Public phone services
3
2
Equipment manufacturing
2
3
in Saudi Arabia to cater for its projects there, including
Copper wire manufacturing
3
4
two
Fiber optic cables
2
2
Commission, and the A.O.C (Arab Oil Company) for its
VSAT
—
2
for all IBM platforms since 1987. The systems provided by DMS are single language (English), bilingual (Arabic and English) and multilingual to suit the needs of the growing European market. In addition to exporting a substantial part of its products, the activities of DMS are spread throughout several countries in the region. In 1998 it established an official branch major
contracts
with
Saudi
wing software companies in the world.
Data Management System
LINKdotNET Mr. Khaled G. Bichara CEO
Mr. Magdy Khairallah
3, Mussadak St., Dokki, Cairo.
Chairman
Tel: +20 2 3367711
7, 9, 11 El-Galaa St., Heliopolis, Cairo
Fax: +20 2 3364910
Tel: +20 2 2667419
E-mail: info@link.net
Fax: +20 2 2662204
Website: www.link.net
158
Royal
hospitals. It has also been ranked among the fastest gro-
Source: http://www.mcit.gov.eg/company.asp
MAIN COMPANIES
Arabian
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT Date of creation: 1992
Date of creation: 1995
Number of employees: 467
Number of employees: 100
LINKdotNET is Egypt’s dominant ISP (Internet Solutions
Microsoft, the worldwide leader in software, services and
Provider), serving the Egyptian and Middle Eastern
Internet technologies for personal and business compu-
Internet markets with over 400 employees through its
ting opened its Dubai-based Middle East office in 1991.
offices in Egypt, UAE and the KSA.
Microsoft today has five subsidiaries in the Middle East
The company offers a range of turnkey solutions ranging
region: Microsoft South Gulf (Oman, Yemen and
from Internet access, hosting, e-solutions and web-based
Pakistan), Microsoft North Gulf (Kuwait, Bahrain and
applications, to online advertising and content.
Qatar), Microsoft Arabia covering the Kingdom of Saudi Arabia, and Microsoft Eastern Mediterranean covering
In 2000, LINKdotNET came about as the result of a merger
Lebanon, Jordan, Cyprus, Malta and Egypt.
between InTouch Communications (the first ISP in Egypt and one of the largest in terms of volume), and Link
Bill Gates recently confirmed its committment to the
Egypt, and became the dominant new force in the mar-
region and his strong belief in the developpement of the
ketplace, with the advantage of the backing and conside-
Middle East and Africa (MEA) region, by announcing the
rable technical and financial resources of Orascom
launch of a Developer Support Center, based in Egypt, to
Telecom Holding Company (largest integrated telecom-
provide the region with high quality support on
munications services provider in the region, serving
Microsoft’s development platforms and developer tools.
twenty markets throughout the Middle East and Africa).
The presence of Bill Gates in Egypt, in January 2004, for the launching of the e-government portal is also a sign of
LINKdotNET is working on becoming the leading regional
confidence in the Egyptian telecom market. Microsoft
provider of value added services to clients who regard the
Egypt, a fully owned subsidiary of Microsoft Corporation,
Internet as an integral part of their business plans.
has developed a sophisticated middle tier system between the citizen’s portal and all government agencies. The system BAWABA provides the government and the minis-
Microsoft Egypt
tries with a unified authentication and online services. Microsoft Egypt is also involved in Education and Higher
Mr. Karim Ramadam
Education programs. It has to be noticed that Microsoft
General Manager
Egypt is rated as one of the fastest growing subsidiaries of
Smart Village Kilo 28 6 Cairo / Alexandria Desert Road,
Microsoft in the World, with a minimum growth rate of
Abou Rawash
25% per year and an annual investment of USD 10
Tel: +20 2 5393333
million.
Fax: +20 2 5390303 E-mail: kramadan@microsoft.com Website: www.microsoft.com/middleeast/egypt
159
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT MobiNil
Orascom Telecom
Mr. Osman Sultan
Mr. Naguib Sawiris
CEO
Chairman and CEO
1191 Corniche En-Nil, World Trade Center, 2nd floor,
160, 26th July St., Agouza, Giza
Cairo
Tel: + 20 2 4615050 / 1
Tel: +20 12 3206661
Fax: +20 2 4615055
Fax: +20 12 3200008
Website: www.otelecom.com
Website: www.mobinil.com Date of creation: 1998 Date of creation: May 1998 Orascom Telecom Holding S.A.E (OTH) was established in MobiNil was founded in 1998 as the first GSM operator in
1998, and has grown to become one of the largest and
Egypt. MobiNil has quickly become the largest mobile
most diversified GSM network operator in the Middle
phone operator in Egypt, with over 3.2 million subscri-
East, Africa, and Pakistan. With nine licenses covering the
bers. MobiNil has a wide coverage that extends to more
region, Orascom Telecom has positioned itself as a lea-
than 91% of Egypt’s populated areas and a strong net-
ding telecommunications conglomerate in emerging mar-
work with roaming agreements with 259 operators in 111
kets of this region.
countries, in major GSM operators and non GSM opera-
Starting with MobiNil in Egypt, Orascom Telecom conti-
tors including US and Canada, Argentina, Brazil, Peru, and
nued to expand its network to cover Algeria, Pakistan,
The Philippines, to name a few. MobiNil was the first GSM
Tunisia, Congo, Chad, Zimbabwe, the Democratic
Operator in Egypt to extend its network services to the
Republic of Congo, and just recently acquired Iraq. In
Underground Stations.
Egypt, Mobinil is the largest mobile phone operator with
The Company offers a large range of services to suit the
3,2 million subscribers.
customer’s diverse needs: Prepaid and Postpaid services,
In addition, Orascom Telecom Egypt has major stakes in
customised Corporate Solutions, Mobile Banking, perso-
GSM Operations and support (OrasInvest Corporation,
nalised
Contra...) Internet related services (LINKdotNet), Handset
Connectivity from mobile phones, Interactive Voice
and distribution (Ring), and other value added services
Response, Conference Calling, and a large number of fax
related to the Telecommunication and IT sector.
news
on
Short
Message
Service,
and data services, as well as WAP applications and MobiNil Life bouquets. The main shareholders of MobiNil are Orascom Telecom
Raya Holding
and Orange S.A, international leaders in the telecommunication sector that contribute greatly to MobiNil’s exper-
Mr. Medhat Khalil
tise in the region.
Chairman & CEO 10 El Gomhoreya Square, 12311 Dokki
160
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT Tel: +20 2 7496353
Number of employees: +800 employees
Fax: +20 2 7496343 E-mail: info@raya.com.eg
With almost 423,000 employees in 190 countries (Appr.
Website: www.rayaholding.com
800 in Cairo), Siemens AG is one of the largest electrical and electronics companies in the world.
Date of creation: 1999
Siemens opened its first office in Cairo in 1901 and
Number of employees: 1000
throughout its history, aimed at building local added value, transferred know-how and state-of-the-art technology from Germany into the hands of their Egyptian
Raya Holding was founded in 1999 from the merge of
employees and partners. The Siemens Group in Egypt
seven leading Egyptian Information Technology to create
occupies a leading position in the areas of Information
as a strategic force in the IT Industry in Egypt.
and Communications, Energy (power generation, trans-
With focus on the Middle East and Africa, Raya owns
mission and distribution), Automation and Control (solu-
several subsidiaries operating in 3 different lines of busi-
tions and services in the field of production and logistics
ness and professionally covering all aspects of the IT,
automation), Medical (products, services and integrated
Telecommunications & Distribution. The company has
solutions for diagnosis and therapy) and Transportation
developed a range of high quality services in connectivity,
(Egypt railroads are equipped with Siemens technology
hosting, contact center and network engineering.
for complete solutions of mobility and traffic safety).
The companyâ&#x20AC;&#x2122;s particular structure consists of the autonomous subsidiaries in addition to several centralised sup-
Siemens activities in Egypt focus on developing the infras-
port functions. As a holding company, Raya supports its
tructure and develop a local value-added in the country,
diversified network by maximising synergy between the
with Egyptian partners. The company established its
sister companies encompassing new technologies, human
regional center of competence in Egypt to create a plat-
power and strong market reach.
form for the region.
Siemens Limited Egypt
Smart Village
Ms. Christel Dubois
Dr. Ali El Hefnawy
Corporate Communications Manager
Chairman & CEO
55, El Nakhil and El Aenab Street Mohandessin, Cairo
Alexandria desert road (km28), 55 A, El Nakheel St.,
Tel: +20 2 3333690
Mohandessen, Cairo
Fax: +20 2 3333661
Tel: +20 2 7617830
E-mail: christel.dubois@siemens.com
Fax: +20 2 7617828
Website: www.siemens.com.eg
E-mail: sv@smart-villages.com Website: www.smart-villages.com
Sectors: Automation and Control, Information and Communications, Power, Medical and Transportation
Date of creation: 2001
Date of establishment: 1901 Sales turn over: EUR 188 million
161
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT Smart Village, Egypt’s first Technology Park, is situated in
Telecom Egypt plans to double the number of annually
a beautiful landscape of lakes and lush green environment
installed lines to reach one million lines, to meet the cus-
with futuristic buildings occupying only 10% of the total
tomer demands of residential and business areas.
area of 450 acres. The Village, conveniently located on the Cairo Alexandria desert road, is equipped with state-of-
In addition to telephone density increase, Telecom Egypt
the-art infrastructure, superior internet connections and a
gives great attention to introduce new services and fea-
myriad of technological and administrative services geared
tures that can respond to customer service and business
towards IT and Telecommunications companies. Smart
sector demands. Intelligent Network Services, Integrated
Village, designed to be an oasis for seamless IT business
Services Digital Network, Calling Line Identification and
practices, offers new comers to the emerging Egyptian
High Speed Data base on FR/ATM backbone were intro-
market, an ideal environment and an incentive package
duced.
that includes a ten-year tax exemption. It also offers a wide range of supporting services for the convenience of
Studies have demonstrated that the launching of a third
the Village’s community.
Egyptian Mobile Telephone would not be profitable enough, and therefore, Telecom Egypt has finally decided
Inaugurated in September 2003 by President Mubarak,
to join Vodafone in the management and the operation of
Smart Village has attracted both International and
the existing second network“ Vodafone Egypt”.
Egyptian companies some of which have already moved
According to the deal, Vodafone remains the majority
there.
shareholder with a 50.1% stake. Eng. Akil Bashir, Chairman of Telecom Egypt, explained that the decision was based on the realization that forming a partnership
Telecom Egypt
with Vodafone was the better option.
Eng. Akil Beshir
The National Telecommunication Regulatory Authority
Chairman
(NTRA) chaired by the Telecommunications Minister
26 Ramses St., Cairo
Ahmed Nazif had agreed to set up a new consortium
Tel: +20 2 5777551
called “Wataniya”, which will be owned equally by both
Fax: +20 2 5744244
Telecom Egypt and Vodafone Group (50% each) and will
Website: www.telecomegypt.com.eg
be chaired by Eng. Akil Bashir. Wataniya will own 51% of the second mobile network “Vodafone Egypt”, while
Date of creation: 1918
Telecom Egypt will have 25,5% of Vodafone Egypt’s share.
Telecom Egypt, was established in 1918 as the Egyptian Telegraph and Telephone Administrator. A great progress
Vodafone Egypt
in Telecommunication Networks has been achieved, and Telecom Egypt has adopted an ambitious plan to review
Mr. Ian Gray
and develop the switching and transmission network faci-
CEO and Managing Director
lities.
7A, Corniche El-Nil, Maadi, 11431, Cairo Tel: +20 2 5292000
162
MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT Fax: +20 2 5292100
Founded in 1999, IT Investments Company is one of the
Website: www.vodafone.com.
largest investment company in technology in the Region. IT Investments consists of a wide number of strong insti-
Date of creation: 1998
tutional and private shareholders from Egypt, the Arab
Number of employees: 1800
Region, and other parts of the world, including banks, private equity funds, and diversified investment companies. The Company invests in early stage, start-up, and
In 1998, Vodafone Group showed interest in acquiring its
turnaround companies in telecommunications, informa-
first GSM licence in the Middle East and North Africa
tion technology, and high-tech sectors mainly in Egypt,
region.
the Arab world, developing countries, with an emphasis in
Since then, Vodafone Egypt has invested over EGP 3
high value-added projects and companies, and low to
billion in the construction of a network. The company has
medium risk business.
grown rapidly to its current customer base over 2,5 million
IT Investments maintains a diversified portfolio of privately
subscribers in a market where just 6% of the population
held companies and has so far promoted and participated
carry mobiles.
in the establishment of more than thirty subsidiary com-
Vodafone has launched innovative products on the
panies of total capitalisation of over EGP 1.1 billion, in dif-
Egyptian mobile telecommunication market, such as pre-
ferent fields of telecommunications, IT, and valueadded
paid lines, Short Message Service, Wireless Fax and Email,
services.
and IVR (interactive voice response). In 2003, Vodafone was the first major telecom operator in Egypt to launch a
More information at: â&#x20AC;&#x153;www.winne.comâ&#x20AC;?.
GPRS network that enabled the launch of Vodafone live! Vodafone Egypt is the largest mobile telecommunication company in Egypt in terms of net profit and the second largest in terms of revenue and market share.
IT Investment Dr. Hisham El Sherif CEO and Chairman 6A Ahmed Shawki St., Giza 12211, Egypt. Tel: +20 2 5734433 Fax: +20 2 5734949 Website: www.it-investment.com Date of creation: 1999
163
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MAIN SECTORS
OF THE
ECONOMY: TOURISM
TOURISM
“A beautiful thing is never perfect.” Egyptian proverb
165
MAIN SECTORS
OF THE
INTRODUCTION
ECONOMY: TOURISM The Ebb and Flow of Tourism
Egypt is probably one of the world’s oldest vacation spots.
The tourism sector in Egypt is highly susceptible to
Early Greeks, Romans and others were known to have
internal and external shocks, but has proved to be extre-
visited the land of the Pharaohs to see the wonders of the
mely resilient. Its geographical proximity and blend of cul-
ancient world. Today, Egypt offers much more than
tures and religions provide both advantages and cha-
Pyramids and monuments.
llenges. After the first Gulf war in 1991, the sector experienced a decline and then recovered, only to experience
Tourism is Egypt’s largest foreign exchange earner as well
a drop again in the mid - 1990s due to isolated reports of
as a key engine of growth. Although officially reported
terrorist attacks against civilians and the 1997 terrorist
foreign exchange earnings from tourism are only about
attack in Luxor. By 2000, however, the country witnessed
5.5 percent of GDP, there is limited information on its
record levels of tourist arrivals (5.5m) and earnings
contribution to output, employment and income. The lack
($4.3bn). From 2000 - 2001, the market for travel accom-
of data is due to the fact that the impact of tourism is
modation rose 38 percent in terms of volume of bed
currently only calculated through spending on hotels and
nights and 58 percent in value sales. Hotels proved the
restaurants, which contributed just 2 percent to GDP and
largest contributors to the increase, led by Accor Group
0.9 percent to employment in 2000/01. Therefore, official
and Hilton International. In the same period, air transport
tourism statistics tend to undervalue the sectors impact on
accounted for 66.4 percent of transportation sales led by
the economy. In an attempt to bridge the gap, a study
EgyptAir, which dominated the domestic travel market
was conducted that estimated the sector’s real direct and
until privately owned AMC aviation was allowed to enter
indirect share of GDP at closer to 11 percent and its share
the market in November 2000. Also, historic buildings and
of employment at 15 percent. The Egyptian economy
historical sites comprised 64.5 percent of sales among
depends largely on tourism receipts as well as tax revenue,
tourist attractions, followed by museums with 12.5 per-
the latter of which represents 19 percent of tourist spen-
cent.
ding. The sector is also a key employment generator, as it directly employs approximately 12 percent of the work-
Recently, the resiliency of the sector was tested by a suc-
force and its 70 secondary industries provide constant
cession of external factors, including the unrest in Israel,
opportunities for employment.
the September 11 terrorist attacks in the US, and most recently the war in Iraq in March 2003. Tourist arrivals fell
Tourism in Egypt’s accounts for 25 percent of the Middle
by 15.6 percent and tourism revenues by 11.6 percent in
East tourism market and Egypt has generally enjoyed
2001. Once again the sector rebounded and following a
growth rates higher than the world average of 7 percent.
drop in tourism arrivals post-September 11, the second
Total tourism receipts for 2002/03 increased by 23 per-
half of 2002 totaled 5.1 million arrivals for the year.
cent to $2,236m compared to $1,820 the year before. During the first quarter of 2003/04, earnings increased by
Although tourism arrivals and revenues also experienced a
43 percent to reach $1,633m compared to $1,139 for the
sharp decline of about 22 percent due to the war in Iraq,
corresponding quarter of 2002/03.
recovery was even more rapid than post-September 11. Egypt witnessed strong arrivals in April and May 2002 and the traditional influx of Arab tourists in the summer.
166
Cleopatra and Julius Caesar would have loved to be here: Felluccas in Aswan
Record - breaking tourist arrivals in 2003 of over 6 million
The Changing Face of Tourism
travelers proved that Egyptâ&#x20AC;&#x2122;s tourism industry is healthy Interestingly, following the most recent events, the com-
and back on course.
position of tourist arrivals shifted from higher-end tourists
Total Arrivals, Total Departures, Total Number of Tourist Nights and Average Number of Nights (1996-2003)
from France, Italy, Germany and the US to so-called budget travelers primarily from Eastern Europe and the countries of the former Soviet Union. The crop of tourists in 2002 was comprised of a record number of European
(In thousands)
1996 1997 1998 1999 2000 2001 2002 2003
travelers, taking advantage of the heavily-discounted prices intended to entice tourists back. Tourists do return,
Total arrivals 3,896 3,961 3,454 4,797 5,506
4,648 5,193 6,044
Total departures
4,185 4,823 5,656
3,375 3,664 3,074 4,351 4,666
Total number of tourist 23,765 26,579 20,151 31,002 32,788 29,813 32,664 53,120 nights Average number of 7.0 7.3 6.6 7.1 7.0 7.1 6.8 9.4 nights
but prices only gradually recover taking an average of 3-4 years to reach their pre-crisis levels assuming no other crisis sends them plummeting again. The practice of slashing prices following a crisis is considered exceptionally disadvantageous to most hotel owners and tour operators, but many concede that in order to stay in the market
Source: CAPMAS.
167
MAIN SECTORS
OF THE
ECONOMY: TOURISM
they must remain competitive; consequently they have
made great strides in marketing Egypt as a premier tourist
little choice but to cut prices.
destination in Europe and North America, it has done so while virtually ignoring the potential tourists of the Middle
Tourist Arrivals by Region (1994-2003)
East and Gulf. The annual influx of Arabs from the Gulf region seemed guaranteed; however, prior to September
!""" #""" $""" %""" &"""
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wing Gulf tourists. Although Arabs returned to Egypt
&%$%
following September 11, the majority that chose not to
'$+'
travel to Europe visited Lebanon instead. In an attempt to
'""" (""" )))" F)("""
11, Southeast Asia and Malaysia in particular were dra-
regain some of the lost revenues, the government laun(**% (**$ (**# (**! (**+ (*** '""" '""( '""' '""& -./01 234/567
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ched a marketing campaign targeting domestic travelers and promoting the cheap flights and sharply discounted hotel rates.
Source: Ministry of Foreign Trade. 2004.
The marketing campaign then made an attempt at Therefore, despite the remarkably fast turnaround post-
damage control by targeting primary markets and assu-
September 11 and an almost 11 percent increase in arri-
ring them that Egypt remains above and beyond all else a
vals from 2001 to 2002, revenues actually declined from
safe tourist destination. The government also decided to
$3.8bn to $3.76bn. It is worth mentioning that the fall in
waive the visa requirement for citizens of the Gulf
revenue was far below predictions of a $2bn drop in
Cooperation Council states and the passport requirement
annualized tourism earnings. The governmentâ&#x20AC;&#x2122;s decision
for Italian and German nationals. Financing a steady
in January 2003 to float the Egyptian pound, leading to its
stream of charted planes to the coastal cities also helped
devaluation of more than 25 percent against the dollar,
bring tourism back to life.
has contributed to the paradoxical rise in tourism but declining revenues compared to previous years. The weak-
The government has also taken measures to improve the
ness of the pound is one of the main factors drawing tou-
sector by developing human resources. Although a
rists away from competing resorts in Greece and Turkey to
number of universities offer tourism faculties, in 1990 the
the Pyramids and the Red Sea reefs.
private sector began developing training institutions including Glion, the Swiss higher institute for tourism and
The State & Tourism
hotel management, and the Ecole Hoteliere de Lausanne. Collaborations with foreign governments in this respect
The government privatization program launched in 1991
have also been helpful in human resources development
helped to increase and diversify private sector participa-
and establishing tourism education facilities.
tion in tourism. Today the majority of the industry is privately owned, including 98 percent of total hotel capacity
Opportunities for Growth
and the majority of four and five-star hotels. The best way to preserve Egyptâ&#x20AC;&#x2122;s relative advantage in Considering the importance of tourism to the Egyptian
tourism is the continued diversification of its tourism pac-
economy, it is not surprising that the state plays a com-
kages. The recent devaluations of the Egyptian pound
plex role in the sector. Although the government has
have made Egypt a cheaper destination for tourists.
168
MAIN SECTORS
OF THE
ECONOMY: TOURISM
However, if Egypt hopes to increase the number of more
where to Sharm El Sheikh and Hurghada would greatly
lucrative tourists, the sector’s services need to be
boost tourism.
upgraded. To this end, the government has initiated the
Despite the airports and other infrastructure being built to
development of several tourist areas including developing
serve the new resorts, they provide additional opportuni-
resorts along the Sinai Peninsula, the North Coast, and
ties for exporters of hotel equipment and environmental
the Red Sea area. Thanks to the government’s initiatives
management services as well as help develop under-
to encourage private investment in these projects and
exploited tourism niche markets such as environmental,
boost participation in the sector, more than 700 projects
religious, and desert tourism. The launch of two natural
are owned by private companies. One of these initiatives
protectorates in 2002 in Siwa and the White Desert could
is a 10-year tax exemption for tourism and hotel investment
quite possibly become destinations for ecotourism. The
projects in new tourist areas as well as land at cheap
restoration of churches along ancient religious routes and
prices.
the desire to climbing to the top of Mount Sinai will likely
The scarcity of domestic credit and overbuilding in some
lure religious travelers.
resort areas has led to a slowdown in new construction,
Although Egypt is nearly 95 percent desert, the Sinai and
although the construction of high-end luxury hotels has
Western Desert are home to numerous oases and the
not been affected. In spite of the economic conditions,
country has managed to develop more than ten golf
Cairo is still adding approximately 1000 rooms annually.
courses.
Improvements are also being made in infrastructure including the addition of a third terminal to Cairo International
Projections for the tourism industry are favorable, given
Airport. Other airport upgrade projects have been
Egypt’s limitless wealth of historical monuments and
initiated, particularly in popular tourist destinations like
museums, coral reef-lined shores, expansive beaches, and
Hurghada, Sharm El Sheikh, Cairo and Luxor. In addition,
desert vistas. Over the course of two decades, the sector
private groups have been building international airports
grew from $304m in gross revenues from 1 million tou-
under BOOT (build-own-operate-transfer) schemes inclu-
rists to a record of $4.6bn from more than 6 million tou-
ding the Marsa Alam and Alamein airports, and expan-
rists in 2003. Keeping with trends, government and pri-
ding the Sharm El Sheikh airport as well as developing
vate business have set a goal to increase tourist arrivals to
others in Bahariya and Farafra oases, Assiut and Sohag.
9.5 million by 2005 with revenues topping $10bn. Indeed,
Private investors have also been establishing new resorts
more optimistic projections have Egypt doubling its
and towns such as the tourist resort of El Gouna as well
current visitor figures to 12 million annually within the
in Hurghada. To date, the sector’s various development
near future, bringing in an income of about $12bn.
projects have added approximately 12,000 of former
Lodging capacity has increased from 18,900 rooms two
desert to the total inhabited areas in Egypt, allowing for
decades ago to nearly 136,400 at the end of 2003. The
more balanced regional development.
number of hotel rooms is projected increase to approxi-
The national air carrier, EgyptAir, has been restructured
mately 187,000 by 2005. Incoming tourist receipts are
into six separate companies to streamline activities and
forecast to grow 80 percent and outgoing by 74 percent.
cut costs. EgyptAir has discussed plans to make use of the
With government plans to expand tourism and services at
updated airports by adding smaller short-haul planes to
lesser-known archaeological sites, the southern Red Sea
the fleet for more internal flights. This will help ease the
coast, and the desert, in addition to endless new archeo-
accessibility problems of some of the major resort destina-
logical discoveries and vast untapped natural oases, these
tions. Although more direct flights from Europe and else-
objectives seem possible.
169
MAIN SECTORS
OF THE
MAIN COMPANIES
ECONOMY: TOURISM Relying on a solid reputation in the Middle East Region and an intensive renovation programme, the objective is
Accor Hotels S.A.E.
to open the Accor Gezirah at the beginning of 2005 and to establish this hotel as one of the top Five Stars hotels in
Mr. Jean Michel Cassé
Cairo.
Managing Director 8, Abdel Khalek Sarwat St., 14th Floor - Cairo Tel: +20 2 5782061
Atic Holding/ Mirage City & Golf Course
Fax: +20 2 5753896 E-mail: casse_jean-michel@accor-hotels.com
Mr. Mounir Ghabbour
Website: www.accorhotels.com
Chairman Sonesta Hotel Cairo, 4, El-Tayaran st.,
Date of creation: 1991
Nasr City, Cairo Tel: +20 2 2617100 - 2628111 Fax: +20 2 269615
With 3924 hotels in 90 countries (112 in Africa and 24 in the Middle East Region), covering every segment from
Date of creation: 1961
economy to luxury class, Accor hotels are present on every
Number of employees: 2000
continent. Accor provides several tools easily accessible anywhere in the world. These include telephone reservation centers, the Internet, I-mode, or GPRS. In its hotels,
ATIC Holding Group started in 1961 with the Arab Trade
Accor practices the “art of hospitality” by anticipating
and Insurance Company. Throughout the years, the com-
what guests need and by making even the smallest service
pany diversified its activities towards Trade as agent for
a special moment. The company also offers an array of
Nasco and Fiat vehicle products. ATIC then entered into
extra services to facilitate its clients’s travel (airline reser-
the automotive industry and became the sole agent for
vations, tourist guides, etc.). Accor Hotels focus on the
Renault V.I. since 1973. The company then developed into
interactivity with its clients through its website
the Tourism Sector and established Sakkara Tours and
www.accorhotels.com, and able them to make reserva-
Sakkara Limousine and from there went into the Hotel
tions at all Accor hotels.
Industry and established Sakkara Hotels (Owning Company for Sonesta Hotel Cairo and Nile Cruises) and
Accor Hotels is present in Egypt through MACOR, an hol-
Mirage Hotels (Owning Company for JW Marriott Hotel
ding company between Accor Hotels and El Maghraby
and Golf course).
Group. Being the first hotel operator in Egypt, the com-
The most recent project developed by ATIC Holding is the
pany manages 21 hotels of different brands (mainly
Mirage City & Golf Course, located 10 minutes away from
Sofitel and Novotel) in the following locations: Taba,
the Cairo International Airport and the Centre of
Luxor, Cairo, Cairo Airport, Ismaïlia, Aswan, Sharm El
Heliopolis. The site consists of 400 acres with 100 medium
Sheikh, Alexandria, Hurghada, and Dahab. Besides, the
sized villas, and 150 large villas overlooking an 18-hole
Group lately bought 65% of the owning company of the
golf course, designed by architect Peter Harradine. The
Gezirah Hotel in Cairo, currently ruled by Sheraton.
Golf Course and the Club House were officially opened on
170
MAIN SECTORS
OF THE
October 30th 1999. The hotel has 450 rooms including 75
ECONOMY: TOURISM Conrad Cairo
suites. Another hotel to be mentioned is the Sonesta Hotel Cairo, located in Nasr City, a modern ten-story hotel
Mr. Darren Law General Manager
surrounded by a tropical landscape. It has 260 luxurious
P.O. Box 2044 Ataba
guest rooms and suites.
1191 Corniche El Nil, Cairo 11221 Egypt
Sakkara Hotels is also operating four top class Nile Cruises
Tel: +20 2 5808000
between Luxor and Aswan.The Sonesta Nile Goddess, a
Fax: +20 2 5808080
five-deck ship which was awarded the Certificate of
E-mail: darren_law@hilton.com
Excellence from A.B.S. and classified as A 1 River Service.
Website: www.ConradHotels.com
The Sonesta Sun Goddess which was also awarded the same certificate. The Sonesta Moon Goddess was
Date of creation: 1999
awarded the Certficate of Excellence from RINA and the
Number of employees: 995
latest ship is M/S Pharaos. As well, there is an ongoing Hotel Resort & Casino project in Taba scheduled to open in 2005 which once completed will be a real center of attraction.
MAIN SECTORS
OF THE
ECONOMY: TOURISM
Owned by the ICTI and operated by the Conrad Hotels,
The Egyptian Tourist Authority (ETA) is responsible for
since its opening in February 1999, the Conrad Cairo has
promoting domestic and international tourism in Egypt
become the focal point for major corporate and social
and for increasing its international competitiveness in the
events thanks to the high quality of services it provides. It
global tourism industry. They also work to improve tourist
is considered the best hotel in Cairo as well as one of the
information and the tourist image of Egypt, and to publi-
best business hotels in the Middle East. The hotel is also
cize new patterns of tourism while keeping the focus on
known for its high level of innovation, as it is the first
current patterns.
hotel in Cairo to provide High Speed Wireless Internet
To do this, ETA attends more than 100 international,
Services.
regional and local trade fairs each year. By improving Egypt’s tourism marketing policy, ETA aims to achieve
Located on the Nile River, the hotel offers 617 air-condi-
optimum benefits of available tourism potential and to
tioned and all equipped rooms and suites with private
increase Egypt’s profile in the global tourism market. ETA
terraces, separate shower stalls and numerous in-room
is striving to boost the Egypt’s tourism market share from
amenities. The hotel features all the necessary business
the classic markets (from the Europe and US) and to
services, more than 11 meeting and banquet rooms all on
initiate Egypt as a tourist destination in potential markets
one floor for maximum accessibility and functionality, a
such as South East Asia, Eastern Europe, Scandinavia, and
24-hour Business Centre, as well as a number of six F & B
South Africa. Their current objectives are to expand into
outlets with varied cuisine. The hotel’s recreational facili-
high-quality tourism such as incentive tourism, conference
ties include a heated swimming pool over looking the
tourism, and adventure tourism.
Nile, a helipad, a world-class casino, 5 Executive Floors and an executive lounge. It is close to Cairo’s downtown
Other ETA offices are located in Alexandria, Luxor, Aswan,
attractions for both business and leisure.
Suez, Port Said, Hurghada, Minya, Marsa Matrouh, AlArish, Rafah, and Sharm-el-Sheikh. These offices are responsible for solving the problems that may face tourists
Egyptian Tourist Authority (E.T.A.)
during their visit.
Mr. Adel Abd El-Aziz
ETA is also keen to extent its offices around the world to
Chairman
increase the awareness of Egypt’s tourist attractions in
Misr Travel Tower, Abbassiya Sq., Cairo
potential generating markets. The main job of these
Tel: +20 2 6853576
offices is to promote tourism to Egypt through various
Fax: +20 2 684363
means including advertising, public relations, contact with
E-mail: chairman@egypttreasures.gov.eg
tour operators, participation in travel exhibitions and
Website: www.egypttreasures.gov.eg
trade shows and supplying the tourists with the required promotional material of Egypt.
Date of creation: 1981 Number of employees: 600
172
MAIN SECTORS
OF THE
Emeco Travel
ECONOMY: TOURISM special interest groups, and corporate travel and is the general sales agent for American Airlines, Air Portugal,
Mr. Elhamy ElZayat
Korean Air & Air Malta in Egypt.
Chairman & CEO 2 Talaat Harb St., Cairo
Emeco handle reservations and ticketing, hotel reserva-
Tel: + 20 2 5749360 - +20 2 5799354
tions worldwide, assistance at airports, handling of local
Fax: + 20 2-5744212 - 5749369
tours, booking of tour packages overseas, providing car
E-mail: management@emeco.com
and bus rental, and arranging private charters.
Website: www.emeco.com
Emeco is part of Euromic, an association created in 1973 gathering the leading DMC (Destination Management
Date of creation: 1976
Companies) in Europe and the Mediterranean, and is also
Number of employees: 240
a member of Radius, the third largest Corporate Travel Services Provider in the World.
With a wide network of offices in Egypt and sales offices overseas, Emeco Travel is the leading DMC in Egypt. Emeco specializes in incentive travel, conferences, congresses and exhibitions, conventions, product launches,
MAIN SECTORS
OF THE
The Egyptian General Company For Tourism and Hotels (EGOTH)
ECONOMY: TOURISM 10 land plots allocated for hotels and touristic projects in Egypt. They own as well a percentage of the equity in 20 joint ventures in the field of tourism and hotels. Their
Mr. Nabil Selim - Chairman & Managing Director
main activities include accommodations, restoration and
4, Latin America St.
catering with the aim to develop tourism in the country
Garden City, Cairo
and train staff for its hotels.
Tel: 20 2 7950603 / 7957867
Their main projects include the renovation of the Mena
Fax: 20 2 7964830
House Oberoi with a cost of US$ 20 million, as well as an
E-mail: egoth@link-com.eg
extensive renovation plan of the Cairo Marriott Hotel,
Website: www.egoth.com.eg
with a cost of US$ 30 million, that will start in 2004 for a
Date of creation: 1976
period of three years
Capital: EGP 500 millions
They also include the erection of a resort in the
Number of employees: 2500
Mediterranean coast (10 hotels, 3000 rooms) overlooking Sidi Abdel Rahman bay in Alamein, the merge of
EGOTH is the biggest state-owned hotel owner in Egypt,
Elephantine Island Hotel and Aswan Oberoi to create a
with 22 hotels and 4 cruisers - all well known for their his-
single resort (405 rooms), and the establishment of a 5
torical value (Marriott and Mena House Oberoi in Cairo,
Stars Hotel on the Sultana Malak plot in Luxor. EGOTH is
Old Winter Palace in Luxor, Old Cataract in Aswan, Hotel
eager to attract potential investors to participate to these
Palestine in Alexandria...), 2 Nile-cruising restaurants, and
projects.
MAIN SECTORS
OF THE
Flash Tour
ECONOMY: TOURISM E-mail: doug.houlsey@fourseasons.com Website: www.fourseasons.com/cairofr
Mr. Fouad Hassoun Chairman 10, El Shaheed Mohamed Abd El Hady St.,
Located on the west bank of the Nile, with impressive
Ard El Golf, Cairo
views of the Great Pyramids over the old-growth canopy
Tel: +20 2 4193451
of Cairoâ&#x20AC;&#x2122;s ancient Zoological and Botanical Gardens, the
Fax: +20 2 2911182
Hotel is at the centre of the prestigious new First
E-mail: fouad@flashtour.net
Residence apartments and shops.
Website: www.flashtour.com
The hotel offers 269 guest rooms and suites, all the business services (24-hour business services, 24-hour con-
Date of creation: 1985
cierge services, audiovisual equipment, material rentals,
Number of employees: 201
Secretarial & Translation services, wired or wireless
Capital: EGP 7 million (approx. $ 1 million)
Internet access...), as well as a great number of different
Sales turnover: EGP 256 million (approx. $ 42 million)
restaurants with varied cuisine. The Hotel hosts 382 square metres of state-of-the-art meeting and function space. The recreational facilities include an extensive
Flash Tour, a subsidiary of Flash Group, is one of the lea-
health club and spa and wellness centre, with advanced
ding tour operators in Egypt. The company specializes in
training facilities, plus massage, spa treatments and salon,
inbound tourism from all over the world in 12 different
and a luxuriantly landscaped pool.
markets. Their main clientele include French, and English, Italian, German, Spanish tourists, which combined represent 96% of the companyâ&#x20AC;&#x2122;s turnover. Flash Tour is a
Grand Hyatt Cairo
member of the American Society of Travel Agents (ASTA), Association of British Travel Agents (ABTA), and fully
Mr. Garry Friend
accredited by the International Air Transport Association
General Manager
(IATA). The head office is located in Cairo and they are
Corniche El Nile, Garden City, Roda Island, Cairo
expanding with 5 branches throughout Egypt in Luxor,
Tel: +20 2 3651234
Aswan, Hurghada, Sharm El Sheikh and Marsa Allam.
Fax: +20 2 3621927 E-mail: cairo.grand@hyattintl.com Website: www.cairo.grand.hyatt.com
Four Seasons Cairo Hotel Date of creation: 2003 Mr. Douglas Housley
Number of employees: +1200
General Manager 35 Giza St., Giza, Cairo Tel: +20 2 5731212
Grand Hyatt Cairo is a luxurious landmark located on El
Fax: +20 2 5697580
Roda Island, directly poised on the River Nile and enjoying a central location within the business and commercial district of Cairo.
175
MAIN SECTORS
OF THE
ECONOMY: TOURISM
The hotel offers 714 guest rooms and suites, all the busi-
ference and incentive facilities in Sharm El Sheikh. The
ness services (secretarial support, work stations with high-
Grand Ballroom can accommodate up to 800 guests for
speed Internet access, printers & scanners...), as well as a
cocktails and is divisible into three rooms.
great number of different restaurants with a broad selection of international cuisine and the best of Middle Eastern fare. The Hotel hosts 3000 m of meeting and
Le Méridien Heliopolis
function space, with six banquet halls holding 200 to 1200 persons. Several outdoor venues are also available.
Mr. Philippe Bonnot
The recreational facilities include Club Olympus health
General Manager
club, a fully equipped gymnasium, one swimming pool,
51, Orouba St., Heliopolis 11341, Cairo
sauna, steam bath and Jacuzzi.
Tel: +20 2 2905055 Faxr: +20 2 2908533 E-mail: b.center@lemeridien-heliopolis.com
Hyatt Regency Sharm el Sheikh
Website: www.lemeridien-heliopolis.com
Mr. Fergus Stewart
Date of creation: 1987
General Manager
Number of employees: 424
The Gardens Bay, PO Box 58 - Sharm El Sheikh Tel: +20 2 69601234 Fax: +20 2 69603614
Le Méridien Heliopolis is located in the exclusive residen-
E-mail: fstewart@hyattintl.com
tial area of Heliopolis, near the Presidential Palace and the
Website: www.sharm.hyatt.com
Cairo International Conference Centre. The hotel offers Superior rooms, Executive suites, Le Royal
The Hyatt Regency Sharm El Sheikh is considered as the
club executive floors, Diplomatic and Presidential suites, in
reference in Egypt, and has been hosting the most presti-
addition to one apartment suite.
gious Egyptian and foreign business and political persona-
The hotel provides all business services; videoconference
lities.
equipment, high-speed Internet connections, WiFi (Wireless Fidelity) in the lobby, as well as a variety of dif-
Located on Egypt’s Sinai Peninsula, adjacent to Na’ama
ferent theme restaurants. The banquet & conference faci-
Bay, the hotel is a ten-minute drive from the airport. It has
lities include 5 conference halls tailor-made to fit your
433 guest rooms, three terraced pools, surrounded by
requirements to insure the success of your event.
waterfalls, grottos and whirlpools, and also features a Water Sports Center providing diving lessons, an indoor
The recreational facilities include a Gym, a swimming
gym at Hyatt’s Club Olympus and fun activities for chil-
pool, a hairdresser and a beauty salon, health spa, Jacuzzi,
dren. It offers 7 restaurants and/or bars, a spa offering
as well as a Golf, Tennis and squash nearby the hotel.
massotherapy, relaxation, body treatments, personal ser-
The Hotel pays a special attention to the corporate clien-
vice and a fitness and recreation program. The resort hotel
tele, providing personalized and high standard services.
offers the largest and most technologically advanced con
The Le Royal Club floors have also been carefully designed and refurbished for the demanding business traveller see-
176
MAIN SECTORS
OF THE
ECONOMY: TOURISM
king maximum privacy with a professional butler team
The group is one of the largest foreign direct investors in
around the clock.
Egypt with currently $ 2 billion of investment in the country through fast-food outlets, agro-industries, manufacturing, infrastructure development and operations, real
M.A. Kharafi Group
estate and tourism development, and aviation services including the Marsa Alam International Airport BOT pro-
Mr. James Pringle
ject. The group is developing a new $ 1.2 billion interna-
Senior Counselor
tional resort community at Port Ghalib, adjacent to the
Tel: +20 2 4034425
Marsa Alam airport.
Fax: +20 2 4034401
Port Ghalib will be a living, integrated community of dis-
E-mail: jp@emak-marsa.com.eg
tinction, activity and variety, setting it apart from any
Website: www.portghalib.com/
other resort community in the region. It will have a highly
www.marsa-alam-airport.com
animated town center; busy promenades with shops, boutiques, restaurants, bistros, cafĂŠs, as well as galleries and entertainment for all ages. It will offer extensive
Mohammed Abdulmohsin Al Kharafi & Sons is a private
marine and sports facilities; theater and multiplex cinema;
Kuwait-based Group, with diversified interests and activi-
and a yachting destination marina with its constant move-
ties worldwide. It was established mainly as a trading
ment of yachts, cruisers and water ferries. Port Ghalib will
company more than 100 years ago and has since deve-
attract the yachtsman, marine sports enthusiast, golfer,
loped into a multinational conglomerate with an annual
tennis player and fitness tourist; as well as the business
turnover in excess of $ 4 billion.
traveler, eco-tourist and adventurer, etc.
MAIN SECTORS
OF THE
Marriott Cairo Hotel & Omar Khayyam Casino
ECONOMY: TOURISM Fax: +20 2 5780474 E-mail: jeanpierre.mainardi@hilton.com Website: www.cairo-nile.hilton.com
Mr. Ulrich Huth General Manager
Date of creation: 1959
PO Box 33, Saray El Gezira St.,
Number of employees: +1000
Zamalek, Cairo Tel: +20 2 7358888 Fax: +20 2 7356667
The Cairo Nile Hilton is owned by Misr Hotels and ope-
E-mail: ulrich.huth@cairomarriott.com
rated by Hilton International. Opened in 1959, the Nile
Website: www.marriott.com
Hilton was the first international hotel to operate in Cairo. The hotel is currently second in Egypt in terms of market
Date of creation: 1982
share.
Number of employees: 1650
Located in the heart of Cairo, the hotel offers 431 air-conditioned rooms and caters primarily to business clientele, offering indispensable business services such as a business
Cairo Marriott Palace was built around a royal residence
centre, several meeting rooms, and an executive lounge...
that was constructed with no expense spared to mark the
It also offers a commercial centre with shops, several air-
opening of the Suez Canal in 1869. The hotel is one of the
line offices and a number of banks. The hotelâ&#x20AC;&#x2122;s recrea-
largest in Egypt and is located on six acres of gardens on
tional facilities include a fully equipped exercise room,
an island of the Nile. The Marriott Cairo Hotel and Casino
sauna, massage and steam bath, a heated swimming
offers 1,250 rooms, including executive and corporate
pool, squash and tennis courts, and the Rendezvous
suites, in addition to seven presidential suites; 14 meeting
Casino.
rooms; 3303 m total meeting space; 12 restaurants
The Hilton International Network is planning to expand its
and/or bars; health club, outdoor pool, and golfing at the
presence in Egypt and the Middle East. Currently, 18
JW Marriott Mirage City Golf Club.
Hilton hotels are in operation with 3 more planned to
In order to reach the modern standards and to adapt its
open with in the next two years including a location near
offer to the new business trends, an extensive renovation
the Cairo airport. Additionally, Jordan, Lebanon and Syria
will start in 2004 and is expected to be achieved in 3
will open new hotels soon.
years, for a budget of $ 30 million. The objective is to establish the Cairo Marriott Hotel as the first hotel in the Egyptian capital.
Orascom Projects and Touristic Developments / Orascom Hotel Holdings
Cairo Nile Hilton Mr. Samih Sawiris Mr. Jean Pierre Mainardi
Chairman
General Manager
160, 26th July Street, PO Box 19911 Agouza, Cairo
Corniche El Nil St., Tahrir Square, Cairo
Tel: +20 2 3477312 - 3041322
Tel: +20 2 5780444
Fax: +20 2 3051052
178
MAIN SECTORS
OF THE
ECONOMY: TOURISM
E-mail: samihs@link.net
Date of creation: 1990
Website: www.elgouna.com
Number of employees: 250
Date of creation: 1989 Capital: EGP 450 million
The Red Sea Diving Safari was founded by Mr. Hossam
Number of employees: 1820
Helmy, a pioneer in the discovery of the coastline for more than 15 years. He owns one diving centre and three villages: Ecolodge Shagra Village, Ecolodge Nakari Village
Orascom Projects and Touristic Development plans, deve-
and Ecolodge Wadi Lahami Village, providing the guests
lops and builds world-class destination resorts, hotels and
with three lodging category (tent, hut or chalet) all com-
restaurants. The company serves the high end of the
fortable and environmental friendly, available on a full
Egyptian tourism market with uncompromising quality for
board basis.
discriminting guests. Some of the world’s leading hospita-
His team consists of qualified PADI and CMAS instructors
lity firms, including Movenpick Hotels International, Hyatt,
and guides of different nationalities and with many years
and Sheraton Hotels manage the company’s properties.
of diving experience in the Red Sea that organizes extensive and complete diving programs and courses. Red Sea
El Gouna this complete in-house project provides a totally
Diving Safari offers a daily dive package of unlimited
independent destination for the most discerning clientele
diving at the fabulous house reefs plus two guided dives
arriving at marina on the Red Sea. Noted for its unique
a day by truck or boat to the fringe reefs of 100 km
“vernacular” architechure, the resort offers the seclusion
coastline included famous Elephintstone reef and Dolphin
of a traditional Bedouin oasis. El Gouna Resort pampers
house reef.
guests with handsome private villas, exquisite hotels,
Red Sea Diving Safari can also organize day or overnight
museums, shopping facilities and other world-class attrac-
trips in the desert with horse or camel.
tions in a distinctivly planned community. For the privacy of its guests, El Gouna has its own airport, marine and golf course.
Intercontinental Hotel - Semiramis Cairo Mr. Michel Tourniaire
Red Sea Diving Safari
Director of Operations Egypt Corniche El-Nil, Garden City, Cairo
Mr. Hesham Mostafa Kamel
Tel: +20 2 7957171
General Manager
Fax: +20 2 7963010
Cairo: 53 el Hussain street. Dokki, Cairo
E-mail: michel_tourniaire@interconti.com
Ecolodge Safari Village Marsa Alam
Website: www.cairo.intercontinental.com
Tel: +20 12 2449073 / 5 (Marsa Alam Ecolodge Safari Villages), +20 2 3379942 - +202 3371833 (Cairo office)
Date of creation: 1987
Fax: +20 195100262 (Marsa Alam) - +20 2 7494219
Number of employees: 1000
E-mail: info@redsea-divingsafari.com Website: www.redsea-divingsafari.com
179
MAIN SECTORS
OF THE
ECONOMY: TOURISM
The first Semiramis opened in 1907 and was considered
ding to the suggested tourist project should distribute
as the first luxury hotel in Cairo. In 1987, the new
lands.
Semiramis Intercontinental Hotel was built along the Nile
In carrying out these responsibilities, TDA has the autho-
River, and since then it has taken the leading position as
rity to acquire and sell tourism development lands and
Cairoâ&#x20AC;&#x2122;s premier hotel. It has also become one of the lea-
retain the income and to charge fees for assessing and
ding hotels in the Middle East region. The hotel recently
monitoring projects. Since its inception, TDA has overseen
concluded a major renovation program that reinforced its
the subdivision of several thousand individual properties
market position.
within designated tourism centers along the coastlines of
The hotel offers 730 air-conditioned rooms and a wide
the coastlines of the Gulf of Aqaba and of the Red Sea
variety of restaurants offering assorted types of cuisine, a
from Hurghada south to Wadi el Gemal. The vast majority
nightclub and a casino for evening entertainment. As
of these properties have been sold to private investors. In
70% of the Semiramis Intercontinentalâ&#x20AC;&#x2122;s business is
many cases, TDA works with development companies
derived from business clientele, it has the largest and
representing the interests of investors in specific tourism
most extensive conference and meeting facilities in Egypt
centers to develop self-financing infrastructure services
including Club InterContinental business floors and busi-
and resolves other development issues. TDA has therefore
ness rooms, a business centre, and a business reference
already taken a key decision in tourism development: the
library. The hotel also hosts the Cleopatra Ballroom, the
location, extent and configuration of the initial lands that
largest ballroom in Egypt.
will be converted from their natural state to resort development and its related uses. TDA has also pace of development by requiring that significant development must
Tourism Development Authority (T.D.A.)
occur on allocated properties within three years of contract inception.
Mr. Magdy Kobeicy Chief Executive Officer 21, Giza St., Nile Tower, Cairo
Travco Group Holding
Tel: +20 2 5703490 Fax: +20 2 5703491
Mr. Hamed El Chiaty
E-mail: yasery@mailcity.com
Chairman 112, 26th July St., Zamalek, P.O. Box 2247, Cairo 11211
Date of creation: 1989
Tel: +20 2 7371737 / 7375737 Fax: +20 2 7380400 E-mail: head.office@travco-eg.com
The establishment of Tourism Development Authority to
Website: www.travco-eg.com
be responsible for tourist lands, as specified by the law, aims mainly at making this authority responsible for plan-
Date of creation: 1979
ning the tourist development and directing it in the right
Sales turn over: EGP 1 billion
path. The Authority is responsible for specifying the prio-
Number of employees: 8000
rities for making use of those lands, encouraging tourist
Travco Group was established in 1979 as Travco Travel
investment and protecting the environment. A ministerial
Company of Egypt, operating in the incoming and out-
committee according to the Authority plans and accor-
going markets, with a vision of delivering high quality and
180
MAIN SECTORS
OF THE
ECONOMY: TOURISM
reliable travel services to tourists coming to Egypt from all over the world. The company, which started with 20 employees, became Egyptâ&#x20AC;&#x2122;s leading Leisure Group in a relatively short time, producing an annual turnover of more than one billion Egyptian pounds. In 1994, World of TUI became a holding partner in Travco Group. In addition to numerous branches all over the country and branches in Dubai, China and Japan. Travco Group developed many tourism-related activities and services, including two hotel and resort chains featuring 25 hotels, a fleet of more than 18 Nile cruise ships, more than 156 rental cars and limousines, a tourist transport fleet with more than 370 buses, incoming agencies, in addition to a full fledged safari department, business travel solutions, retail outlets, tourist shops, and restaurants.
The best view from one of the greatest hotels in Giza
181
MAIN SECTORS
182
OF THE
ECONOMY: TOURISM
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE
CONSTRUCTION & REAL ESTATE
“If you would build something solid, don't work with wind: always look for a fixed point, something you know that is stable...yourself.” Egyptian proverb
183
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE INTRODUCTION
the former often financed through donor programs. Moreover, contracting companies make up some 5 per-
The construction and real estate sector represents one of
cent of the total market capitalization of the Egyptian
the main facets of Egypt’s development process. The
Stock Exchange Market.
construction sector supports various secondary industries ranging from cement and steel to furniture and electricity.
Over the last 20 years the sector has developed 16 new
Over the last twenty years, the construction industry in
industrial cities for 6.7 million people, 2,287 new public
Egypt has expanded to meet the increasing demand of
construction projects in the water, and waste- water sec-
housing, infrastructure and industrial project develop-
tors, and 2.2 million units ranging from high rise apart-
ment, forming a multibillion-dollar sector in the Egyptian
ment blocks to luxurious mansions. In 2001, the govern-
economy.
ment announced that LE11.2bn had already been invested for the construction of 480,000 units: 23,000 for
At the end of the 90’s, the sector was absorbing around
the low-income Mubarak and future housing projects;
half the overall public investments and was employing
250,000 valued at LE5.8bn for the public sector; and the
more than 1.5 million workers. It has been estimated that
remaining 207,000 for the private sector.
the real accumulative demand for housing was standing at 750,000, for which the housing supply by the govern-
Following September 11, the construction industry faced
ment or private entities only caters for 25 percent of the
a serious liquidity problem. In an effort to address the
demand. Therefore, in June 2001, the government
issue, the government has decided to give priority to the
announced that private sector participation was essential
nearly 6,000 public projects currently ongoing, ranging
in solving Egypt’s housing shortage, and that private
from small-scale enterprises to mega projects, and
developers were expected to build 85 percent of housing
postpone new schemes until pending ones have been
units. This policy changed the legislative rules to facilitate
completed.
the entrances of private investors in real estate building.
Construction Industry: Building the Future The construction industry is considered one of the most capital and labor intensive industries of the Egyptian economy. Domestic companies currently undertake 70 percent of all construction work in Egypt. The remaining 30 percent of the construction market is dominated by international construction firms, and a small group of Egyptian companies who have acquired world-class expertise through joint ventures or consortiums with foreign firms. These projects comprise mainly large-scale high technology infrastructure development, in addition to complex industrial construction and luxury tourism facilities, with
184
New Hotel resorts are spreading on the read sea coast
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE Cement & Steel: the Pillars of the Construction sector
Cement and Steel Production and Sales Item (000) tons
March 2003
February 2004
March 2004
Cement Production
2427.6
1976.9
2511.5
Cement sales
2434.6
1878.2
2505.4
Steel bars Production*
231.8
213.3
271.2
Steel bars sales*
193.5
164.5
188.3
The main industries supporting the construction sector are building materials and machinery and equipment. The total issued capital of Egyptian investment in building materials is estimated at $1.3bn. Local manufacturers dominate 79 percent of total market value of building materials and imports comprise the rest. Of the total cost of a construction project, building materials comprise between 40-60 percent of expenditure. Cement and steel are the two most important building materials in Egypt’s construction sector.
* Data regarding these companies (El Hadid & El Solb,El Delta ,El Nahas, El Dekhila, El Ezz) El Ezz has been added since June 2000.
Of the 11 cement companies operating in Egypt, eight are
Source: Ministry of Public Enterprise.
privately owned, one is state owned, and two are joint ventures. The private sector produces approximately 68
The construction sector utilizes a wide variety of machi-
percent of cement and the public sector produces the
nery and equipment, the majority of which is available
remaining 32 percent. From 1995/96-2001/02, the
domestically. As Egypt lacks the technological sophistica-
government’s commitment to developing the country’s
tion and facilities to produce the most advanced and hea-
infrastructure led to a 38 percent increase in demand for
viest machinery, the majority is imported. Such imports
cement and a 48 percent increase in production reaching
consist primarily of earthmoving equipment, and suppliers
a total of 26.8m tons in 2001/02. While cement exports
in the US have a 65 percent share of the market.
have been rather modest (only 66,000 tons in 2000/01) reflecting local demand, new construction projects have
Real Estate: a Demanding Market
waned and the resulting surplus was exported. The construction boom of the 1980s led to the creation of Egypt’s steel industry is comprised of 13 producers: four
a dynamic real estate sector in Egypt. However, high
from the public sector and nine from the private sector.
returns on investment from upper-scale units during the
The private sector produces about 96 percent of all local
1980s stimulated an oversupply of high-end buildings,
steel, while the public sector produces the remaining 4
resulting in a lack of interest in the lower part of the
percent. From 1995/96-2000/01, the annual growth rate
market by real estate developers. As a result, approxima-
of steel production in Egypt reached 19.5 percent due
tely two million units stand uninhabited. The persistent
mainly to the demand for rebar and flat steel sheets for
market stagnation has forced real estate developers to cut
other industries. During the same period, annual steel
prices and devise less demanding payment schemes,
exports increased by 45.4 percent.
merely to recoup their original investment.
185
A view of Maadi, Cairo
In addition, the reluctance of property owners to rent, due
the areas that can be acquired for establishing economic
to rigid rent control laws has left over 50,000 units vacant
or service projects, reducing registration fees, and sim-
in Cairo alone, effectively limiting the access of middle to
plifying the registration of contracts and titles. Additional
lower-income groups to the real estate rental market. The
steps include establishing companies to conduct real
restrictions on renting have caused the Egyptian market to
estate appraisals and issue technical certificates of hou-
shift to more of an ownership-oriented system, which
sing unitsâ&#x20AC;&#x2122; overall condition.
requires a lump sum payment that is usually beyond the means of most Egyptians. To make matters more difficult,
The depreciation of the Egyptian pound is another factor
only about 8 percent of the total housing stock is even
contributing to the difficulties facing the sector. The
available for formal purchase because 92 percent of all
governmentâ&#x20AC;&#x2122;s decision to float the pound in January 2003
housing stock is extralegal or informal. There are very few
led to its depreciation of more than 25 percent against
formal titles even for most government-built public hou-
the dollar, which increased average prices and affected
sing due to the inefficiency and over-regulation of the
real savings, which typically flow into the real estate
official market. This bureaucracy forces people into the
market. In addition, property owners tend to evaluate
informal market even if their house or apartment started
their property in terms of US dollars, rather than Egyptian
with a title. And Egypt is, more or less, the norm for the
pounds, leading to overpricing as the exchange rate rose
entire developing world. To help resolve this issue, the
leaving many units vacant. As the exchange rate has sta-
Egyptian government has taken steps to streamline rules
bilized, prices have reverted back to more reasonable
for land and real-estate acquisition including specifying
levels.
186
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE The sector did not completely suffer from the devaluation
law is to provide low-incomes families with a viable option
of the pound, however. The Red Sea has become one of
to own their own homes. In 2002, the government
the world’s top tourist destinations, and foreigners recog-
approved a law that helped to facilitate mortgage activi-
nizing the increased value of their currency have been
ties in banks and lowered mortgage registration fees.
boosting the market with the purchase of vacation
Additional amendments in 2003 were approved to facili-
homes. However, this small bright spot does not outshine
tate mortgage securitization and at least two non-bank
the fact that the real estate crisis is a domestic problem,
mortgage companies are in the process of being esta-
based on people’s inability to afford housing. About 12.5
blished. The law also provides clear procedures for fore-
percent of the approximate one million new entrants into
closure on property of defaulting debtors. While the law
the market annually are estimated to be in the high
is seen as a huge step forward in relieving housing shor-
income and luxury segments of the housing market, with
tages and stimulating the construction and building mate-
middle income housing comprising 25 percent. The remai-
rials industry, further development of both long-term
ning 62.5 percent is in the low income housing market.
securities and other real estate market infrastructure is needed for the mortgage market to fully develop and sig-
Expanding the living area
nificantly impact the economy.
In an attempt to ensure the provision and adequate hou-
Opportunities for Growth
sing in both rural and urban communities, the government has implemented a long-term plan to increase GDP
Despite the liquidity problems, construction investments
and improve the standards of living. The development
are expected to grow in the coming period. The govern-
strategy for the next 20 years includes a new urban deve-
ment’s strategy of creating private sector investment
lopment strategy to improve existing urban structure and
opportunities in parallel with its privatization program has
develop desert areas. In an attempt to enhance the
led to the creation of infrastructure projects which have
current urban structure, the government plans to develop
so far brought more than $1.2bn in investment. Private
44 new urban communities in three stages by 2017.
sector power generation, gas distribution, airport cons-
These urban communities are being established in desert
truction and management, as well as projects for road
areas to draw growth away from the crowded Nile valley
building, port construction and private telecommunica-
and redistribute the population by up to 12 million inha-
tions are well advanced. Concerning the ports, airports
bitants. The development of these desert areas was also
and other transport services, legal changes to the status
undertaken to stimulate the economic potential and
of Egypt’s transport infrastructure have allowed signifi-
generate more job opportunities for the increasing popu-
cant strides to be taken towards a greater private sector
lation. The areas involved in the project include the
role in large-scale projects. The construction of the new
Western Northern Coast, Suez Canal, Red Sea Coast, Sinai
Egyptian Museum as well as new projects for LNG and
Peninsula, and the New Valley in the Western Desert.
petrochemicals are also expected to help push construction sector growth to even higher rates in the coming
Mortgage Law
years.
To help remedy the situation the government issued the
Investors are also being drawn to the government’s stra-
Real Estate Financing Law, more commonly known as the
tegic development projects, such as the Nile Valley-Toshka
Mortgage Law, in June 2001. The primary objective of the
desert reclamation projects (LE300bn); the Sinai irrigation
187
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE project (LE100bn); the establishment of a new port and
in Egypt - the development of a touristic resort village on
economic zone in the Gulf of Suez (LE150bn); the esta-
the Red Sea with a total of 32,000 sq/m and capital of
blishment of a new port, and free zone in the East of Port
EGP 700 million. The company is also in the process of
Said (LE150bn); the Naga Hammadi Dam Project; the
developing two new hotels in separate resort areas in
development of 44 new cities; and urban housing for 10
Egypt.
million people.
MAIN COMPANIES
Arab Contractors Eng. Ibrahim Mahlab
Al Ahly Real Estate Development CO.
Chairman and CEO 34 Adly St, Downtown, Cairo
Mr. Hussein Sabbour
Tel: +20 2 3929484
Chairman
Fax: +20 2 3930367
Arkadia, Corniche El Nile St., Cairo,
Website: www.arabcont.com
PO Box: 114 Manial El Rooda Tel: +20 2 5792924 / 2 - 5792960 / 61
Date of creation: 1954
Fax: +20 2 5792841 E-mail: hsabbour@alahly.com Website: www.alahly.com
Founded in 1954 By Dr. Eng. Osman Ahmed Osman, the Arab Contractors Company is a leader company in the
Sector: Real Estate
construction field in the Middle east and Africa....
Date of creation: 1994 Authorized capital: $ 14 million (approx. 2002)
With over than $1.5B worth of construction work
Number of employees: 100
annually, Arab Contractor’s history is associated with all
Sales turn over: $ 80 million (approx. 2002)
the new historical landmarks that has made Egypt famous in the world stage: the Aswan High Dam, the Suez Canal Bridge, the New Bibliotheca Alexandrina, the under-
Al Ahly Real Estate Development Company is a joint ven-
ground rail system in Cairo, and the indoor stadium that
ture between the National Bank of Egypt, which owns
hosted the African Games.
40% of the company, and several private sector Egyptian businessmen. With tourist development projects, high-
The company have been successfully blending the Middle
end residential, commercial and office buildings, plus
Eastern classics with modern techniques of construction,
middle class residential projects already underway, the
and is now one of the Middle East’s largest construction
company’s current total value of projects is EGP 1,3
firm.
billion.
Arab Contractors also offers many construction related
Al Ahly Real Estate Development achievements include
services such as consultancy and engineering, dredging,
the design and construction of Arkadia Mall, one of the
equipment renting, real estate, transportation, training
first and largest malls in Egypt with 500 shops and an
and development...
entertainment centre, Fun Planet. They are participating with various partners in the largest single tourism project
188
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE Consolidated Contractors International Company Limited
Project. CCC is certified by BVQI to the ISO 9001 and ISO 9002 standards.
Mr. Bassam Daher Branch Manager 18, Wezaret El-Zeraa St., Dokki, Giza
CEMEX Egypt - Assiut Cement Company
Tel: +20 2 7484743 Fax: +20 2 7485985
Mr. Jose Llontop
E-mail: bassam@soficom.com.eg
President
Website: www.ccc.gr
3, Abbas El Akkad St., Nasr City, Cairo Tel: +20 2 4078610
Date of registration in Egypt: 1984
Fax: +20 2 2603315
Number of employees: 11,000
E-mail: jllontop@cemex.com.eg
Sales turn over in Egypt: $ 45 million (approx. 2003)
Website: www.cemex.com.eg Date of creation: 1999
The CCC Egypt (Consolidated Contractors Company) is an
Sales Turn over: $ 150 Million
important player in the Egyptian construction field. It is a
Number of employees: +1100
branch of the Athens-based CCC, which started its activities in 1952 and has become the largest engineering and construction company in the Middle East. It deals with
CEMEX is one of the three largest cement companies in
general building and construction works, project manage-
the world, with close to 78 million metric tons of produc-
ment, and engineering and procurement services. The
tion capacity, operations in more than 30 countries and
company provides a broad range of activities including the
trade relations with over 60 nations worldwide. In 1999,
complete construction of petrochemical plants and refine-
CEMEX acquired 77% of the Egyptian cement producer
ries, oil loading and off-loading terminals and storage
Assiut Cement, and succeeded to get raised this figure to
facilities, and heavy and light industrial plants.
95,8% in 2001. As a consequence, CEMEX became one of the leading cement companies on the Egyptian market
CCC is a pioneer in executing plant construction on a
with 5 million metric tons of production capacity follo-
partnership basis with international engineering compa-
wing the upgrade if its production lines. The company’s
nies. The company’s most notable projects include the
new commercial structure enables it to serve the entire
construction of Golden Pyramids Plaza, a 170,000m retail
Egyptian market and guarantee a level of customer service
and leisure complex with 35,000m office towers (Star
consistent with CEMEX’s standards. The company’s distri-
Capital), the construction of the Arab Bank building in
butor base has grown from 80 prior to the privatization,
Cairo, the construction of the Marriott Hotel on the Cairo-
to more than 800 today.
Suez Desert Road, and the construction of a power station
As part of a multinational that is a leader in IT technology,
in North Cairo. CCC Egypt is currently well positioned and
CEMEX Egypt is using technology to introduce the most
waiting for the results of 3 important tenders concerning
responsive customer service system in Egypt. Technology
the Saudi Arabian Embassy in Cairo, as well as the cons-
and high-speed communications are two of the main
truction of Nobaria power station and the Sheraton Hotel
foundations of CEMEX’s success.
189
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE CEMEX has been awarded the International Organization for Standardisation’s Certificate for Environmental
MISR Sons Development S.A.E. “Hassan Allam Sons”
Management Systems and Standards, ISO 14001, which is the corner stone standard of the ISO 14001 series. Now
Mr. Kamal Hassan Allam
we are preparing for the OH&S 18001 for Occupational
Chairman
Health and Safety Management standard.
Yehia Zakaria St., Industrial Zone behind Sheraton Heliopolis Housings, Cairo. Tel: +20 2 2666917
Golden Pyramids Plaza
Fax: +20 2 2666920 E-mail: msdallam@allamsons.com
Mr. Abdulrahman Sharbatly
Website: www.allamsons.com
Chairman Ramo Buildings, Omar Ibn El Khattab St.,
Date of creation: 976
Heliopolis, Cairo
Capital: EGP 40 Million
Tel: +20 2 4145771
Turn over: $68.47 Million (Including Shares of J.V.s)
Fax: +20 2 4145772
Number of employees: 525
E-mail: gpp@starnet.com.eg Website: www.citystars.com.eg In 1976, Mohamed Hassan Allam formed Hassan Allam Sons Co. to continue, in Egypt and abroad, the conGolden Pyramids Plaza SAE is developing the first and lar-
tracting activities of his father which started in 1936.
gest integrated project of its kind in the Middle East -
Over the years, it earned a well deserved reputation in the
Citystars Heliopolis Cairo. Covering 115,000m. of an
construction industry for its outstanding performance,
entire city block in Ard El Golf, Heliopolis, Citystars
management expertise and efficient resources.
includes: three hotels (more than 1350 rooms and suites),
As a result of a planned expansion in size and working in
70,000m. office space, Star Living comprising 266 resi-
a range of activities and undertaking major construction
dential apartments, duplexes and penthouses, Star Care
projects, Hassan Allam Sons changed its status in 1990 to
medical support, Stars Centre (the largest shopping and
corporation by forming Joint Stock Company Misr Sons
entertainment centre in the Middle East) and an
Development S.A.E.
International Exhibition Centre of 20,000m.
The main activities in construction field are featured in the sectors of Industrial Projects, Buildings, Interiors, Hotels &
With a total built-up area of 750,000m., the Citystars pro-
Resorts, Power Generation Projects, Water & Wastewater
ject is the 12th largest shopping and entertainment centre
Projects, Electro-mechanical Works and Restoration of
in the world and second largest outside of North America.
Antiquities & Historical Buildings Projects. Since successful progress always leads to expansion, over the following years the sons of Mr. Hassan Allam formed a series of companies forming HASSAN ALLAM SONS GROUP.
190
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE Lafarge Titan Egypt (APCC, Alex. Portland Cement Co - BSCC, Beni Suef Cement Co. - BCCE, Blue Circle Cement Egypt)
joint venture company with LAFARGE, “Lafarge Titan Egyptian Investment Limited” (LTEIL), which purchases 100% of the shares of Alexandria Development Limited (ADL), a financial holding subsidiary of LAFARGE, which owns the above 88.45% of the shares of APCC.
Mr. David Seroux, Stamatis Douzinas Co-Chairmen Florida Mall, Sheraton Blvd., 7th Floor, Heliopolis, Cairo
Société Egyptienne d’Entreprises Mokhtar Ibrahim
Tel: +20 2 2686201 Fax: +20 2 2686190
Mr. Mounir Ali El Ghanam
Website: www.titan-cement.com
Chairman 199, extension 26th July St., El Agouza, Cairo
Date of creation: 1948 (APCC), BSCC (1993), BCCE (2000)
Tel: 20 2 3471507
Turn over: EGP 490 million
Fax: 20 2 2678342
Number of employees: 850
E-mail: egysec@idsc.gov.eg Website: www.moukhtar.com
TITAN is the leading Greek cement producer with current
Date of creation: 1936
annual production capacity of about 14 million tons, of
Turn over: EGP 1 billion (approx. 2002)
which about 6 million tons in four plants located in Greece, and about 8 million tons in seven plants located in the following countries: U.S.A., Bulgaria, F.Y.R. of
Société Egyptienne d’Entreprises - Mokhtar Ibrahim has
Macedonia, Serbia and Egypt.
been founded in 1936 by Eng. Bey Ibrahim. The company has executed major projects in each sector of waste water
In 1999, the company launched a joint venture (50/50)
disposal, potable water, factories, public buildings, roads,
with the French company Lafarge, world leader in the
bridges, land reclamation, electric power, tourist villages
building materials sector, to establish a bridgehead from
and housing in Egypt, as well as in Saudi Arabia, Algeria,
which to expand into the emerging Egyptian market.
Libya, UAE, and Kuwait. The company has lately started a
Later in the same year the two companies went on to pur-
gigantic project in Oman Sultanate. The companies’ main
chase a 95% stake in the Egyptian Beni Suef Cement Co.
projects for 2004 will be focused on water-pipes and
(BSCC), owner of the most up-to-date cement production
water supply. The total amount of their current projects
facilities in Egypt, with an annual production capacity of
exceeds EGP 4 billion.
1.4 million tons. In 2002, TITAN announced also the 50%
Year after year, the company has established itself as a
acquisition of the majority stake (88.45%) of Egyptian
leader in the industry sector and is considered as the one
cement
Cement
of the best contracting company in the Middle East region
Company” (APCC). APCC operates one plant located in
(net profit of approx. 9% every year). It has been fully
Alexandria with an annual production capacity of 2
nationalized in 1964. Recently, in consequence of the law
million tons of cement, having recently completed works
of public works sector of 1991, the company became a
on a new dry line. The acquisition is realized through the
subsidiary company of the National Company for
company
“Alexandria
Portland
Construction and Development. The company has also
191
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE been introduced in the Cairo & Alexandria Stock
OCI also has investments in other building materials
Exchange, and 20% of the capital has been privatised.
manufacturers which produce basic and specialized products for contractors and industrial users such as ready mix concrete, concrete pipe, paper bags, architectural
Orascom Construction Industries
glass, gypsum, dry mix plasters, construction chemicals and paint.
Mr. Onsi Sawiris Chairman Nile City Tower, South Tower, Corniche el Nil, Cairo
Osman Group
Tel: + 20 2 4611111 Fax: +20 2 4619400
Mr. Mahmoud Osman
E-mail: info@orascomci.com
Chairman
Website: www.orascomci.com
20 Haroun St., Dokki, Giza, Great Cairo Tel: +20 2 7486642 - 7609345
Turn over: EGP 4,4 billion
Fax: +20 2 7487167 E-mail: osmangrp@osman.net Website: www.globalgeobits.com/osmangroup
Orascom Construction Industries (OCI) is one of Egyptâ&#x20AC;&#x2122;s largest corporations and focuses on three high growth business activities - construction services, cement manu-
Date of creation: 1940
facturing and infrastructure concessions.
Capital: $ 70 million Turn over: $ 170 million
The Construction Group provides engineering, procure-
Number of employees: +4 000
ment, construction and maintenance services on industrial, power, water/sewage, railway, transportation, tele-
Osman Group is one of the leading private enterprise
communications, commercial and tourism projects for
groups operating actively in Egypt and abroad. Owned by
public and private customers principally in the Middle East
the members of the Osman Family, it has its main head-
and North Africa and ranks among the top four contrac-
quarters located in one of the most business attractive
tors in the Middle East and among top 200 global con-
locations in Cairo with several factories, offices, and bran-
tractors.
ches in Egypt, Arab countries, and Internationally in Europe and USA.
The Cement Group owns and operates cement produc-
Osman Group is working in four main sectors attracting
tion plants in both Egypt and Algeria with a production of
major investments: specialized Industries, Construction &
around 12 million tons of cement annually by 2005.
Real Estate, Agriculture & Animal products, and Trading &
OCI participates as an equity investor in long-term infras-
Services. Recently, the Group has established Global
tructure concessions including port operations, industrial
Geobits Company as a new business in the area of infor-
parks and natural gas distribution systems.
mation & related engineering communication aspects, especially in the geographic information technology.
192
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE Plastic Pipes & Products Co.
mainly involved in the fields of water supply and oil and gas, providing pipes for potable water, drainage, sewage,
Mr. Sabry Aglan
cables, natural gas and irrigation industries. Their factories
Chairman
are located in one of the newly-constructed industrial
11, El Nasr Road, Nasr City, Cairo
areas in Egypt - 10th of Ramadan City - and equipped
Tel: +20 2 4016360 - 4014200
most modern machinery in the plastic industry covering a
Fax: +20 2 2628715
total area of 63,000 m.
E-mail: ppp@egyfit.com.eg
The company has a high level of expertise in its field, wor-
Website: www.3p.com.eg
king in collaboration with foreign specialists from major pipe manufacturers in Europe such as Thyssen Co. and
Date of creation: 1980
British Gas. PPP exports its products to several countries in
Capital: $25 million
the region including Sudan, Lybia, Cyprus and Greece.
Turn over: EGP 70 million (approx. 2003) Number of employees: 300
Plastic Pipes & Products Co. was established in 1981 and has since become a major PVC and PE pipe manufacturer in Egypt, Africa and the Middle East. The company is
â&#x20AC;&#x153;Operating in accordance with the highest international standards, PPP is the first PVC and pipe manufacturing company of its kind in Egypt to earn the ISO 9002 international quality certificate from the U.S. Centerior organization, and has earned accreditation
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE from the British Gas Company as the first company outside of Europe in the field of manufacturing natural gas pipes.”
E-mail: scc@link.net.com Website: www.samagroup.com/Cement
Mr. Sabry Aglan Date of creation: 2001
SIAC
Capital: EGP 1 billion Sales turn over: EGP 244 million
Eng. Nehad Bahig Ragab
Number of employees: 3800
Chairman 6, Hassan El Shereey St. El Nozha St., Heliopolis, Cairo Tel: +20 2 4182992
Sinaï Cement Company (SCC) has been established in
Fax: +20 2 4182991
1997 as a cement producer and marketer. The company
E-mail: siac@ritsec1.com.eg
is part of a larger investment group known as the SAMA
Website: www.siac.com.eg
Group, which is involved in tourism investments, agricultural production, in addition to cement production and
Date of creation: 1986
have been working in developing North of Sinaï since 1985. Located in the northern part of the Sinai Peninsula, SCC
A general contractor operating mainly in the fields of
produces 1,4 million tons / year. The company continues
industrial construction, civil construction, electromecha-
to record strong profit growth, despite declining domestic
nical construction, infrastructure, buildings, and architec-
demand and the start up of a new capacity in 2002.
tural finishing on large projects such as the Beverly Hills complex, the President Mosque, Dream Land, etc.
In March 2003, the Groupe Vicat, a French cement manufacturer, became a strategic partner of SCC. The company
SIAC is a member of the NR Group, which consists of affi-
is also partner with the Danish cement pioneer F.L.
liated and associated companies operating in the field of
Smidth, and the Arab Swiss Engineering Company.
contracting and development, including Bauer Egypt, Integrated, Cosmos, Ugico, Al Mostakbal and Al Magmoah. This has the advantage of providing a wider
Samcrete Egypt
range of services through corresponding affiliates. Mr. Karim Sami Saad Chairman
Sinai Cement Company
8, Mansouria Road, Ahram, Giza, Cairo Tel: +20 2 3891500
Mr. Hassan Kamel Rateb
Fax: +20 2 3891554
Chairman
E-mail: ksaad@samcrete.com
29, Al Medinah Al Mounawareh, Dokki, Cairo
Website: www.samcrete.com
Te: +20 2 7493097 Fax: +20 2 7493528
194
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE Sector: Development
Suez Cement
Date of creation: 1963 Capital: $ 40 million (approx. 2003)
Eng. Alaa El-Din Mounir Abd El-Wahab
Turn over: $ 57 million (approx. 2003)
Chairman & Managing Director
Number of employees: 2,000
Quattamia - Maadi / Ein Sokhna Road Tel: +20 2 7043711
Samcrete Egypt is a private sector company operating in
Fax: +20 2 7022355
the Construction field in Egypt since 1963. Samcrete built
E-mail: chairman-office@suezcem.com
a priceless fortune of human resources experienced in
Website: www.suezcem.com
various types of construction projects as well as a reputation of reliability, quality and timely performance with its
Sector: Industry
clients.
Date of creation: 1977 Capital: EGP 1 billion
Over the years Samcrete list of projects grew to include
Turn over: EGP 1139 million (2002)
almost every type of construction. Its operation has deve-
Number of employees: 1738
loped in the fields of Airports, Infrastructures, Road Construction, Water, Sewage, Gas and Power Stations, Administration, Educational and Public Buildings, Touristic
Suez Cement Group is the largest cement Group in Egypt
and Industrial Projects. Samcrete Egypt is classified in the
with a consolidated production capacity of approximately
Egyptian Contractors Union grade (A) and its quality
8 million tons of cement, in addition to 375 million paper
system complies with ISO 9002 requirements in all fields
bags mainly for cement packing and 60 thousands tons of
of operation.
lime. The Group includes Suez Cement Co., Tourah Portland Cement Co., and Suez Bag Co. The Group owns
Samcrete relies on its own resources in the supply of vital
a combined market share of 22,9% of the cement market
materials to its projects; it maintains and operates its own
as of the year 2002. It operates from 3 locations: the
quarries and pre-cast concrete factory. Samcrete main
southwest of Suez City, Quattamia in the outskirts of
premises also include steel, wood and aluminum produc-
Cairo, and Tourah in South Cairo.
tion workshops. Further more, Samcrete integrates its
In 2001, the Group engaged a strategic alliance with one
diversified expertise to cover the whole project develop-
of the biggest global producers of cement, Ciments
ment cycle, which include engineering and conceptual
Français (the international arm of Italcementi Group),
design, construction, marketing and operation manage-
which currently owns 34,08% of the shares. The rest of
ment to develop high quality multi-purpose facilities.
the shareholding structure is divided between Public busi-
Samcrete also deals in real estate and resort development.
ness entities and private sector entities & free-float (33% in 2002). Given the oversupply of cement in Egypt these last 2 years, the company had to target foreign markets like Sudan, West Africa, and Gulf countries. Therefore, they plan to realize 18% of their results with foreign markets in 2004. More information at: “www.winne.com”.
195
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE
196
TOP COMPANIES (In alphabetical order)
AGRICULTURE & WATER RESOURCES
Orascom Construction Industries Osman Group Plastic Pipes & Products
Future Pipes Industry
SIAC
General Company for Land Reclamation
Sinai Cement
Horticultural Improvement Export Association
Sonid Group
National Water Research Center
Suez Cement Group
PICO Sekem
BUSINESS RESOURCES
ENERGY AL Chark Insurance BP Egypt
Alexandria Businessmen Association
British Gas
American Chamber of Commerce
ECHEM (Egyptian Holding Co. for Petrochemicals)
Baker & Mc Kenzie
EGAS (Egyptian Holding Co. For Natural Gas)
BEBA
Egyptian Electricity Holding Co.
Cairo Capital Club
Egyptian General Petroleum Corporation (EGPC)
Cairo International Conference Center
Egyptian LNG
Egyptian Businessmenâ&#x20AC;&#x2122;s association
ENPPI
Expolink
GANOPE
GAFI
GASCO
General Authority for Economic Zone (GAEZ)
MIDOR (Middle East Oil Refinery)
Look Advertising
Natural Gas Vehicles Company
Magic solutions
Petrojet Petroleum Marine Services
CONSTRUCTION & REAL ESTATE
SEGAS (Spanish Egyptian Gas Company) Shell
Al Ahly Real Estate Develop. Co.
Sokhna Port 2
Arab Contractors
THARWA
CCC Cemex Assiut Cement Future Pipe Industry Golden Pyramids Plaza Hassan Allam Sons Group Lafarge Titan Mokhtar Ibrahim
197
TOP COMPANIES (In alphabetical order)
FINANCE
Port of Port Said Sadat Group
COMMERCIAL & INVEST BANKS Alexandria Commercial & Maritime Bank
Sokhna Port
INDUSTRY & TRADE
Arab African Intl Bank Bank of Alexandria
Al Ahram Beverages
Banque Du Caire
ALKAN Group
Banque Misr
Eastern Tobacco Company
CIB
Egypt Aluminium
EFG Hermes
EK Holding
Egyptian American Bank
Ezz Group
HC securities
Faragalla Group
HSBC
Ghabbour Group
Misr International Bank (MIBank)
Holding for Metallurgical Industries
National Bank of Egypt
Juhayna
NSGB
Mantrac/Mansour Omar Effendi
FINANCIAL INSTITUTIONS
Oriental Weavers Ragab Group
MCSD Capital Market Authority
INSURANCE COMPANIES
Central Bank of Egypt CASE
American Life Insurance Company (ALICO) Egyptian Reinsurance Company
INFRASTRUCTURE & TRANSPORT
Misr Insurance National Insurance
Cairo Airport Authority EgyptAir Holding
PHARMACEUTICAL
Fedex
198
KLM
Egyptian International Pharmaceutical -
Lufthansa
Industries (EIPICO)
National Authority for Tunnels
Novartis
Port of Damietta
T3-A Pharmaceutical Group
TOP COMPANIES (In alphabetical order)
TELECOM & IT
TOURISM
Data Management System
Accor
IT Investments & Venture
ATIC Holding
LinkDOTnet
Conrad
Microsoft
EGOTH
Mobinil
Egyptian Tourism Authority
Orascom Telecom
Emeco Travel
Raya Holding
Flash Group
Siemens
Four Seasons Cairo
Smart Village
Grand Hyatt Cairo
Telecom Egypt
Hyatt Sharm El Sheikh
Vodafone
Intercontinental Semiramis Le Meridien Heliopolis MA Kharafi Group Marriott Nile Hilton Orascom Tourism Red Sea Safari Diving Tourism Development Authority Travco Group Holding
199
MAIN SECTORS OF THE ECONOMY: CONSTRUCTION & REAL ESTATE
200
TOURISM & LEISURE
TOURISM & LEISURE
“In every vital activity it is the path that matters.” Egyptian proverb
201
TOURISM & LEISURE INTRODUCTION Egypt is the cradle of a deep rooted civilisation whose history goes back to more than five thousand years, and it’s one of these rare and exceptional countries that bring many images to mind: histories of the bible,the colossal pyramids of Giza, the marvels of Tutankhamun’s tombs, the mysteries of the mummification, the opulent pharaohs, the stunning temples of Karnack, the terrible history of the great Bibliotheka Alexandria... . Egypt gets a lot of mileage for its historical sites. But while Egypt’s ancient ruins, religious traditions and souqs are very enjo-
Taste one!, so juicy
yable, the country offers more than just history. Egypt is also and without a doubt an adventure country that com-
well as Jews, Christian and Islamic landmarks coexist in
bines the mysteries of the desert, the freshness of the
that lively and exciting metropolis.
oasis, the mightiness of the Nile River and the beauty of
Modern political and cultural centralisation in the capital
the Red Sea and its hidden treasures.
has been driving thousands of people to Cairo. Expansion
From the Oasis villages to the heart of Cairo, Egypt is a
has led to severely overcrowded neighbourhoods, clogged
Paradise for a very reasonable price, the sights are
thoroughfares and urban pollution. The “Mother of the
stunning, the culture fascinating and the bargains a way
World” is now an old lady that still has many admirers.
of life. However here, travel requires time, patience and stamina
PLACES TO VISIT
for the pace of living is slower and relaxed here. Any visitors to Egypt will be stuck by the piety of its people, as
Down Town
humility is inherent to the very world Islam. The warmth of the human relations in Egypt brings a soft sweetness
Maydan El-Tahrir
that has always been the best of its charms.
Tahrir Square is one of the main squares and the absolute
CAIRO
center of Cairo (from which all the distances in Egypt are measured). It is surrounded by the famous Nile Hilton Hotel,
the
Egyptian
Museum,
the
Arab
League
Cairo is the jewel of the Middle East, the “metropolis of
Headquarters, the American University and one of the
the universe” and “mother of the world”, as a 14th cen-
main governmental buildings, which include various
tury historian would put it. With almost 20 millions of
departments (Mogama El Tahrir). The Square is a prime
inhabitants, Cairo is larger in population and extent than
meeting point for huge numbers of commuters, tourists,
any city west of China.
students and the growing working force.
The city swelled so much in size under the Fatimids and their descendants, that it soon became known as Misr,
Shari’ Kasr El-Nil
the Arabic name for Egypt.
One of the main Avenues down town, where Cairo’s two
The cosmopolitan city blends charms of the east with a
most distinguished private houses stand, and where many
Mediterranean flavour. Pharaonic and Greco Roman as
shops and banks are located.
202
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TOURISM & LEISURE
203
TOURISM & LEISURE Old Cairo - Babylon Mar Girgis “St George”
Ibn Tulun Mosque
Old Cairo is so named because it is the oldest part of
The fortress-like mosque is considered the third oldest
Cairo, and in fact, predates what is now Cairo. Some
Islamic monument in Cairo. The serene courtyard covers
Egyptologists believe that there was a settlement here as
seven acres and has seven mihrabs indicating the direction
far back as the 6th century BC. Later, the Romans built a
to Mecca.
fortress here which we call Babylon. Roman walls still exist.
Some of these
Later, it became a Christian
Bab Zuweila
stronghold, with as many as 20 churches built within an
The most imposing of the three remaining gates in
area of one square mile. There are only five remaining,
Fatimid Cairo. It is topped by two minarets from the
but these are certainly a must see when visiting Cairo,
mosque of al-Mu’ayyad.
along with the earliest Mosque ever built in Egypt. In addition, after the fall of Jerusalem in about 70 AD, the
Al Azhar Mosque
area also saw an influx of that religion into the area,
Built in 972, named after Fatma Al-Zaha’a, it is one of the
where the oldest synagogue is also located. Most of
earliest Islamic universities. The mosque has three mina-
Pharaonic Egypt is a relic of one of the Worlds first and
rets one of which is a twin minaret from the age of Sultan
grandest religions, including the great Pyramids outside
Al-Ghouri. You can climb up of the minarets for a fan-
Cairo. Yet if the modern world can be said to have four
tastic view of Cairo. The Library holds over 80,000
major religions consisting of Christianity, Hinduism, Islam
volumes of which 15 000 are manuscripts.
and Judaism, then three of those are represented by some of their most ancient relics in this section of Old Cairo.
The Citadel Erected by Saladin in 1176 to enclose the town, the
Islamic Cairo
Citadel houses the splendid towering mosque Mohammed Ali the Mamluk Sultan with two 84 meter high minarets.
Islamic Cairo, perhaps more properly thought of as
The citadel can be seen from almost anywhere the city,
medieval Cairo, is an area of narrow streets, covered mar-
and adds a wonderful picture to Cairo’s skylight.
kets and crumbling old buildings. Of all Cairo, this quarter most evokes its past, and in many ways has changed little. It has inspired many writings, from Arabian Nights to the
Other Neighbourhoods
works of the modern Nobel laureate Naguib Mahfouz. Getting lost amongst the winding alleys is almost inevi-
Khan El-Khalili
table and even enjoyable. Visitors are strongly advised to
Founded in 1382, Khan El Khalili is the biggest and most
dress modestly in this part of the city; many mosques will
fascinating market in Egypt and in the Middle East. Walk
not allow entry to people in shorts or vest tops and atten-
in the labyrinth of Khan Al Khalili and bargain perfume,
tions from the locals (although again inevitable) will be
jewels, antiquities, leather ware, papyrus and many other
reduced and more respectful.
hand made products in the street shops.
Amr Ibn El-Ass Mosque It was the first mosque built in Egypt and the fourth in the whole world. The mosque was first built in 642 AD, but has been rebuilt countless of times over the centuries.
204
TOURISM & LEISURE north along the Corniche, the main landmarks are the Balloon Theatre and the National Circus, both of which occasionally give performances, and the British Council, which offers language training in both English and Arabic. Mohandissen One of Cairo’s newer districts; a sprawl of residential and office towers, dominated by Arab League Street. The strip is full of upmarket boutiques and just about every American fast food chain imaginable. It is a veritable parking lot on summer nights as cars cruise up and down the wide avenue. Several cosy restaurants and pubs can be found tucked away in the maze of backstreets. Gezira, Zamalek and Roda Islands The two main islands in the Nile are both developed to the point where you might forget you are technically on an island. Gezira, the northern island, can be divided into two separate districts. The southern half, Gezira proper, The souq of Khan El-Khalili: A place to find everything.
contains the new Opera House, where cultural perfor-
Giza
mances are presented throughout the year, and the
The area to the west of the Nile is a separate Governate
Museum of Modern Art, displaying work of Egyptian
from Cairo, but inextricably linked to the city. It is difficult
artists from the last 100 years. The Cairo Tower sits to the
to imagine that only a hundred years ago, the road lea-
north and provides a spectacular panoramic view of the
ding west to the pyramids of Giza was a simple dirt track
city from the top - on a clear day you can count pyramids
through an agricultural area. Now it is a clamorous wall of
in the distance.
concrete and confusion, with numerous hotels, restaurants, nightclubs and residences. The Pyramids of Giza
The northern tip of the island is the district of Zamalek,
have drawn visitors throughout the centuries to gaze in
once a British neighborhood. Zamalek’s multitude of
awe at the “glory of the ancients”. Surrounding the
popular Western style bars and nightclubs are a big attrac-
Pyramids area are the obligatory papyrus and perfume
tion. Most of the island is dominated by the Gezira
shops catering to the needs of the tourist.
Sporting Club, a private sporting club restricted to those who can afford the pricey membership fees.
Dokki and Agouza Primarily a residential district comprising the villas and pri-
Roda Island is more densely populated, but is worth visi-
vate sporting clubs of Cairo and market areas, there are a
ting for the Manial Palace, built in 1903 by King Farouk’s
few interesting sites to visit in the area. These include the
uncle Prince Mohamed Ali Tewfik. The museum has a
Agricultural Museum and Mamhoud Khalil Museum, a
lovely collection of old manuscripts. There are no crowds
refurbished mansion displaying mostly European art and
of tourists here, making it a peaceful afternoon
sculpture collected by Khalil, a pre-war politician. Moving
destination.
205
TOURISM & LEISURE Heliopolis, Nasr City and beyond
ancient Egypt. In the Mummies room, twelve mummies of
The area east of the city center started being developed at
some of the mightiest pharaohs found in Luxor in 1875
the end of the 19th century by a Belgian entrepreneur,
are displayed. Tutankhamun’s room occupying a quarter
Baron Empain, whose residence, now unfortunately
of the second floor contains decorated furniture, golden
closed, can be seen on the way to the airport. This
statues, weapons and jewellery from the tomb of the
upmarket district has numerous Western-style shops and
great Pharaoh.
restaurants. The elegant arcaded buildings in the area around Midan Roxy are architecturally appealing.
Mahmoud Khalil Museum
Interesting sites in this area include the October War
Located in Dokki, the museum holds a fantastic collection
Panorama and Sadat’s Tomb, erected on the site where
of paintings from famous and major Egyptians and
the late President was assassinated in 1981.
foreigner artists such as Monet, Van Gogh and Degas.
Northwest of Heliopolis, and easily reached by Cairo’s
Egyptian Modern art Museum
Metro line, is Matariyya. This contains the site of ancient
This museum is located in the opera complex in Zamalek.
Heliopolis, the City of the Sun - the earliest settlement in
It shows work by 20th century Egyptian artists in a variety
the Cairo area. The granite Obelisk of Senusert I (dating
of media.
from around 1900 BC) stands at Midan al-Misallah, and 500 metres south stands the Virgin’s Tree, which suppo-
The Coptic Museum
sedly shaded the Holy Family during their time in Egypt.
Situated in the old Cairo, the museum houses a rare collection of the first Christian relics, architectural
Maadi
remains, textiles, and icons. The exhibits reveal the old
To the south of Cairo, the suburb of Maadi is a popular
Coptic art with its colours and ornamentation.
residential area for foreigners, and though it has been subject to rampant development, the tree-lined streets
Islamic Art Museum
camouflaging private villas in the older sections of the dis-
Located in Bab El-khalq Square in the Egyptian library, the
trict are a peaceful change to the hustle of the rest of the
museum holds 102,000 pieces of ancient Islamic artefacts
city. Felucca rides on the Nile departing from the docks
of all the different eras and showing the variety of Persian,
along the Corniche in Maadi are a relaxing way to spend
Mameluk and Turkish art styles.
an afternoon.
ENTERTAINMENT & THINGS TO DO
Al- jawhara palace Museum The museum established by Mohamed Ali in 1814, is located inside the Citadel. The walls are ornamented with Ottoman engravings. The clock Hall is of its most beautiful
Museums The Egyptian Museum (daily opening 9am to 4pm) Located at Al-Tahrir Square, in the heart of Cairo, the museum holds the world’s greatest collection of Egyptian antiquities and artefacts covering the whole history of
206
walls.
TOURISM & LEISURE Public Gardens
Amideast 23 Mossadak St., Dokki.
The zoo
Tel: +20 2 3378277
Located in Giza area, contains a large collection of animals and species in addition to exotic plants and trees.
British Council Offers high quality Arabic courses (modern, standard,
Cairo Garden for International Festivals
colloquial Egyptian...) A good way to meet new friends
Located in Al Zuhour district, in Nasr City, the garden con-
around town.
tains models of gardens from different countries, an
192 Nile St., Agouza.
open-air stage, and an entertainment fair.
Tel: +20 2 3031514
Cairo also contains a large number of gardens in Zamalek,
Cervantes Institute
Giza, Helwan, Old Cairo, Heliopolis, and Gezirah etc...
The spanish cultural center... Essential to get to meet the important spanish community in Cairo
Galleries
Spanish center. 20 Boulos Hanna St., Dokki. Tel: +20 2 7601746
Cairo opera house Art Gallery Opera House, Gezirah.
Goethe Institute German Culture Center
Tel: +20 2 7398131
5 Abd El Salam Arif St., Downtown. Tel: +20 2 5759877
Graffiti 28 D, Rd.232, Digla, Maadi.
Swiss Cultural
Tel: +20 2 5212044
Center Swiss Embassy 10 Abdel Khalek Tharwat St., Downtown
Gallery Salama
Tel: +20 2 5774100
36 A Ahmed Orabi St., Mohandeseen. Tel: +20 2 3463242
Cinemas
Egyptian Artists
Egypt is ranked third country for the film production, and
Zamalek Art Gallery
cinemas are everywhere in Cairo, including in malls, com-
11 Brazil St., Zamalek.
mercial centers, and hotels. Most of the cinemas have
Tel: +20 2 7351240
been renovated and built to match the international standards, with comfortable seats, central air conditioners and
Cultural Institutions
3D speakers. Going to the cinema is very popular for young Egyptians
American Cultural Centre
and families. However, bare in mind that western movies
U.S Embassy 5 Latin America St.,
are often released with cuts when women appear naked
Garden City
or for love scenes.
Tel: +20 2 7949601
207
TOURISM & LEISURE Galaxy Cinema
on here, usually more than one event per night.
630 Abdel Aziz El-Seoud St., Manial.
Gezira Island (Next to Kasr el-Nil Bridge) Cairo
Tel: +20 2 5325745
Tel: +20 2 737 0601 Tel: +20 2 737 0599
Maadi Cinema I-III Bandar Mall, 1 Palestine St., 9th District.
El-Haram Theatre
Tel: +20 2 5190455
Pyramids Road, Giza. Tel: +20 2 3863952
Normandy 32 El Haram St., Near Horreya Mall, Heliopolis.
Experimental Theatre Festival
Tel: +20 2 2580254
More than 60 productions from dozens of countries will compete in the 15th annual International Festival for
Renaissance
Experimental Theatre, with remarkably innovative plays.
World Trade Center Annex,1191,Corniche El Nil,
12 Gomhuriya St (Gomhuriya Theatre) Cairo
Downtown
Tel: +20 2 391 3956
Tel: +20 2 5804039 Floating Theatre Manial Ramsis Hilton
Kobri El-Gamaa
Nice family atmosphere in this old fashion theatre.
Tel: +20 2 3649516
Ramsis Hilton Hotel Abd El-Monein Riad Square Tahrir, Downtown.
Hanager Theatre
Tel: +20 2 5747436
Opera House Grounds, Zamalek. Tel: +20 2 7356861
Theatres Night Life There are a number of lovely theatres scattered around Cairo, most of which are Arabic-language. However, you
Cairo comes alive at night, when it is the best time to shop,
can enjoy international venues and performances at the
eat delicious Middle Eastern cuisine or simply watch the
opera halls or the open-air theatre of Cairo Opera House,
world go by from a pavement cafe. You can dine in a floa-
or international productions and innovative plays during
ting restaurant on the Nile, sample an apple-flavoured
the International Festival for Experimental Theatre.
shisha water pipe at a coffee shop or see oriental dancers and cabarets at a luxury hotel. The splendid Opera House
American University in Cairo Theatre
complex holds several restaurants and concert halls.
113 Kasr El Aini St., Downtown
Listening to Arabic music under the stars, in the open-air
Tel: +20 2 7942964
theatre, is a magical experience. At El-Ghuriya, in the heart of Islamic Cairo, you can watch whirling dervish dancers.
Cairo Opera House Performances
Also don’t forget the most essential after-dark experience,
Stunning jewel of postmodernist architecture incorpora-
the Sound and Light show at the Pyramids, a dramatic
ting Islamic and Pharaonic motifs. Opera Halls, open air
fusion of light and music recounting the story of antiquity.
theatre, or amphitheatre, there is always something going
(See “Dining in Cairo” section).
208
TOURISM & LEISURE Music
Sports
Though western music can be heard in nightclubs and
Cairo and Egypt are a godsend for sports. Sports & Fitness
bars, few places play the folkloric Egyptian music. The
magazine has especially good listings of dive centres in
Cairo Opera House has a unique stage show of Egyptian
Cairo, Hurghada and Sinai, and keeps readers informed of
music (besides other international shows). The Mausoleum
the latest in the sporting field.
Al-Ghouri also hosts free Sufi music Tel: +20 2 5100823 Jazz lovers will surely go to the Cairo Jazz Club to hear its
Aerobics
live jazz and oriental music show Tel: +20 2 3459939
CSA in Maadi, Samia Alloubaâ&#x20AC;&#x2122;s creative dance and fitness
which gets very lively on weekends. At After Eight located
centre has good classes and does the gezirah sporting
down town, you can hear live music while dining and
club.
drinking. Baseball Victory college field in Maadi, they send teams abroad for competitions every Friday from September to May. Basketball Check with the Basketball federation and contact Cairo American Collegeâ&#x20AC;&#x2122;s athletic department or else Maadi house, both located in Maadi. Belly-Dancing Lessons are given at the creative dance & fitness centres in Maadi and Dokki. Boating The Cairo Yachting Club on the Nile in Giza accepts memberships from sail and motorboat owners, the annual fee is around $1.200, Rowing, water-skiing and windsurfing The traditional Dervish tourners at the Citadel
are also available from the marina.
For those interested in studying music we recommend the
Diving
following contacts:
The Red Sea is believed to be equal or even superior to the
Cairo Choral Society director Larry Catlin
Great Barrier Reef of Australia for Diving & Snorkelling, no
Tel: +20 2 7354197
wonder that it is big business in Egypt, through many of
Cairo Music Centre Mr. Tobgy
the diving schools and clubs in Cairo and the resorts, one
Tel: +20 2 2667544 / 8649
can get the PADI open water diver certification in about a
Maadi Community Choir director Barbara Comar
week.
Tel: +20 2 7029393
209
A dream sport session on the Nile
Various diving clubs like the British Sub Aqua & Cairo
Khan el Khalili “suq”, (or bazaar) largely unchanged since
Divers Club sponsor exploration trips, under water photo-
the 14th century. Cairo also offers an incredible selection
graphy exhibits and marine life lectures.
of shopping places and modern air-conditioned malls displaying the latest fashions.
Fishing & Hunting
Try some of the famous street markets like Wekalat al-
Lake, river and deep-sea fishing are popular in Egypt.
Balah for fabrics and Egyptian cotton, the Tentmakers
One of the best source for hunting and fishing gear is Abu
Bazaar for appliqué-work, Mohammed Ali Street for
Dief on Sharia al-Tahrir DownTown.
musical instruments, carpets and rugs in Wissa Wasef craft village, and although you probably will not want to
Health Clubs
make any purchases, the Camel Market makes a fascina-
These are mushrooming everywhere, but Heliopolis pro-
ting trip.
bably has the highest concentration of them.
WHERE TO STAY IN CAIRO
Shopping Cairo has most of the big names in hotels creating a big Cairo is an exciting Bazaar that fascinates and confuses
and confusing choice for its visitors, and providing a large
most newcomers.
variety of accommodations in Egypt.
Although you can find almost everything in the famous
We recommend The following:
210
TOURISM & LEISURE Conrad Cairo
Le Méridien Heliopolis
A main stop for social events, and one of the best busi-
Located near the conference centre and the airport, it
ness hotels in the Middle East.
pays special attention to corporate clientele.
1191 Corniche El Nil, Maspero.
51 Oroba St., Heliopolis.
Tel: +20 2 5808000
Tel: +20 2 2905055
Four Seasons Hotel
Sonesta Hotel
One of the very few justified five star hotels in Cairo, housing 269 rooms and suits, with a lovely view overlooking the Nile and the great Pyramids. 35, Giza St. Tel: +20 2 5731212
Grand Hyatt Cairo
Located not that far from the airport on the main road,
A luxurious landmark located on the Roda Island, also one
one of the very few luxurious hotels in Nasr City.
of the very few justified five stars, located within the busi-
Cairo 4 El-Tayaran St., Nasr City.
ness and commercial districts down town.
Tel: +20 2 2628111
Corniche el Nil, Garden City. Tel: +20 2 3621717
EGYPTIAN FOOD
Cairo Marriott
Most of the so-called “Egyptian food” does not originally
One of the largest hotels in Egypt housing 1250 rooms
come from Egypt, but from Greece, like the Bechamel
and Suites, built around a royal residency.
pasta, Turkey like all stewed vegetables and Lebanon, like
16, Saray El-Gezirah, Zamalek.
the Shawerma. However the strong melt of old cultures
Tel: +20 2 7358888
made it so.
Semiramis Intercontinental
We recommend:
The hotel hosts the largest and most extensive conference and meeting facilities in Egypt, overlooking the Nile.
- Foul fava: beans, stewed and eaten with bread, usually
Corniche el Nil, Garden City.
eaten at breakfast.
Tel: +20 2 7957171
- Taameya: deeply fried fava beans paste mixed with green leaves vegetables, often served with Foul for breakfast.
211
TOURISM & LEISURE - Koshary: a mixture of carbohydrates including rice, lentil,
EGYPTIAN DRINKS
pasta, noodles, topped by fried onion and red sauce Egyptians will say that if you drink from the Nile once, you
mostly chilli. “Delicious”
- Kebab: Grilled meat or kofta “minced meat” normally on the charcoal.
will always come back to Egypt.
- Molokhia: a juicy liquid based on green leaves of
Water and fresh juices
Molokhia mixed with rice. - Stuffed Pigeons: The pigeon comes with rice, crushed
Normally tap water is drinkable when it comes from the
whole wheat, or soup.
Nile, however foreigners and some Egyptians prefer
- Kobiba: Meatballs deeply fried.
mineral water available in more than 50 brands. Brightly
- Baba Ghanog: Typical salad made of grilled eggplants
coloured juice bars attract thirsty customers with strawbe-
peeled and mashed with olive oil and salt, some might mix
rries, oranges, mangoes, banana and the typical sugar
it with Tahinah.
cane juice. Fresh juices are very cheap in Egypt.
- Tahinah: “salad” sesame paste mixed with vinegar and water, served as dip or sauce. - Hummus: paste of Chickpeas, mixed with Tahinah, olive
- Lemonade: “Limoun” is also a very common drink in Egypt. The lime juice (and not lemon juice) is very sour, so you can add sugar to it.
oil, salt and other spices.
An arco-iris market in Alexandria
TOURISM & LEISURE Alcoholic Drinks
Fish Market A huge fresh variety of seafood that you choose yourself
- Beer: The locally brewed Stella beer is quite enjoyable,
to be cooked the way you want; one of the most elegant
while the more expensive Stella Export, Premium, Meister,
places to eat seafood.
Heineken and Sakkara gold are stronger.
26 El Nile St., Giza
- Wine: The quality of local wine is considered average. It
Tel: +20 2 5709693
has improved after the Gianaclis Winery was privatised. “Obélisque” a newcomer brand to the market makin tasty
Casablanca
red and white wine from imported grapes.
Typically Moroccan food salads, soups, Tajin, chicken with
DINING IN CAIRO
lemon, mint tea along with Moroccan traditional music. Cairo Sheraton Hotel Tel: +20 2 3369700
Cairo has a good selection of restaurants, set menu in hotels and restaurants offer an international cuisine with
Sangria
the occasional Egyptian dish. Cheaper restaurants often
This place is well known for the young middle upper class
do not serve alcohol.
Egyptians, with its extraordinary hall, big terrace, and beautiful view. Enjoy their Mezzah.
Down Town
Corniche El Nil, in front of the World Trade Centre. Tel: +20 2 5796511
Sabaya Restaurant Typical Lebanese food. Try the Falafels!Mmmhhh.
Heliopolis
Semiramis Intercontinental hotel, Corniche El-Nile. Tel: +20 2 7951717
Cortigiano A remarkable Italian cuisine with warm wooden decora-
Le Grill
tion. Enjoy their onion soup and chicken crème; Pizzas are
With a very nice view over the Nile, calm and relaxing
also worth a bite. Ma que buono!
place, French cuisine, very good and fast service. Bon
14 El-Safir Samir Mokhtar St., Behind Almaza Central.
appetit!
Tel: +20 2 4142202
Hotel Semiramis Intercontinental, Garden City. Tel: +20 2 7957171
Piano Bar Restaurant “Rossini” Italian Seafood restaurant, where you can dine in the
The Revolving restaurant
terrace listening to live music.
A specialist of Mediterranean food, especially deserts. The
66 Omar Ibn El-Khattab St.
restaurant is well known for its wonderful view (41st
Tel: +20 2 2918282
floor) of the city. Recommended at Night. Grand Hyatt Cairo Garden City
Mashawina
Tel: +20 2 3651234
Calm place to eat grilled meat and kofta. The menu is exotic. We recommend the tarte of pistachio with mesteca for desert.
213
TOURISM & LEISURE 3 Abdel Moneim Hafez St.
8 Amman Square.
Tel: +20 2 4158442
Tel: +20 2 3365583
Zamalek
O-negrao Egyptian youngsters from the middle upper class enjoy
Le Morocco
lively music and original Brazilian and South American
In a “one thousand and one nights” decoration style,
food in an alternative décor.
enjoy the nice variety of food and fresh wine and have
14 Gezirat El Arab St.
one of these dinner nights by the Nile.
Tel: +20 2 3037198
Blue Nile Boat, 9 saray El Gezirah St. Tel: +20 2 7353314
Villa Rosa Nicely decorated with white candles and canoes pictures
Abou El Sid
everywhere. The Villa Rosa offers a nice variety of pastas.
Very unique Egyptian restaurant; the decoration is mixing
Fast and efficient service.
the old oriental and elegant heritage, with king Farouk’s
12 El Mahrouky St.
furniture style. It is calm for lunch and livelier at night for
Tel: +20 2 3038696
dinner. 157 26th of July.
Pyramids
Tel: +20 2 7359640 Andrea Maison Thomas
Enjoy the original Egyptian BBQ kebabs and shish tawook
Old French chain of restaurants based in Cairo for more
or other plates of chicken, salads. Try their nice fresh
than 80 years. Excellent Pizzas, ham and other variety of
wine.
food.
50-60 Marioutiya Canal, Giza.
157 26th of July St.
Tel: +20 2 3831133 - 3854441
Tel: +20 2 7357057
Maadi Nile City Boat (floating restaurant) Huge ship combining 6 different types of restaurants ran-
Mermaid
ging from traditional, American, Lebanese to Italian and
Italian restaurant with Mediterranean ambience. Start
sea food.
your meal with a hot tomato or onion soup then go for
Corniche El-Nil. Besides Le Pacha Boat.
spaghetti with mushrooms or try their cannelloni. Do not
Tel: +20 2 7353084 - 7380651
miss the banana boat with chocolate sauce. 77 Street 9.
Mohandessin Le Tabasco Their food is really unique with original recipes of the chef. The chocolate cake is a must. Nice atmosphere and lively music.
214
Tel: +20 2 3583964
TOURISM & LEISURE GOING OUT IN CAIRO
Down Town. 6 Kasr El Nile St. Tel: +20 2 5740855
Absolute The first stop of the evening for Cairo’s young and beau-
EXCURSIONS
tiful people, a DJ spins nightly in this highly acclaimed nightspot. With tasteful decor, good music and a buzzing
To get away from the bustle of the city capital without
crowd.
even leaving Cairo, go for a day pass at one of Cairo’s
8 Amman Square
major hotels or county’s clubs; it usually starts at 9:00 am
Tel: +20 2 7497326
up till 6:00 pm, you may also be allowed free use of the health club and the gym.
La Bodega
The ideal location of Cairo and well-paved roads makes it
Cairo’s hottest bistro and lounge, recreating Belle Epoque
possible to escape from the city for one day or less...
design. Skilled chefs to prepare a choice of mediterranean dishes, good wines (but at exorbitant prices) and heavenly
HALF A DAY TRIPS
cocktails... 157 26th of July Street
Giza Great Pyramids
Tel: +20 2 7356761 On the west bank of the Nile facing Cairo rise the three
Cafe Riche
oldest Pyramids designed by the brilliant architect
Once a favourite literary hang-out, this historic bar and
Imhotep, and erected by Cheops, Chepren, and
bistro has been faithfully restored to its former glory.
Mycerinus to be used as a burial site, and guarded by the
Caricatures of famous Egyptians line the walls. Sakara
mysterious Sphinx.
beer comes on tap and wines are moderately priced. 17 Talaat Harb Street
The Pyramids of Egypt, built at Giza during the 4th
Tel: +20 2 3929793
Dynasty are the oldest of the seven wonders and the only ones remaining intact today.
Cairo Jazz Club With its cozy and lively atmosphere, the Cairo Jazz Club is
The three pyramids are devoted to the father-son-
the only real place in town, with nightly shows that varies
grandson trio of Cheops, Cephren and Mycerinus ...
every day, and aren’t limited to jazz . A must see in Cairo
The best time to visit the area is early in the morning. As
night life...
the day wears on, the crowds increase, especially during
26th July St., Mohandesseen
Egyptian holidays, as does the chance of being assaulted
Tel: +20 2 3459939
by dozens of postcard vendors and men offering rides on camels. The Giza pyramids are easily reached by city taxis
After Eight
or public transport.
Enjoy the live music (modern oriental and innovative arabic music)... The choice of singers and DJ’s is always
The Pyramids are a marvel of engineering, and archaeolo-
excellent and will make you feel like using the small dance
gists have puzzled over exactly how they were built - and
floor
some more esoteric types have wondered why. It is,
215
Would you like to ride around the Giza piramids?
however, generally accepted that the Pyramids were built
This pyramid is the largest and the most enigmatic in
as tombs for the ancient kings, an evolution from the
Egypt. The Tura limestone which once encased the granite
single-stepped mastabas that designated burial sites in
structure is no longer intact, and the pyramidion (caps-
earlier times. Pyramid building was popular from about
tone) is long gone. A separate ticket is required to enter
the 3rd to the 13th Dynasty with the biggest and best
the Pyramid, and since the authorities have limited visitors
examples to be found in Giza.
to 300 a day, it is advisable to arrive at the nearby ticketkiosk early in the morning.
Pyramid of Cheops The first to attract your attention upon entering, 146 m
From the entrance, the descending passage takes you
high, while still experts debate the exact technology used
down to the Subterranean Chamber, whilst the ascending
in its construction.
passage takes you up to the Queen’s Chamber, which is not, a burial chamber. Continuing the ascent, the spa-
Not much is known about Cheops (Khufu; c.2585-2560
cious Grand Gallery brings you to the King’s Chamber,
B.C.E). The tomb had been robbed long before archeolo-
where the granite sarcophagus of King Khufu lies empty.
gists came upon it. Any information about him was taken
Unlike other Pyramids, the King’s burial chamber is above
with the objects inside the tomb. He is thought to have
ground. Two small openings can be seen in both the
been the ruler of a highly structured society and he must
King’s and Queen’s chambers - these are the controversial
have been very wealthy. He was buried alone in this mas-
“air shafts” which have spawned all sorts of interesting
sive tomb. His wives may have been buried nearby in sma-
theories.
ller mastabas.
216
TOURISM & LEISURE Chephren
The restored Sphinx
From a distance one would believe that this was the lar-
The everlasting smile, Middle East’s answer to Mona Lisa,
gest of the three pyramids at Giza - but to an extent it is
can be seen at the funerary temple below the pyramids of
an optical illusion, for Chephren’s pyramid sits higher up
Chephren. A major restoration project has been lately
on the plateau from that of his father: Cheops.
completed.
There are no inscriptions in the pyramid and no evidence
The Sphinx, with its monumental proportions, lion’s body,
that anyone was ever actually entombed here. Of course
and human facial features, provides an unexpected natu-
it had been visited by thieves long before modern man
ralistic contrast to the geometric shapes of the pyramids.
entered.
The Sphinx was carved out of a natural outcropping of rock around the time of the construction of the Pyramid
Mycerinus
of Chephren. The features are thought to be those of
This is the smallest of the three great pyramids at Giza and
King Khafre wearing the royal nemes headdress. The
was built for Chephren’s son: Mycerinus. It is significantly
uraeus (rearing cobra) which originally sat on the king’s
smaller than the other two, rising to a height of only 66.5
forehead is now lost, but fragments of his beard which
metres. It had not been completed by the time that
were added during the New Kingdom, are in the Cairo
Mycerinus died. The lower section of it has been cased in
Museum.
red granite; perhaps the cost was too great to finish it.
Sound and light Featuring lasers in three different languages, you can see
The sarcophagus was found in the pyramid and was
the show of the great pyramids every single night. If you
removed for transport to England. The boat sank off the
seek solitude, the people in the stables could arrange
coast of Spain, and its contents were never recovered.
overnight expeditions through the dunes. Camel and horse back riding Located behind the sound and light, you can rent a camel for short and long trips, and use your talent to bargain the price down that normally goes around 100 L.E an hour. Abdalla Yosef is a very good provider. Abou El Mooi Square, Giza Pyramids Tel: +20 2 3838207
Memphis and Saqqara Memphis The ruins of Memphis give but a little idea of the glory of the world’s first imperial city. The city was founded around 3100 BC by Menes, who united the southern and northern regions of Egypt and was the first pharaoh to wear the double crown of Upper The guardian of the pyramids after almost four millenium
and lower Egypt.
217
TOURISM & LEISURE the first ever constructed of stone. Zoser’s Step Pyramid is the oldest standing large stone structure in the world and the oldest of Egypt’s pyramids. The Step Pyramid (and funerary complex) was designed by the architect Imhotep, who was later worshiped as a god for his exceptional work. A number of small pyramids and tombs of kings and nobles are still standing in Saqqara. If you are looking for a place which provides excellent insight into ancient Egypt, with less of a crowd and a bit of peace and quiet, visit Memphis and Saqqara.
Pharaonic Village Memphis, the capital city of ancient Egypt
The Pharaonic Village is located in Giza. Visitors board motorboats and go through canals passing statues of the
Many of the structures of ancient Memphis have disape-
gods and historically reconstructed scenes of ancient
ared. Today, Memphis is a pleasant open-air museum of
papyrus making, temple wall painting and mummifica-
scattered relics of the city’s history. A limestone Colossus
tion. All described in details through a guide speaking the
of Ramses II, more than ten meters high, housed in a con-
language of your choice.
crete pavilion, together with a sphinx carved from a single block of alabaster are most of what remains of the city’s
ONE DAY TRIPS
monuments. The museum garden also houses more statues of Ramses II, the sarcophagus of Amenhotep and the
In general, most of the cities of the Delta “Governments”
alabaster beds on which the sacred Apis bulls were mum-
could be visited for the day. Enjoy the day there and end
mified before being placed in the Serapeum at Saqqara.
up at any of the cheap restaurants before returning to Cairo by the end of day.
Saqqara Since the founding of Memphis, Saqqara has served as
El-Fayoum
one of the necropolises, or burial grounds, for kings and nobles. Stretching for 8 kilometers, Saqqara is the largest
If you would like to get a real feel for the ancient land of
royal burial ground in Egypt: deceased pharaohs and
Egypt and do not really want to deal with the crowd, your
family members where transported from Memphis to be
destination is Fayoum oasis. Fayoum is a microcosm of
enshrined in the necropolis which was believed to be pro-
archaic Egypt. It is a city of 500.000 Inhabitants El-Fayoum
tected by the god Soqar, hence its name.
depends on Nile-fed canals, originally dug in the region of king Amenemhat III for its water. Farmers are still seen
Saqqara is most famous for the Step Pyramid of King
operating in the ancient water wheels.
Zoser’s (also ‘Djoser’) of the 3rd dynasty, who chose
Fayoum is host to numerous archeological sites,
Saqqara as the site for his funerary complex, which was
218
TOURISM & LEISURE Due to the canals in the area, Medinet El-Fayoum has
make it a good escape from the pollution. As to tourism
been called “the Venice of Egypt”. The city was first
and places of interest, Ismailia is strengthening its position
known as Crocodilopolis, and has a substantial Coptic
as a city of the future in tourism field. There are lots of
presence. It is the capital of the province, and also the
opportunities to have cultural and historical recreation,
transportation network of the area.
but there are also chances to relax in peaceful natural
All of the canals, roads, and train rails in the Fayoum con-
surroundings. It is undoubtedly the place to be.
verge at Medinet El-Fayoum, including the famous Joseph’s Canal, are thought to have been built by the
The Ismailia Governorate has several ancient and antique
biblical Hebrew Joseph.
areas like: Tal Al-Maskhota in Abu Seir village ( god Aton temple made from basalt, a Ptolemies alabaster coffin
The city’s dominant attractions are the water wheels built
from the Ptolemi age), Tal Hassan Dawod (about 4 km far
by the Greek settlers, the canals, and the Obelisk which
from Ismailia. It is one of the places dating back to the
stands at the city’s northern entrance and was erected in
pre-historic age and beginning of the dynasties. There are
honor of Senwosret I (12th Dynasty). This monument was
350 tombs dating back to the beginning and before the
originally found in two pieces during the 18th century and
dynasties age.)
was recently reconstructed and erected in the City. It is thought to be the only Obelisk in Egypt with a rounded
For the relaxing part, lake Timsah is known for its calm
top, and has a cleft where a golden statue of Ra was ori-
water on which many beaches are located and where
ginally placed.
there is opportunity for many water sports. It covers an area of 14 square km. The beaches that over-
The canal is the main avenue for most commerce in the
look the lake are Moslem Youth, Fayrouz, Melaha,
city. The covered market place and the adjacent street of
Bahary, Taawen, in addition to the Suez Canal Authority
gold smiths found across the 4th bridge to the west of the
beaches.
central tourist office are worth a visit.
Mansoura Wadi Rayan Said to be home for the most beautiful women, like most Less than an hour out of Cairo near Fayoum, lies a world
of the Delta cities, Mansoura offers all possibilities for
of water falls, fresh air and picturesque vistas, and makes
walking, dining and relaxing on the cheap. Enjoy driving
it an ideal escape from the crowds. The two lakes are
along the agricultural road, where the endless acres of
surrounded by desert; fishing amateurs will have a won-
greenery are a refreshing change from the dreariness of
derful time as well.
Cairo.
Ismailia Originally built as a garden city for the employees of the
TWO-DAYS TRIPS THE NORTH COAST
Suez Canal, Ismailia is located 120 km on the west Shore of Al-Temsah Lake”. Its wide, clean, planted avenues
The 500 km stretch of coastline between Alexandria to Marsa Matruh known as the Northern cast is one of the most enigmatic tourist destinations ever.
219
TOURISM & LEISURE The azure Mediterranean waters and white sandy beaches
Mediterranean nations. It had an atmosphere that diffe-
are unparalleled anywhere else in Egypt.
rred from the rest of Egypt due to the presence of a large
If you’re after laid - back tanning, frolicking in the waves or
Greek community. For the first time, the Greek language
sandcastle buildings, the Mediterranean beats the Red
was used as a vernacular while the Coptic language
Sea hands down, and the north coast weather is a good
replaced hieroglyphic dialects.
10 degrees Celsius cooler than on the Red sea. The city had once two of the most important world monu-
ALEXANDRIA
ments unfortunately long vanished: the Ancient Library and the Pharaohs (lighthouse) described as one of the
Alexandria is located on a narrow strip of land between
Seven Wonders of the World.
the Mediterranean Sea and lake Mariotis. The second largest city of the country with 4 million inhabitants rests
The Library was a center of learning in the area and a
upon 2300 years of rich history and melting pot.
praised destination for ancient scholars who sought kno-
Alexandria has an atmosphere that is more Mediterranean
wledge and wisdom. It was burnt in unknown circums-
than Middle Eastern.
tances. The New Bibliotheka Alexandrina was built under
Founded by Alexander the Great in 331 BC, it is known as
the auspices of UNESCO with a unique design to recall the
“The Mediterranean Mermaid”. The capital of Greco-
memory of Alexandria’s ancient one.
Roman Egypt symbolised by the legendary lighthouse that
The Pharos of Alexandria, was one of the highest monu-
was one of the Seven Wonders of the World.
ments on earth at that time and was destroyed by succes-
From the Ptolemaic era until the Arab conquest in 641
sive earthquakes.
AD, Alexandria was the capital of Egypt. During that
Alexandria is also the city were the legendary Queen
period, it was a center of science and literature for the
Cleopatra once lived with her lover Mark Antony. Alexandria was the first city in Egypt to embrace the
Sunset on the mediterranean sea in Alexandria
220
TOURISM & LEISURE Christian religion when Saint Mark visited it, preaching
Caesar during his invasion of Alexandria in 48 BC, Ceasar
the religion, in the 1st century AD. Up to now, it remains
set the enemy fleet in the harbor on fire, and the fire
the seat of Coptic Christian patriarchs.
suposedly spread into the city and destroyed the entire
Today the city has unparalleled collection of Greek and
library.
Roman monuments and is one of the major cultural
There are also allegations dating to medieval times that
center of the region.
claim that Caliph Omar, during an invasion in the 7th century, ordered the Library to be destroyed.
There and away
The Bibliotheka’s beautiful new building is located in Shatby district. With its distinctive granite wall covered by
EgyptAir operates daily flights from Cairo to Alexandria.
the letters of all the world’s alphabets, the New Library is
However, the most comfortable and convenient way to
today a recognisable landmark of Alexandria.
reach Alexandria is by train. Tickets cost about EGP 30
The Bibliotheca Alexandrina is a place of learning, dia-
and the trip lasts about 2h15. Trains leave at 9am, noon,
logue and tolerance. This vast complex of culture and
5pm from Cairo.
scientific excellence includes :
Places to visit
A Library for up to eight millions books, six specialized libraries, three museums, seven research centers, two per-
The New Library of Alexandria
manent exhibitions, six art galleries, a planetarium, an
The great bibliotheka of Alexandria stood as an intellec-
Exploratorium and a conference center for thousands of
tual centre during the Ptolemic Era. The library was a
persons.
media to all scientists and a source of knowledge to the
Visitors may access all library resources and join guided
Mediterranean region. Unfortunately, the Library was
tours. This ticket includes also access to Permenant
completely destroyed.Few events in ancient history are as
Exhibitions, « The World of Shadi Abdel Salam » and «
controversial as the destruction of the Library.Some histo-
Impression of Alexandrie » as well as Temporary
rian attribute the destruction of the library to Julius
Exhibitions. Bibliotheca Alexandrina P.O. Box 138 El Shatby, Alexandria 21526, Egypt Tel: +20 3 4839999 www.bibalex.gov.eg Qaitbay Fort On the northern tip of the Eastern Harbour, the fort is an Alexandrian landmark as it is located on the site of the ancient lighthouse of Alexandria. Of the Seven Wonders, only one had a practical use in addition to its architectural elegance: The Lighthouse of Alexandria. It ensured sailors a safe return to the Great Harbor. For architects, it meant
The new “Bibliotheka Alexandria” pays tribute to the
even more: it was the tallest building on Earth. And for
Legendary Ancient Library
scientists, it was the mysterious mirror that fascinated
221
TOURISM & LEISURE them most... The mirror whose reflection could be seen
Anfushi and Ras El-Tin
more than 50 km (35 miles) off-shore.
These two districts, known as the Turkish quarter date
Shortly after the death of Alexender the Great, his com-
back to the period of Mohammed Ali. The Anfushi Tombs
mander Ptolemy Soter assumed power in Egypt. Because
from the 3rd century lie in front of Ras-Al-Teen entrance.
of dangerous sailing conditions and flat coastline in the
They are decorated with pictures of Egyptian Deities and
region, the construction of a lighthouse was necessary.
daily life.
The project was conceived around 290 BC, but was completed during the reign of his son Ptolemy Philadelphus.
Abu El-Abass Mosque
In AD 956, and later 1303 and 1323, earthquakes shook
Situated in El Anfushi, this Andalusian style mosque is the
Alexandria, and caused a lot of damage to the
largest in the city. It has been built in an Andalusian Style
Lighthouse.
with four domes and a towering minaret.
In 1480 the Egyptian Mamelouk Sultan, Qaitbay, decided to fortify Alexandriaâ&#x20AC;&#x2122;s defense.
Suq District
From a linguistic standpoint, it gave its name - Pharos - to
Like in any oriental souk, you can find all products from
all the light houses in the world... Just look up the dictio-
jewellery to medical plants. This souk was based on the
nary for the French, Italian, or Spanish word for ligh-
former Alexandria Jewish community.
thouse. Today, the fort houses a mosque and the Naval Museum. It also gives a wonderful view of the city and the
Where to Stay
Mediterranean. Sofitel Hotel (Cecil) Roman Amphitheatre
You pay more for location than for quality.
Discovered recently, the excavation work is still in pro-
Ramleh station. SAAD Zaghloul Square.
gress. The Roman amphitheatre consists in 12 rows of
Tel: +20 3 4807224
semi circular marble seats for up to 800 spectators. Itâ&#x20AC;&#x2122;s the only relic of this kind in Egypt.
DAMANHUR
The Catacombs of Kom Ashuqqafa
Damanhur is located 160 km northwest of Cairo in the
The largest Roman cemetery in Alexandria dates back to
middle of the western Delta. It was once the site of the city
the beginning of the 2nd century. The catacombs are
of Tmn-Hor, which was dedicated to Horus. One attraction
composed of three levels, which cut 30 metres deep into
for a visitor occurs in November when there is the Moulid
the existing rock. The Triclinium where relatives used to sit
of Sheikh Abu Rish.
to feast the death is a blend of Pharaonic and Roman art. Rabbi yaacov abuhasira zt'l left morocco to egypt to cooGreco-Roman Museum
lect funds for the schools and poor people in morocco he
A notable museum well worth a visit. The museum houses
went to alexandria ,egypt where he stayed 2 years then
many collections of rare Greek and Roman relics and coins
the rabbi got weak and ill and passed away he was then
from the 3rd century BC to the 7th century AD, sowing
buried in the cemetary the jews were buried in Damenhur
the slow shift from Pagan religion to Christianity.
he passed away on the 20 th of tevet in the jewish calender a day people all over the world fly to egypt to visit the tomb of the great rabbi yaacov abuhasira.
222
TOURISM & LEISURE Sheraton Montazah
Marina El Alamein is like most of the villages that extends
Located in front of El-Montazah Palace.
along the North Coast where life dies in the winter and
It has a wonderful sea view.
resurrects in the summer with the wealthy clientele sta-
Tel: +20 3 5480550
ying in the numerous luxurious villas and residences. With plenty of natural and man-made lakes and lagoons, Marina
Mercure Hotel
is an ideal spot for jet and water Skiing. Extending over 20
Located by the sea in Stainley neighbourhood, one of the
km along the coast, it has turned into a miniature town that
high-class areas in Alexandria.
hosts all services ranging from cinemas, theatres, malls... .
Roomâ&#x20AC;&#x2122;s rates are cheaper than other hotels with a nice promenade area.
There and Away
Tarek El-Geish Saba Pasha St. Tel: +20 3 5840911
West Delta Buses travelling between Cairo - Alexandria and Marsa Matruh pass trough Al-Alamein, though you
Hilton Plaza
can also go to a service depot or minibuses from
Becoming the favourite, the hotel is located close to a
Alexandria and name your destination.
shopping centre with lots of restaurants. 14 Mayo Bridge Semouha.
Where to stay
Tel: +20 3 4209130 Hilton Borg El-Arab
Where to Eat
Comfortable, efficient five stars facility, its food is just average.
Mohammad Ahmad
Tel: +20 3 374730 / 40
Foul (fava Beans) lovers flock to this family favourite. 17 Abd El Fattah El Hadari St. Ramleh Station,
El-Alamein Hotel
Tel: +20 3 4833576
Located in Sidi Abd El Rahman in the most beautiful natural bay on the North. The pristine water is an amazing
Kadoura restaurant
shade of turquoise, the sand is sparkling white and the
Locals rave about its delicious seafood with a wonderful
accommodation is excellent.
sea view.
Tel: +20 46 4680140
Corniche, towards the Qaytbay Fortress. Tel: +20 3 4800967
EL ALAMEIN El-Alamein is located 104 km west of Alexandria. It is
Atic Hotel Reasonably priced 3 stars hotel. Tel: +20 46 4106183
Where to eat
known for its serenity, its moderated climate. In 1942, Allied forces led by Sir Montgomery halted the advance of
The El Alamein road along the beach does not offer that
the Germans saving Alexandria, Cairo and the Suez Canal
much variety of restaurants and most of your food choice
from Nazi takeover.
will be at the hotel or the apartment you are staying at, however we recommend:
223
TOURISM & LEISURE Hanouna
Turgoman bus stop (down town) to Suez every 30
An unassuming villa on the desert side of the road in Sidi
minutes and hop a microbus for a 20 min ride to reach
Abd El Rahman across Diplomat’s Village. With a casual
Ain Sokhna.
outdoor seating area, and a nice bar, the restaurant serves freshly baked local bread.
GULF OF SUEZ READ SEA COAST
Where to stay Palmera Beach Resort Egyptians and resident foreigners could pay around EGP 300 pounds for a double room on half board basis
Ain Sokhna
Tel: +20 62 4108124
If you live in Cairo, away from the beach but can not seem
Ramada Resort
to find the time to get all the way out to Hurghada or
Deluxe Resort located by the crystal blue water of the Red
Sharm El-Sheikh, then Ain Sokhna is your destination,
Sea. It costs around EGP 500 pounds for a double room
only 120 km south of Cairo. It is a perfect place to go with
on half board basis.
the family.
Tel: +20 62 2905010
Ain Sokhna can be translated as “hot spring” and the name originates from sulfur springs in Gebal Ataqa, a
Hotel Stella di Mare
nearby Eastern Desert mountain. Ain Sokhna is a town
Located far from the road, probably the best hotel and
(actually a region) located on the Gulf of Suez, that stret-
the most expensive in Ain Sokhna, with its nice swimming
ches from just south of Suez down the coast for about
pool and its cascade.
sixty kilometers, and mostly consists of a port along with
Tel: +20 62 2501001
a series of resort complexes, with a few independent restaurants, gas stations and other facilities scattered along
Dining options are limited mostly to the hotel you are sta-
the coastal road. It seems only natural for this region to be
ying at where you will probably want to remain in the
so developed, considering that it represents the closest
relaxing compounds.
beaches to Cairo. Traditionally, Ain Sokhna is a purely Egyptian retreat, only recently becoming an international destination. In fact, most of the the resort complexes consist of vacation villas
THREE DAYS TRIPS NORTH COAST
owned by Upper and Upper Middle Class Egyptians. However, many of the complexes also provide hotel
MARSA MATROUH
accommodation. These range from rather quaint facilities for Middle Class Egyptians and probably some Europeans
About 500 km north west of Cairo, Marsa Matruh marks
to International Five Star Hotels.
the end of the so called “North Coast” and can easily claim some of the most hypnotic sea views in the country.
There and away
Home of the best beaches on Egypt’s north coast, Marsa Matruh is one of the best romantic getaways with sandy
Located about 110 km East of Cairo, you can either drive
white beaches, and clear turquoise water.
straight in less than 90 minutes or take a bus from
The beaches are famous for their white soft sands, and
224
TOURISM & LEISURE calm transparent waters, as the bay is protected from the
cliffs plunge down to meet azure waters. Swimming is not
high seas by a series of rocks forming a natural wave-bre-
always permitted, however you can still enjoy the beauty
aker, with a small opening to allow light vessels in.
of the place.
Alexander the Great stopped in Marsa Matrouh during his
Beau Site Hotel Beach
historical expedition to pay tribute, and sacrifice, to the
Has one of the most beautiful beaches around; it is
god Amun, to become Amun’s son and be a historical
cleaner and more beautiful than any others in the row.
continuation of the pharaohs. Rommel’s isle
There and Away
The eastern part of the harbor. The Rommel Museum is located in the caves that Rommel used as his headquarters
Egyptair serves Marsa Matruh’s Airport several times a
during the Germany’s North African Campaign. The
week.
museum displays several possessions of the German com-
It takes around five hours driving from Cairo; Buses also
mander like his compass, overcoat, photographs, maps
ride from Torgoman to Tahrir Square. Trains also leave
and clothes trunk. The beach outside is a favorite destina-
from Alexandria at 6am and 3pm. The 6hr ride will cost
tion for a lot of Egyptian families.
about EGP 30. Cleopatra’s Beach
What to do
14 km west of the city. Legend says that the Queen Cleopatra and Mark Antony would come here to bathe.
Egyptian Fleet Anchorage Built by the Ptolemies, the remains of the naval installa-
Where to stay
tions still stand west of the port. Beau Site Hotel Coptic Chapel
A relaxing three star hotel gets lively in the summer
Built during the early Coptic age, the Chapel contains
Tel: +20 46 4934011
several caves bearing inscriptions. Lido Hotel Marina Ruins-Alamein
Impeccable rooms, with new beds, fans, TVs and balco-
An ancient city discovered in 1985. It is the largest
nies.
archaeological site after Alexandria; the ruins of temples,
Tel: +20 46 4932248
tombs, baths and houses, from the Greco-Roman period are definitely worth the visit.
Ghazala Hotel In a three story white building, 6 blocks from the cor-
Agiba Beach
niche. Well-kept rooms with firm beds and great sofas.
Literally “strange beach”, 25 km west of Marsa Matruh,
Tel: +20 46 4933519
surely the most spectacular of the area’s sights because of fantastic natural shapes of the rocks. Golden limestone
225
TOURISM & LEISURE Where to Eat
challenges any imperial city. Homer described it as “the city of the hundred gates”, and its recent name (Al-Oqsor)
Strolling in the streets and walks by the corniche is the best
means “The city of Palaces”. Luxor has also been called
thing to do after hours. Along Alexandria Street, you will
“the world’s greatest open air museum”, for the number
find the liveliest of Marsa Matruh fast food restaurants.
and state of preservation of the monuments in the area which are unparalleled.
Pizza Gaby At the west end of the corniche, you can eat tasty Pizzas,
Luxor consists of three different areas: the City of Luxor
grilled meat and Middle Eastern salad buffet.
on the East side of the Nile, the town of Karnak just north
Tel: +20 46 4930791
of Luxor, and Thebes, on the west side of the Nile across from Luxor.
Panayotis A Greek Restaurant 2 blocks south of the corniche. Simple
The area has been a tourist destination since the begin-
menu includes fresh dinner, calamari, shrimps, seafood
ning of tourism. Even in ancient times, during the late
and pizzas.
Dynasties of the Greek and Roman periods, the area drew
Tel: +20 46 4932474
visitors
UPPER EGYPT LUXOR
Be aware that you might be facing sometimes ruthless hoteliers, greedy guides and cunning car drivers.
There and away
This ancient capital of Upper and Lower Egypt is the most
Daily Flights with EgyptAir for a round trip for $185.
important historic site in all Egypt.
By train, the French deluxe sleeping trains leave Cairo at
Luxor known by its Greek name Thebes was the capital of
7:30 am, noon and at night for around $10.
Egypt during the rule of the new Kingdom (18th-20th dynasties). The city hosts gorgeous sandstone temples and
What to do
mysterious tombs, creating a melody of monuments that Karnak Temple Located in the “East bank”, the temple is overwhelming in its proportions and complexity as it covers a hundred acres and its history spans throughout thirteen centuries. Dedicated to the Sun god Amun-Ra and his family, Karnak temple is the product of centuries of one-upmanship as each Pharaoh added his mark to the temple. However, because of long-lasting Pharaonic architectural traditions, the different pieces comprise a harmonious whole. Think of each section as a layer of history: the deeper you proceed into the building, the farther back in time you go.
The ancient mysteries of Luxor
226
TOURISM & LEISURE Thutmose III, Seti I and Seti II with beautiful wall paintings and hieroglyphs from the Book of the Dead and the book of Gates. Some tombs were once used as a Coptic Churches and you will sometimes find Coptic graffitis on the walls. The tomb of Tutankhamun is the most reknowned and visited tomb, but the real treasures are at the Egyptian Museum in Cairo, so you might be disappointed after visiting the others.
The breathtaking majestic Columns of Karnak temple in Luxor
Farther North, is the Mortuary temple of Ramses II (Ramesseum). In the most ravaged temples, visitors try to
Luxor Temple
gather from the ruins, an idea of the spectacle it once
Although Karnak temple gets all the glory, Luxor temple is
was; at the Ramesseum, the ruins are the grandest state-
grand in its own right. The major part was built by one
ment of all and a testimony of Ramses II narcissism: you
pharaoh, Amenhotep III (13861-1349) with later additions
will admire the shattered remains of the 17m Colossus of
by Tutankhamun Horemheb, Ramses II, and Alexander the
Ramses II with its 1m long fingers!
great. The temple was meant to serve as a love nest for the Gods and was constructed for the worship of God
Tombs of the Nobles
Amun Ra consort Mut and her son Khnosu.
During the New Kingdom, members of the elite and aris-
On the walls of the colonnade skilful sculptors depicted
tocrats fought each other for the control of the Kingdom.
the annual Opet Festival, showing the gods of Karnak,
Unlike the Pharaoh, (who would assuredly live among the
accompanied by a cheerful parade of priests, musicians
gods after his death), aristocrats needed more assurance
singers, dancers and sacred cows down to Luxor on the
that a comfortable life awaited them after death and pro-
west going back to their own Temple on the East.
vided themselves with luxurious well-hidden underground
The temple is also famous for its huge columns with the
tombs. These tombs are simpler than those of the
shape of a Papyrus plant.
Pharaohs with beautiful paintings relating their earthy life. The most important tombs are: the Tomb of Rekhmire and
The Death Valley
Sennofer, Tomb of Ramose, Tomb of Userhet and Tomb of Nakht.
Valley of the Kings: Located on the West Bank, 5km from the Nile, the Valley
Valley of the Queens
of the Kings is no more than 400m long and 200m wide
The valley of the Queens containing fewer than 30 royal
for over 64 known tombs numbered in the order they
tombs is located west of the Colossi of Memnon, at the
were discovered.
end of the main road.
Through your journey in the Valley of the Kings, you will
Before Ramses I (14th century BC), the closest relatives
admire the tombs of the most reknown Pharaohs like the
were buried beside the Pharaoh, but during the later years
tombs of Ramses I, Ramses, II, Ramses III, Ramses IV,
of the New Kingdom, a special burial area was chosen for
Ramses VI and Ramses IX, as well as the Tombs of
the wife and children of the Pharaohs.
227
TOURISM & LEISURE Among others, you will find the Tomb of Titi, the favou-
Jolie Ville Mövenpick
rite wife of Ramses III, the Tomb of Amonherkhepesheh,
Around $60 per person
the son of Ramses III...
Crocodile Island
The Tomb of Queen Nefertari, the most famous tomb is
Tel: +20 95 374937 / 855
only opened for 10 minutes to the 150 first people who buy a ticket (to avoid alteration from moisture). The vivid
Sheraton Luxor Resort
tones of the tomb of Ramses II’s favourite wife are breath-
Khaled Ben Walid Street, Luxor
taking.
83951 Tel: +20 95 374544
Luxor Museum One of the best displays of antiquities in Egypt is located
Le Méridien Luxor
at the Luxor Museum opened in 1975. Housed within a
Khaled Ben Walid Street, Luxor
modern building, the collection is limited in the number of
85111
items, but they are beautifully displayed.
From Europe: 0800 295390
The admission price is high but the museum is well worth the visit. Visiting hours can be somewhat restricted and
Fellah’s Tent (Egyptian)
varies, so find out upon arrival in Luxor.
Folklore attraction package with sunset sailing, traditional food, folklore show all in a separate area of the island, up
Mummification Museum
to 400 seats, on particular days. An evening of Arabian
The first Mummification Museum in the world is located
delights right out of 1001 nights, featuring a sumptuous
on the Nile banks in Luxor. Through its 56 archeological
buffet and folklore entertainment under the stars!
artifacts, the museum unveil the secrets of the Pharaonic civilization including medicin, chemistry and anatomy.
Palm Restaurant (International)
The different parts of the Museum describe the social and
International food with a focus on Italian dishes. The res-
religious significance of mummification as a pure religious
taurant is overlooking the Nile River.
cult. The museum displays ten paintings dating back to
Luxor Hilton
the 13th Century B.C and picturing the Mortuary Cruise.
New Karnak, Luxor, Qena Tel: +20 95 374933
Fellucas For a luxurious diversion, enjoy a Felucca ride on the Nile.
La Felouque (Oriental)
Those traditional sailing boats were used during the
Traditional Egyptian and other Eastern favourites. Nice
Pharaonic era for people’s transportation. Banana Island,
decors and lively atmosphere.
a small peninsula upriver is a popular two - hour ride des-
Novotel Luxor Hotel
tination.
Khalid Ibn El Waleed st., Luxor Tel: +20 95 380923
Eat and sleep Sofitel Winter Palace A real Palace of the early 1800s, around EGP 300 by person. Tel: +20 95 380422
228
TOURISM & LEISURE Make sure to dine in a restaurant by the Nile, and then hit
while having tea on the terrace of the Old Cataract Hotel
the cafes for a Shisha to top off your night. The many
(Named due to the location of the Nile’s first cataract
“Ahwas” on the streets of Luxor are filled with Egyptian
located here).
smoking Shisha, drinking coffee, and playing back-
”Most of Aswan’s attractions can be found on the isles in
gammon. Tikia, on television street is more comfortable
the middle of the Nile.
and friendlier than the other shops.
ASWAN
To reach the sights on the west bank of the Nile, hire a Felucca (EGP 25 per hour after negotiation)
Aswan is one of the southernmost cities in Egypt that lies
The East Bank
at the junction of Middle East and Africa. Aswan lies on
The city itself lies on the east bank of the Nile. The bazaar
the best part of the Nile, 900 km south of Cairo. Formerly
runs along the Corniche, which continues past the Ferial
known for its ivory trade, its attraction now includes the
Gardens and the Nubian Museum, and continues on to
Nilometer, which was used to measure the Nile’s water
the Cemetery, with its tombs from the Fatimid period.
level and beautiful Feluccas. The city’s name comes from
Just east of the cemetery is the gigantic Unfinished
the Nubian and means “Too much water” although the
Obelisk. Just to the south of this, two Greco-Roman sar-
temperatures will often make you wonder if there could
cophagi and an unfinished colossus remain half buried in
ever be enough water...
the sand.
Located about 81 miles south of Luxor, with the most beautiful setting on the Nile, Aswan has a distinctively
Elephantine Island
African atmosphere.
Elephantine Island is the largest island in the area; known
Aswan has been a favourite winter resort since the begin-
for its artifacts dating from pre-Dynastic times.
ning of the nineteenth century, and it’s still a perfect place to get away from it all.
Kitchener’s Island Just beyond Elephantine is Kitchener’s Island (Geziret el-
There and Away
Nabatat) named after the British general Haratio Kitchener (185(?)-1916) who was sent to Egypt in 1883 to
Daily EgyptAir flights, usually in the morning, around
reorganize the Egyptian army, which he then led against
$ 250.
the Sudanese Mahdi. Nowadays, the island is known for
Sleeping trains are also there daily around $ 15.
its garden and the exotic plants the Kitchener planted there, which continue to flourish today.
What to do Agha khan Mausoleum Small enough to walk around Aswan has a very slow and
On the west bank, Agha Khans, the hereditary titles of
relaxing pace of life. Days can be spent strolling up and
Ismaili Muslim imams, are believed to be direct descen-
down the broad Corniche watching the sailboats with
dants of Muhammad. The Mausoleum was built for Sultan
their tall masts or sitting in floating restaurants listening to
Muhammad Shah al Husseini, Aga Khan III in the 1950’s.
Nubian music and eating freshly caught fish. Explore the souk, full of the scent and color of spices, perfumes, scarves and baskets. View the spectacular sunsets
229
TOURISM & LEISURE The Nubian Museum
Philae Temple
Nubian culture is more alive in Aswan that anywhere else
Located on Agilika Island (although its original location
in Egypt. The Nubian museum hosts a vast collection of
was on Philae Island), the temple is dedicated to the
Nubian artefacts as well as over 3,000 antiquities
goddess Isis. Its various sanctuaries include a Temple of
spanning from Pharaonic, Roman, Coptic and Islamic eras.
Hathor, a Birth House and two pylons to celebrate all the deities involved in the Isis and Osiris myth.
Nubian Dancers Donâ&#x20AC;&#x2122;t miss the Nubian dancers and musicians perform at
Eat and Sleep
the Cultural Center, just off the Corniche. Folklore troupes recreate scenes from village life and perform the
Sofitel Old Cataract Hotel
famous Nubian mock stick-fight dances.
One of the oldest and most fabulous places. Tel: +20 9 7316000
The Monastery of Saint Simeon Built in the seventh century is one of the most preserved
Aswan Oberoi Hotel
original Christian strongholds. In the 14th century, the
It has its own ferry for guests, great view, large rooms and
monastery hosted the 300 monks that had been driven
a Spa.
out by the Arab conquerors.
Tel: +20 7314666
The goddess Isis the guardian of the Philae temple in Aswan
TOURISM & LEISURE The New Cataract
The Great temple of Abu Simbel
Tel: +20 7316002
The temple is Ramses II’s masterpiece. The temple is supposedly dedicated to the God Ra-Hurakhti, but as in all of
Floating ad Riverside restaurants
Ramses’ monuments, the focus is clearly the great
These pseudo aquatic eateries offer decent meals and the
Pharaoh himself. The walls depict battle scene of Ramses
perfect setting to watch the sun go down over the desert
victories over Nubians. Proceeding through the temple,
hills of the west bank. All serve the same array of dishes,
Ramses is depicted as a great King, then as a servant of
salads, tahinis along the Corniche.
the gods, then as a companion of the gods, and finally, in the inner sanctuary, as a deity.
Nubian Restaurant Upscale restaurant serving alcohol. Located on Eassa
There and Away
Island.
The temples can also be reached by road, air or boat.
Tel: +20 9 7302465
The highway was reopened in 2002 and the Temples can be reached by bus. The buses usually proceed in convoys
Panorama
from Aswan (3-hour drive).
Delicious food and garden seating. Try the Bedouin coffee
Arrival by boat is achieved by cruising from the Aswan
served on coals and flavoured with cardamom, cinnamon
High Dam on a 3-day journey, but the number of tourists
and cloves.
reaching Abu Simbel in this way remains relatively small.
ABU SIMBEL
A hydrofoil service from the Aswan High Dam to Abu Simbel was re-introduced in 2000 with two return trips per day.
Located 280 km away from Aswan, only 50km from the Sudanese boarder, Abu Simbel stands as one of the most
NILE CRUISES
magnificent monuments in the world. When the temples were threatened by submersion in lake Nasser, due to the
The Nile has always been a travel corridor for Northern
construction of the High Dam by the Egyptian
Africa. For at least the last 5,000 years, the Nile has been
Government, and it launched a worldwide appeal. The
a great route, with boats drifting North, and raising their
salvage operation lasted 4 years in the 1960’s. The two
sails for the return trip upriver. Furthermore unlike many
temples were dismantled and raised over 60m up the
other rivers, the population and building activities are all
sandstone cliff where they had been built more than 3000
concentrated along the Nile, as the land quickly becomes
years ago. The design of Abu Simbel Temple, dedicated to
inhospitable only a few miles east or west of it, for the
Ramses II and his wife, is unique. Unlike all the other
most part.
Nubian Temples, Abu Simbel was never transformed into
The Nile is so important that the two ancient sections of
a church, but was left untouched by later religions.
Egypt are confusingly named according to the flow of the river: “Upper Egypt” is actually Southern Egypt, because
Big Heads (Colossi)
it is “up river”, while “Lower Egypt” is Northern because
Four 22 meter tall statues of Ramses II, carved from a
it is down river.
single slab of rock guard the entrance to the great
Nile cruises are fascinating though it may not be the best
Temple. At the feet of Ramses stand smaller statues of
way to see as much of Egypt as possible, nor is it the
wife Nefertari and some of the kids.
cheapest. Certainly some of the attraction is romance, or
231
TOURISM & LEISURE the desire to admire ancient Egypt in a highly comfortable
and outdoor pool, restaurant (continental cuisine, exotic
and relaxing manner.
dishes and rare local offerings). The air conditioning in the
Much of the rating of Nile River Cruisers comes from the
dining room is “zoned,” for individual comfort. Barbecue
size of their cabins, and most average mainline tourist
luncheons are served on deck.The elephantine Bar and
boats have relatively small cabins compared to hotels.
atrium lounge offers live entertainment.
Usually, there is a large bar and/or discotheque, along with a grand restaurant, on board shopping and plenty of
Radamis Mövenpick Nile Boat
activity on deck, including small to larger swimming pools,
Mövenpick Hotel Jollie Ville,
table tennis, and lounging areas. And of course, there are
Crocodile Island, Luxor
the many stops for tours to the ancient kingdom of Egypt.
Tel: +20 95 374.855
Some boats, such as the M/S Triton cater specifically and
Tel: +20 95 374.936
exclusively to the well-off travellers with nothing but suites, while other more average boats will have both
Cruise: Luxor - Aswan line
standard cabins and richly furnished and large suites.
Accommodations: 70 deluxe cabins, 4 suites (bath tub, TV/ Video, air conditioning)
You can find better fares if you book your cruise from a
Facilities: 2 Restaurants, Shops, Beauty Salon, Sport facili-
travel agency in Europe or The USA (depending on the
ties (Swimming pool, Sundeck, Fitness Equipment).
season), but you can also check for the local deals. Most of the big hotels offer Nile cruises.
Sonesta Nile Goddess 4 El Tayaran St., Nasr City
MS Triton
Tel: +20 2 2628111
African Business and Adventure Travel
Tel: +20 2 619980
Tel: +20 2 2445954 Tel: +20 2 2445993
Cruise: Luxor - Aswan line
capecairo@capecairo.com
Duration: 4 or 6 nights Accommodation: 68 Junior suites, 2 Presidential suites
Cruises: Luxor - Aswan line
with private lounges (all cabins feature broad panoramic
Duration: 7 nights
windows, direct dial telephones, television, bathtub)
Prices: $360 to $490 per person per night
Facilities: Outdoor swimming pools, Fitness equipment, Billiards & table tennis, B.B.Q. area, 3 restaurants, and Gift
The dimensions on the M/S Triton are those of any other
shop bazaar.
of the largest ships on the Nile, but instead of 60 to 70 cabins, with a capacity of 140 passengers on board, the
Excelsior
M/S Triton offers accommodation for only twenty couples
16 Ismail Mohamed St., Zamalek,
for a crew of 61.
Tel: +20 2 3419820
Accommodation: double beds, or twin beds, 2 large win-
Cruise: Aswan - Luxor line
dows, sitting areas, telephone, TV and video, large bath-
Accommodation: 26 suites, with bath and private toilet,
rooms (a bath with shower).
air-conditioning, minibar, TV/Video.
Facilities: spacious dining room, lounges, indoor pool, spa
Facilities: Bar and lounge with panoramic view, restaurant
232
TOURISM & LEISURE with 50 seats (international and local cuisine), swimming pool, Health club with sauna and Jacuzzi, Bazaar, Beauty salon, Elevator, Discotheque.
Sheraton Nile Cruises 4 Ahmed Pasha St., Garden City Tel: +20 2 3055600 Tel: +20 2 3051330 Cruise: Luxor - Aswan line Accommodation: 80 cabins, 2 presidential suites (renovated with air-conditioning, private shower, stereo, tele-
The cristal-clear water of Hurghada, perfect for Diving
phone and large window). Facilities: Restaurant (Egyptian and Continental cuisine),
area, Sigala, the fastest developing part of town where all
on deck swimming-pool, Table Tennis, beauty parlour,
the new five stars resorts are located, and finally Sheraton
gift shop, laundry and safe deposit box.
Street, one of the oldest main roads in Hurghada which is famous for its lively nightspots.
Meridien Champollion I and II
From the old port of Sigala you can catch the luxury high-
Meridien Cairo
speed ferry to Sharm El-Sheikh, for reservations call Sand
Tel: +20 2 3621717
Beach Tel: +20 65 545147
Tel: +20 2 3621927
There & Away Cruises: Luxor - Aswan line Accommodation: 60 Large cabins (18 square meters) air
In Town, Taxis from the airport to Al-Dahar EGP 25, also
conditioning, TV-Video, private bath tub.
available daily microbuses that run as far as the Inter.-con-
Facilities: on deck swimming pool, Jacuzzi, restaurant
tinental area from the central for EGP 1.
(three French Chefs), Health cub, gift shop, beauty salon.
Super Jet Tel: +20 65 2660212, EgyptAir has 2 - 5 daily
RED SEA COAST
flights.
What to Do HURGHADA Diving and snorkelling Not long after the October war, Hurghada was just a small
Hurghadas real attractions are silent and submerged. Red
fishing village with two hotels and pristine beaches. Today
sea creatures will astonish you with their array of colours,
Hurghada has evolved in one of the worldâ&#x20AC;&#x2122;s finest tourist
shapes and sizes.
resorts, offering water sports, activities, nightlife and a stunning heaven for sun worshippers all year round.
Blue Paradise diving centre
The town is split into three main areas: Ad-Dahar; home
Tel: +20 65 544354
to most budget accommodations and also local residential
233
TOURISM & LEISURE Son bijou diving centre
Where to eat
Tel: +20 65 544680 Alaa El Din Café (Egyptian) Divers international
Sindbad Al Mashrabiya Hotel
Hilton Plaza
Hurghada, Red Sea
Tel: +20 65549745
Tel: +20 65 44326 A genuine Oriental atmosphere, furnished to give you an
Windsurfing
air of old Egypt. Enjoy the Egyptian drinks and shisha with
At the Colona water sports centre in Manatees Village for
daily live entertainment on the Oud and other Oriental
around EGP 120, where you will also find information
musical instruments.
about paragliding, paraskiing, and water skiing. El Khan (Egyptian) Desert safaris
Conrad International Hurghada
To explore the southern Red Sea landscapes rich with
Safaga Road, Hurghada
colourful mountains and canyons. Participants can choose
Tel: +20 65 443251
between camels, horses, quads and 4WD cars. You will
Enjoy the excellent traditional Egyptian food and along
get the chance to visit a Bedouin camp and sip their sweet
with a water pipe, or good and fresh sea food.
tea under the glittering stars. The Bedouin Tent (Bedouin) Islands around Hurgada
Sindbad Al Mashrabiya Hotel
Islands near Hurghada offer all kinds of fun and excite-
Hurghada
ment. Take a day trip to Giftun Island for snorkelling and
Tel: +20 65 443265
a fish barbecue, or view the Red Sea from a submarine!
The Red Sea, land of the Bedouins. Taste some real
When you’re not in the sea you can visit the Roman Mons
Bedouin cuisine in a true Bedouin atmosphere...
Porphyrites (mountain of porphyry) remains at Gebel Abu Dukhan (Father of Smoke).
Eat & Sleep
Other nearby islands and destinations include the Shadwan Island (Diving, snorkeling, fishing but no swim-
Coral beach
ming), Shaab Abu Shiban (Diving, snorkelling and swim-
Tel: +20 65 447160
ming), Shaab el-Erg (Diving, fishing and snorkelling), Umm Gammar Island (Diving and snorkelling), Shasb
Hilton resort
Saghir Umm Gammae (Diving), Careless Reef (Diving),
Tel: +20 65 442116
Abu Ramada Island (Diving), Shaab Abu Ramada (Fishing),
Sofitel Hurghada
Dishet el-Dhaba (Beaches and swimming), Shaab Abu
Tel: +20 65 447261
Hashish (Beaches, diving, snorkelling, swimming and fishing), Sharm el-Arab (Diving, swimming and fishing and
Egyptian corner: For good Egyptian food.
Abu Minqar Island (Beaches and swimming).
Young Kang offers excellent Asian fare. Al-sakia: Enjoy Seafood and International Cuisine. Norhan: Excellent and serious shepheard´s pie.
234
TOURISM & LEISURE EL GOUNA
Abu Tig El Gouna’s newest development, a breathtaking 140,000
Just 22 Km north of Hurghada, the town started as a self-
sq meters marina designed by Italian architect Alfredo
sustaining town for the Sawiris family back in the mid
Freda. Amazing display of world class yachts and speed
1980s. Since then, El Gouna has become a miniature
boats that dock there. You can stroll through its attractive
Riviera on the Red Sea. It has its own international school,
shops, play a billiards or stop for at drink at its relaxing bars.
radio station, marina, hospital, permanent residential
There is never lack of things to do at night with its lively
areas, and more than twelve four stars hotels.
bars and the wide variety of entertainment that the village will offer during the night.
Two of El Gouna’s most popular hotels, the Sheraton Miramar and the Steigenberger Golf resort were designed
Where to Stay
by renowned American architect Michael Graves. Many of Egypt’s elite has opted for second homes in El
Mövenpick Resort
Gouna, with elegant villas and apartments clustered
Tel: +20 65 580120
around the lagoons, but the hottest real estate in the area
Sheraton Miramar
is in the Abu Tig Marina.
Tel: +20 65 580100 Steigenberger Golf Resort
There and Away
Tel: +20 65 580140
The most convenient way is to fly from Hurghada using a
Where to Eat
charter flight that goes only for El Gouna. Also El Gouna’s hotels provide transportation for guests.
Spagheteria Del Porto A casual Italian eatery, specialized in Pizza and pasta, offe-
What to do
ring indoor and outdoor seating.
Mangrove Beach or Zeytouna Island
Maison Thomas
Although the beaches lack the white sand and wide sho-
Offering the same reliable food as the original Cairo
relines of Sharm El Sheikh and the North Coast, they make
outlet.
up for it with atmosphere. Mangrove Beach hosts parties on most weekend nights
7th Star
for the younger crowd, while Zeytouna is the place to be
Offers the best coffee and French pastries in town, and
in the mornings.
very good sandwiches.
Kafr El Gouna
Le Tabasco
Also known as “down town”, it’s a stylized version of a
The hottest place in El Gouna for drinking and dancing.
small Upper Egyptian Village, with narrow, dimly lit cobblestone streets lined with traditional craft and gift shops,
Kiki’s
cafes, bars, restaurants and even an aquarium.
An Italian restaurant directly overlooking one of the main lagoons. Friendly service and cozy atmosphere.
235
TOURISM & LEISURE MARSA ALLAM
What to do
At a distance of 750 km southeast of Cairo by the boarder
Red Sea Diving Safari
of the Red Sea, lies this magnificent spot, with blond bea-
Charming and welcoming diving centre village. Different
ches and cemetery like fishing villages; yet the treasure of
styles of accommodation: tents or small houses
Marsa Allam lies under water. It is an incredible and ideal
by the red sea.
destination for diving. There is no wonder that some of the Red Sea’s top dive
Prices are around $35 for a double room and include full
sites lies just offshore.
board and unlimited diving.
There and away
Shagara Village - Nakari Village and Wadi Lahami Village.
Daily flights with EgyptAir to Hurghada and from there
Tel: +20 12 2449073
you catch a bus for 250 km
www.redsea-divingsafari.com
Buses are daily from there to go back to Hurghada.
Breathe deeply and observe the Colorful “Masked butterfly fish”
TOURISM & LEISURE Reservation from Cairo:
Diving
Tel: +20 2 3371833 - 3379942 Fax: +20 2 794219
SAFAGA
Barakuda Diving Center Lotus Bay The Barakuda Diving Center Lotus Bay is situated in the Lotus Bay Beach Resort & Gardens. The hotel has been several times awarded a prize for one of the best diver
Safaga’s beaches and black sand dunes provide a healthy
hotels worldwide by different magazines and tour opera-
escape from hectic city life. It’s also a must for wind sur-
tors.
fing. While there make sure to take a trip to Topia Island, where the beaches will leave you breathless.
Lotus Bay Hotel
Mons Claudianus in the Red Sea Mountains is the site of
Port Safaga
an ancient stone quarry where archeologists can often be
+20 65 260049
found hard at work.
safari@barakuda-diving.com
Day trips to either one can be arranged through any of
www.barakuda-diving.com
the major hotels. Duck’s Dive Center
There & Away
Located directly on the beach, covered with trees and flowers you will find Robert & Lydia and Duck’s Dive Center.
You can fly, or catch a bus from Cairo to Hurghada then
You will enjoy the family and friendly atmosphere along
hop a taxi to Safaga.
with their sense of professionalism.
An airplane ticket goes around $100 while the bus is $25 round trip,
Holiday Inn Safaga
It’s a 40 min. flight and 40 min. Hurghada to Safaga.
Red Sea Tel: +20 65 252821 - 9
What to do Eat and sleep Windsurfing Any of the resorts, few kilometers north of the town will Tornado Surfcenter
be a good bet.
Holiday Inn - Safaga Tel +20 65 252.821 / 22 / 32
Shams Safaga
Email:perlerup@hotmail.
Five stars deluxe hotel beach & resort, with water sports & sports facilities, and diving center, is located 30 min. from
The Tornado Surfcenter is located directly on the beach of
Hurghada airport.
Holiday Inn Resort only 15m from the shore. Safaga Bay is
Tel: +20 65 251781 / 86
still not overcrowded and remains untouched from the
Website: www.shamshotels.com, www.shams-dive.com
crazy development. Enjoy the familiar and friendly atmosphere that you will find in Tornado Surfcenter.
Holiday Inn Resort A deluxe hotel also with it’s Duck Dive diving center. Tel: +20 65 252821 / 24
237
TOURISM & LEISURE The Lotus Bay Resorts and Gardens A nice option where a double room for residents runs around $60 on a half board basis. It is also known for its
MOUNT SINAI (JEBEL MUSA, OR MOUNT MOSES)
great & fresh seafood variety. Mount Sinai is both the name of a collection of peaks,
Tel: +20 65 252443
SINAI
sometimes referred to as the Holy Mountains, and the biblical name of the peek on which Moses received the Ten Commandments. Mount Musa, (Jebel Musa), Mount
Sinai is the route to the promised land, where Isis sought
Moses is considered to be that biblical peak. This peak has
Osiris and the Pharaohs found gold; it’s a meeting point
also religious significance to Islam as the place where
for the believers of a unique God, at the crossroads of
Mohammed’s horse, Boraq, ascended to heaven.
Africa and Asia, where Moses witnessed the burning bush, The Holy Family passed along during its flight into
Saint Catherine’s Monastery
Egypt and where Amr Ibn El Aas went across on his Islamic invasion of the country. In Sinai, rocks meet coral
Located at the foot of Mount Moses, St. Catherine’s
reefs and the desert meet the sea. After thousands of
Monastery, was constructed by order of the Emperor
years at the heart of the history you will experience the
Justinian between 527 and 565. Is built around what is
continuing contrasts.
thought to be Moses’ burning bush. The monastery has
Sinai’s history stretches back to the Old Kingdom of
withstood numerous attacks over its 14 hundred years of
Egypt, when Egyptians have begun digging the area for
existence; it is one of the oldest monasteries in the world,
Copper and Turquoise.
and its original, preserved state is unmatched.
Even at that time, Sinai had a strategic location: Tutmosis III and Ramses the Great both used Sinai to attack to the
St. Catherine, whose body was reportedly carried away by
east. Others, including the Persian Cambises, Alexander
angels, was discovered at the top of the peak that now
the Great, the Roman’s of Antioch, and later, the Arabs
bears her name. Her relics are stored in a marble reliquary
and the Crusaders used the Sinai corridor to either take
in the Basilica.
Egypt, or in the case of the Crusaders, fail to take Egypt. The monastery hosts the second largest collection of illuSinai is mostly known through religion. The Hebrews, The
minated manuscripts (The Vatican has the largest). The
Christians and The Muslims, are all bound to the history
collection consists of some 3,500 volumes in Greek,
of the Bible. Here lies the book of Exodus, where Moses
Coptic, Arabic, Armenian, Hebrew, Slavic, Syriac,
found the burning bush, where he cast wood into a bitter
Georgian and other languages.
spring on God’s instructions to make the spring sweet and
The Monastery houses a small mosque from the 10th cen-
where he was provided with the Ten Commandments.
tury which was probably built to appease the Islamic
To the Christians, it was the route that the Holy Family
authorities of the time. There is also a small chapel (the
took on their journey into Egypt. And to the Muslims, it
Chapel of St Triphone, also known as the Skull House)
is an ancient route to and from Mecca.
which houses the skulls of deceased monks.
238
A Must: A visit to The Sinai desert
The monastery is a formidable fortification, with granite
Catherine Plaza Hotel
walls, surrounded by gardens and cypresses. Up until the twentieth century, the only entrance to St. Catherine’s
So the new Catherine Plaza Hotel may not be of the
was a small door 10m high, where provisions and people
calibre of five star Cairo hotels, but it is comfortable, and
were lifted with a system of pulleys.
has considerable facilities really not found elsewhere in the area (restaurant, swimming pool, mountain bike
Climb the 3,750 steps carved by the monks to reach the
rental, travel agency specialized in desert tours...)
peak to St Catherine’s Monastery, or take the gentler path
The Catherine Plaza Hotel is a comfortable and relaxing
east of the monastery. Both lead to an amphitheatre
hub for activities throughout historical mountains and
known as the “Seven Elders of Israel”. From there, one
beautiful valleys, where one may retreat from the
must ascend the remaining 750 steps to reach the summit
crowded flavor of the seaside Sinai resorts.
where the Chapel of the Holy Trinity was built in 1934 (on
Tel: +20 62 470288
the location of the original chapel built in 363 and rebuilt
Fax: +20 62 470292
by Justinian in 530) and enjoy the breathtaking view.
239
TOURISM & LEISURE SHARM EL SHEIKH
and out of the colourful coral have made this a snorkelling and scuba-diving paradise, attracting people from all over
Sun, sea and sand. Five-star hotels, water sports, shop-
the world. Non-divers can also enjoy bird watching at
ping and entertainment. This is Sharm el-Sheikh, one of
Lake Qarun.
the most accessible and developed tourist resort communities on the Sinai Peninsula. All around are mountains
There and Away
and sea, the realm of Bedouins. EgyptAir flies to Sharm-el-Sheikh several times a day from From small, intimate hotels to larger hotel complexes
Cairo for EGP 400 (for residents).
belonging to International chains, casinos, nightclubs,
Buses also depart from Abassiya Station every 3 hours.
shopping centers, restaurants, golf courses and health facilities, Sharm el Sheikh offers all the entertainment,
What to do
and amenities one could expect of a world class tourist center.
Ras Mohammed national Park is a coral peninsula thrus-
With diving, snorkeling, windsurfing, horses and camel
ting this head into the Red Sea. It is a nature reserve and
riding, desert safaris, and great nearby antiquities attrac-
one of the most outstanding snorkelling and diving areas
tions, it is impossible for a visitor to feel bored.
in the world. At the shark’s observatory a coral reef falls
Na’ama Beach is one of the center of the tourist activities.
over 80 metres into the open.
Located just north of Sharm, this area is developing into a resort town of its own. Most hotels at Na’ama Bay have
Diving
their own, private beaches with comfortable amenities such as chairs, shades and even bars.
Waterworld at the Hyatt Regency Sharm El Sheikh
Shark’s Bay is also nearby, and again is a growing resort
Tel: +20 69 620314 / 5
community with more and more to offer, along with
waterworld-sharm@sinai-services.com
several diving centers.
www.sinai-services.com
The small harbor known as Sharm el-Moiya is located next to the civil harbor, has accommodations for boats, and
Anthias divers
includes a Yacht Club with rooms.
Sonesta beach resort
For those who live to shop, the Sharm El-Sheikh mall pro-
Tel: +20 69 600725
vides shops with both foreign and local products, inclu-
E-mail: anthias@sinainet.com.eg
ding jewellery, leather goods, clothing, pottery and books.
www.anthiasdivers.de
Sharm-el-Shekh is mostly renown for its underwater realm, and is a must visit for all diving enthusiasts. “The
Camel dive club
southern coast of the gulf of Aqaba...”
Na’ama Bay Tel: +20 69 600700
The southern coast of the Gulf of Aqaba, Between Tiran Island and Ras Mohammed National Park at the tip of
Red Sea Diving College
Sinai features is one of the world’s most brilliant and ama-
Na’ama Bay
zing underwater scenery. The crystal-clear water, the
Tel: +20 69 600145
beautiful reefs and the incredible variety of fish darting in
240
TOURISM & LEISURE Four Seasons Hotel
Offer the ultimate Sharm-el-Sheikh luxury. Tel: +20 69 603555 Hyatt Regency Hotel Five minutes away from Na’ama Bay, with very good staff Jump and dive in Sharm el Sheikh
and excellent food. Tel: +20 69 601234
You will find many options in Sharm El Sheikh to do the
E-mail: hyattses@thewayout.net
following activities. The prices are about the same from one place to another.
Sonesta beach resort Sharm Na’ama Bay
Camel rides
Tel: +20 69 600725
To traditional Bedouin villages.
E-mail: Reservations@sonestasharm.com
Horse riding
Camel Hotel and Dive Club
Horse rides in the desert.
Simplicity and convenience, with the first and most famous diving club.
Quads
Tel: +20 69 600700
These four-wheel motorbikes are immensely popular there.
Although you will probably prefer to eat in your hotel, you will find a lot of places to eat in Na’ama bay, offering
Eat & Sleep
everything from seafood to Thai dishes and western style food.
Mövenpick Jolie Ville Resort A sure bet for its fantastically consistent service and cen-
DAHAB
tral location on Na’ama. Tel: +20 69 6001001 / 2
Dahab is the Arabic word for gold. In Sinai, this world would refer to the fine golden sands of its beaches. Though it has not yet achieved the popularity of Sharm elSheik to the south, Dahab has a growing following, and the name may soon refer to the wealth that tourism is bringing to the small Bedouin village. The combination of soft sand, gorgeous blue water, and a luxuriant strip of
241
TOURISM & LEISURE palm trees is pulling in the world.
Reef 2000 Diving Center
This pearl of the gulf actually consists of two villages, the
Located at the Bedouin Moon Hotel, just north of the
Bedouin village of Assalah in the south, and the business
Bedouin village. Run by a British couple who offers low
and administrative center in the North. Assalah is the most
price and safe equipment.
developed part of Dahab, a sprawling conglomeration of
Tel: +20 65 640087
palm trees, shops, campgrounds, hotels, bars, and restaurants that lie along the shore of Ghazala Bay. Assalah has
Nesima Dive Club
a distinctly bohemian feel, and during the Israeli occupa-
Located in the Nesima Resort, south of the bay. One of
tion it wasnâ&#x20AC;&#x2122;t uncommon to see soldiers patrolling the
the best reputed dive club with excellent equipment often
same beaches as dreadlocked vagabonds from Europe
renewed.
and America. Less laid back, but still relaxed, is the area
Camel Safaris to Garb-el-Bint include full equipment,
just south lying along El-Qura Bay.
lunch, water, and two dives ($100). (See Nesima Hotel) Windsurfing Dahab is also well known for its strong and everlasting wind that makes only the windsurfers and kitesurfers happy. You can rent a windsurf for 20 per hour at the Swiss Inn Golden Beach Resort (see below).
Where to Stay Hilton Dahab Resort Try this unique experience: Camel diving Safari in Dahab
Dahab has excellent hotel accommodations, but also
Tel: +20 65 640310 Swiss Inn Golden Beach Resort
affords less expensive housing in the village, or camping. Within just a few miles of Dahab are some great adventure spots. Excellent dive sites lie both to the north and south, including Blue Hole, one of Sinaiâ&#x20AC;&#x2122;s best. Just south are the wadis of Qnai el-Rayan and Qnai el-Atschan.
What to do
Dahab, South Sinai, Egypt Tel: +20 65 640471 / 2
Diving The Dahab diving scene has turned into a cutthroat operation that can lead you to expensive and ill equipped diving centers. Ask around to get a feel for which clubs are the best.
242
www.swissinn.net
TOURISM & LEISURE Nesima Hotel
and drinks. The specialty of the house is the Egyptian buffet and Egyptian drinks like Sahlab. Enjoy your meal on the beach or by the pool under the beautiful night sky of Dahab...
DESERT AND OASIS THE WESTERN DESERT Charming hotel with a swimming pool overlooking the sea. The diving club is known for its Camel Safaris to
Egypt’s Western Desert is huge. It is one of the most arid
Garb-el-Bint.
regions on earth, in fact, one of our last frontiers.
Dahab, El-Masbat, Down town
There are three major deserts in Egypt: Sinai, the sacred
Tel: +20 65 640320
peninsula in the northeast, the Arabian Desert-locally
www.nesima-resort.com
called the ‘Eastern Desert’-along the Red Sea in the east, and the Egyptian Sahara that covers the whole realm west
Where to eat
of the Nile (the Western Desert). The first two are mountain-and-valley type deserts. The Western Desert (the lar-
You will surely find relatively good cheap restaurant along
gest, and driest in the world) is just barren plateaus, sand
the beach and even choose the fishes you want to be
seas, boundless plains, with isolated heavens called
cooked. For more ambitious food, try some of the restau-
‘Oases’.
rant below: The principal oases are: Siwa, Fayoum, Baharia, Farafra, Jay’s restaurant
Dakhla and Kharga, focal points of several safari expedi-
Excellent food. Stop by before 6pm to order dinner as the
tions.
menu changes daily, and Jay will have the food ready when you come back...
The first oasis on the loop road, Baharia Oasis, is 194 miles
The food is not only some of the best in Dahab, it is also
from Cairo.
among the cheapest...
Hundreds and hundreds of ancient mummies were recently uncovered. Baharia’s greatest treasure is however
Shark Club
its physical environment with golden sand, black basalt
This restaurant is mostly knows for its excellent deserts
stone.
and shakes. Be prepared for giant portions... In contrast to Baharia, Farafra Oasis, another hundred INMO Divers Restaurant
miles along the route, is a great starting point to discover
Tel:+20 69 640370
the White Desert with its eerie giant white chalk mono-
At the INMO Divers’ Home - Dahab
liths.
The Restaurant, located right on the beach, is decorated
Dakhla Oasis was a breadbasket of the Roman Empire.
with native Bedouin handcraft. The menu offers a mul-
Here medieval mudbrick Islamic villages are perched on
tiple choice of delicious Oriental and international meals
hills with impenetrable protective walls. The hot springs
243
TOURISM & LEISURE allows the traveller to lay back and float in a mist of steam
SIWA
while looking up into a canopy of stars. Siwa (“white rock mountain” in the local Berber dialect) is Kharga Oasis is the last oasis on the loop before the Nile
located 305 Km southwest of Marsa Matruh. Its breathta-
Valley. It seems to have had the longest association with
king landscape, ancient architecture and primitive mystique
ancient Egypt. It is also the place where Christians were
make it a bohemian backpackers paradise.
banished in the 4th and 5th centuries and the area boasts
Siwa is one of Egypt’s most fascinating and exotic tourist
one of the largest ancient Christian cemeteries in the
destination, travelers to Siwa will unavoidably stumble
world: Bagawat.
across more than a handful addicted backpackers, who appears as if they have eternally lost themselves amongst
Siwa Oasis is not directly on the loop, but definitely worth
the donkey carts, sand dunes, ancient ruins and natural
a visit. Its people are the most independent and unique.
springs of the oasis.
Siwa is known for its dates and its olives, and is the seat of the ancient Oracle of Amun for whom Alexander the
With a population of about 23,000, Siwa, was, until very
Great made his desert trek.
recently, the most inaccessible of all Egypt’s oasis. Siwa is also one of the most fascinating oasis with a unique situa-
Remains of the fortifications of Shali
244
TOURISM & LEISURE tion, lying some 20 meters below sea level. In 331 BC,
ditions, rites, dress, decorations and tools differ from
Alexander the Great visited the area to consult the Oracle
those of the other Western Oasis. Siwans continue to
of Amun. Archaeologists, such as Liana Souvaltsis and
have their own culture and customs and they speak a
others found some evidence that the great military leader
Berber language, called Siwi, rather than Arabic.
was burried here, but no real evidence has come from
The area is also famous for its numerous springs. The
this.
water is said to have medical properties.
The area is famous for the dates and olives. Excellent olive
Though relaxing and certainly now a part of the tourist
oil is made from the 70,000 olive trees in the area. The
community in Egypt, Siwa remains a very traditional area.
press for olive oil is done by hand with a donkey walking
Siwan Girls are often married by the age of 14, comple-
round and round grinding the olives between two massive
tely covered, and allowed little communications with the
stones.
world outside their immediate family.
The area also boast some 300,000 date trees
which are gathered by zaggala (stick bearers), who must
There and away
remain celibate until the age of forty. The Siwan people are mostly Berbers, the true Western Desert indigenous people, who once roamed the North
The most practical way to reach Siwa is by bus (EGP 50)
African coast between Tunisia and Morocco. They inha-
from Marsa Matruh or Alexandria. Pickup trucks can also
bited the area as early as 10,000 BC. Their language, tra
be hired to take you there.
Siwa, a magic place to admire the sunset
245
TOURISM & LEISURE You may like to book a tour through a travel agent or hire your own transport. Bear in mind that desert driving has special requirements and be sure to get a suitable vehicle and guidance on possible hazards. 0therwise you can travel to each location by bus or service taxi and arrange trips from there. New Valley Tourist Information office Tel:+20 88 901205 / 401206. Siwa Information office Tel:+20 3 933192 / 931841 ext. 7.
What to do
Safari in the White Desert takes you to another planet
Gabal El Mawt (Hill of Death)
Bir Wahed (“Well number one”)
Home to several Ptolemic-era tombs that Romans robbed
The first water source in Siwa is 1km deep into the sand
and reused. It also houses some old Pharaonic tombs.
dunes. There is a cool pond on one side of a tall dune, and a hot spring with water clean enough for bathing. You
Oracle of Amun
can sleep under the stars in the set camp.
Located 4 km from Siwa is the temple Aghurmi. This temple dates back to the 26th Dynasty and supposedly
Where to stay
housed the famous Greek oracle of Jupiter Amun (Darius). The temple has a forecourt, a vestibule and a sanctuary.
Siwa has about 15 or so tiny hotels, catering to such tra-
The base of the western column of the Doric-style facade,
velers, where you can book a clean double room for about
erected by the Greeks, remains, and the decorations of
20 Egyptian pounds, with of course the option of cam-
King Ahmose making offerings to the gods are remar-
ping in the desert.
kable. The temple must have been a well known religious center,
Palm trees hotel
for when Alexander the Great came to Egypt for the first
Clean comfortable rooms with fans and balconies.
time in 331, he headed directly to Siwa to consult the
20 meters down a side road from the town square.
oracle.
Tel: +20 46 4602304
Nearby is the rock of Aghurmi, marking the ancient town, and just by this is a second Temple of Amun, built during
Hotel Yusef
the 30th Dynasty and known as Umm El-Ubeyda. Most all
Cleanest rooms in town. The friendly owner is committed
that is left of the second temple is a wall covered with ins-
to guest satisfaction. You can also sunbathe on the roof
criptions.
terrace. 20 pounds for a double room.
Cleopatra’s Bath A tiled basin 15 m in diameter encircles a deep blue pool, which bubbles lightly from the large spring below.
246
Tel: +20 46 4602162
TOURISM & LEISURE BAHARIYA
Shallow water levels allow for modest vegetation and wildlife. One example is the Cairo University Oasis which
Set in a depression covering over 2000 sq. km., Bahariya
comprises only one palm and a few green trees, used by
Oasis is surrounded by black hills made up of ferruginous
academics and students to rest and eat.
quartzite and dolorite. Most of the villages and cultivated
The destination has proved a great attraction to low-
land can be viewed from the top of the 50-meter-high
budget travellers who camp in the few oases, watch the
Jebel al-Mi’ysrah, together with the massive dunes which
fauna and flora and enjoy the mild winter weather. The
threaten to engulf some of the older settlements.
desert is a great safari area.
The Oasis was a major agricultural center during the Pharaonic era, and has been famous for its wine as far
SAFARIS
back as the Middle Kingdom. During the fourth century, the absence of Roman rule and violent tribes in the area
There are no sorts of settlements or amenities in the
caused a decline as some of the oasis was reclaimed by
desert. Your chances of eating here and spending the
the sand.
night is however big - many who come out here do so as
Wildlife is plentiful, especially birds such as wheatears;
part of a guided tour which includes a night under the open sky.
Crops (which only cover a small percentage of the total
Trips into the desert is arranged from either Bahariyya or
area) include dates, olives, apricots, rice and corn.
Farafra.
There are a number of springs in the area, some very hot, such as Bir ar-Ramla but probably the best is Bir al-Ghaba,
Farafra is the best starting point for a trip to the White
about 10 miles north east of Bawiti.
desert, and you can plan an overnight 4x4 trip from
WHITE DESERT
several service providers (EGP 250 to 500 per carload depending on the length of the trip). You will also find a very good provider in Bahariya with a contact office in
The richness and variety of Egyptian landscape is endless.
Cairo.
The White desert (about 40 km from Farafra) is a vast stretch of land in the Western Desert that borders Baharia
Ahmed El Shemi - Bahariya Oasis - Giza
Oasis to the north and Al-Farafra to the south, reknown
Tel: +20 2 8473031
for its breathtaking view. The snow-white desert is actually made of chalk that has
THE GREAT SAND SEA
been exposed for years to what geologists call “differential weathering,” the erosion of soft particles results in
The Great Sand Sea is the third largest sand-accumulation
eerie protrusions of hard rock.
in the world (this dune field is the size of England). The
The spooky fungoid chalk formations (in shapes of domes,
Great Sand Sea is a desert in its own right. Spanning the
minarets, castles, towers and all what your imagination
600km between Siwa in the north and the Gilf Kebir
can think of) are white in the day time, glow shades of
Plateau in the south, the Sand Sea forms a natural and
fuchsia at dusk and turn orange by dawn. Visiting the
forbidding barrier between Egypt and Libya. From west to
White desert during a full moon is an awesome expe-
east, this barren land averages 250km in width though it
rience.
reaches 400km in the south. Nothing lives here but the wind, and nothing moves here but the sand.
247
TOURISM & LEISURE
VOCABULARY
Sabaa al kheir = Good morning
Bedoon sokkar = Without sugar
Masaa al kheir = Good afternoon
Chai = Tea
Salamo alekom = Hello
Ahwa = Coffe
Aiwa = Yes
Maya Maadania = Mineral water
Laa = No
Shokran = Thank you
Tesbah ala kheir = Good night
Sokn = Cold
Ezayak? = How are you?
Barid = Hot
Kwaiss, El Hamdollelah = Fine, Thanks
Waat = Time
An iznak = Excuse me
Suq = Market
Ismak eih? = What is your name?
Kwais = Good
Ismi = My name is
Wehesh = Bad
Bi tit kalam inglizi? = Do you speak English?
Enta fain? = Where are you?
Feen el hammam? = Where is the bathroom? Maalesh (often said) = Never mind Bass = Only, stop, enough Khalas = Finish, done, ready Kaman = Also Yemeen = Right Shemaal = Left Ala tool = Straight forward Bekam deh? = How much is this?
248
Aayiz ghurfa men fa dlak = Id like to book a room please La zkara = Ticket Menfadlek = Please
TOURISM & LEISURE
TOUR OPERATORS
Thomas Cook
Emeco Travel
33 Nabil El-Wakkad St., Heliopolis
2 Talaat Harb St., Down Town
Tel: +20 2 4156546
Tel: +20 2 5749360
Fax: +20 2 4172642
Fax: +20 2 5744212
Website: www.thomascook.com.eg
E-mail: management@emeco.com
Wings Tours
Spring Tours
1191 Corniche ElNil, Conrad Hotel
3 El Sayed El Bakry St., Zamalek
Tel: +20 2 5780020
Tel: +20 2 7354409
Fax: +20 2 5780018
Fax: +20 2 7366187
Website: www.wingsegypt.com
E-mail: spring@springtours.com
Flash Tour Group
Mena Tours
10 El Shaheed Mohamed Abd El hadi
El Nasr Building, Nile St., Giza
Ard El Golf, Heliopolis
Tel: +20 2 7482231
Tel: +20 2 4193451
Fax: +20 2 7484016
Fax: +20 2 2911182
E-mail: btiegypt@rite.com
E-mail: flash@flash-tour.net
Misr Travel Travco Group
1 Talaat Harb St., DownTown
112, 26th July St., Zamalek
Tel: +20 2 3930010
Tel: +20 2 7371737
Fax: +20 2 3924440
Fax: +20 2 7380400
E-mail: misrtrav@link.net
Website: www.travco-eg.com
249
COMPANY INDEX Agriculture & Water Resources Future Pipes Industry.........................................................................................................................................pag 77 General Company for Land Reclamation............................................................................................................pag 77 Horticultural Improvement Export Association....................................................................................................pag 78 National Water Research Center........................................................................................................................pag 78 PICO.................................................................................................................................................................pag 80 Sekem...............................................................................................................................................................pag 80
Business Resources Alexandria Businessmen Association...................................................................................................................pag 40 American Chamber of Commerce......................................................................................................................pag 41 Baker & Mc Kenzie.............................................................................................................................................pag 41 BEBA.................................................................................................................................................................pag 42 Cairo Capital Club.............................................................................................................................................pag 42 Cairo International Conference Center...............................................................................................................pag 42 Egyptian Businessmenâ&#x20AC;&#x2122;s association....................................................................................................................pag 43 Expolink............................................................................................................................................................pag 43 GAFI.................................................................................................................................................................pag 44 General Authority for Economic Zone (GAEZ).....................................................................................................pag 44 Look Advertising................................................................................................................................................pag 45 Magic solutions.................................................................................................................................................pag 46
Construction & Real Estate Al Ahly Real Estate Develop. Co.......................................................................................................................pag 188 Arab Contractors.............................................................................................................................................pag 188 CCC................................................................................................................................................................pag 189 Cemex Assiut Cement......................................................................................................................................pag 189 Golden Pyramids Plaza.....................................................................................................................................pag 190 Hassan Allam Sons Group................................................................................................................................pag 190 Lafarge Titan...................................................................................................................................................pag 191 Mokhtar Ibrahim.............................................................................................................................................pag 191 Orascom Construction Industries......................................................................................................................pag 192 Osman Group..................................................................................................................................................pag 192 Plastic Pipes & Products....................................................................................................................................pag 193 SIAC...............................................................................................................................................................pag 194 Sinai Cement...................................................................................................................................................pag 194 Suez Cement Group........................................................................................................................................pag 195
Energy AL Chark Insurance............................................................................................................................................pag 91 BP Egypt ...........................................................................................................................................................pag 91 British Gas.........................................................................................................................................................pag 92 ECHEM (Egyptian Holding Co. for Petrochemicals)....................................................................................................pag 92 EGAS (Egyptian Holding Co. For Natural Gas).....................................................................................................pag 94 Egyptian Electricity Holding Co...........................................................................................................................pag 95 Egyptian General Petroleum Corporation (EGPC)....................................................................................................pag 94 Egyptian LNG....................................................................................................................................................pag 95 ENPPI................................................................................................................................................................pag 96 GANOPE.........................................................................................................................................................pag 101 GASCO.............................................................................................................................................................pag 96 MIDOR (Middle East Oil Refinery).......................................................................................................................pag 97 Natural Gas Vehicles Company..........................................................................................................................pag 98 Petrojet.............................................................................................................................................................pag 98 Petroleum Marine Services...............................................................................................................................pag 100 SEGAS (Spanish Egyptian Gas Company)..........................................................................................................pag 102 Shell................................................................................................................................................................pag 100 Sokhna Port 2..................................................................................................................................................pag 101 Tharwa...........................................................................................................................................................pag 101
Finance Alexandria Commercial & Maritime Bank.........................................................................................................pag 108 Arab African Intl Bank......................................................................................................................................pag 109 Bank of Alexandria..........................................................................................................................................pag 110 Banque Du Caire.............................................................................................................................................pag 110 Banque Misr....................................................................................................................................................pag 111 CIB..................................................................................................................................................................pag 113 EFG Hermes.....................................................................................................................................................pag 114 Egyptian American Bank..................................................................................................................................pag 114 HC securities...................................................................................................................................................pag 115 HSBC..............................................................................................................................................................pag 116 Misr International Bank (MIBank).....................................................................................................................pag 117 National Bank of Egypt....................................................................................................................................pag 118 NSGB..............................................................................................................................................................pag 118 MCSD.............................................................................................................................................................pag 116 Capital Market Authority.................................................................................................................................pag 111 Central Bank of Egypt.....................................................................................................................................pag 112 CASE..............................................................................................................................................................pag 112
Infrastructure & Transport Cairo Airport Authority....................................................................................................................................pag 145 EgyptAir Holding.............................................................................................................................................pag 145 Fedex..............................................................................................................................................................pag 146 KLM................................................................................................................................................................pag 146 Lufthansa........................................................................................................................................................pag 148 National Authority for Tunnels.........................................................................................................................pag 148 Port of Damietta..............................................................................................................................................pag 149 Port of Port Said..............................................................................................................................................pag 149 Sadat Group....................................................................................................................................................pag 150 Sokhna Port....................................................................................................................................................pag 150
Industry & Trade Al Ahram Beverages........................................................................................................................................pag 127 ALKAN Group.................................................................................................................................................pag 128 Eastern Tobacco Company...............................................................................................................................pag 129 Egypt Aluminium.............................................................................................................................................pag 130 EK Holding......................................................................................................................................................pag 130 Faragalla Group...............................................................................................................................................pag 132 Ghabbour Group.............................................................................................................................................pag 133 Holding for Metallurgical Industries..................................................................................................................pag 135 Juhayna..........................................................................................................................................................pag 134 Mantrac/Mansour............................................................................................................................................pag 134 Omar Effendi...................................................................................................................................................pag 135 Oriental Weavers.............................................................................................................................................pag 136 Ragab Group...................................................................................................................................................pag 136
Telecom & it Data Management System...............................................................................................................................pag 158 LinkDOTnet.....................................................................................................................................................pag 158 Microsoft........................................................................................................................................................pag 159 Mobinil...........................................................................................................................................................pag 160 Orascom Telecom............................................................................................................................................pag 160 Raya Holding...................................................................................................................................................pag 160 Siemens..........................................................................................................................................................pag 161 Smart Village...................................................................................................................................................pag 161 Telecom Egypt.................................................................................................................................................pag 162 Vodafone........................................................................................................................................................pag 162
Tourism Accor..............................................................................................................................................................pag 170 ATIC Holding...................................................................................................................................................pag 170 Conrad...........................................................................................................................................................pag 171 Egoth..............................................................................................................................................................pag 174 Egyptian Tourism Authority..............................................................................................................................pag 172 Emeco Travel...................................................................................................................................................pag 173 Flash Group.....................................................................................................................................................pag 175 Four Seasons Cairo..........................................................................................................................................pag 175 Grand Hyatt Cairo...........................................................................................................................................pag 175 Hyatt Sharm El Sheikh......................................................................................................................................pag 176 Intercontinental Semiramis...............................................................................................................................pag 179 Le Meridien Heliopolis.....................................................................................................................................pag 176 MA Kharafi Group...........................................................................................................................................pag 177 Marriott..........................................................................................................................................................pag 178 Nile Hilton.......................................................................................................................................................pag 178 Orascom Tourism............................................................................................................................................pag 178 Red Sea Safari Diving......................................................................................................................................pag 179 Tourism Development Authority......................................................................................................................pag 180 Travco Group Holding.....................................................................................................................................pag 180
BIBLIOGRAPHY
Embassy of the USA. 2003. Egypt Investment Climate Report. July.
2003. Egypt Economic Trends Report. September.
Ministry of Agriculture and Land Reclamation. Available at: http://www.agri.gov.eg/.
Ministry of Foreign Trade. 2004. Investing in Egypt.
Business Studies and Analysis Center. 2002.
The Tourism Sector in Egypt.
The American Chamber of Commerce in Egypt.
IDSC. 2004. Egyptian Monthly Economic Bulletin. May.
Ministry of Public Enterprise. Available at: http://www.mpe.gov.eg.
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