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PROSPERITY ON THE NILE: How and Where to Invest in Egypt (cont'd)
President Mubarak surveys the work at Kanat El Salam, the Peace Canal, which provides Sinai with water from the Nile.
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Egypt Moves Towards a Free-Market Economy: A Model of Integrated and Sustainable Development
Electric Power
- The Electricity sector has been opened to private ownership and operation of new power-generating facilities through international competitive bidding based on the BOOT (build, own, operate and transfer) system.
- President Mubarak announced, in 1995, that, due to its high costs,
the nuclear power sector was open to private investment.
- More than 15,000 MWs have been added to Egypt's installed capacity
- The US$ 348 million project power grid to link Egypt, Jordan, Syria,
Iraq and Turkey by the year 2000 started to show results.
This grid will also link up with the unified European electricity grid and Libya, Tunisia, and Spain.
- Adjustment of local electricity prices to reach effective economic costs.
Transportation
- An extended railway system of track connecting approximately 75%
of the cities, towns and villages throughout the country.
- Cairo's metro line constructed and passenger-carrying capacity
more than tripled during the last few years.
- Egypt Air's monopoly on carrying passengers has been curtailed
and several privately owned airlines now operate regularly scheduled domestic flights.
- The navigable waterways of Egypt have witnessed tremendous growth and developed additional capacity.
- Construction of the Cairo-Assiut desert highway running east of the Nile and linking Upper Egypt to the Egyptian capital.
- An agreement with Japan to finance the main section of a four-lane, 4km suspension bridge over the Suez Canal to link Sinai to other Egyptian cities.
Telecommunications
- The telephone system has undergone extensive modernization.
Number of lines installed yearly has increased dramatically.
- Investments by private sector in telecommunication technology like
cellular phones.
- Connection to the Internet is established and the number of users
is increasing every day.
Money and Banking
- Privatization of joint-venture banks with state-held shares.
- Strengthening the role of specialized banks like the Export Development Bank
Property Rights
- Newly amended copyright and trademark laws, which are
considered among the most comprehensive in the world.
The amended laws provide one of the most complete sets of
protection measures for intellectual and industrial property.
Agriculture
- Ambitious plans to breathe life into the desert realized.
- Launch of the large national Southern Valley or Toshka project to
creaste a new Nile Valley by running a canal from Lake Nasser to the chain of oases in the Western Desert. This project will double the
agricultural area by the year 2017 and create new urban communities.
- Large-scale land reclamation linked to industrial, tourism, agricultural, and mining projects.
- Incentives offered to investors in the Southern Valley include a 20- year exemption from taxes and fees, starting from the date water is released onto the land; exemptions from customs duties for all required equipment, machinery, transport and production lines;
and electricity and water delivery to the project.
Industry
- Egypt's first operating leasing company, Xerox Finance Leasing, a subsidiary of Xerox Egypt, was established followed by more leasing companies.
- Liberalization of the textile industry witnessed a significant change. Phases 1 and 2 of the Egyptian government's agreement with the
WTO have been completed.
- Public firms' share of domestic production of pharmaceuticals has fallen from 80% to less than 30%, giving more to the private sector.
- Multinationals are making large investments in Egypt's
pharmaceuticals industry. The most recent newcomer to the market, Glaxo Wellcome, has achieved a 227% increase in sales.
- Automotive industry growth has been impressive, with big companies operating in the market. Assembly of Cherokee, Wrangler, Ford, Mercedes Benz, BMW, Peugeot and Nissan are now in Egypt.
- Focus on the electronics and information-technology sectors.
Egypt adopted a strategy geared to establish a world-class computer and electronics industry. A number of multinationals, like Daewoo, are investing in consumer electronics manufacturing.
Tourism
- Incentives offered to private-sector investors, such as the right to import equipment free of customs duty and low rental costs for land in
designated tourism zones, have resulted in a major expansion of
tourism facilities and high returns. Main expansion of tourist facilities is taking place in southern Sinai and on the Red Sea cost.
- Booming tourism has created a booming construction sector.
Education
- Privately owned universities have been established.
- Computerization of education curricula is taking place in most
state schools.
- Establishment of community schools and one-classroom school in all villages of upper Egypt for the disadvantaged classes.
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