The Gateway to Egypt

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The Gateway to Egypt

• The Land of Opportunities

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Egypts Growing Economy

• Sound Macro-Economic Indicators
• Real Growth Rate Higher than Population Growth
  Rate.
• Sustainable, Private Sector Led, Market Driven.
• Providing Quality Services Infrastructure
• Sectorialy and Geographically Distributed

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Spearheaded By

• Firm Commitment to Peace and Internal Political
  Stability.
• Fast Improvement in the Environment.
• Attractive Investment Climate.
• Integration in the Regional Global Economies.

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• Attractive Investment Climate
• Macro-economic stabilization and comprehensive
  structural adjustments
• Clear transparent incentives
• Specific business opportunities

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Clear transparent Incentives

• Exemption from Tax on Revenues for 5 to 20 Years.
• Exemption of Profit Equal to a Percent of Paid-up
  Capital.
• Maximum Customs Duties of 5 on Capital Goods.
• Exemption from Taxes on profits for Mergers or
  Divisions.
• Special Free Zones or Pre-Developed Free Zones.
• The Right to Possess and Own Land at very low
  cost.
• No Local Partner Conditions (100 Foreign
  ownership)

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Macro Stabilization Comprehensive Structural
Adjustments

• Deregulation, Liberalization and Privatization
• Changing Role of the Government
• Rationalization of Public Expenses Subsidies
• Tax customs Reforms,
• Free Exchange Markets Stronger Currency
• Elimination of Trade Barriers

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Business Climate

• Major political legal reforms by the new
  government (in less than a year)
• Reduction of Corporate Taxes from 40 to 20
• One-Stop-Shop for Investors
• Lowering of customs duties
• Cancellation refund of sales tax on machinery
• Free Trade Agreements with Arab world, 22 African
  Countries and the EU
• New balanced yet employer friendly labour law
• Stronger stable Egyptian Pound

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Booming Economy

• Tourism 2003/04 33 to 6,1 billion US
• Suez Canal 2003/04 20 to 3,1 billion US
• Egyptian Workers abroad 2003/04 10 to 3,0
  billion US
• Natural gas and petrochemicals first export with
  increased expectation
• Oil rising international price

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German Egyptian Relations

• Strong high-ranking political relations
• Egypt is third-most important trade partner in
  the Arab region
• Germany is second most important (individual)
  importer
• German education GUC, German Schools
  Mubarak-Kohl initiative,
• Germany is second Source of Tourism

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German Exports of Technology, Machinery
Equipment

• Second source after Italy
• Growth rates 14 in 2004 and estimated to reach
  20 in 2005
• 314.9 million euro in 2002
• Asian machinery is minimal

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German machinery exports to Egypt of most
important branches
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Mega Projects
East Port Said
North East Toshki
Infrastructure and Services
Investment
Active Stock Exchange
Sheikh Zayed Canal Toushki
Banking Insurance
Privatization of Public Enterprises Services
Specific Business Opportunities
East Oinaat
Trade
Large domestic market
Subcontracting
Easy access to regional markets
Free Zones
Regional Free Trade Areas
Egypt The Land of Opportunities
Joint Ventures
Bilateral Free Trade Agreements

El-Salaam Project
Training Centers
Large EU Quota
22 New Industrial Cities
Transfer of Know-How
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1a. The Local Market

• With a population of 72 million and an increasing
  per capita income, Egypt has the largest domestic
  market in the region.

Household Expenditure
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1b. Egypt, the cross-road of trade

• located in the Middle of all Trade Routs
• Free Trade Areas (for manufacturing
  Subcontracting)
• COMESA FTA (100 custom exemption, 35 local
  content)
• Greater Arab FTA PAFTA
• Bilateral Free Trade Agreements
• Large EU Market with NO Customs on Manufactured
  Goods
• Easy Access to Regional Markets
• Modern Free Zones Transit Facilities

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1c. Trade, the two way approach

• Egypt poses an excellent opportunity for German
  Companies to
• Increase German Exports to Egypt
• Large market for technologies, machinery
  products
• Lines of credit Grants
• Modernization Needs
• Increase German Exports to Third countries
• Added value subcontracted assembly or formulation
• To benefit from Free Trade Agreements
• Use Egypt as a Transit Trade Hub for the Region
• Fast and Easy Access to Regional Markets
• Utilize Egypts Modern Free Zones Transit
  Facilities

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Germany Technology, Components, CKD, Inputs,
Licenses,TRAINING, QC, ..etc.
EU25
Royalty
The Region
Egypt Assembly, Formulation, Installation,
Arabization..etc
COMESA AFRICA
PAFTA IRAQ
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2a. Infrastructure

• Egypts Mega Projects
• New Infrastructure Projects on BOOT
• Water Wastewater
• Energy (3 under construction, 15 to follow)
• Telecommunication (4 operating, 1 to follow)
• Toll Roads (3 awarded, 4 to follow)
• Ports (2 awarded, 2 to follow)
• Airports (3 awarded, 1 to follow)
• Modernization of Existing Infrastructure

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Germany Technologies, Machinery Equipment, Know
How, TRAINING
EU25
Consortiums
Egypt ODA contracts Construction, Local Content,
low cost labour, Presence, ..etc
COMESA AFRICA
PAFTA IRAQ
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Infrastructure in the Past 10 Years
ROADS 300 INCREASE
RAILWAYS 150 INCREASE
METRO 2 NEW LINES (Egypt) 900
MILLION PASSENGER / YEAR
AIRPORTS 200 INCREASE
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Water and Waste Water
Egypt Water Wastewater projects for 3000
villages (each over 10,000 inhabitants with
limited land) and 22 large projects serving over
2 million in main cities. Tunis 25 years BOT
100 million waste water plant in Tunis West
(TBA)LebanonBOO Water Awali (200 million),
Kesrouan (60 million) - BOO Waste Water
Tripoli (135 million) Kesrouan (53 million)
Tyre (60 million) KuwaitBOT Sulaibiya 390
million waste water ProjectQatarIWPP Ras Laffan
750 MW 40 million gallons of Water
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BOOT power Plants
Algeria2000 MW Program LebanonExtension of
low medium voltage distribution network (270
million)
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Egypts power Plant Projects
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• FREEWAY NETWORK
• gt4000 KM
• LE 22 Billion
• 30 years

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Roads Bridges
Lebanon 160 million 65 KM road to Damascus -
100 million Beirut Urban Transport
ProjectAlgeria220 million Suspended Bridge
Egypt250 million Nile crossing 8 bridges -
280 million 3 roads of a total of 2050 km - 120
million BOOT Tunnel under Suez Canal - 280
million developments for existing 3009 roads.
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RAILWAYS
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Railways
Libya 470 million 191 KM (1st phase of 2000
km) Libya Desert Railway linking Tunisian and
Egyptian Borders Followed by 1000 KM from Sirte
to Sebha Egypt75 million Eltebeen railway
268 million Ismailia Rafah railway 230 million
Elsaloom railway - 2 Subways (Alexandria 1 and
Cairo 3) - 3 Bullet Train BOOT projects to link
Cairo with industrial cities of Sadat, 6th of
October and 10th of Ramadan.
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Future Network
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METRO
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Greater Cairo Metro
???? ??????
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Existing NAT Network

Mobark
Nasser
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???????
Cairo University
Sadat
Cairo
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Giza Suburbs
Total Length 61 km Investment L.E 11 Billion
Giza
Helwan
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MARITIME TRANSPORT
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Existing Sea Ports
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East Port Said
Al-Sukhna Port
BOT Ports
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Al-Sukhna Port
Layout dimensions
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AIRPORTS
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Existing Airports
International
Could be International
Privately Financed
Military and could Be International
Military and could Be used for Freight Transport
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Ongoing BOT projects
Al-Alameen
Marsa Alam
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Borg El-Arab
Assuit
Sharm El-Sheikh
Hurgada
Luxor
Aswan
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2b. Egypts Mega Projects
1. Gulf of Suez
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2b. Egypts Mega Projects
2. East Port Said
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3. Financial Services

• The New Stock Exchange
• Easy-in Easy-out investment
• Market for Services (rating, portfolio
  management, .. etc.)
• The Insurance Sector
• The Banking Sector
• Trade Finance
• Investment Finance

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4. Privatization
of Public Enterprises Utilities

• Strategic Investor
• Stock Exchange Takeover
• Purchasing Minority - Selling Know-How
• Technical Restructuring
• Leasing of Production Capacity
• Buy-Back Agreement

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5. Manufacturing

• Joint Ventures
• Co-Manufacturing Licensing
• Modernization of Key Industries
• Subcontracting
• Feeding Industries (automotive, electronics,
  ..etc.)
• Buy-Back and Re-export Schemes
• Technology Transfer
• Management Vocational Training
• QC, QA and certification

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6. Agriculture Fisheries

• Infrastructure (canals, pumping stations, ..etc.)
• Land Reclamation (South Valley, Sinai, ..etc.)
• Agro-Machinery Equipment
• Research Development
• Agro-Produce Processing Export
• Modernization of Fishing Fleet
• Fish Farms
• Fish Processing Export

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7. Environment
Egypt offers a funded market of over 2.1 billion
annually in the fields of

• Consultancy (audits, EIAs, ..etc.)
• Certification (eco-labeling, ISO14000, vehicles,
  ..etc.)
• Mainstream (cleaner technologies, machinery
  equipment)
• Waste Management (Urban, Industrial Hazardous)
• Local Manufacturing Assembly
• Renewable Energies (photo-voltaic, solar and
  wind)
• Coastal Zone Oil Spill Management
• Conservation of Cultural Heritage

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8. Oil Petrochemicals

• Petroleum Refined Products represent 7 of GDP
• Crude oil exports provide 52 of merchandise
  exports
• Reserves around 3.3 billion barrels
• Oil Production
• 830,000 barrels/day
• 67 is refined locally (100,000 b/d to be added
  in 2001)
• Gas Production
• Production is 0.486 trillion cubic feet
• Reserves are 35.5 trillion cubic feet
• Produces 85 of thermal electricity (95 by end
  of 2000)

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With Funding Eligible for German Companies

• Grants
• Industrial Modernization (Euro 250 million)
• Textile Modernization 1 (Euro 80 million)
• Trade Enhancement 1 2 (Euro 80 million)
• Third country untied (eg Iraq US 5 billion)
• Lines of Credit
• EIB (Euro 300 Million)
• WB IFC (US 300 million)
• KfW environment (Euro 300 million)
• DEG, KfW/IPEX KfW/ERP Export Fund
• Risk Guarantees
• Official Export Guarantee Scheme
• Hermes Guarantees

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Moreover, Egypt offers to tourists and foreign
residents

• History, Culture Tradition
• Attractive Touristic Recreational Sites
• Endless sandy beaches with International
  Facilities
• Spacious Residential Facilities
• International Education for the Children
• World Class Health Services
• Hospitable People and a Large Expatriate
  Community
• Pleasant Climate all the year

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All these world leaders and many many more,
evaluated the rest to invest in the best

• ABB Abbot Babcock Wilcox Bayer Birla
  Boehringer BMW Cadbury Carrier Daimler
  Chrysler Daewoo Danieli DOW Chemicals Du
  Pont Eveready General Motors General Motors
  Henkel IBM Johnson Johnson LG Microsoft
  Moulinex Nestle Nissan Otis Otsuka Peugeot
  Pfizer Philips Proctor Gambel Roussel Uclaf
  Samsung Sandoz Siltal Sumitomo Suzuki
  Technocar Toshiba Unilever Westinghouse
  Xerox YKK ..etc.
• They Came to Egypt, the land of opportunities .

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We Invite You toguide your companies on the path
of these pioneers who are reaping the fruit of
their early arrival
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we invite you to enter the market through
The German Egyptian Technology Symposium Cairo,
2-4 October, 2005
The technology marketplace
Federation of Egyptian Industries
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Rig your Boat, travel near and far, look for a
wise partner, knock his door, seek his
knowledge,welcome him in your home,this is how
your people will prosper
Come to Egypt, in a tradition that is summarized
in the following words of ancient Egyptian wisdom
Amenophet, 2,500 B.C.