Population (2017): 97 million GDP (2017): US$237.1 billion (S$320 billion) World Bank “Ease of Doing Business” Rank (2018): 128 Bilateral Trade with Singapore (2017): S$661 million
Egypt is the gateway linking Africa and Asia. Located along key international trade routes, it is close to the Arabian, African, American, and European markets.
Trade flows from the Suez Canal – home to 10% of the world’s vessels – hit a record high of US$5.6 billion (S$7.6 billion) in revenue in the 2017-2018 financial year.1 Egypt’s position as a regional export hub is also well supported by its excellent infrastructure.
1 “Egypt's Suez canal reports record high $5.585 billion annual revenue”, Reuters, 17 June 2018
Egypt has a large population of 97 million and a young median age of 242. Over the next five years, around three and a half million young Egyptians are projected to join the labour force.3
The Egyptian government is upgrading its talent pool through education and vocational training. Since 2014, a US$5.9 billion (S$8 billion) education plan to increase the number of market-ready graduates and promote a knowledge-based economy has been underway. This translates into a sizeable pool of manpower you can hire from when you bring your business to Egypt.
2 CIA World Factbook, 2018 3 “Egypt Moving Forward: Key Challenges and Opportunities”, International Monetary Fund Website, 17 July 2018
The chapter on Egypt's economic uncertainty has undergone a massive revision in recent years. Egypt's gross domestic product (GDP) grew by 5.3% in the last fiscal year ending in June 2018 – the highest rate since 2007.4
The economic growth is a result of Egypt’s reforms, which included cuts to energy subsidies, coupled with the injection of a US$12 billion (S$16 billion) International Monetary Fund loan. The reforms have resulted in the country's foreign currency reserves reaching an all-time high of more than US$44 billion (S$60 billion) in July 2018, compared with around US$14 billion (S$19 billion) in July 2013.5
These factors, in turn, have narrowed the country's budget deficit, stimulated economic growth and attracted inward investments.3
The Egyptian authorities have also initiated reforms to improve the efficiency of land allocation, strengthen competition and public procurement, improve transparency of state-owned enterprises, and tackle corruption. These pave the way for greater private sector development and export-led growth.
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4 “The good and bad of Eqypt’s economy”, The Straits Times, 6 September 2018 5 “Egypt Moving Forward: Key Challenges and Opportunities”, International Monetary Fund Website, 17 July 2018