1. UK INVESTMENT IN EGYPT Alexandria Chamber of Commerce, 21 January 2013 Presentation by Taher El Sherif Secretary General, The EBCC *

2. CONTENTS Global investment in Egypt UK share of investment in Egypt Why invest in Egypt? UK/Egypt trade statistics

3. GLOBAL INVESTMENT IN EGYPT *

4. EGYPTS NET FDI ( IN US$ BN) 1980 - 2011 Source: World Bank Egypts economic reform programme of 2004 creates a favourable investment environment in Egypt. Net FDI flourishes from 2005. The 25th January revolution leads to a steep decrease in net FDI to US$ -1.108bn in 2011. For the first time in 30 years, FDI outflows are higher than inflows.

5. EGYPTS FDI INFLOWS( IN US$ BN) 1980 - 2011 Egypts net FDI almost equals its FDI inflows. FDI outflows are minimal. 2011 is the first year that FDI outflows are higher than inflows, leading to a negative net FDI of US$ -1.108bn. Source: World Bank

6. EGYPTS FDI BREAKDOWN (IN %) Establishment of new companies and expansions of companies in operation accounted for 42.9 percent of net FDI flows during the period from FY 2004/05 to FY 2008/09. Source: Central Bank of Egypt

7. SECTOR DISTRIBUTION & SHARE OF EACH SECTOR IN TOTAL FDI IN EGYPT (US$ MN) 2009/10 % Share2010/11% Share Manufacturing 456.3 4.1803.98.4 Agriculture 261.6 2.430.40.3 Construction 303.8 2.8108.81.1 Finance 873.97.91141.2 Services 382.63.5207.22.2 Tourism 246.92.21581.7 Communications & IT 62.80.670.1 Real estate 305.32.81341.4 Petroleum 7577.468.87014.773.3 Other 537.54.9996.410.4 Source: Central Bank of Egypt

8. FDI & PORTFOLIO INVESTMENT IN EGYPT IN% Quarterly FY 09/10 – FY 10//11 Source: Central Bank of Egypt

9. UK SHARE OF INVESTMENT IN EGYPT *

10. UK NET FDI OUTFLOWS TO EGYPT (IN £MN) 1992 - 2011 Source: OECD Statistics The total accumulated UK investment in Egypt reaches £5,686 over 20 years Investment breakdown: Oil & gas - 60% Manufacturing – 15% Finance - 10% ICT - 8% Tourism – 5% Others – 2%

11. TOP INVESTOR COUNTRIES IN EGYPT IN % Q1 2011/2012 Inflows: US$2.69bn Outflows: US$ 2.26bn Net FDI: US$ 440.1mln In Q1 of FY 2011/12 the UK invests US$ 1.3bn in Egypt. This investment equates to 61% of total EU investment in Egypt (US$ 2.12bn). Source: Central Bank of Egypt

12. WHY INVEST IN EGYPT? *

13. Current circumstances Security concerns New Islamic regime Instable political situation Shortage of government resources Non-conducive investment environment

14. WHY INVEST IN EGYPT? Despite the current political uncertainty and instability, Egypt remains a robust investment destination Strong infrastructure A legal framework that supports and invites FDI Strong banking system Strong business community Solid judicial system Skilled human resources local and international demand remains high Strong business and trade ties with the world Respect for international accords and treaties Abundance of natural resources, including oil & gas, tourism and the Suez Canal

15. WHY INVEST IN EGYPT? Necessary Changes to Boost FDI in Egypt Political Stability Security The opposition needs to accept the reality of the current political situation Coherence of different political parties to serve in the best interest of Egypts economy The international and regional community needs to support Egypts new regime and policies New economic policy to take advantage of Egypts business & trade opportunities

16. WHY INVEST IN EGYPT? Advice for Foreign Investors Do not postpone your business venture until after the dust has settled Start studying the Egyptian market Find your partner in Egypt Conduct market research Arrange your finance – the Egyptian government requires at least 40 percent foreign finance for projects Location analysis Study the laws and regulations Research the available funds and agreements

17. WHY INVEST IN EGYPT? Government priority sectors Healthcare Education Energy/renewable energy Housing Waste management Water management Regional & rural projects (Sinai development)

18. Jan-Oct 11Jan-Oct 12% Change Egypt Exports 700525-25 UK Exports 849755-11 Trade Volume 1,5491,280-17 UK Balance149230+54 UK-EGYPT TRADE STATISTICS Jan-Oct YOY in £MN World Ranking UK Exports 56Romania 60 (-2 YOY)Egypt 61Greece World Ranking UK Imports 75Argentina 76 (-7)Egypt 77Kazachstan

19. THANK YOU Presentation by Taher El Sherif Secretary General, The EBCC *