MANUFACTURING
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Manufacturing - 20% of GDP - 13.75% of Total Employment - 65% of manufacturing output is produced by the private sector. - Food processing and textiles account for bulk of Egypt's manufacturing value. |
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Textiles - Covers entire spectrum of cotton processing operations, including spinning, weaving, converting, knitting, dying, and garment manufacturing. - The sector is growing at a rate of 6.5% annually. - Contributes up to 23% of industrial exports and nearly half of total exports if oil is excluded.
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Food Processing - Big potential and rapid expansion. - Sector has witnessed a series of privatizations which gave room to high paced development. - Rising income levels among middle class Egyptians, changes in lifestyles and consumption patterns, and the growing numbers of Western style supermarkets have helped to develop this sector rapidly. - This sector has the potential to become one of Egypt's leading export industries. |
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Pharmaceuticals - Egypt is the largest producer and consumer of pharmaceuticals in the Middle East. It accounts for 30% of the supply of the MENA region. - The Egyptian drug industry is mainly drug formulation rather than research based. - The public sector's share of the market is 29%, while the private sector's share is 71%. - This industry is expected to grow annually by 14% as a result of growth in drug consumption, increased government spending on healthcare, and increased foreign assistance. |
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Building Materials and Construction - One of most dynamic sectors of economy - Demand has been increasing since 1995 because of extensive private sector construction - Demand is expected to increase further at an annual rate of 25% due to passing mortgage laws that make it easier for lower income to own property and because of the Toshka projects (construction of new airports) - About 85% of construction material is manufactured locally due to the high price of importing from high tariff on construction materials (20%-40%) -In 2003 WTO regulations will be enacted and this will not be the case
Cement - One of Egypt's most active and profitable industries, demand is growing by 11% per annum due to the increase in population - Current cement consumption is 27 million tons and total production is 27 million tons - Supply is expected to exceed demand with new entrants in the market (will add 10 million tons per annum) - Cost of cement remains one of lowest in the world because of the low cost of labor, location, and abundant raw materials
Steel - Demand is expected to increase by 8% in the next 5 years - Egypt constitutes 5.2% of world steel production and 6.5% of world consumption -Relies heavily on re-bar sector (80% of market) -Local demand for re-bar accounts for 4.5 million ton per annum, while production is only 3.6 million Paint: - Grow at 8% over the next 5 years - Once was heavily protected, now highly competitive and fragmented |
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