1 newdelhi@ecs.gov.eg
EGYPT & INDIA TRADE & INVESTMENT “A QUEST TOWARD SUCCESSFUL PARTNERSHIP”
Trade: change Value in millions USD 2016 2017 value % + 164 1052 1216 15.54 Egyptian Exports + 261 2090 2351 12.49 Indian Exports + 425 3142 3567 13.5 Trade volume + 97 - 1038 - 1135 9.3 Trade balance Source: Indian Ministry of Commerce and Industry
Main Indian Exports to Egypt Main Egyptian Exports to India 16.9 16.2 6.9 3.9 3.9 6.7 5.1 58.8 56 4.2 3.3 14.9 3.2 Fozen meat Cotton yarn Passenger cars Petrolium &Gas Rock Phosphate Raw Cotton car spare parts Aluminium Oxide Ploymers Fertilizers Citrus other Other Source: Indian Ministry of Commerce and Industry
investments : More Than 52 Indian companies operating in Egypt with total investments around USD 3 Billion, while Egyptian investments in India around USD 150 million.
Why Invest in Egypt? • New Investment Climate. • Competitive Electricity and Labor Costs. • Low Cost Shipping and Easy Access to Europe. • Preferential Trade Agreements. • Upper Egypt incentives scheme. 6 newdelhi@ecs.gov.eg
Production Costs Cost of electricity Minimum wages USD per KWh USD/month 0.13 Egypt’s competitive cost 0.12 330 of labour and utilities 290 0.10 significantly contribute to an 0.09 270 improved business case 0.08 220 alongside the offered 0.06 190 incentives 0.04 65
Shipping Costs Shipping cost per vehicle to Kenya Shipping cost per vehicle to KSA USD/vehicle, RORO USD/vehicle, RORO 413 387 Egypt provides a gateway to 336 330 Middle Eastern and African 284 256 markets with 260 competitive 207 shipping costs 191 149 169 113 115 46
Market access & FTAs Egypt value proposition elements ▪ Access to an international market of 1.6 Billion consumers via international free trade agreements, including: Implementation in-process Free trade agreements Egypt-EFTA (Iceland, Liechtenstein, Norway and Switzerland free Trade agreement) Egypt-Turkey Free trade Egypt-EU agreement QIZ (Qualifying Partnership Industrial Zones) agreement QIZ (Qualifying Industrial Zones) GAFTA (Grater Arab Free Trade Area) AGADIR Agreement COMESA AGREEMENT (Common Market for Eastern & Southern Africa) SADC – COMESA – EAC FTA Egypt - MERCOSUR
New Investment law A new Investment law that has been issued that guarantees a number of protections for international investors to encourage new development in Egypt: • Foreign investors will receive the same treatment under law as Egyptian. • Investment projects will not be nationalized. • No administrative authority can revoke or suspend investment project licenses without proper warning, due process, and time to correct any issues. • Investors’ projects may include up to 10% foreign employees, and up to 20% for investment companies. • Investors have the right to transfer their profits abroad as well as the Foreign employees . 10 newdelhi@ecs.gov.eg
cont….New Investment law Custom Tax: Companies will receive a 2% overall customs tax exemption on the value of imported equipment and machinery. They will also be exempted from stamp tax and registration fees on articles of association, mortgages, loan agreements and land contract notarizations related to their investment Dispute Resolution • An independent arbitration and mediation center will have the authority to pursue the settlement of investment disputes that arise among investors and state authorities. • A ministerial committee will be established to review complaints and disputes between investors and state authorities. • Committees within GAFI will examine complaints against resolutions issued in accordance with this law 11 newdelhi@ecs.gov.eg
Industrial Investment Map www.invegypt.com/maps.aspx Up- to -Date Industrial Investment Map based on thorough study of existing geographical enablers, and plans of economic, social, environmental and spatial development. 12 newdelhi@ecs.gov.eg
MAIN OPPORTUNITIES
SUEZ CANAL ECONOMIC ZONE
EGYPT’S NEW CAPITAL
1.5 MILLION FEDDAN PROJECT
THE GOLDEN TRIANGLE
EL GALALA CITY AND TOURIST COMPOUND
NEW ALAMEIN CITY
DAMEITTA FURNITURE CITY
OTHER SECTORS OF INTEREST: ICT Sector AGRIBUSINESS LOGISTICS AND TRANSPORTATION PETROCHEMICALS REAL STATE RENEWABLE ENERGY RETAIL SECTOR TEXTILES TOURISM OIL & GAS SECTOR Pharmaceutical Automotive Domestic appliances & Consumer electronics
Way Forward How To Get More Closer?!
Billion USD (Target) For Trade and the same for investments between Egypt & India
Egypt – India Business Council • Regular Business missions. • Participation in Specialized and General Fairs & Exhibitions. • Regular and Frequent Council Meetings. • Discussions of mutual economic & business cooperation priorities. • Recommendations regarding ways to increase volume of Trade and facilitate flow of Investments between both countries.
Egypt – India to Africa • Indian Establishing Industrial HUB in Egypt toward African Markets.
Other fields of cooperation: • Establishment of a Joint Bank • Customs cooperation • Dispute settlements mechanism • Cooperation in the MSMEs Field • Capacity building • Cooperation in the field of Industrial development • Facilitating the movements of Business persons.
Egyptian Commercial bureau Embassy of the Arab Republic of Egypt INDIA Thanks for your attention. Tel.: 011- 26873818/ 011- 26887126 Fax: 011-26885922 Mob: +91 -9971591793 e-mail : newdelhi@ecs.gov.eg 27
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