Agriculture:Agriculture is the an important pillar of the economy. The sector employed about 21.4% of Egypt’s workers in 2018 which is the highest economic sector share in employment. Farming is concentrated in the fertile Nile delta. The agricultural seasons in Egypt are divided into three seasons: the winter season, the summer season and the Nile season, as well as the permanent or annual crops whose production season extends to a whole agricultural year such as sugar cane, fruit crops, and timber.
Egypt’s marine fisheries account for approximately 11 million feddans, as well as lake fisheries, which include the Manzala lakes, El-Borlos, Bardawil, Mariout, Lake Nasser, and others.
Communication and Information Technology:Egypt’s communications and information technology sector is a leading global outsourcing destination, Egypt is the leader in the MENA region and 14th worldwide on A.T. Kearney’s 2017 Global Services Location Index (GSLI). This puts Egypt ahead of competitors in the region.
The National Telecom Regulatory Authority (NTRA) granted the Fourth Generation (4G) mobile service license to the four Egyptian telecoms; namely, Telecom Egypt (TE), Orange, Vodafone, and Etisalat.
Energy:Egypt is aiming to become an energy hub for the region. Recently it inaugurated the three giant power plants carried out by the German company Siemens in collaboration with local Egyptian partners, in the New Administrative Capital, Beni Suef, and Burullus with a total capacity of 14.4 GW, or about 50 percent of the electricity grid.
With regards to solar energy: the Benban Solar Park, in the south of Egypt, is set to be largest in the world upon completion at 1.8 GW total capacity.
Industry:The Egyptian economy is dependent on the industrial sector for growth, exports, and job creation. The main industries in Egypt are as follows:
The Food Processing Industry
The food processing industry is one of the most important industrial sectors, as it has an ever-growing customer base. There are over 7,000 food manufacturing companies operating in the country.
The Textile Industry
The Egyptian Textile Industry is completely vertically integrated, starting from raw materials up to finished products of Apparel and Home Textile.
During the beginning of 2018 the Ministry of Trade and Industry announced the construction of a new city for textiles and garments production in al-Sadat, to be the largest in Egypt, with a paid-in capital of USD 2 billion over a period of seven years. Over an area of 3.1 million square meters, the new city will include 568 factories, offering around 160,000 direct jobs, with a production capacity worth USD 9 billion per year. The first of five phases of implementation will be finished in 2020, with 57 factories and investments worth USD 230 million, while the last phase is scheduled to be completed by 2024.
The government also plans to modernize the state-owned Cotton and Textile Industries Holding company.
The Leather Industry
The leather industry in Egypt is considered one of the most important industrial sectors in the Egyptian economy. The tanning industry forms the backbone of the Egyptian leather industry, supplying raw material for the footwear and leather goods sectors. The tanning and finished leather industry combined constitutes the fifth largest industrial sector in Egypt, employing more than 250,000 people.
El Robbiki Leather Cluster:
Robbiki Leather Cluster is designed to be the leading leather industrial city in the Middle East and Africa. It is designed to be a hub for value chain integration leather byproducts. This city is established on an area of 1629 acres, and currently houses 200 tanneries. Its current production of leather is 222 million square feet. It includes a well–equipped leather tanning technology center. The first phase is for tanneries and is already finished and fully occupied. The second phase is for tanneries expansion and feeding industries, and the third phase for finished leather products. This city is strategically located near 6 ports and the Cairo International Airport. Special tax incentives are also offered to investors in this industrial city.
The Furniture Industry
The Egyptian furniture sector is one of the oldest and also most promising sectors in Egypt. It continues to be a lucrative business opportunity and a solid investment due to the various advantages it enjoys.
- A highly skilled labor force, due to the historical and cultural significance of the craft, comprising 13% of the total work force of the manufacturing sector in Egypt at internationally competitive wages.
- Immense comparative advantage due to its strategic location.
- Backed by a solid foundation of industries within its supply chain, creating one of the largest and most cohesive value chains in the Egyptian industry, including the production and manufacturing of chemical products and metal parts, wood, glue, foam, painting, fittings, machinery and the general development of craftsmanship across various sectors.
Damietta Furniture City:
Damietta Furniture City was established with an authorized capital reaching 5 billion Egyptian Pounds, with a 521 million Egyptian Pound capital value and a 100% Egyptian capital contribution, after the incorporation decision decreed by the General Authority for Investment in July 2016. An industrial area built on 331 acres according to the appropriation resolution No. 999 for the year 2015 issued by the Prime Minister, to establish furniture industries of different size and complementary industries and provide the infrastructure, services and facilities needed by those industries. It is allocated 20 minutes away from Damietta city and is near the entrance of Damietta governorate in Shata area. The industrial city will enable a qualitative leap to transform the local furniture industry into a global one. It contains 1500 small and medium workshops of 50 to 150 square meters and about 150 large and complete factories, besides the establishment of the furniture technology center in Damietta for preparing marketing studies for the furniture factories and test furniture before exportation.
For more info: http://damiettafc.com/?lang=en
The Pharmaceutical Industry
Egypt is among the largest producers and consumers of pharmaceuticals in both the Middle East and Africa. The pharmaceutical sector in Egypt is one of the oldest strategic sectors in the country, founded in 1939 with the establishment of the Misr Company for Pharmaceutical Industries.
Currently investments in the pharmaceutical industry reach 120 EGP billion through 123 factories, which employ around 300,000 persons. 40% of the investments in the sector are foreign, resulting in around 65% of the sales. Local pharmaceutical production covers around 93% of local consumption.
The Automotive and Auto Components Industry
Egypt’s automotive industry is mainly composed of 17 car assembly plants, employing around 86,000 workers. Egypt offers huge opportunities for this sector due to the availability of a large local market, in addition to the possibility of exporting duty free to neighboring countries as a member of the many Free Trade Agreements signed with them.
The auto components industry in Egypt consists of around 375 companies manufacturing many parts such as : glass, paint materials, wiring harnesses, car radios, air conditioning radiators and condensers, lamps, mirrors, wheel covers, suspensions, axels, seats, interiors, chassis and metal parts, exhaust systems, brake pads, filters, and fire extinguishers. Total automotive components exports reached 670 Million Euros in 2016 (including software exports).