Revolutionary technology: IT investors eye Egypt

Not since the Industrial Revolution has the world witnessed a boom like that in the communications and information technology (ITC) sectors. And this is not a boom that has affected economies alone, since it also stood behind many of the so-called Arab Spring revolutions in the Middle East.

Whilst millions chanted for freedom and justice in the streets of Cairo and Tunis, millions 's ore were glued to their PCs, laptops, mobile phones and handhelds seeking to drive on the masses and topple governments. IT played a major role in this toppling process, and it seems it will now have an even greater one in the rebuilding phase, especially in Egypt.

ITC sectors also captured the attention of the Egypt Forward business conference that took place in Washington DC recently with the participation of almost 400 US companies and 49 representatives of major Egyptian companies.

Egypt as the investment destination of a new era was the main theme of the conference, where four main areas were discussed: ITC, energy, agriculture and transportation.

The United States is one of main countries investing in Egypt, accounting for 13 per cent of foreign direct investment inflows in 2009/2010 and a total amount of $11.6 billion as of September 2010. The main sectors covered are mining, transportation, computers and electronics and chemicals.

"Egypt has recently gone through historical developments. We all agree with US President Obama that Egypt will never be the same again, and we are here today to try to figure out the answer to the question of what will Egypt become," said Alaa Qinawi, first under-secretary at the Ministry of Trade and Industry at the conference.

"I assure you, without being overly optimistic, that Egypt's peaceful revolution has brightened the outlook for a new Egypt. We are pursuing a democratic path leading steadily towards true democracy, better governance and more transparency. Such developments will play a pivotal role in improving Egypt's economic growth potential and ability to attract foreign direct investment," he said.

According to official figures, in 2010 trade volumes between Egypt and the US reached $9 billion. The United States is currently Egypt's largest single trading partner and supplies almost 15 per cent of Egyptian imports.

Egypt's most important imports from the US in 2010 were transportation equipment, agricultural products and machinery. Egyptian exports to the United States, on the other hand, account for more than 8.5 per cent of total Egyptian exports. Major Egyptian exports to the United States in 2010 were mineral fuels, textiles and apparel, fertilisers and chemicals.