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Egypt - Exporter Guide July 2011

New Zealand for Trade and Enterprise published a report about Egypt's economic situation, investment and foreign trade possibilities.
Egypt is strategically located at the cross roads of the Middle East and North Africa, while also being close to Europe. Recent civil unrest and the ousting of incumbent president, Hosni Mubarak has resulted in Egypt entering into a period of political instability. This instability could potentially become protracted if the underlying causes are not addressed.

Egypt's economy has diversified beyond its traditional agricultural base, with the oil and gas, consumer goods and pharmaceutical goods industries all now contributing significantly to the country’s economy. Tourism has traditionally been Egypt’s largest foreign exchange earner, bringing in US$11.6 billion per year; however this has fallen dramatically due to the January revolution. Approximately 14 million tourists visit Egypt each year. Egypt has an extensive energy market based on coal, oil, natural gas and hydro power. Egypt has huge reserves of gas, estimated at 1,940 cubic kilometres and liquid natural gas (LNG) is exported to many countries.

Egypt has recently been a very attractive destination for investment. Egypt is ranked in 32nd place among 187 countries in terms of attracting foreign direct investment (FDI), which is a significant improvement compared to 97th place in 2003. The total inflow of FDI in Egypt increased from US$237.4 million in 2003 to peak at US$11.6 billion in 2007.