newdelhi@ecs.gov.eg EGYPT & INDIA TRADE & INVESTMENT A - - PowerPoint PPT Presentation

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EGYPT & INDIA

TRADE & INVESTMENT “A QUEST TOWARD SUCCESSFUL PARTNERSHIP”

Trade:

Source: Indian Ministry of Commerce and Industry Value in millions USD

2016 2017 change

value % Egyptian Exports 1052 1216 164 + 15.54 Indian Exports 2090 2351 261 + 12.49 Trade volume 3142 3567 425 + 13.5 Trade balance 1038

• 1135
• 97

+ 9.3

56 14.9 5.1 3.9 3.9 16.2

Main Egyptian Exports to India

Petrolium &Gas Rock Phosphate Raw Cotton Fertilizers Citrus

• ther

16.9 6.9 6.7 4.2 3.3 3.2 58.8

Main Indian Exports to Egypt

Fozen meat Cotton yarn Passenger cars car spare parts Aluminium Oxide Ploymers Other

Source: Indian Ministry of Commerce and Industry

More Than 52 Indian companies operating in Egypt with total investments around USD 3 Billion, while Egyptian investments in India around USD 150 million.

investments :

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• New Investment Climate.
• Competitive Electricity and Labor Costs.
• Low Cost Shipping and Easy Access to Europe.
• Preferential Trade Agreements.
• Upper Egypt incentives scheme.

Why Invest in Egypt?

Cost of electricity USD per KWh 0.06 0.09 0.12 0.13 0.08 0.04 0.10 Minimum wages USD/month

330 290 270 220 190 65

Egypt’s competitive cost

• f labour and

utilities significantly contribute to an improved business case alongside the

• ffered

incentives

Production Costs

387 330 256 207 149 113 46 Shipping cost per vehicle to KSA USD/vehicle, RORO Shipping cost per vehicle to Kenya USD/vehicle, RORO 413 336 284 260 191 169 115

Egypt provides a gateway to Middle Eastern and African markets with competitive shipping costs

Shipping Costs

Egypt value proposition elements

▪ Access to an international market of 1.6 Billion consumers via

international free trade agreements, including:

Free trade agreements Egypt-EFTA (Iceland, Liechtenstein, Norway and Switzerland free Trade agreement) QIZ (Qualifying Industrial Zones) COMESA AGREEMENT (Common Market for Eastern & Southern Africa) AGADIR Agreement GAFTA (Grater Arab Free Trade Area) QIZ (Qualifying Industrial Zones) Egypt-Turkey Free trade agreement Egypt-EU Partnership agreement Egypt - MERCOSUR SADC – COMESA – EAC FTA Implementation in-process

Market access & FTAs

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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

.

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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

Industrial Investment Map Up- to -Date Industrial Investment Map based on thorough study of existing geographical enablers, and plans of economic, social, environmental and spatial development.

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www.invegypt.com/maps.aspx

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

• Establishing

Indian Industrial HUB

in Egypt toward African Markets.

• 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.

Other fields of cooperation:

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Thanks for your attention.

Egyptian Commercial bureau Embassy of the Arab Republic of Egypt INDIA

Tel.: 011- 26873818/ 011- 26887126 Fax: 011-26885922 Mob: +91 -9971591793

e-mail : newdelhi@ecs.gov.eg