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Egypt: The key of the region
The primary objectives of AmCham Egypt are to enhance
and reinforce economic and commercial relations between Egypt and
the U.S.; to provide a forum where executives from both countries
can identify, discuss and pursue their common interests; and to
promote Egypt's progress and development on the economic front.
Over the last 14 years, our annual Doorknock Mission to Washington,
D.C., has been an invaluable tool for achieving these goals.
This year's mission will emphasize Egypt's importance as a strategic
partner in regional business with the strength and motivation to
transform the relationship between our countries from one of assistance
to one of solid alliance. An American Chamber delegation will explore
this theme with members of the U.S. Congress and administration,
financial institutions, business people, the media and representatives
from the country's most prominent policy think-tanks.
In light of recent events, there is concern that our economy relies
too heavily on the tourism sector. It is important therefore that
we point out our wide-ranging achievements in a realistic way, illustrating
both our accomplishments and the tasks that lie ahead.
Egypt's economic base is diversified, with active agricultural (15.7
percent of GDP in fiscal year 1996/97), manufacturing (18 percent)
and energy sectors (17 percent). In addition, the privatization
program opened new areas to the private sector in 1997, including
telecommunications, infrastructure, shipping and aviation. These
are all areas with great potential impact for the entire region.
In short, a number of key enterprises are under development by the
private sector whose growing influence and experience underlines
Egypt's value as a business partner and an entry point to the Middle
East and African markets.
There are more encouraging facts and figures for fiscal year 1996/97.
Real GDP growth was 5.2 percent, indicating a rise from the previous
year's $64.3 billion to $75 billion. The private sector's share
of GDP is increasing steadily, amounting to 10 percent in 1996/97,
compared with 3.4 percent in 1992/93. Egypt's budget deficit for
1996/97 went down to 0.8 percent, an all time low. Inflation as
well has dropped to a record 4.0 percent for the first half of fiscal
year 1997/98. At the same time, foreign reserves rose to $20 billion,
equivalent to 16 months' imports. Trade with the U.S. is growing,
and accounted for 32 percent of our total exported goods and 24
percent of our imported goods.
Accordingly, in 1997 Egypt was awarded high rating and recommendations
by Standard & Poor's, IBCA and Moody's. The IMF also stands
firmly behind Egypt's economic progress and recent government policies
to reform the tax system, encourage investment, increase transparency
and upgrade the stock exchange.
One of the challenges that was recognized in last year's mission
is our need to promote our success. To this end, the greatest value
of the Doorknock lies in the fact that our delegation embarks on
this journey as businessmen, not politicians. We offer our experience
as individuals with enterprises to maintain and advance. Our collective
body of work is impressive; our success, the result of a sustained
effort recognized and encouraged by our government. As representatives
of the private sector we contribute to building a positive, credible
image of our country and what it's like to do business here.
Over the last several decades, the business environment in Egypt
has undergone a profound shift toward its current open market system.
In just the last five years, the conditions and opportunities for
doing business have improved dramatically. In many ways, history
has assigned Egypt the role of regional business leader. Our background
and experience, our geographic position and the abundance of our
resources make it so. Our message to Washington this year is that
Egypt is in an economic and political position to fully assume the
responsibilities that this role conveys.
Ahmed Shawki
President, Amcham
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