.
For nearly 40 years, the United States and Egypt have had a strategic alliance that has yielded significant mutual benefits to citizens of both our nations.
Three major cornerstones constitute this long-standing alliance. The political, the commercial and the military aspects of the bilateral relationship.
There have been times during Egypt’s transition, where the relationship was strained; times where different points of views prevailed on both sides of the Atlantic, creating unfavorable sentiments. However through it all, the bilateral commercial relationship has always remained robust, due to the vibrant business-to-business relationships and the opportunities that U.S. investors have continued to see in Egypt.
AmCham Egypt is first and foremost concerned with issues related to the promotion and expansion of private sector trade between both countries. Since its inception in 1981, AmCham Egypt has been advocating for a business-friendly environment. Today, it is one of the most active affiliates of the U.S. Chamber of Commerce around the world, connecting more than 1800 members in Egypt and more than 3500 around the Middle East North Africa region; serving as the Secretariat of the MENA Council of Regional AmChams. AmCham Egypt also serves as the secretariat for the Egypt-U.S. Business Council (EUSBC).
The United States is Egypt’s largest single trading partner and has long been one of the top countries investing in the country; with tens of fortune five hundred companies operating from Egypt and whom we serve as our members including; Apache, Coca-Cola, Pepsico, P&G, Xerox, IBM, General Electric and Microsoft, just to mention a few.
U.S. investments have long contributed to Egypt’s economic growth and created tens of thousands of jobs for Egyptians. U.S. companies have also become part of the Egyptian social fabric by giving back to the communities they work in through corporate social responsibility programs designed to change lives for the better, offering investors access to a young and dynamic domestic market, as well as competitive access to other markets of Europe and Africa through its existing trade agreements.
Following three years of instability coupled with economic stagnation, which brought unemployment to an unprecedented high level of 13.5% and brought poverty levels to unacceptable levels exceeding 25% of the population, we strongly feel that Egypt is back in business.
The Egypt Economic Development conference-EEDC, during which contracts worth millions were signed and pledged last March marked a strong vote of confidence in the country's economic policies reflecting global political support to the country's road map and confirming investors' interest in the available opportunities in Egypt.
Egypt’s journey of reforms has well begun and immediate outcomes were revealed by the numbers. In spite of everything happening in the region, Egypt had the best performing capital market in the World in 2014 with returns exceeding 30% above the record highs of 2008 before the Global financial crisis hit, Egypt’s GDP growth rose to 6.8% in the third quarter of 2014, the highest since 2008, this coming June 30 we are expecting a total GDP growth exceeding 4% twice the level seen exactly a year ago. Both Fitch and Moody's have positive assessments and upgraded Egypt's rating. In addition to that, the number of newly established companies reached 6,364 this fiscal year up from 5,300 a year earlier and 43% of investors' disputes were resolved.
The current government was presented with many challenges and immediate targets, namely; job creation, reducing social inequalities and income disparities, reducing budget deficit, restructuring of government subsidies, overcoming energy shortages, upgrading education and healthcare as well as the provision of a social safety net. To this end, it has taken several very encouraging steps in the right direction. The adopted and implementation of an aggressive subsidy reform program to address wasteful electricity and fuel subsidy, the feed in tariff and announcing an energy mix strategy where clean green energy is gradually introduced are just a few examples. At the same time, the government is revisiting laws and making necessary legislative reforms to create the proper enabling business environment, new and improved tax laws, investment regulations, labor and social insurance laws are all underway.
Most companies operating in Egypt share a common perspective and have continued to capitalize on the country’s strategic location and its large domestic market. They commonly believe that given the right set of policies, Egypt can successfully position itself as a regional and global manufacturing and services hub.
We at AmCham continue to share our member’s success stories with our stakeholders in the U.S. through the Egypt4Business Campaign, highlighting the potential of Egypt’s huge market.
We currently see Egypt moving forward like never before in its recent history and we are keen on having our friends in the U.S. be part of this transformation.
Business missions organized in conjunction with the U.S. Chamber’s U.S. Egypt Business Council (USEBC) have been instrumental in shedding the light on opportunities available in the Egyptian market. The largest business mission to Egypt in the U.S. Chamber’s 100-year history took place during November 2014. The mission brought together 160 senior executives from more than 65 leading American companies to explore the commercial and investment opportunities in the country.
We aspire to expand American investment across all sectors of the Egyptian economy, increasing opportunities for small and medium-sized Egyptian businesses, and reviving Egypt’s critical tourism industry. This is a win-win situation, whereby expanded opportunities are offered to U.S. business contributing to job creation in the U.S. and offering access to Egypt’s huge market.
At the same time, we look forward to the support of our American friends in creating shared value through knowledge exchange and increased opportunities for Egyptians by promoting social entrepreneurship, expanding our corporate social responsibility efforts, and promoting Egyptian-American University and research collaboration.
We believe that despite the some challenges that loom today, given the right enabling policies coupled with strong partnerships with our many friends in the U.S., we are bound to witness the emergence of the ‘New Egypt’ where all its friends will reap its fruits of success.
Anis Aclimandos is President and Hisham A. Fahmy is CEO of AmCham Egypt.
The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.
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Egypt-U.S. Partnership: Back to the Future
CAIRO EGYPT - FEBRUARY 25: Stars Centre shopping mall at Heliopolis in Cairo Egypt. City Stars in Cairo on FEBRUARY 25 2010.
September 4, 2015
For nearly 40 years, the United States and Egypt have had a strategic alliance that has yielded significant mutual benefits to citizens of both our nations.
Three major cornerstones constitute this long-standing alliance. The political, the commercial and the military aspects of the bilateral relationship.
There have been times during Egypt’s transition, where the relationship was strained; times where different points of views prevailed on both sides of the Atlantic, creating unfavorable sentiments. However through it all, the bilateral commercial relationship has always remained robust, due to the vibrant business-to-business relationships and the opportunities that U.S. investors have continued to see in Egypt.
AmCham Egypt is first and foremost concerned with issues related to the promotion and expansion of private sector trade between both countries. Since its inception in 1981, AmCham Egypt has been advocating for a business-friendly environment. Today, it is one of the most active affiliates of the U.S. Chamber of Commerce around the world, connecting more than 1800 members in Egypt and more than 3500 around the Middle East North Africa region; serving as the Secretariat of the MENA Council of Regional AmChams. AmCham Egypt also serves as the secretariat for the Egypt-U.S. Business Council (EUSBC).
The United States is Egypt’s largest single trading partner and has long been one of the top countries investing in the country; with tens of fortune five hundred companies operating from Egypt and whom we serve as our members including; Apache, Coca-Cola, Pepsico, P&G, Xerox, IBM, General Electric and Microsoft, just to mention a few.
U.S. investments have long contributed to Egypt’s economic growth and created tens of thousands of jobs for Egyptians. U.S. companies have also become part of the Egyptian social fabric by giving back to the communities they work in through corporate social responsibility programs designed to change lives for the better, offering investors access to a young and dynamic domestic market, as well as competitive access to other markets of Europe and Africa through its existing trade agreements.
Following three years of instability coupled with economic stagnation, which brought unemployment to an unprecedented high level of 13.5% and brought poverty levels to unacceptable levels exceeding 25% of the population, we strongly feel that Egypt is back in business.
The Egypt Economic Development conference-EEDC, during which contracts worth millions were signed and pledged last March marked a strong vote of confidence in the country's economic policies reflecting global political support to the country's road map and confirming investors' interest in the available opportunities in Egypt.
Egypt’s journey of reforms has well begun and immediate outcomes were revealed by the numbers. In spite of everything happening in the region, Egypt had the best performing capital market in the World in 2014 with returns exceeding 30% above the record highs of 2008 before the Global financial crisis hit, Egypt’s GDP growth rose to 6.8% in the third quarter of 2014, the highest since 2008, this coming June 30 we are expecting a total GDP growth exceeding 4% twice the level seen exactly a year ago. Both Fitch and Moody's have positive assessments and upgraded Egypt's rating. In addition to that, the number of newly established companies reached 6,364 this fiscal year up from 5,300 a year earlier and 43% of investors' disputes were resolved.
The current government was presented with many challenges and immediate targets, namely; job creation, reducing social inequalities and income disparities, reducing budget deficit, restructuring of government subsidies, overcoming energy shortages, upgrading education and healthcare as well as the provision of a social safety net. To this end, it has taken several very encouraging steps in the right direction. The adopted and implementation of an aggressive subsidy reform program to address wasteful electricity and fuel subsidy, the feed in tariff and announcing an energy mix strategy where clean green energy is gradually introduced are just a few examples. At the same time, the government is revisiting laws and making necessary legislative reforms to create the proper enabling business environment, new and improved tax laws, investment regulations, labor and social insurance laws are all underway.
Most companies operating in Egypt share a common perspective and have continued to capitalize on the country’s strategic location and its large domestic market. They commonly believe that given the right set of policies, Egypt can successfully position itself as a regional and global manufacturing and services hub.
We at AmCham continue to share our member’s success stories with our stakeholders in the U.S. through the Egypt4Business Campaign, highlighting the potential of Egypt’s huge market.
We currently see Egypt moving forward like never before in its recent history and we are keen on having our friends in the U.S. be part of this transformation.
Business missions organized in conjunction with the U.S. Chamber’s U.S. Egypt Business Council (USEBC) have been instrumental in shedding the light on opportunities available in the Egyptian market. The largest business mission to Egypt in the U.S. Chamber’s 100-year history took place during November 2014. The mission brought together 160 senior executives from more than 65 leading American companies to explore the commercial and investment opportunities in the country.
We aspire to expand American investment across all sectors of the Egyptian economy, increasing opportunities for small and medium-sized Egyptian businesses, and reviving Egypt’s critical tourism industry. This is a win-win situation, whereby expanded opportunities are offered to U.S. business contributing to job creation in the U.S. and offering access to Egypt’s huge market.
At the same time, we look forward to the support of our American friends in creating shared value through knowledge exchange and increased opportunities for Egyptians by promoting social entrepreneurship, expanding our corporate social responsibility efforts, and promoting Egyptian-American University and research collaboration.
We believe that despite the some challenges that loom today, given the right enabling policies coupled with strong partnerships with our many friends in the U.S., we are bound to witness the emergence of the ‘New Egypt’ where all its friends will reap its fruits of success.
Anis Aclimandos is President and Hisham A. Fahmy is CEO of AmCham Egypt.
The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.
