Egypt has been a reliable American ally, the anchor of stability in the Middle East, and a regional economic hub for the better part of 40 years. During this period, Egypt has exercised responsible political influence, exhibited secular tolerance, and presented increasing commercial opportunities for U.S. companies. However, the turmoil over the past three years has muddied Egypt’s public personality and created unfortunate misperceptions about the nature of Egypt’s society and its government today.
The U.S. Chamber of Commerce and its affiliate, the U.S.-Egypt Business Council, have long recognized the critical role that Egypt plays in the Middle East and North Africa region, along with the commercial, cultural, and social importance of the Middle East’s largest country with nearly 90 million people. Many American companies have been doing business in Egypt for more than a century, and the U.S.’ world-leading technology industry, among many others, recognizes the value of this market in the years ahead.
As a result of such interest, the U.S. Chamber of Commerce recently led the largest business mission in its 100-year history to meet newly elected Egyptian President Sisi, exchange views with his Cabinet ministers, talk to Egyptian business leaders, and gain a first-hand perspective on Egypt today. This delegation brought together 160 senior executives from more than 60 leading American companies to explore the commercial and investment opportunities in a country that has been, and still remains, strategically and economically important to the United States.
The impressions of the businesses in this major delegation are both important and revealing. As the United States and its business community attempt to better understand Egypt’s business climate, it can position itself in a part of the world that is both politically unsettled and economically significant. The take-aways from several days of non-stop substantive exchanges are noteworthy.
The new government is frank to acknowledge that it inherited an economy in need of serious repair and has rolled up its sleeves to set the country back on track. President Sisi spent more than two hours with the delegation, where he spoke about the need to reform both the bureaucracy and the economy to create a more “business friendly” climate. He also noted the strengths and expectations of the Egyptian people. In short, he laid out a vision for a “New Egypt.”
Additionally, President Sisi’s Cabinet spoke about the issues they confront in their work and their strategies for economic renewal. The most senior government officials were uniformly transparent about their challenges and clear in their direction, and everyone—in both the public and private sector—exhibited energy, optimism, and urgency to revitalize an equitable and prosperous democracy in Egypt. American business has a stake in the outcome of Egypt’s ongoing efforts to become a genuine market-oriented economy in which the private sector has the primary role.
The transition following the January 25th Revolution inevitably created uncertainty for domestic and foreign investors. Economic growth in 2012 slipped to about 2 percent, unemployment topped 13 percent, the budget deficit grew and currency reserves fell by billions of dollars. The new government was faced with a daunting challenge: to turn around a deteriorating macroeconomic situation while introducing fundamental economic reforms.
While the downward slide has been curbed by the Sisi Administration—with assistance from sovereign investors within the region—U.S. businesses can and will play a significant role in revitalizing Egypt’s economy and helping to develop sectors that will sustain growth and create jobs for decades to come.
This past September, President Sisi participated in a roundtable in New York City with CEOs and business executives to discuss opportunities for American companies as well as the overall bilateral economic relationship. His comments then—along with his more recent observations in Cairo—outlined a bold and innovative agenda in order to fulfill his promise to build a “New Egypt.” Indeed, he’s well on his way.
Egypt has already reduced its budgeted energy subsidies by $6 billion. In addition, it is pursuing a tax reform intended to help the government increase its spending in critical areas such as health and education while concurrently working to reduce the budget deficit. There is also a focus on crucial knowledge-based sectors that offer great hope to transform Egypt’s economy.
One example of this new focus is the Communications and Information Technology Minister’s work to develop a digital economy in Egypt that would foster greater prosperity and social equity. The minister has developed a plan with specific strategic objectives and quantitative targets and is working with key stakeholders to advance that strategy. Similar forward-leaning and collaborative efforts are being pursued in the health and renewable energy sectors.
The president has also launched a series of ambitious multibillion-dollar megaprojects, including the Suez Canal Regional Development Project, which have received serious investor attention and offer numerous opportunities for U.S. companies. In March, Egypt will host a major investment conference to lay out specifics about a number of major projects designed to reinvigorate Egypt’s economy.
Streamlined investment and customs procedures, a stabilized political situation, and abundant and talented human capital all support the key message emphasized by the new Egyptian government during this historic business mission: Egypt is open for business and eager to grow. With a president, cabinet, and Egyptian business partners ready to engage, now is the moment to expand the U.S.’ commercial activities and fully renew our long-standing bilateral relationship. In this way, the U.S. will give a hand to an old friend and help stabilize a key ally in a part of the world that is crucial to American interests.
G. Steven Farris is Chairman, U.S.-Egypt Business Council and Chairman, Chief Executive Officer and President of Apache Corporation. Greg Lebedev is Senior Advisor to the CEO and Member of the Board of Directors at the U.S. Chamber of Commerce.
This article was originally published in the Diplomatic Courier's January/February 2015 print edition.
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The New Egypt is Open for Business and Eager to Grow
February 27, 2015
Egypt has been a reliable American ally, the anchor of stability in the Middle East, and a regional economic hub for the better part of 40 years. During this period, Egypt has exercised responsible political influence, exhibited secular tolerance, and presented increasing commercial opportunities for U.S. companies. However, the turmoil over the past three years has muddied Egypt’s public personality and created unfortunate misperceptions about the nature of Egypt’s society and its government today.
The U.S. Chamber of Commerce and its affiliate, the U.S.-Egypt Business Council, have long recognized the critical role that Egypt plays in the Middle East and North Africa region, along with the commercial, cultural, and social importance of the Middle East’s largest country with nearly 90 million people. Many American companies have been doing business in Egypt for more than a century, and the U.S.’ world-leading technology industry, among many others, recognizes the value of this market in the years ahead.
As a result of such interest, the U.S. Chamber of Commerce recently led the largest business mission in its 100-year history to meet newly elected Egyptian President Sisi, exchange views with his Cabinet ministers, talk to Egyptian business leaders, and gain a first-hand perspective on Egypt today. This delegation brought together 160 senior executives from more than 60 leading American companies to explore the commercial and investment opportunities in a country that has been, and still remains, strategically and economically important to the United States.
The impressions of the businesses in this major delegation are both important and revealing. As the United States and its business community attempt to better understand Egypt’s business climate, it can position itself in a part of the world that is both politically unsettled and economically significant. The take-aways from several days of non-stop substantive exchanges are noteworthy.
The new government is frank to acknowledge that it inherited an economy in need of serious repair and has rolled up its sleeves to set the country back on track. President Sisi spent more than two hours with the delegation, where he spoke about the need to reform both the bureaucracy and the economy to create a more “business friendly” climate. He also noted the strengths and expectations of the Egyptian people. In short, he laid out a vision for a “New Egypt.”
Additionally, President Sisi’s Cabinet spoke about the issues they confront in their work and their strategies for economic renewal. The most senior government officials were uniformly transparent about their challenges and clear in their direction, and everyone—in both the public and private sector—exhibited energy, optimism, and urgency to revitalize an equitable and prosperous democracy in Egypt. American business has a stake in the outcome of Egypt’s ongoing efforts to become a genuine market-oriented economy in which the private sector has the primary role.
The transition following the January 25th Revolution inevitably created uncertainty for domestic and foreign investors. Economic growth in 2012 slipped to about 2 percent, unemployment topped 13 percent, the budget deficit grew and currency reserves fell by billions of dollars. The new government was faced with a daunting challenge: to turn around a deteriorating macroeconomic situation while introducing fundamental economic reforms.
While the downward slide has been curbed by the Sisi Administration—with assistance from sovereign investors within the region—U.S. businesses can and will play a significant role in revitalizing Egypt’s economy and helping to develop sectors that will sustain growth and create jobs for decades to come.
This past September, President Sisi participated in a roundtable in New York City with CEOs and business executives to discuss opportunities for American companies as well as the overall bilateral economic relationship. His comments then—along with his more recent observations in Cairo—outlined a bold and innovative agenda in order to fulfill his promise to build a “New Egypt.” Indeed, he’s well on his way.
Egypt has already reduced its budgeted energy subsidies by $6 billion. In addition, it is pursuing a tax reform intended to help the government increase its spending in critical areas such as health and education while concurrently working to reduce the budget deficit. There is also a focus on crucial knowledge-based sectors that offer great hope to transform Egypt’s economy.
One example of this new focus is the Communications and Information Technology Minister’s work to develop a digital economy in Egypt that would foster greater prosperity and social equity. The minister has developed a plan with specific strategic objectives and quantitative targets and is working with key stakeholders to advance that strategy. Similar forward-leaning and collaborative efforts are being pursued in the health and renewable energy sectors.
The president has also launched a series of ambitious multibillion-dollar megaprojects, including the Suez Canal Regional Development Project, which have received serious investor attention and offer numerous opportunities for U.S. companies. In March, Egypt will host a major investment conference to lay out specifics about a number of major projects designed to reinvigorate Egypt’s economy.
Streamlined investment and customs procedures, a stabilized political situation, and abundant and talented human capital all support the key message emphasized by the new Egyptian government during this historic business mission: Egypt is open for business and eager to grow. With a president, cabinet, and Egyptian business partners ready to engage, now is the moment to expand the U.S.’ commercial activities and fully renew our long-standing bilateral relationship. In this way, the U.S. will give a hand to an old friend and help stabilize a key ally in a part of the world that is crucial to American interests.
G. Steven Farris is Chairman, U.S.-Egypt Business Council and Chairman, Chief Executive Officer and President of Apache Corporation. Greg Lebedev is Senior Advisor to the CEO and Member of the Board of Directors at the U.S. Chamber of Commerce.
This article was originally published in the Diplomatic Courier's January/February 2015 print edition.
