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| Economic:
Dynamic new cabinet appointed:
In July 2004, a new cabinet was appointed. The new cabinet includes several outspoken advocates of reform who understand and appreciate the private sector. |
Customs reforms and tariff reductions:
In September 2004, a decree was passed aiming at simplifying customs procedures and cutting the average tariff rate from 14.6% down to 9% on around 6,500 imported items. The decision also reduced the number of tariff bands from 27 to six, and canceled all imports customs service fees, which ranged between 1% and 4%.
Egypt signs QIZ protocol with Israel:
In December 2004, Egypt in a renewed commitment to free trade, foreign investment and regional economic cooperation, signed a QIZ protocol with both Israel and the United States. This is seen as a step towards the signing of a free trade agreement (FTA) with the United States.
Cairo & Alexandria Stock Exchanges (CASE):
In 2004, the Egyptian stock market experienced several booms. The CASE 30 Index reached 2568 points, recording an unprecedented 119-percent increase. Egypt ranked second on the S&P/IFCG indicator, with 100.5 percent annual change, and first on the S&P/IFCI indicator with 118.6 percent annual change. It also ranked second on the Morgan Stanley Capital International (MSCI) index, with 114.6 percent annual change.
Egyptian National Competitiveness Council (ENCC):
In February 2004, the creation of the Egyptian National Competitiveness Council (ENCC) was announced at the Davos meeting of the Arab Business Council.
Egypt removed from money laundering blacklist:
In February 2004, the OECD Financial Action Task Force (FATF), the international body leading the campaign against money laundering, announced the removal of Egypt from its list of non-compliant countries.
‘Managed Float’ currency system:
In January 2003, policymakers abandoned the currency’s managed-peg system in favor of a “managed float” system. The move led to an approximate 36-percent year-on-year devaluation of the Egyptian pound. Egypt is one of the few countries in the region to adopt a floating exchange rate.
Bank management and corporate Governance:
Under the government’s ongoing reform strategy, bankers with private sector experience have been appointed to head Egypt’s biggest state banks. The CBE has issued guidelines for the formation and functions of audit committees in all licensed banks.
Agricultural sector:
The domestic agriculture industry has undergone significant reform over the past decade. Today, all agricultural land is in the hands of private owners.
Petroleum industry:
The liberalization of this vital sector has resulted in the deregulation of gas distribution. Currently, some 80 percent of all oil and gas services are operated by the private sector, with 90 percent of all exploration activities carried out by multinationals.
Telecommunication sector:
The government decided from the outset to award telecom GSM licenses to the private sector, awarding two contracts to private operators. Additionally, there are two private sector companies operating pay phone services in Egypt.
Transportation sector:
Egypt currently boasts a number of private sector-run world-class ports, including the Ain Al-Sokhna Modern Port and the East Port Said Container Hub.
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