Egypt Basic Data • Land Area: about one million sq. Km. Egypt is considered eleventh largest among IDB member countries. Located in the Eastern North of Africa, surrounded by Mediterranean sea to the north, Red sea and Aqaba gulf to the east, Libya to the west, and Sudan to the south.
Transcript
Slide 1
Egypt Basic Data Land Area: about one million sq. Km. Egypt is
considered eleventh largest among IDB member countries. Located in
the Eastern North of Africa, surrounded by Mediterranean sea to the
north, Red sea and Aqaba gulf to the east, Libya to the west, and
Sudan to the south.
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Basic Data Population: 68 million (as estimated in mid 2002).
The actual population density is about 1100 because the majority
are living around the Nile river (only 5% from the land area).
Average annual growth rate of population is 2.1%. Life expectency
at birth is 63 years. Main Towns: Cairo (Capital), Alexandria,
Ismailia, Suez, and Port Said.
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Basic Data Language: Arabic Measures: Metric System Currency:
Egyptian Pound (LE). Annual Average Exchange Rate in 2004 is
$1=LE6.5 Time: 2-3 hours ahead of GMT (Winter and Summer local mean
time)
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Key Economic Indicators
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Nominal and Real GDP * All the years in this presentation are
interval years that start July 1 and end June 30 * All numbers are
in Billions of LE unless otherwise indicated
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Real GDP Growth Rate & Real GDP Growth Rate Per Capita
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Agriculture Trade Finance & Insurance Govrnt Social
Services Industry & Mining
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Trade Finance & Insurance Industry & Mining
Agriculture
Total External Debt to GDP & Debt Service Ratio *Debt
service to total exports of goods and services
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Monetary Policy Indicators
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M2 Growth Rates, Annual Inflation and Nominal Interest
Rates
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Broad Money and Narrow Money
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Annual Inflation and Nominal Interest Rate
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Annual Inflation & Nominal Interest Rate
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Exchange Rate
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Exchange Rate and Dollarization Rate
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Financial Sector in Egypt
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Structure of Egyptian Banking System Central Bank of Egypt
Commercial BanksBusiness & Investment BanksSpecialized Banks
Public Sector Banks (4) Private & Joint Venture Banks (24) Off-
Shore Banks (21) IndustrialReal Estate Agricultural Industrial
Developmen t Banks Branches (883) Private & Joint Venture Banks
(11) Real Estate Banks Principal Bank for Development and
Agricultural Credit Branches (90) Branches (14) Branches (22)
Branches (976) Branches (42) Branches (298)
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1- Banking System a. Total Assets (LE Million)
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b. Total Deposits (LE million)
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c. Loans and Discounts (LE Million) Source: Central Bank of
Egypt (CBE) Annual Report 2001/2002
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Loans & Credits (Excluding Discounts) By Type
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2- Stock Exchange Market
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Annual Return, P/E Ratio, & Annual Volatility
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Volume of Trading, Turnover Ratio, & No. of Companies
Traded
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Emerging Market Indicators - End December 2000 (unless
otherwise stated)
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3- Insurance Sector Market Structure and New Entries The
Egyptian insurance market is principally composed of the Supreme
Insurance Council, the EISA, the Insurance Federation of Egypt, a
number of insurance companies, a specialized reinsurance company, a
number of private pension funds, insurance cooperative association,
the Government Insurance Fund, insurance pools, the cargo
Supervision & Surveying Office of Egypt, and the Insurance
Institute for Training Middle Management.
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As well as one state-owned reinsurance firm (Egypt Re.) and
three public sector insurance companies (Misr, Al Charq, and
National), there are several private companies in Egypt: Suez
Canal, Mohandes, Delta, Pharaonic (of which AIG has purchased 90%),
Arab Misr Insurance Group AMIG, Alico, Egyptian American Insurance,
Commercial International Life Insurance (CIL), and the Egyptian
Compnay for Export Guarantee. In addition, two recently privatized
companies operate in the free zone are: the Egyptian Insurance
Company, and the Arab International Insurance Company. The latter
recently acquired EISAs approval to operate onshore.
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The public sector represents 73.3% of the insurance market,
while the private sector represents 26.7%. In line with the
governments program encouraging private sector participation.
Several insurance companies have entered the Egyptian market, while
many others have expressed interest (four are in the pipeline).
CIL, a joint venture between UKs Legal and General and the
Commercial International Bank of Egypt (CIB), started operations in
April 2000.
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Two new entrants to the field of life insurance have obtained
approval and are expected to begin operations soon: Al Ahram
Insurance Company (in which Royal and Sun Alliance has a major
stake) and the Arab International Life Insurance Company (Allianz
Insurance Co.). The 600 private pension funds operating in Egypt
operate mainly in the life and retirement insurance sectors. This
indicates that life insurance has been marketed successfully as a
group product through institutions in the private sector.
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Private funds invested about LE 390 million in the capital
market from their contributions, which amounted to LE 1>352
billion in 2000/01. As for companies, direct premiums (life and
non- life) increased from LE2.016 billion in 1999/2000 to LE2.113
billion in 2000/01. Insurance companies invested a total of LE11.1
million in 2000/01, while pension funds invested LE8.1 million in
the same year.
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Total Asset amount to LE14.4 billion in 2000/01, compared to
LE13.6 billion in 1999/2000 a growth rate of 8.1%. According to
EISAs annual report, total insurance premiums represented 1% of GDP
in 2000/01. in similar economies, the percentage ranges from 4 to
5%. Egypts insurance market therefore still has potential for
growth.
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The formal financial system does not play any significant role
in the provision of financial support to start-ups or to existing
micro-enterprises. State of the Art of Micro Finance
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Micro Finance State of the Art Government
OrganizationsNon-government Organizations Foreign Grants Social
Development Fund Commercial Banks Government Commercial Banks
Religious Institutions Local Rotating Savings Credit Associations
Businessmen societies Churches Mosques (zakat)
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Sources Ministry of Foreign Trade, Monthly Economic Digest,
Cairo, Egypt. Central Bank of Egypt, Annual Report, various
editions, Cairo, Egypt. Central Bank of Egypt,Economic Journal,
various editions, Cairo, Egypt. Ministry of Finance, Public Budget,
various editions, Cairo, Egypt.