According to the U.S. Department of Commerce, the stock of U.S.direct investment in Egypt stood at USD 22.6 billion as of 2016,representing 35.4% of U.S. direct investment in Africa and 46.2%of U.S. direct investment in the Middle East. In 2016, Egypt wasthe largest recipient of U.S. direct investment in Africa, and secondin the Middle East after the United Arab Emirates. With inflows ofUSD 1.4 billion, the U.S. was the second largest foreign direct in-vestor in Egypt after the United Kingdom during 2016.Apache Corporation, a global oil and gas exploration and pro-

duction company based in Houston, Texas, entered Egypt in 1993and is now the largest American investor in the country, with cur-rent investments totaling over USD 17 billion. Apache holds over6.7 million gross acres in the country, much of it in the WesternDesert. Apache will invest USD 908.9 million in its WesternDesert concessions during FY 2016/17, including USD 552.5 mil-lion toward 74 development wells and USD 346.4 million toward23 exploratory wells. Other American petroleum companies withoperations in Egypt include ExxonMobil, Halliburton, IPR TransOiland Merlon International.The stock of U.S. capital excluding petroleum production and

refining totaled USD 2.4 billion as of the end of February 2017,distributed among 1,222 companies. American firms are active

in most economic sectors in Egypt, with manufacturing compa-nies holding the largest share (37.8%) of the U.S. non-petroleumcapital in Egypt. Large U.S. investors in these sectors include 3M,Abbott, AbbVie, American Automotive, American Standard, Bris-tol-Myers Squibb, Cargill, Coca-Cola, Colgate-Palmolive, DowChemicals, Edison International, Energizer, General Electric, Gen-eral Motors, Gillette, Heinz, Hundz Soil, Johnson & Johnson,Merck, PepsiCo, Pfizer, Procter & Gamble and Xerox.Financial services is the second largest sector after manufac-

turing, accounting for 34.8% of the U.S. non-petroleum capitalin Egypt. AIG, American Express, BNY Mellon, ColdwellBanker, Mastercard, MetLife and Visa are all active in the finan-cial services sector. U.S. companies have a significant presencein other service sectors as well. Alcatel-Lucent, Cisco, Hewlett-Packard, IBM and Microsoft all operate in the telecommunica-tion and information technology sector, which accounted for1.9% of U.S. capital in Egypt, while the Egyptian fast-food mar-ket is dominated by U.S.-based franchises including Baskin-Robbins, Burger King, Chili’s, Cinnabon, Cold Stone Creamery,Dairy Queen, T.G.I. Friday’s, Hardee’s, Hard Rock Café, KFC,Little Caesars, McDonald’s, Pizza Hut, Starbucks and RubyTuesday.

AmCham Egypt Corporate Partners

33 Soliman Abaza Street, Dokki 12311 • Cairo, Egypt • Tel: (+20-2) 3333-6900 • Fax: (+20-2) 3338-1060 www.amcham.org.eg

Produced by: Business Studies & Analysis Center (BSAC) Website: www.amcham.org.eg • E-mail: studies@amcham.org.eg

© April 2017 The American Chamber of Commerce in Egypt

U.S. Contribution in Companies' Capital(Stock end of February 2017)

Source: General Authority for Investment and Free Zones

U.S. Investment in Egypt

U.S. Foreign Assistance to EgyptEgypt is the second largest recipient of foreign assistancefrom the U.S. after Israel and received USD 76 billion in bi-lateral foreign aid between 1948 and 2015. In FY 2016,Egypt received USD 1.46 billion in foreign assistance fromthe U.S. Of this, USD 1.3 billion was Foreign Military Fi-nancing, a sum Egypt has received annually since 1987. Inaddition, the country received USD 150 million in Eco-nomic Support Funds; USD 2.5 million for Nonprolifera-tion, Anti-Terrorism, Demining and Related Programs; USD2.0 million for International Narcotics Control and Law En-forcement; and USD 1.8 million in International MilitaryEducation and Training.In March 2015, the Obama Administration announced

that beginning in FY 2018, military assistance to Egyptwould be reformulated, eliminating a form of procurementknown as cash flow financing (CFF), which allows Egypt torepay arms purchases over a longer time period. Legislationto reinstate CFF to Egypt is expected during the currentcongressional session.

Egypt Top GSP Exports (2016)

The Generalized System of Preferences (GSP) program isthe largest and oldest U.S. trade preference program, pro-moting economic development by providing preferentialduty-free entry for over 3,500 types of products from 120beneficiary developing countries (BDCs) and territories. AGSP�eligible import must be the growth, product or man-ufacture of a BDC, and at least 35% of the appraised valueof the article at the time of entry into the United Statesmust come from a BDC.The GSP, which expires periodically, was renewed on

June 29, 2015 through the end of 2017. New product cat-egories were made eligible, including cotton products andspecific luggage and travel goods. Also, although most tex-

tile and apparel articles are prohibited from receiving GSPtreatment, Egypt is one of 14 countries eligible for GSP treat-ment for handmade and folkloric textile products.Despite these preferential provisions, the majority of

Egypt’s exports to the U.S. are not GSP eligible, and GSPexports in 2016 totaled USD 75.5 million, just 5.1% of totalEgyptian exports to the U.S. and 6.0% of non-oil exports.GSP exports increased 38.3% year-on-year from USD 69.9million in 2015. The top 10 exports, which make up 70.1%of total GSP exports, include frozen and preserved fruit andvegetables (40.1% of all exports), plastic materials (4.4%),and stone and stone products (4.2%). Egypt ranks 18 amongall GSP BDCs exporting to the U.S. in 2016.

Source: USITC

The GSP Program

• Agriculture

• Architecture/Construction/Engineering (ACE) Services

• Education and Training

• Electricity Power Systems

• Franchising

• Medical Equipment and Supplies

• Oil and Gas Equipment

• Renewable Energy

• Safety and Security

• Water and Wastewater Solutions

Leading Sectors for U.S. Business in Egypt in 2016

Source: U.S. Commercial Service

Sector Number of Companies with U.S. Capital

U.S. Contribution to Capital (USD million)

Engineering 53 295.7Food and Beverage 40 175.4Textiles and Clothing 57 133.5Pharmaceuticals 17 113.9Chemicals 67 75.8Building Materials 9 55.0Metallurgical 30 37.4Mining 4 3.5Wood Manufacturing 9 0.7Total Industry 286 890.9Banks 4 714.4Financial Services 12 78.4Investment Funds 16 29.0Total Finance 32 821.8Petroleum Services 48 321.4Commercial Services 131 45.4Health Services 24 37.6Transportation and Maintenance 23 21.9

Consultancies 104 6.8Public Services 69 3.7Journalism and Media Production 40 2.2

Educational Services 26 1.0Storage 3 0.3Human Resources 2 0.02Total Services 470 440.4Real Estate Development 35 60.4Contracting 48 36.4Infrastructure 17 5.9Housing 2 1.0Total Construction 102 103.7Information Technology 150 33.2Communication 23 6.1Systems Technology Services 39 5.2

Total Communication andInformation Technology 212 44.5

Total Tourism 74 36.7Land Reclamation and Cultivation 37 11.2

Agro-industry 1 7.1Livestock Production andFisheries 7 2.6

Other Agriculture 1 0.5Total Agriculture 46 21.4Grand Total 1,222 2,359.3

Trifold_Layout 1 4/19/17 6:42 PM Page 1

TRADE AND INVESTMENT PROFILEEGYPT - U.S.The United States is committed to assisting the economic reforms in Egypt and working with the Egyptian government tohelp overcome the economic challenges facing the country. Since August 2015, Egypt and the U.S. have been engagedin discussions on further strengthening ties to overcome obstacles hindering the increased flow of foreign direct investmentin the Egyptian market. There have also been talks of making amendments to the Trade and Investment Framework Agree-ment and the Qualifying Industrial Zones protocol. The U.S. is one of Egypt’s largest trade partners with a trade volumeof USD 5 billion in 2016. Down 21% from 2015, this accounts for 1.5% of GDP and 3.5% of MENA-U.S. merchandisetrade. Egypt’s exports represent 2.3% of MENA exports to the U.S. while its imports make up 4.5% of MENA importsfrom the U.S., ranking it fifth in the region and first in Africa.

MENA Imports from the U.S. (2016) Total value: USD 77.3 billion

MENA Exports to the U.S. (2016)Total value: USD 64.2 billion

Source: U.S. Census Bureau

State TradeTexas remains the largest exporter to Egypt of all 50 states, exporting USD 657.4 million in 2016 and representing 18.7%of all U.S. exports to Egypt. Louisiana followed closely behind, exporting USD 653.7 million, or 18.6% of all exports.Both states’ exports consist mostly of mineral fuels and oils as well as plastics. Texas also exports industrial machinerysuch as computers, while Louisiana is a major exporter of oilseeds, grains and cereals. The top five importing states makeup 60.0% of all of the U.S.’s imports from Egypt. New Jersey topped the list in 2016, with imports totaling USD 210.8million and representing 14.1% of the U.S.’s imports from Egypt. New York and California followed, representing 13.8%and 13.7%, respectively, of imports. New Jersey primarily imports mineral fuels and oils, while all three of the top statesimport large volumes of apparel and other textiles.

Trade TrendsEgypt’s trade deficit with the U.S. shrank 39.9% in 2016, with exports to the U.S. growing and imports from the U.S. dropping.Imports from the U.S. fell 26.2% from USD 4.8 billion to USD 3.5 billion, while exports grew at a slower rate, rising 6.2% fromUSD 1.4 billion to USD 1.5 billion. Non-oil exports dropped slightly, slipping 8.1% from USD 1.37 billion in 2015 to USD1.26 billion in 2016. Egypt’s oil exports to the U.S. grew significantly in 2016, increasing 531.2% from USD 37.3 million in2015 to USD 235.3 million in 2016. Oil exports represent 15.8% of all exports, up from 2.7% in 2015 and just 0.1% in 2014,but they remain well behind their peak of USD 1.4 billion (45.8% of total exports) in 2012.

Egypt-U.S. Trade Values

Imports from the U.S. (2016)Total value: USD 3.51 billion

Source: U.S. Census Bureau

Non-Petroleum Exports to the U.S. (2016)Total value: USD 1.26 billion

Qualifying Industrial Zones (QIZs)The Qualifying Industrial Zones (QIZ) Protocol was estab-lished by the U.S. Congress in 1996 to build economicties between Israel and its neighbors. Since the agreementtook effect in February 2005, it has allowed productsjointly manufactured by Egypt and Israel duty-free entryinto the U.S. Eligible products must have at least 35% oftheir value added by QIZ factories. Egypt must contributeat least one-third (11.7%) of this value add, while Israelmust contribute 10.5%. At the beginning of April 2017,Egypt's government held talks to lower the Israeli input re-quirement to 8%. Egypt’s QIZs are located in Greater Cairo, Alexandria,

the Suez Canal zone, the central Delta, Beni Suef andMinya. As of February 2017, there were 961 registeredQIZ companies, out of which the vast majority—765companies, or 79.6%—produce textiles and clothingitems. Of these, 196 produce ready-made garments. Be-cause U.S. tariffs on textile and apparel goods are rela-tively high, production of these goods in QIZs isparticularly attractive. In addition, 70 companies (7.3%)operate in the processed agricultural products sector.Alexandria has the highest concentration of companies,hosting 235 companies (24.5%), while Tenth of Ramadanhas the next highest concentration with 166 companies.Two directives by the U.S. Transportation Security Ad-

ministration have significantly slowed the entry of Egypt’sQIZ goods into the American market. The first, issued onNovember 5, 2015, mandated that all cargo destined forthe U.S. from Egypt be quarantined for 48 hours upon ar-rival at the Egyptian airport. The second, issued January 29, 2016, bans all air cargo originating or transiting through any point in Egypt,Somalia, Yemen and Syria.QIZ exports make up 49.8% of Egypt’s total exports to the U.S. and 59.1% of non-oil exports. In 2016, QIZ exports totaled USD 743.6

million, a 6% year-on-year decrease from USD 895.3 in 2015. Textile and clothing exports made up 98.1% of all of Egypt’s QIZ exportsin 2016, mainly because exports of frozen fruits, juices and vegetables fell to a third of their 2015 value.

Source: U.S. Census Bureau

Egypt Top QIZ Exports (2016)

Source: USITC

California

Texas

Georgia

New York

Louisiana

State Rank in Exports to Egypt

State Rank in Imports from Egypt

653.7657.4

310.0204.1

21

3

172.84

3

(Value in USD million)

205.42

210.81New Jersey

245.34

166.15Virginia

102.95

Top States Trade with Egypt (2016)

Source: U.S. Census Bureau

QIZ locations in Egypt

Egyptian imports of mineral fuel and oil, electric machinery, industrial machinery, and cereals, all of which are among thecountry’s top 10 imports from the U.S., dropped in 2016 by 45.2%, 23.5%, 10.7% and 32.3% respectively. Imports of cerealsreached USD 184.6 million in 2016, having never recovered after peaking at USD 1.5 billion in 2011. Imports of vehicles andaircraft together totaled USD 513.9 million, with vehicle imports increasing 2.2% and aircraft growing 59.2% year-on-year.The bulk of Egypt’s exports to the U.S. were textiles and apparel, valued at USD 867.4 million, followed by food and kindredproducts, worth USD 105.8 million.

TRADE AND INVESTMENT PROFILEEGYPT - U.S.The United States is committed to assisting the economic reforms in Egypt and working with the Egyptian government tohelp overcome the economic challenges facing the country. Since August 2015, Egypt and the U.S. have been engagedin discussions on further strengthening ties to overcome obstacles hindering the increased flow of foreign direct investmentin the Egyptian market. There have also been talks of making amendments to the Trade and Investment Framework Agree-ment and the Qualifying Industrial Zones protocol. The U.S. is one of Egypt’s largest trade partners with a trade volumeof USD 5 billion in 2016. Down 21% from 2015, this accounts for 1.5% of GDP and 3.5% of MENA-U.S. merchandisetrade. Egypt’s exports represent 2.3% of MENA exports to the U.S. while its imports make up 4.5% of MENA importsfrom the U.S., ranking it fifth in the region and first in Africa.

MENA Imports from the U.S. (2016) Total value: USD 77.3 billion

MENA Exports to the U.S. (2016)Total value: USD 64.2 billion

Source: U.S. Census Bureau

State TradeTexas remains the largest exporter to Egypt of all 50 states, exporting USD 657.4 million in 2016 and representing 18.7%of all U.S. exports to Egypt. Louisiana followed closely behind, exporting USD 653.7 million, or 18.6% of all exports.Both states’ exports consist mostly of mineral fuels and oils as well as plastics. Texas also exports industrial machinerysuch as computers, while Louisiana is a major exporter of oilseeds, grains and cereals. The top five importing states makeup 60.0% of all of the U.S.’s imports from Egypt. New Jersey topped the list in 2016, with imports totaling USD 210.8million and representing 14.1% of the U.S.’s imports from Egypt. New York and California followed, representing 13.8%and 13.7%, respectively, of imports. New Jersey primarily imports mineral fuels and oils, while all three of the top statesimport large volumes of apparel and other textiles.

Trade TrendsEgypt’s trade deficit with the U.S. shrank 39.9% in 2016, with exports to the U.S. growing and imports from the U.S. dropping.Imports from the U.S. fell 26.2% from USD 4.8 billion to USD 3.5 billion, while exports grew at a slower rate, rising 6.2% fromUSD 1.4 billion to USD 1.5 billion. Non-oil exports dropped slightly, slipping 8.1% from USD 1.37 billion in 2015 to USD1.26 billion in 2016. Egypt’s oil exports to the U.S. grew significantly in 2016, increasing 531.2% from USD 37.3 million in2015 to USD 235.3 million in 2016. Oil exports represent 15.8% of all exports, up from 2.7% in 2015 and just 0.1% in 2014,but they remain well behind their peak of USD 1.4 billion (45.8% of total exports) in 2012.

Egypt-U.S. Trade Values

Imports from the U.S. (2016)Total value: USD 3.51 billion

Source: U.S. Census Bureau

Non-Petroleum Exports to the U.S. (2016)Total value: USD 1.26 billion

Qualifying Industrial Zones (QIZs)The Qualifying Industrial Zones (QIZ) Protocol was estab-lished by the U.S. Congress in 1996 to build economicties between Israel and its neighbors. Since the agreementtook effect in February 2005, it has allowed productsjointly manufactured by Egypt and Israel duty-free entryinto the U.S. Eligible products must have at least 35% oftheir value added by QIZ factories. Egypt must contributeat least one-third (11.7%) of this value add, while Israelmust contribute 10.5%. At the beginning of April 2017,Egypt's government held talks to lower the Israeli input re-quirement to 8%. Egypt’s QIZs are located in Greater Cairo, Alexandria,

the Suez Canal zone, the central Delta, Beni Suef andMinya. As of February 2017, there were 961 registeredQIZ companies, out of which the vast majority—765companies, or 79.6%—produce textiles and clothingitems. Of these, 196 produce ready-made garments. Be-cause U.S. tariffs on textile and apparel goods are rela-tively high, production of these goods in QIZs isparticularly attractive. In addition, 70 companies (7.3%)operate in the processed agricultural products sector.Alexandria has the highest concentration of companies,hosting 235 companies (24.5%), while Tenth of Ramadanhas the next highest concentration with 166 companies.Two directives by the U.S. Transportation Security Ad-

ministration have significantly slowed the entry of Egypt’sQIZ goods into the American market. The first, issued onNovember 5, 2015, mandated that all cargo destined forthe U.S. from Egypt be quarantined for 48 hours upon ar-rival at the Egyptian airport. The second, issued January 29, 2016, bans all air cargo originating or transiting through any point in Egypt,Somalia, Yemen and Syria.QIZ exports make up 49.8% of Egypt’s total exports to the U.S. and 59.1% of non-oil exports. In 2016, QIZ exports totaled USD 743.6

million, a 6% year-on-year decrease from USD 895.3 in 2015. Textile and clothing exports made up 98.1% of all of Egypt’s QIZ exportsin 2016, mainly because exports of frozen fruits, juices and vegetables fell to a third of their 2015 value.

Source: U.S. Census Bureau

Egypt Top QIZ Exports (2016)

Source: USITC

California

Texas

Georgia

New York

Louisiana

State Rank in Exports to Egypt

State Rank in Imports from Egypt

653.7657.4

310.0204.1

21

3

172.84

3

(Value in USD million)

205.42

210.81New Jersey

245.34

166.15Virginia

102.95

Top States Trade with Egypt (2016)

Source: U.S. Census Bureau

QIZ locations in Egypt

Egyptian imports of mineral fuel and oil, electric machinery, industrial machinery, and cereals, all of which are among thecountry’s top 10 imports from the U.S., dropped in 2016 by 45.2%, 23.5%, 10.7% and 32.3% respectively. Imports of cerealsreached USD 184.6 million in 2016, having never recovered after peaking at USD 1.5 billion in 2011. Imports of vehicles andaircraft together totaled USD 513.9 million, with vehicle imports increasing 2.2% and aircraft growing 59.2% year-on-year.The bulk of Egypt’s exports to the U.S. were textiles and apparel, valued at USD 867.4 million, followed by food and kindredproducts, worth USD 105.8 million.

TRADE AND INVESTMENT PROFILEEGYPT - U.S.The United States is committed to assisting the economic reforms in Egypt and working with the Egyptian government tohelp overcome the economic challenges facing the country. Since August 2015, Egypt and the U.S. have been engagedin discussions on further strengthening ties to overcome obstacles hindering the increased flow of foreign direct investmentin the Egyptian market. There have also been talks of making amendments to the Trade and Investment Framework Agree-ment and the Qualifying Industrial Zones protocol. The U.S. is one of Egypt’s largest trade partners with a trade volumeof USD 5 billion in 2016. Down 21% from 2015, this accounts for 1.5% of GDP and 3.5% of MENA-U.S. merchandisetrade. Egypt’s exports represent 2.3% of MENA exports to the U.S. while its imports make up 4.5% of MENA importsfrom the U.S., ranking it fifth in the region and first in Africa.

MENA Imports from the U.S. (2016) Total value: USD 77.3 billion

MENA Exports to the U.S. (2016)Total value: USD 64.2 billion

Source: U.S. Census Bureau

State TradeTexas remains the largest exporter to Egypt of all 50 states, exporting USD 657.4 million in 2016 and representing 18.7%of all U.S. exports to Egypt. Louisiana followed closely behind, exporting USD 653.7 million, or 18.6% of all exports.Both states’ exports consist mostly of mineral fuels and oils as well as plastics. Texas also exports industrial machinerysuch as computers, while Louisiana is a major exporter of oilseeds, grains and cereals. The top five importing states makeup 60.0% of all of the U.S.’s imports from Egypt. New Jersey topped the list in 2016, with imports totaling USD 210.8million and representing 14.1% of the U.S.’s imports from Egypt. New York and California followed, representing 13.8%and 13.7%, respectively, of imports. New Jersey primarily imports mineral fuels and oils, while all three of the top statesimport large volumes of apparel and other textiles.

Trade TrendsEgypt’s trade deficit with the U.S. shrank 39.9% in 2016, with exports to the U.S. growing and imports from the U.S. dropping.Imports from the U.S. fell 26.2% from USD 4.8 billion to USD 3.5 billion, while exports grew at a slower rate, rising 6.2% fromUSD 1.4 billion to USD 1.5 billion. Non-oil exports dropped slightly, slipping 8.1% from USD 1.37 billion in 2015 to USD1.26 billion in 2016. Egypt’s oil exports to the U.S. grew significantly in 2016, increasing 531.2% from USD 37.3 million in2015 to USD 235.3 million in 2016. Oil exports represent 15.8% of all exports, up from 2.7% in 2015 and just 0.1% in 2014,but they remain well behind their peak of USD 1.4 billion (45.8% of total exports) in 2012.

Egypt-U.S. Trade Values

Imports from the U.S. (2016)Total value: USD 3.51 billion

Source: U.S. Census Bureau

Non-Petroleum Exports to the U.S. (2016)Total value: USD 1.26 billion

Qualifying Industrial Zones (QIZs)The Qualifying Industrial Zones (QIZ) Protocol was estab-lished by the U.S. Congress in 1996 to build economicties between Israel and its neighbors. Since the agreementtook effect in February 2005, it has allowed productsjointly manufactured by Egypt and Israel duty-free entryinto the U.S. Eligible products must have at least 35% oftheir value added by QIZ factories. Egypt must contributeat least one-third (11.7%) of this value add, while Israelmust contribute 10.5%. At the beginning of April 2017,Egypt's government held talks to lower the Israeli input re-quirement to 8%. Egypt’s QIZs are located in Greater Cairo, Alexandria,

the Suez Canal zone, the central Delta, Beni Suef andMinya. As of February 2017, there were 961 registeredQIZ companies, out of which the vast majority—765companies, or 79.6%—produce textiles and clothingitems. Of these, 196 produce ready-made garments. Be-cause U.S. tariffs on textile and apparel goods are rela-tively high, production of these goods in QIZs isparticularly attractive. In addition, 70 companies (7.3%)operate in the processed agricultural products sector.Alexandria has the highest concentration of companies,hosting 235 companies (24.5%), while Tenth of Ramadanhas the next highest concentration with 166 companies.Two directives by the U.S. Transportation Security Ad-

ministration have significantly slowed the entry of Egypt’sQIZ goods into the American market. The first, issued onNovember 5, 2015, mandated that all cargo destined forthe U.S. from Egypt be quarantined for 48 hours upon ar-rival at the Egyptian airport. The second, issued January 29, 2016, bans all air cargo originating or transiting through any point in Egypt,Somalia, Yemen and Syria.QIZ exports make up 49.8% of Egypt’s total exports to the U.S. and 59.1% of non-oil exports. In 2016, QIZ exports totaled USD 743.6

million, a 6% year-on-year decrease from USD 895.3 in 2015. Textile and clothing exports made up 98.1% of all of Egypt’s QIZ exportsin 2016, mainly because exports of frozen fruits, juices and vegetables fell to a third of their 2015 value.

Source: U.S. Census Bureau

Egypt Top QIZ Exports (2016)

Source: USITC

California

Texas

Georgia

New York

Louisiana

State Rank in Exports to Egypt

State Rank in Imports from Egypt

653.7657.4

310.0204.1

21

3

172.84

3

(Value in USD million)

205.42

210.81New Jersey

245.34

166.15Virginia

102.95

Top States Trade with Egypt (2016)

Source: U.S. Census Bureau

QIZ locations in Egypt

Egyptian imports of mineral fuel and oil, electric machinery, industrial machinery, and cereals, all of which are among thecountry’s top 10 imports from the U.S., dropped in 2016 by 45.2%, 23.5%, 10.7% and 32.3% respectively. Imports of cerealsreached USD 184.6 million in 2016, having never recovered after peaking at USD 1.5 billion in 2011. Imports of vehicles andaircraft together totaled USD 513.9 million, with vehicle imports increasing 2.2% and aircraft growing 59.2% year-on-year.The bulk of Egypt’s exports to the U.S. were textiles and apparel, valued at USD 867.4 million, followed by food and kindredproducts, worth USD 105.8 million.

According to the U.S. Department of Commerce, the stock of U.S.direct investment in Egypt stood at USD 22.6 billion as of 2016,representing 35.4% of U.S. direct investment in Africa and 46.2%of U.S. direct investment in the Middle East. In 2016, Egypt wasthe largest recipient of U.S. direct investment in Africa, and secondin the Middle East after the United Arab Emirates. With inflows ofUSD 1.4 billion, the U.S. was the second largest foreign direct in-vestor in Egypt after the United Kingdom during 2016.Apache Corporation, a global oil and gas exploration and pro-

duction company based in Houston, Texas, entered Egypt in 1993and is now the largest American investor in the country, with cur-rent investments totaling over USD 17 billion. Apache holds over6.7 million gross acres in the country, much of it in the WesternDesert. Apache will invest USD 908.9 million in its WesternDesert concessions during FY 2016/17, including USD 552.5 mil-lion toward 74 development wells and USD 346.4 million toward23 exploratory wells. Other American petroleum companies withoperations in Egypt include ExxonMobil, Halliburton, IPR TransOiland Merlon International.The stock of U.S. capital excluding petroleum production and

refining totaled USD 2.4 billion as of the end of February 2017,distributed among 1,222 companies. American firms are active

in most economic sectors in Egypt, with manufacturing compa-nies holding the largest share (37.8%) of the U.S. non-petroleumcapital in Egypt. Large U.S. investors in these sectors include 3M,Abbott, AbbVie, American Automotive, American Standard, Bris-tol-Myers Squibb, Cargill, Coca-Cola, Colgate-Palmolive, DowChemicals, Edison International, Energizer, General Electric, Gen-eral Motors, Gillette, Heinz, Hundz Soil, Johnson & Johnson,Merck, PepsiCo, Pfizer, Procter & Gamble and Xerox.Financial services is the second largest sector after manufac-

turing, accounting for 34.8% of the U.S. non-petroleum capitalin Egypt. AIG, American Express, BNY Mellon, ColdwellBanker, Mastercard, MetLife and Visa are all active in the finan-cial services sector. U.S. companies have a significant presencein other service sectors as well. Alcatel-Lucent, Cisco, Hewlett-Packard, IBM and Microsoft all operate in the telecommunica-tion and information technology sector, which accounted for1.9% of U.S. capital in Egypt, while the Egyptian fast-food mar-ket is dominated by U.S.-based franchises including Baskin-Robbins, Burger King, Chili’s, Cinnabon, Cold Stone Creamery,Dairy Queen, T.G.I. Friday’s, Hardee’s, Hard Rock Café, KFC,Little Caesars, McDonald’s, Pizza Hut, Starbucks and RubyTuesday.

AmCham Egypt Corporate Partners

33 Soliman Abaza Street, Dokki 12311 • Cairo, Egypt • Tel: (+20-2) 3333-6900 • Fax: (+20-2) 3338-1060 www.amcham.org.eg

Produced by: Business Studies & Analysis Center (BSAC) Website: www.amcham.org.eg • E-mail: studies@amcham.org.eg

© April 2017 The American Chamber of Commerce in Egypt

U.S. Contribution in Companies' Capital(Stock end of February 2017)

Source: General Authority for Investment and Free Zones

U.S. Investment in Egypt

U.S. Foreign Assistance to EgyptEgypt is the second largest recipient of foreign assistancefrom the U.S. after Israel and received USD 76 billion in bi-lateral foreign aid between 1948 and 2015. In FY 2016,Egypt received USD 1.46 billion in foreign assistance fromthe U.S. Of this, USD 1.3 billion was Foreign Military Fi-nancing, a sum Egypt has received annually since 1987. Inaddition, the country received USD 150 million in Eco-nomic Support Funds; USD 2.5 million for Nonprolifera-tion, Anti-Terrorism, Demining and Related Programs; USD2.0 million for International Narcotics Control and Law En-forcement; and USD 1.8 million in International MilitaryEducation and Training.In March 2015, the Obama Administration announced

that beginning in FY 2018, military assistance to Egyptwould be reformulated, eliminating a form of procurementknown as cash flow financing (CFF), which allows Egypt torepay arms purchases over a longer time period. Legislationto reinstate CFF to Egypt is expected during the currentcongressional session.

Egypt Top GSP Exports (2016)

The Generalized System of Preferences (GSP) program isthe largest and oldest U.S. trade preference program, pro-moting economic development by providing preferentialduty-free entry for over 3,500 types of products from 120beneficiary developing countries (BDCs) and territories. AGSP�eligible import must be the growth, product or man-ufacture of a BDC, and at least 35% of the appraised valueof the article at the time of entry into the United Statesmust come from a BDC.The GSP, which expires periodically, was renewed on

June 29, 2015 through the end of 2017. New product cat-egories were made eligible, including cotton products andspecific luggage and travel goods. Also, although most tex-

tile and apparel articles are prohibited from receiving GSPtreatment, Egypt is one of 14 countries eligible for GSP treat-ment for handmade and folkloric textile products.Despite these preferential provisions, the majority of

Egypt’s exports to the U.S. are not GSP eligible, and GSPexports in 2016 totaled USD 75.5 million, just 5.1% of totalEgyptian exports to the U.S. and 6.0% of non-oil exports.GSP exports increased 38.3% year-on-year from USD 69.9million in 2015. The top 10 exports, which make up 70.1%of total GSP exports, include frozen and preserved fruit andvegetables (40.1% of all exports), plastic materials (4.4%),and stone and stone products (4.2%). Egypt ranks 18 amongall GSP BDCs exporting to the U.S. in 2016.

Source: USITC

The GSP Program

• Agriculture

• Architecture/Construction/Engineering (ACE) Services

• Education and Training

• Electricity Power Systems

• Franchising

• Medical Equipment and Supplies

• Oil and Gas Equipment

• Renewable Energy

• Safety and Security

• Water and Wastewater Solutions

Leading Sectors for U.S. Business in Egypt in 2016

Source: U.S. Commercial Service

Sector Number of Companies with U.S. Capital

U.S. Contribution to Capital (USD million)

Engineering 53 295.7Food and Beverage 40 175.4Textiles and Clothing 57 133.5Pharmaceuticals 17 113.9Chemicals 67 75.8Building Materials 9 55.0Metallurgical 30 37.4Mining 4 3.5Wood Manufacturing 9 0.7Total Industry 286 890.9Banks 4 714.4Financial Services 12 78.4Investment Funds 16 29.0Total Finance 32 821.8Petroleum Services 48 321.4Commercial Services 131 45.4Health Services 24 37.6Transportation and Maintenance 23 21.9

Consultancies 104 6.8Public Services 69 3.7Journalism and Media Production 40 2.2

Educational Services 26 1.0Storage 3 0.3Human Resources 2 0.02Total Services 470 440.4Real Estate Development 35 60.4Contracting 48 36.4Infrastructure 17 5.9Housing 2 1.0Total Construction 102 103.7Information Technology 150 33.2Communication 23 6.1Systems Technology Services 39 5.2

Total Communication andInformation Technology 212 44.5

Total Tourism 74 36.7Land Reclamation and Cultivation 37 11.2

Agro-industry 1 7.1Livestock Production andFisheries 7 2.6

Other Agriculture 1 0.5Total Agriculture 46 21.4Grand Total 1,222 2,359.3

According to the U.S. Department of Commerce, the stock of U.S.direct investment in Egypt stood at USD 22.6 billion as of 2016,representing 35.4% of U.S. direct investment in Africa and 46.2%of U.S. direct investment in the Middle East. In 2016, Egypt wasthe largest recipient of U.S. direct investment in Africa, and secondin the Middle East after the United Arab Emirates. With inflows ofUSD 1.4 billion, the U.S. was the second largest foreign direct in-vestor in Egypt after the United Kingdom during 2016.Apache Corporation, a global oil and gas exploration and pro-

duction company based in Houston, Texas, entered Egypt in 1993and is now the largest American investor in the country, with cur-rent investments totaling over USD 17 billion. Apache holds over6.7 million gross acres in the country, much of it in the WesternDesert. Apache will invest USD 908.9 million in its WesternDesert concessions during FY 2016/17, including USD 552.5 mil-lion toward 74 development wells and USD 346.4 million toward23 exploratory wells. Other American petroleum companies withoperations in Egypt include ExxonMobil, Halliburton, IPR TransOiland Merlon International.The stock of U.S. capital excluding petroleum production and

refining totaled USD 2.4 billion as of the end of February 2017,distributed among 1,222 companies. American firms are active

in most economic sectors in Egypt, with manufacturing compa-nies holding the largest share (37.8%) of the U.S. non-petroleumcapital in Egypt. Large U.S. investors in these sectors include 3M,Abbott, AbbVie, American Automotive, American Standard, Bris-tol-Myers Squibb, Cargill, Coca-Cola, Colgate-Palmolive, DowChemicals, Edison International, Energizer, General Electric, Gen-eral Motors, Gillette, Heinz, Hundz Soil, Johnson & Johnson,Merck, PepsiCo, Pfizer, Procter & Gamble and Xerox.Financial services is the second largest sector after manufac-

turing, accounting for 34.8% of the U.S. non-petroleum capitalin Egypt. AIG, American Express, BNY Mellon, ColdwellBanker, Mastercard, MetLife and Visa are all active in the finan-cial services sector. U.S. companies have a significant presencein other service sectors as well. Alcatel-Lucent, Cisco, Hewlett-Packard, IBM and Microsoft all operate in the telecommunica-tion and information technology sector, which accounted for1.9% of U.S. capital in Egypt, while the Egyptian fast-food mar-ket is dominated by U.S.-based franchises including Baskin-Robbins, Burger King, Chili’s, Cinnabon, Cold Stone Creamery,Dairy Queen, T.G.I. Friday’s, Hardee’s, Hard Rock Café, KFC,Little Caesars, McDonald’s, Pizza Hut, Starbucks and RubyTuesday.

AmCham Egypt Corporate Partners

33 Soliman Abaza Street, Dokki 12311 • Cairo, Egypt • Tel: (+20-2) 3333-6900 • Fax: (+20-2) 3338-1060 www.amcham.org.eg

Produced by: Business Studies & Analysis Center (BSAC) Website: www.amcham.org.eg • E-mail: studies@amcham.org.eg

© April 2017 The American Chamber of Commerce in Egypt

U.S. Contribution in Companies' Capital(Stock end of February 2017)

Source: General Authority for Investment and Free Zones

U.S. Investment in Egypt

U.S. Foreign Assistance to EgyptEgypt is the second largest recipient of foreign assistancefrom the U.S. after Israel and received USD 76 billion in bi-lateral foreign aid between 1948 and 2015. In FY 2016,Egypt received USD 1.46 billion in foreign assistance fromthe U.S. Of this, USD 1.3 billion was Foreign Military Fi-nancing, a sum Egypt has received annually since 1987. Inaddition, the country received USD 150 million in Eco-nomic Support Funds; USD 2.5 million for Nonprolifera-tion, Anti-Terrorism, Demining and Related Programs; USD2.0 million for International Narcotics Control and Law En-forcement; and USD 1.8 million in International MilitaryEducation and Training.In March 2015, the Obama Administration announced

that beginning in FY 2018, military assistance to Egyptwould be reformulated, eliminating a form of procurementknown as cash flow financing (CFF), which allows Egypt torepay arms purchases over a longer time period. Legislationto reinstate CFF to Egypt is expected during the currentcongressional session.

Egypt Top GSP Exports (2016)

The Generalized System of Preferences (GSP) program isthe largest and oldest U.S. trade preference program, pro-moting economic development by providing preferentialduty-free entry for over 3,500 types of products from 120beneficiary developing countries (BDCs) and territories. AGSP�eligible import must be the growth, product or man-ufacture of a BDC, and at least 35% of the appraised valueof the article at the time of entry into the United Statesmust come from a BDC.The GSP, which expires periodically, was renewed on

June 29, 2015 through the end of 2017. New product cat-egories were made eligible, including cotton products andspecific luggage and travel goods. Also, although most tex-

tile and apparel articles are prohibited from receiving GSPtreatment, Egypt is one of 14 countries eligible for GSP treat-ment for handmade and folkloric textile products.Despite these preferential provisions, the majority of

Egypt’s exports to the U.S. are not GSP eligible, and GSPexports in 2016 totaled USD 75.5 million, just 5.1% of totalEgyptian exports to the U.S. and 6.0% of non-oil exports.GSP exports increased 38.3% year-on-year from USD 69.9million in 2015. The top 10 exports, which make up 70.1%of total GSP exports, include frozen and preserved fruit andvegetables (40.1% of all exports), plastic materials (4.4%),and stone and stone products (4.2%). Egypt ranks 18 amongall GSP BDCs exporting to the U.S. in 2016.

Source: USITC

The GSP Program

• Agriculture

• Architecture/Construction/Engineering (ACE) Services

• Education and Training

• Electricity Power Systems

• Franchising

• Medical Equipment and Supplies

• Oil and Gas Equipment

• Renewable Energy

• Safety and Security

• Water and Wastewater Solutions

Leading Sectors for U.S. Business in Egypt in 2016

Source: U.S. Commercial Service

Sector Number of Companies with U.S. Capital

U.S. Contribution to Capital (USD million)

Engineering 53 295.7Food and Beverage 40 175.4Textiles and Clothing 57 133.5Pharmaceuticals 17 113.9Chemicals 67 75.8Building Materials 9 55.0Metallurgical 30 37.4Mining 4 3.5Wood Manufacturing 9 0.7Total Industry 286 890.9Banks 4 714.4Financial Services 12 78.4Investment Funds 16 29.0Total Finance 32 821.8Petroleum Services 48 321.4Commercial Services 131 45.4Health Services 24 37.6Transportation and Maintenance 23 21.9

Consultancies 104 6.8Public Services 69 3.7Journalism and Media Production 40 2.2

Educational Services 26 1.0Storage 3 0.3Human Resources 2 0.02Total Services 470 440.4Real Estate Development 35 60.4Contracting 48 36.4Infrastructure 17 5.9Housing 2 1.0Total Construction 102 103.7Information Technology 150 33.2Communication 23 6.1Systems Technology Services 39 5.2

Total Communication andInformation Technology 212 44.5

Total Tourism 74 36.7Land Reclamation and Cultivation 37 11.2

Agro-industry 1 7.1Livestock Production andFisheries 7 2.6

Other Agriculture 1 0.5Total Agriculture 46 21.4Grand Total 1,222 2,359.3