Egyptian Economic Monitor · I.5. Oil and Energy Proﬁles in Egypt 41 II. APPENDICES 45-139 APPENDIX A: FISCAL DATA 47-55 APPENDIX B: STATISTICS 57-111 1. Macroeconomic Data 47 2

December 2010 • Volume VII, No. 2

Egyptian Economic Monitor

ARAB REPUBLIC OF EGYPTMinistry of Finance

Historical data is available at the Ministry of Finance website: www.mof.gov.eg.

Please direct any questions or comments to: [email protected].

Prepared by:

Amina Ghanem

Deputy Minister for International Relations

Assisted by:

Ph.D. Abdelmonem Lotfy, Economist

Azza Reda, Senior Economist

Doaa Hamdy, Ecconomist

Graphics by:

Mohammad M. Mansour

Acronyms 7

PREFACE 9

EXECUTIVE SUMMARY 11

I. OVERVIEW OF THE ECONOMY 15-43

I.1. Egyptian Economy Watch 15

I.1.1 Recent Trends in the Egyptian Economy in Face of the Global Financial Crisis 16

I.1.2 Challenges and Opportunities Ahead 23

I.2. Government Finances: Budget Execution 24

I.3. Budget Citizen 26

I.4. The Economy at a Glance 28

I.5. Oil and Energy Profiles in Egypt 41

II. APPENDICES 45-139

APPENDIX A: FISCAL DATA 47-55

APPENDIX B: STATISTICS 57-111

1. Macroeconomic Data 47

2. Monetary Data 92

3. Balance of Payments Data 98

4. Debt Data 103

5. Banking Sector Data 108

6. Insurance Sector Data 109

7. Privatization Data 111

APPENDIX C: ECONOMIC NEWS 113-125

1. Egyptian Cutoms Authority Improvement 113

2. Economic Highlights 113

3. Banking Sector Reform 115

4. Commenttary on Fx-interbank System 117

5. Monetary Policy 117

6. Domestic Debt Management 119

7. International Eurobond 119

8. Local Currency Bonds 120

9. Asset Management Program (AMP) 120

10. Investment Sector 120

11. Insurance Sector 123

12. Egypt is Weathering the Global Economic Crisis with Good Results 124

TABLE OF CONTENTS

TABLE OF CONTENTS cont.

APPENDIX D: ECONOMIC LEGISLATION 127-137

1. Egyptian Regulatory Reform Activity - ERRADA 127

2. Status of Recent Economic Legislation 128

3. Overview of Selected Recent Economic Legislation 129

APPENDIX E: IMPORTANT DEFINITIONS 139

TABLES

I.1 : Selected Economic and Financial Indicators 15

I.1.1: Annual Private and Public Sector Contributions to Real GDP Growth 19

I.2.1: Budget Execution: Selected Items 25

I.3.1: Egypt vs. Emerging Markets: S&P/IFCG Price Index Performance Summary 39

I.4.1: Actual Petroleum Products Subsidies 42

I.4.2: Effect of Increasing Energy Products Prices 42

I.4.3: Evolution of the Volume of the Consumption of the Gasoline Types 43

I.4.4: Evolution of the Volume of Subsidy of the Gasoline Types 43

I.4.5: Evolution of the Volume Consumed for Each Product 43

I.4.6: Evolution of the Volume Subsidy for Each Product 43

I.4.7: Evolution of the Print Pricing 43

FIGURES

I.A. National Accounts

I.1.a: Real GDP and Unemployment Growth Rates 28

I.1.b: Quarterly GDP Growth Rate 28

I.2: Annual Percent Contribution of Domestic Demand & Net Exports to GDP Growth 28

I.3: Annual Percent Contribution of Investment Demand and Final Consumption to Growth in Domestic Demand 28

I.4: Annual Percent Contribution of Public and Private Consumption Demand toFinal Consumption Demand Growth 29

I.B. Inflation

I.5: Annual Percent of Month on Month Changes in the CPI 29

I.C. Exchange Rate and Monetary Policy

I.6: Annual Effective Exchange Rate Indices 29

I.7: Annual Interest Rates on T-Bills and Board Money Growth Rate 29

I.D. Fiscal Policy

I.8: Annual Overall Fiscal Deficit and Cash Deficit 30

I.9: Annual Growth Rates of Total Expenditures & Total Revenues 30

I.10: Annual Receipts from Income Tax, Goods & Services Taxes and Customs Duties 30

I.11: Annual Domestic & Foreign Interest Payments as Percent of GDP 30

I.E. Domestic Debt Policy

I.12: Annual Domestic Debt as Percent of GDP 31

I.F. External Sectors

I.13: Annual Net International Reserves 31

I.14.a: Annual Growth Rates for Export Proceeds and Import Payments 31

I.14.b: Quarterly Growth Rates for Export Proceeds and Import Payments 31

I.15: Annual Main Exported Commodities 32

I.16: Annual Main Imported Commodities 32

I.17: Annual Exports Proceeds by Region 32

I.18: Annual Imports Payments by Region 32

I.19: Annual Current Account Balance, Trade Deficit and Net Services 33

I.20: Annual Foreign Exchange Receipts – Current Account Receipts 33

I.21: Annual Tourism Statistics 33

I.22: Annual External Debt as Percent of GDP 33

I.23: Annual Debt Service as Percent to Current Account Reciepts 34

I.24: Total Medium and Long Term Public and Publicly Guaranteed External Debt Service 34

I.25: Total Medium and Long Term Public and Publicly Guaranteed External DebtParis Club Bilateral Debt 34

I.26: Total Medium, Long Term and Short Term Debt 34

I.27: Paris Club Debt Restructuring-Present Discount Value 6 percent Discount Rate 35

I.28: Annual FDI 35

I.29.a: Annual Investment in Petroleum and Non-Petroleum Sectors in FDI 35

I.29.b: Annual FDI Inflows in Petroleum and Non-Petroleum Sectors 35

I.G. Asset Management Program

I.30: Sales of Public Sector and Stakes in Joint Ventures 36

I.H. Debt Securities

I.31: Government of Egypt Notes Guaranteed by USAID Due 2015 36

I.32: Local Currency Notes Due 2012 36

I.33: Yeild on Government of Egypt Eurobond Due 2020 36

I.34: Yeild on Government of Egypt Eurobond Due 2040 37

I.35: T-Bills Yields Primary Issuance 37

I.I. Stock Market

I.36.a: Annual CASE 30 Performance 37

I.36.b: Quarterly CASE 30 Performance 37

I.37: Morgan Stanley Indices for the Egyptian Stock Market 38

I.38: The MSCI-Egypt Index in Comparison with the MSCI-Emerging Markets Index 38

I.39: The MSCI-Egypt Index in Comparison with the MSCI-All Country World Index 38

I.40: Comparing Valuations of the S&P/IFCG Indices P/E Ratio vs. Dividend Yield 39

TABLE OF CONTENTS cont.

7

ACRONYMS

AGES Automated Government Expenditure System

AMP Asset Management Program

BOA Bank of Alexandria

Bps Basis points

BRU Banking Reform Unit

CAPMAS Central Agency for Public Mobilization and Statistics

CAS Country Assistance Strategy

CASE Cairo and Alexandria Stock Exchanges

CBE Central Bank of Egypt

CCMP Coordinating Council on Monetary Policy

CIB Commercial International Bank

CIDA Canadian International Development Agency

CMA Capital Market Authority

CPI Consumer Price Index

DY Dividend Yield

EAB Egyptian American Bank

ECA Egyptian Customs Authority

EISA Egyptian Insurance Supervisory Authority

EGPC Egyptian General Petroleum Corporation

FDI Foreign Direct Investment

FY Fiscal Year (Egypt's fiscal year starts July and ends June)

GAFI General Authority for Investment and Free Zones

GASC General Authority for Supply Commodity

GDDS General Data Dissemination Standard

GFS Government Finance Statistics

GOE Government of Egypt

GST General Sales Tax

ICT Information and Communication Technology

IDR Issuer Default Rating

IFC International Financial Corporation

IFCG International Financial Corporation Global

IMF International Monetary Fund

IPO Initial Public Offering

LE Livre Egyptien (Egyptian Pound)

LIC Large Importers' Center

LTC Large Taxpayers' Center

MCIT Ministry of Communications and Information Technology

MCSD Misr for Clearance, Settlement and Central Depository

MDGs Millennium Development Goals

MENA Middle East and North Africa Region

MFA Multifiber Arrangement

MI Bank Misr International Bank

MOF Ministry of Finance

MOI Ministry of Investment

MOED Ministry of Economic Development

MOP Ministry of Planning

MOU Memorandum of Understand

MPC Monetary Policy Committee

MPU Monetary Policy Unit

NA Not Available

NIRs Net International Reserves

NPLs Non Performing Loans

NSGB National Societé Generale Bank

NTRA National Telecom Regulatory Authority

OMOs Open Market Operations

OPIC Overseas Private Investment Corporation

PC Personal Computer

PER Public Expenditure Review

PIN Public Information Notice

PPI Producer Price Index

PPP Public Private Partnership

QIZs Qualified Industrial Zones

RF Restructuring Fund

SDDS Special Data Dissemination Standard

SDR Special Drawing Rights - See Appendix E

SIF Social Insurance Fund

SOBs State-owned banks

S&P Standard and Poor's

TARP Troubled Asset Relief Program

TSA Treasury Single Account

US$ US Dollar

UST US Treasury

VAT Value Added Tax

WFP World Food Program

WPI Wholesale Price Index

YTM Yield to Maturity

9

PREFACE

The Egyptian Economic Monitor, a quarterly publication of the Ministry of Finance, provides a comprehensive overview of Egypt’s economic health and performance. The objective is to spread knowledge of the Egyptian economy and make the business environment more transparent and predictable.

The Monitor comprises two sections: Section I features up-to-date developments in the economy and Section II provides supplemental data in the form of appendices. Section I, Overview of the Economy, combines domestic and global perspectives on the performance of the domestic economy. Sections I.1, Egyptian Economy Watch, illustrates the key economic indicators. Then we discuss the Recent Trends (Section I.1.1) and the Challenges and Opportunities Ahead (Section I.1.2) which attempts to provide a broad diagnosis of domestic opportunities and challenges and try to place recent economic developments in the context of global challenges. Followed by an analysis of the budget execution Government Finances (Section I.2). Section I.3, the Economy at a Glance, a documented graphs and short captions gives readers a quick reference point.

There are five appendices in Section II: Appendix A and Appendix B contain fiscal data and other statistics (historical data can be found at the Ministry of Finance website www.mof.gov.eg); Appendix C presents economic news; Appendix D gives an account of new economic legislation; and Appendix E provides definitions of key terms used in the Monitor.

11

EXECUTIVE SUMMARY

The world economy has witnessed a financial and banking crisis that emerged in August 2008. The resulting global financial turmoil that unfolded rapidly in the following months is considered to be the worst since the Great Depression of the 1930s Global growth rate, therefore, is expected to be zero or negative in some big economies. However, Egypt has been protected from financial shocks but exposed to real shocks in the economy. Therefore, the GOE has taken several measures to preempt and absorb the consequences of crisis.

Data for 2009/2010 reveal that Egypt’s economy grew by 5.2 percent compared to 4.7 for the previous year. During 2007/2008, the Egyptian economy performed at its strongest level, expanding at 7.2 percent compared to 3.5 percent during 2000/2001. A buoyant domestic demand underlined the recent growth. .Gains from underlying structural improvements (discussed in Section I.1.1), have also helped offset the negative impacts the heightened recent financial crisis..

Egypt’s public finances remain under control, and its external position remains strong manageable trade and current account deficits.2 The brisk growth experienced in major industrial countries and China, new trade agreements between Egypt and other countries and the deepening of already existing arrangements are all serving to uphold the external sector’s healthy performance.

Looking ahead, the outlook for Egypt, as for many developing countries, will depend on developments in the world economy as a whole. Whether the outcome is positive or negative hinges on the challenges to the domestic economy by a number of external factors, including: (i) The stresses in the financial markets; (ii) oil prices; (iii) world inflation and interest rates; (iv) the course of current account imbalances and (v) the value of the US dollar. These challenges are the main focus of Section I.1.2: (Challenges and Opportunities Ahead, and previous issues of the Egyptian Economic Monitor available at www.mof.gov.eg)

However, the risks to the Egyptian economy appear balanced. With the economy in recovery mode and the fundamentals on solid ground, the risk of a significant slowdown is a concern. Market conditions in Egypt, notably domestic demand, macroeconomic policies, and the confidence of businesses and investors in the economy have become stronger over the past three years — cushioning against the potential deterioration in the external environment — and should continue

to produce growth in the medium term.Concerning domestic demand, a number of important structural and institutional changes in the trade and fiscal areas (See Section I.1.2) are helping reinforce the domestic stimulus. Starting in September 2004, the Government initiated significant tariff reductions, adopted a number of trade facilitation measures and implemented large-scale improvements in customs administration. In addition, a new tax code that reduces personal and corporate taxes by 50 percent was passed in June 2005. The implementation of the new tax law is being supported by aggressive efforts to modernize Egypt’s tax administration. All these reforms were translated into faster growth and adequate employment. Thus, while external demand has played a crucial role in bolstering the economy, the recent increase of domestic demand should help counter any negative external factors, and should make the economy more resilient to adverse global developments in the medium term.

Resuming the trend of growth rates after 2008/2009 crisis will continue to depend on the effectiveness of macroeconomic policies and their capacity to (i) adapt to a more globalized environment and (ii) make the environment more favorable for the private sector to drive economic growth. The most recent data indicate that the private sector accounts for most of the growth in consumption demand (See Section I.1: Egyptian Economy Watch.)

As we continue to improve the Egyptian Economic Monitor, we will gradually provide our readers with deeper economic analysis and a wider coverage of policy issues. We also hope that our readers will help us, through their continued feedback and in the spirit of a public-private partnership, to make this publication more useful and interesting.

1 Ibid2 See Section I.1: Egyptian Economy Watch

ARAB REPUBLIC OF EGYPTMinistry of Finance

Egyptian Economic MonitorDecember 2010 • Volume VII, No. 2

Overview of the EconomyI

Overview

of the Economy

15

I.1 .. EGYPTIAN ECONOMY WATCH

Table I.1: Selected Economic and Financial Indicators (2001/2002 - 2010/2011) *

Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Sep-09 Sep-10 **

GDP at Market Prices (LE Billions) 417.5 485.3 538.5 617.7 744.8 895.5 1,042.2 1,206.7 311.1 364.3

GNP (LE Billions) 432.1 502.8 563.3 649.4 787.4 949.2 1,058.3 1,235.1 317.1 371.3

Real GDP (% Growth Rate ) 3 2 4.1 4.5 6.8 7.1 7 2 4.7 5.2 4.6 5.5

Real Per Capita GDP (% Growth Rate)

1 2 2.1 2.5 4.9 4.8 5.1 5.0 2.9 4.6 3.1

Average Per Capita Income (LE) 6,202.4 7,069.4 7,693.2 8,657.6 10,211.1 12,030.0 13,702 2 15,529.8 16,360.0 18,740.0

Share of Private Sector in GDP (%) 63.2 62 2 61.7 60.3 61.3 60.9 61.9 62.71 63.4 63.6

Overall Fiscal Balance (% GDP) (10.4) (9 5) (9.6) (8.2) (7.3) (6.8) (6.9) 8.2 (2.9) (2.7)

Net FDI in Egypt (%GDP) 0.9 0 5 4.4 5.7 8.5 8.1 4.3 3.1 0.8 0.7

Public Domestic Debt (% GDP)

Net Domestic Budget Sector Debt 67.5 67.4 72 5 72.0 64.2 53.5 54.1 55.3 51.8 52.2

Net Domestic General Government Debt

46.1 46.8 51 5 53.8 49.6 42.7 45.0 47.9 43 5 45.1

Net Domestic Public Debt 46.3 46.8 52.3 53.9 48.8 43.2 45.8 50.0 44.4 46.7

Inflation Rates

CPI (% Growth Rate yoy) 2 3 2 10.3 11.4 4.2 11.0 11.7 16.2 11.7 9.9 11.0

WPI (% Growth Rate yoy) 3 11.6 17.3 9.9 4.1 11.8 -- -- -- -- --

PPI (% Growth Rate yoy) 4 -- -- -- 4.1 11.8 17.7 2 5 5.0 (9.6) 11.6

Exchange Rates

Official Exchange Rate (LE / US$) 5.195 6.163 6.006 5.747 5.710 5.500 5.510 5.510 5 530 5.690

Parallel Exchange Rate (LE / US$) 6.180 6.300 -- -- -- -- -- -- -- --

Interest Rates

Interest Rate on T-Bills (91 days) 8.3 8.4 10.1 8.8 8.7 7.0 11.3 9.9 9.9 9.8

Broad Money (% Growth Rate yoy) 16.9 13 2 13.6 13 5 18.3 15.7 8.4 10.4 9.0 11.8

External Debt

External Debt (% GDP) 42.5 38.1 31.1 27.6 22.8 20.1 17.0 16.0 14.7 14.3

External Debt (% Exports of G&S) 157.6 127.5 100.3 82.4 70.4 59.9 64.4 71.0 277.8 271.1

Debt Service (% Current Receipts) 10.1 9 2 7.9 7.3 5.9 3.9 5.4 4 5 5.6 4.5

Debt Service (% Exports of G&S) 12.1 10.8 9.4 8.5 6.9 4.6 6 2 5 5 8.0 7.8

NIR in Months of Imports (US$ Millions)

12.0 9.7 9.6 9.0 8.9 7.9 7 5 8.6 8.0 8.4 5

Population (% Growth Rate ) 2.01 1.98 1.97 1.93 2 23 2.06 2.18 2.80 -- --

Domestic Savings (LE Billions) 59.7 75.6 84.6 105.7 121 2 150.4 130.1 170.2 33.1 43.9

National Savings (LE Billions) 74.3 93.1 109.4 137.4 163.8 204.1 173.9 198.6 39.1 50.9

Source: Ministry of Economic Development, Ministry of Finance, CAPMAS and Central Bank of Egypt.* Recent detailed data can be found in the Appendices. Historical data are available at www.mof.gov.eg** PreliminaryNote: June 2002 refers to the Fiscal Year July 2001 through June 2002.1 The new Budget Overall Fiscal Deficit 2010/2011 is 7.9 percent. 2 Starting January 2005, Annual and Quarterly CPI (urban areas) data is based on weights derived from 2004/2005 income and expenditure survey, and using January 2007 as a base month. Prior to this date, the basket and weights were derived from 1999/2000 income and expenditure survey taking 1999/2000 as a base year.3 Starting September 2005, WPI data is based on the average weights derived from indices of Industrial and agricultural sectors for the 2 years period extending from 1999/2000 to 2000/2001. Prior to this date, the basket and weights were derived from indices of Industrial and agricultural sectors for the period extend-ing from 1986/1987 to 1987/1988. 4 The new series of Producer Price Index (PPI) was issued by CAPMAS starting September 2007, using 2004/2005 prices of goods and services as a base period, and deriving sub-group weights from average values of agricultural, industrial and services production for the years 2002/2003 and 2003/2004. It is worth mentioning that Producer Price Index series before September 2007 are not available so far.5 In November 2010, the NIR in Months of Imports 8.4 US$ millions, it is estimated on the basis of merchandise imports during the first quarter of 2010/2011.

16

The pre-crisis high growth rate of 7 percent gained during the period 2004/2005 – 2007/2008 had its positive effect on growth and employment. A growth rate of 5 percent absorbed the growth in the labor force. The strength of the domestic economy of the past years gave the Egyptian economy the resilience it needed to weather the consequences of the financial crisis on the real economy. The fiscal stimulus package proposed by the Ministry of Finance and passed by Parliament has helped pre-empt the slowdown and supported employment generation. Accelerating public infrastructure spending strengthened the infrastructure base and helped raise potential output.

0

1

2

3

4

5

6

7

8

9

10

11

12Unemployment Rate (%)

Real GDP (% Growth Rate)

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

2000

/01

1999

/00

Real GDP and Unemployment Growth Rates(1999/2000 - 2009/2010)

% G

row

th R

ates

FIG. I.Ia Source: MOED

Quarterly GDP Growth Rates (2006/2007 - 2010/2011)

0

2

4

6

8

10

Q1 -

10/11

Q4-

09/10

Q3-

09/10

Q2-

09/10

Q1-

09/10

Q4-

08/09

Q3-

08/09

Q2-

08/09

Q1-

08/09

Q4-

07/08

Q3-

07/08

Q2-

07/08

Q1-

07/08

Q4-

06/07

Q3-

06/07

Q2-

06/07

Q1-

06/07

7.4

7.6

7.46.8

7.05.6

4.1

4.3

4.5

4.65.0

5.8

5.5

5.57.6

6.7

6.5%

FIG. I.Ia Source: MOED

Supported by the economic successes in fiscal years 2007/2008, and 2006/2007, the economy reinstated its resilience after the financial crisis. In fiscal years 2008/2009 and 2009/2010 the economy grew by 4.7 (Figure I.1.a) and 5.2 percent respectively.

The Egyptian economy’s growth rate had peaked to 7.2 percent in 2007/2008 in response to trade and tax reforms since 2004. Growth slowed down in the face

of the global recessionary pressures brought about by the financial crisis reaching a low of 4.2 percent in 2008/2009. Growth has since picked up gradually (Figure I.1.b). Growth rebounded to 5.2 percent in 2009/2010, and 5.5 percent during the first quarter of 2010/2011. Furthermore, buoyant domestic demand and a number of factors helped sustain the Egyptian economy during the crisis. Two fiscal stimulus plans implemented by the government helped mitigate negative repercussions from the slowdown. Those two packages and other policies targeted the most vulnerable groups. (See previous issues of the Egyptian economic monitor).

Annual Percent Contribution of Domestic Demand &Net Exports to GDP Growth (2003/2004 September 2010)

%

Contribution of DomesticDemand toGDP Growth

4 2 0 2 4 6 8 10

Contribution of Net ExternalDemand to GDP Growth

Q1 10/11

2009/2010

2008/2009

2007/2008

2006/2007

2005/2006

2004/2005

2003/2004

FIG. I.2 Source: MOED

A strong domestic demand sustained the economy through the crisis.

In 2008/2009, domestic demand contributed 2.6 percentage points to the growth of 4.67 of real GDP and contributed by 5 percentage points in 2009/2010 out of 5.2 GDP growth.

-4 -2 0 2 4 6 8 10

Final Consumption Demand

Q1 10/11

2009/2010

2008/09

2007/08

2006/07

2005/06

2004/05

2003/04Investment Demand

%

Annual Percent Contribution of Investment Demand &Total Consumption to the Growth in Domestic Demand(2003/2004 September 2010)


I.1.1 .. Recent Trends in the Egyptian Economy in Face of the Global Financial Crisis

Overview

of the Economy

17

Consumption demand is the driving force for domestic demand. In the meantime, investment demand is recovering from the impact of the financial crisis. (Figure I.3).

This is because the Government gradually implemented a number of important reforms that helped domestic demand to weather the financial crisis. September 2004 saw significant tariff reductions that were followed by a second round of cuts in December 2004. Other measures include ongoing customs reforms and a new tax code that was passed in June 2005. The new law reduced personal and corporate taxes by 50 percent. These cuts that took effect in July 2005 not only served to raise disposable income since 2005/2006, but also reinstated market confidence in the economy, which helped boost investment demand. As a result, the domestic economy has seen a healthy expansion since 2004/2005, as private consumption and investments increased significantly.

Annual Foreign Direct Investment (1990/1991- September 2010)

US$

Mili

ons

1597.2

6758.2

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Q1-

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

2000

/01

1999

/00

1998

/99

1997

/98

1996

/97

1995

/96

1994

/95

1993

/94

1992

/93

1991

/92

1990

/91

FIG. I.28 Source: CBE.

In response to the financial crisis, FDI flows to Egypt declined from of US$ 6.76 billions in 2009/2010 (against US$ 8.1 billions in 2008/2009), and has not yet picked up.

Annual Percent Contribution of Public & Private Consumption Demand toTotal Consumption Demand Growth (2003/2004 - September 2010)

%0 1 2 3 4 5 6

Final Public Consumption.

Final Private Consumption

Q1-10/11

2009/2010

2008/09

2007/08

2006/07

2005/06

2004/05

2003/04


Since 2004/2005 the macro-economy has remained more favorable to private sector led growth.

During the peak of the crisis, public consumption increased revealing the increased share of public spending that was affected by the fiscal stimulus (Figure I.4; Appendix B-Table 1.3.b).

In order to keep encouraging the private sector, the Government is implementing many measures aiming to support SMEs in order to keep production and consumption at high levels …

According to Egypt’s census in 2006, Egypt has some 2.4 millions SMEs, with less than 10 workers, which employ 5.2 millions workers, 39 thousand SMEs employ between 10-50 workers. SMEs account for more than 80 percent of employment in Egypt’s non-agricultural private sector, including both formal and informal. SMEs are therefore crucial to Egypt’s prospects for growth and development, and the welfare of not just the very poor but also the average citizen.

SMEs cater more to local consumers, so they were more protected from the slowdown and proved more resilient helping domestic demand strength. In the short-term, it is imperative that SMEs have access to credit and all of the non-financial services that help enhance productivity and market access. It will also be important to promote SME access to ICT in an effort to better inform small entrepreneurs of market challenges and opportunities.

A special tax treatment was offered by the Ministry of Finance to SMEs financed through the Social Development Fund. MOF adopted a strategy to promote and strengthen a favorable environment for SMEs eight years ago. The initiative took the form of a project targeting small and medium and micro enterprise policy development.

The GOE continues to support the private sector investment in the economy through the MOF’s newly born PPP initiative.

The private sector clearly needs to be pushed towards greater formalization, i.e. to provide greater social security and job stability by becoming more formal. This has already happened with a labor law that was passed in 2004, so there are incentives for them to provide formal employment. The private sector in Egypt is also being promoted as the state cannot become again the employer of first and last resort. People have accepted the idea that it is the private sector that is going to provide the main engine of employment growth. However, how to get the private sector to provide good jobs depends on the presence of a sound regulatory framework.

In 2006 the Government of Egypt adopted a new long-term policy of pursuing partnerships with the

18private sector to expand and increase the country’s infrastructure investments.

As the public face of PPP in Egypt, the PPP Central Unit acts as the PPP center for support and expertise, identifies pilot projects together with responsible Line Ministries, sets national guidelines for implementation, standardizes PPP contracts, provides technical/advisory support to infrastructure Line Ministries and monitors the implementation of PPP projects. Brief on PPP’s pilot projects:

• New Cairo Wastewater Treatment Plant: The New Cairo Wastewater Treatment Plant PPP Project is one of the key PPP pilot projects whereby the Min-istry of Housing, Utilities and Urban Development (“MHUUD”) through New Urban Communities Authority (NUCA) with the technical assistance of the PPP Central Unit has invited private sector par-ticipation, through a competitive bidding process to enter into PPPs for the design, construction, financing, operation and management of a new Wastewater Treatment Plant with a total capacity of 250,000m³/day to treat wastewater within New Cairo City, Madinaty and El Mostakbal with the objective of implementing a model of PPP trans-action in the urban services area which can then be replicated in other projects of the wastewater sector. The Project has been awarded to Orasqua-lia (Orascom Construction Industries, Aqualia and Aqualia Infrastructions), Contract signed June 2009, and the Financial Closure is expected on December 2009.

• Two New Public University Hospitals & a Blood Bank in Alexandria: The new University Hospitals PPP Project is one of the key PPP Pilot projects whereby the Ministry of Higher Education, repre-sented by Alexandria University, with the techni-cal assistance of PPP Central Unit has invited the private sector participation through a competitive bidding process to enter into PPPs for the financ-ing, designing, constructing, equipping, furnish-ing, maintenance, operating and provision of non-clinical facility services for two University Hospitals & a Blood Bank through PPP Contract, to be tendered in two lots whereby each of the qualified Bidders is entitled to submit its bid for one or both lots as follows:

1. Smouha Maternity University Hospital and a Blood Bank; a 200 bed hospital and a blood bank in the same hospital building with a separate entrance which will be located at the Smouha Hospital Complex.

2. Mowassat Specialized University Hospital; a 224 bed with Centers of Excellence (COE) for the provision of highly specialized services in Neurosurgery and Urology/Nephrology (including kidney transplants). The hospital will be located in the same site adjacent to the old Mowassat Hospital.

It is scheduled to hold one to one separate meetings with qualified bidders to respond to their questions & provide the necessary clarifications during January 2010, it is also expected that qualified bidders submit

their technical & financial bids in May 2010 after which the winning bidder will be announced during August 2010. From a sectoral perspective, most of the GDP growth has been driven by the private sector.

As explained above, private sector growth is key to enhancing the growth momentum. Macroeconomic stability will continue to nurture the private sector as an engine for growth. continued reforms to reduce red tape and bureaucratic constraints are all serving to increase the contribution of the private sector to the economic recovery.

Between 2003/2004 and 2007/2008, the private sector contributed around two thirds of the GDP growth rate. (Table I.1.1) Main engines of growth in the five years were from manufacturing, wholesale and retail, agriculture, construction and building and communication, amounting to three quarters of the contribution of the private sector. The remaining momentum came from extractions, restaurants and hotels and real estate activities.

Data available for the fiscal year 2009/2010 confirm a 3.88 percent growth in the private sector activities versus 1.3 percent growth in the public sector activities (Table I.1.1). The same sectors, manufacturing, wholesale and retail, agriculture, construction and building and communication, led the private sector’s contribution to growth. This rate shows a return to the trend of the role of the private sector that was undermined in year 2008/2009 by the injection of the public money. In this particular year, the public sector growth reached 2.42 percent of GDP growth that amounted to 4.65 percent.

The textiles sector in particular remains one of the driving forces of the exportable industry. The QIZ agreement signed December 2004 with the Unites States gives Egyptian textiles manufacturers tariff free access to the US market. Egypt also has a robust pharmaceuticals industry. In addition, food processing has always been a driver of Egypt’s manufacturing sector. More recently, Egypt has changed from a net importer of fertilizer products to a net exporter. The fertilizer industry employs some 34 percent of the labor force.

Special economic zones, another vehicle to provide competitive advantages to manufacturing firms, have served to increase manufacturing in fertilizers, iron and steel, pharmaceuticals, building materials and petrochemicals, which all heavily depend on gas for energy. Currently there are two special zones: North West Suez and East Port Said. Continuing reforms that boost private growth and employment will be the key to sustaining the strong growth momentum.

Overview

of the Economy

19

Table I.1.1 Annual Private and Public Sectors Contributions to Real GDP Growth for 2007/2008 and 2009/2010

Sectors2007/2008 2008/2009 2009/2010

Public Private Public Private Public Private

Agriculture, Woodlands & Hunting 0.00 0.47 0.00 0.43 0.01 0.45

Extractions 0.41 0.12 0.55 0 28 0.05 0.08

Manufacturing Industries 0.14 1.15 0.57 0.03 0.11 0.69

Electricity 0.11 0.00 0.07 (0.00) 0.10 0.00

Water 0.02 0.00 0.02 0.00 0.03 0.01

Construction & Buildings 0.05 0.62 0.06 0.47 0.07 0.56

Transportation & Communication 0 21 0.60 0.35 0.43 0.16 0.62

Suez Canal 0 56 0.00 (0.26) 0.00 (0.09) 0.01

Whole Sale & Retail 0.01 0.58 0.02 0 28 0.03 0.60

Financial Intermediaries & Supporting Services

0.19 0.11 0.12 0.06 0.14 0.07

Insurance & Social Insurance 0 28 0.01 0.19 0.00 0.26 0.01

Restaurants & Hotels 0.00 0.96 0.00 0.05 0.01 0.46

Real Estate Activities 0.00 0.10 0.00 0.10 0.01 0.12

Public Government 0 24 0.00 0.62 0.00 0.38 0.01

Education, health, social, cultural, entertainment & personal services

0.03 0.19 0.10 0.10 0.02 0.20

Sub-Total of Sectors 2 26 4.92 2.42 2 24 1.30 3.88

Total Real GDP Growth Rate 7.18 4.65 5.18

Source: MOF (Estimated from Appendix B - Table 1.5.b)

Higher investment demand associated with the September 2004 reduction in tariffs and the recent recovery in economic growth rates was reflected in a rise in imports by 25.8 percent and 37.8 percent increase in 2006/2007 and 2007/2008 respectively (Figure I.14.a). The rise in the current account surplus has been driven by a significant improvement in the services balance. The fall in the value of the Egyptian pound has made Egypt an attractive tourist destination. However, as the impact of the financial crisis began to filtrate the economy, imports decreased by 2.7 percent, non petroleum exports decreased by 3.9 percent as well as Suez Canal dues that declined by 4.3 percent during the fiscal year 2009/2010, while tourism revenues picked up by 10.5 percent in comparison with the same period of 2008/2009 (Figure I.14.a). A mild current account deficit of 0.7 resulted from this situation. The first quarter of 2010/2011 witnessed a reverse in the trend where non-oil exports increased

by 11.7, Suez Canal receipts rose by 13.3 percent, percent, and Tourism revenues picked up by 13.1 percent During the same period 2010/2011, current account witnessed a deficit of 0.3 percent (Figure I.19).

Annual Current Account Balance, Trade Deficit and Net Servicesas Percent of GDP (1991/1992 - September 2010)

% o

f GD

P

6

3

0

3

6

9

12

15

18Trade DeficitCurrent Account BalanceNet Services

Q1-

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

2000

/01

1999

/00

1998

/99

1997

/98

1996

/97

1995

/96

1994

/95

1993

/94

1992

/93

1991

/92

FIG. I.19 Source: MOF

20

Recent pickup in consumption demand put pressure on foodstuff prices that reflect in headline inflation…

Annual Inflation in Domestic Price Indices (January 2007 - October 2010)

% G

row

th R

ates

15

10

5

0

5

10

15

20

25

30

35 PPI Inflation

CPI Urban

WPI Inflation

Oct-

10

Sep-

10

Aug-1

0

Jul-1

0Jun

-10

May-1

0

Apr-10

Mar-10

Feb-

10

Jan-1

0

Dec-0

9

Nov-0

9

Oct-

09

Sep-

09

Aug-0

9

Jul-0

9Jun

-09

May-0

9

Apr-09

Mar-09

Feb-

09

Jan-0

9

Dec08

Nov-0

8

Oct-

08

Sep-

08

Aug-0

8

Jul08

Jun-0

8

May-0

8

Apr-08

Mar-08

Feb-

08

Jan-0

8

Dec07

Nov-0

7

Oct-

07

Sep-

07

Aug-0

7

Jul-0

7Jun

-07

May-0

7

Apr-07

Mar-07

Feb-

07

Jan-0

7

Dec-0

6

Nov06

Oct-

06

Sep-

06

Aug-0

6

July

06

June

06

May-0

6

Apr-06

Mar-06

Feb-

06

Jan-0

6

FIG. I.5 Source: CAPMAS

While the slowdown in the economy is a concern because of its potential impact on poverty rates, falling inflation rates increased real incomes. In 2008, the Government’s economic policy was mainly focused on reducing inflation which had reached a peak of 23.6 percent in March 2008, because of the worldwide increase in food and oil prices. The latest figures indicate that the recent pick up in consumption demand that put pressure on prices of foodstuffs and headline inflation has relaxed. Therefore, inflation rates decreased to reach 11.7 percent at the end of the fiscal year 2009/2010 compared to 16.2 percent at the end of the fiscal year 2008/2009.

In the meantime, the pound has continued to stabilize…

After the announcement of a free float in January 2003, both the nominal and real effective exchange rates fell significantly, reflecting a real depreciation of the pound, and increased competitiveness (Table I.1; Figure I.6).

Annual Effective Exchange Rate Indices (January 2003 - December 2007)

0

30

60

90 Real Effective Exchange Rate

Nominal Effect ve Exchange Rate

Dec-0

7

Nov07

Oct-

07

Sep

07

Aug-0

7

Ju-0

7Jun

-07

May-0

7

Apr07

Mar-07

Feb

07

Jan-0

7

Dec-0

6

Nov06

Oct-

06

Sep

06

Aug-0

6

Ju-0

6Jun

-06

May-0

6

Apr-06

Mar-06

Feb

06

Jan-0

6

Dec05

Nov-0

5

Oct

05

Sep-

05

Aug-0

5

Ju-0

5Jun

-05

May05

Apr-05

Mar05

Feb-

05

Jan-0

5

Dec04

Nov-0

4

Oct

04

Sep-

04

Aug04

Ju-0

4Jun

-04

May04

Apr-04

Mar04

Feb-

04

Jan-0

4

Dec03

Nov-0

3

Oct

03

Sep-

03

Aug03

Jul-0

3Jun

-03

May-0

3

Apr03

Mar-03

Feb-

03

J n-03

FIG. I.6 Source: IMF

... in response to a number of factors. Three key ingredients were:

The establishment of an interbank market... The launch of a formal and active interbank market for foreign exchange in December 2004 served to create a liquid foreign exchange market and to converge the official and parallel market rates. In addition, confi-dence in the economy has spurred substantial inflows of private foreign capital that supported the accumula-tion of reserves and the repayment of external debt. The real effective exchange rate has thus shown signs of appreciation since December 2004 (Figure I.6).

... ... The elimination of surrender requirements …

The Prime Minister issued Decree No. 2059/2004 rescinding Decree No. 506/2003 that required exporters to surrender 75 percent of their foreign exchange proceeds. This step helped enhance the liquidity of the market because it gave confidence to the international community that Egypt will pursue sound economic policies that preclude the need to use such a restriction.

… and the adoption of a credible and transparent monetary policy.

A Monetary Policy Committee, established in 2003 is in charge of putting in place a credible and clarified monetary policy whose primary objective is price stability. Towards this end, the Central Bank is committed to maintaining a market determined exchange rate system. In addition, open market operations (OMOs) and a corridor for the overnight interbank rate have been established. The introduction of OMOs is a pre-requisite for the Central Bank to adopt inflation targeting as planned. The CBE is also working on upgrading its technical capabilities. All these factors worked against the positive impact of tariff cuts implemented in September 2004 on inflation.

Egypt’s external debt position continues to be strong …

91.56%MEDIUM & LONG TERM PUBLIC & PUBLICLYGUARANTEED DEBT

Total Medium & Long Term and Short Term Debt as of September 30, 2010

0.7%SHORT TERM DEBT

8.27%MEDIUM & LONG TERM PUBLIC &PUBLICLY NON GUARANTEED DEBT

Overview

of the Economy

21

FIG. I.26 Source: CBE

Egypt’s total external debt in terms of net present value is US$33.96 billions in September 2010. Its maturity structure is favorable, with short term debt constituting 8.07 percent of total external debt (Figure I.26; Appendix B - Table 4.2). As a percentage of GDP, external debt stood at 14.3 percent of GDP in September 2010. Debt service, as a percent of current account receipts and of exports of goods and services, is 6.3 percent and 7.8 percent respectively (Table I.1).

... a financial crisis induced fiscal deficit is larger than projected during the pre-crisis conditions

Annual Overall Fiscal Deficit and Cash Deficit (2001 GFS)as Percent of GDP (2001/2002 - 2010/2011)

10.409.50 9.60

8.20 6.807.30 6.90

8.10 8.50

8.10 7.90

9.109.109.40

6.606.80

5.60

9.20

0

5

10

15Cash Deficit

Overall Fiscal Deficit

Budget10/11

2009/102008/092007/082006/07 2005/062004/052003/042002/03

% o

f GD

P

FIG. I.8 Source: MOF

In 2005, the Ministry of Finance reclassified Government according to the IMF 2001 GFS classification standard (modified to cash principles), in line with international best practices. The re-classification resulted in higher restatements of the budget deficits starting 2001/2002, and illustrates the Government’s commitment to tackle a tough issue.

In compliance with its medium term fiscal consolidation plan designed to reduce the budget deficit by one percent every year discussed above, the cash budget deficit fell from 9.4 percent of GDP in 2004/2005 to 9.2 percent in 2005/2006 and to 6.6 percent in 2008/2009 but it climbed to 8.1 percent in 2009/2010. This is despite deep reforms such as implemented income tax and tariff rate cuts, as well as possible sources of pressure in the coming years arising from energy price adjustments, pension reforms and bank restructuring. (Figure I.8; Appendix A - Table 1.1.a & 1.1.b).

However, the fiscal year 2009/2010 has witnessed a widening budget deficit, 8.1 percent of GDP, due to the expansionary corrective fiscal plan adopted by the Government. Temporary increase in fiscal spending has been front loaded. The Ministry of Finance has accelerated spending on public projects that are already planned and approved within the medium term national plan. A decelerated rhythm will follow when the market absorbs the external shock of the global financial crisis. Thus budget deficit will be the same on average for the medium term. This is a temporary measure that will allow an expansion without setting a permanent problem in the structure of the budget.

... meanwhile, public and government debts remain manageable.

Annual Domestic Debt as Percent of GDP (2002/2003 -September 2010)

% of GDP

0 10 20 30 40 50 60 70 80

Net Domest c Public Debt

Net Domest c General Government Debt

Net Domest c Budget Sector Debt

Jul Sep 2010/11

2009/10

2008/09

2007/08

2006/07

2005/06

2004/05

2003/04

FIG. I.12 Source: MOF According to IMF projections, under the baseline scenario (GDP growth rate of 5.6 percent), net public debt would decline after five years to 65 percent of GDP. A more ambitious adjustment path (a sustainable rate of growth of more than 6 percent) would lower debt to 58 percent of GDP by June 2011.

With more reliance on non-inflationary financing since 1999/2000, net budget sector and general government debts have slightly increased. Relative to GDP, net budget sector debt was some 53.5 percent in June 2008 compared to 54.9 percent in June 2010. During the same period, net general government debt was 42.7 percent of GDP compared to 47.6 percent (Figure I.12). During the fiscal year 2009/2010, net general government debt reached 49.6 percent of GDP. Egypt’s debt dynamics will benefit from expected strong nominal GDP growth; the resumption of privatization; and the stabilization of the exchange rate. Furthermore, better tax compliance under the new simplified tax system could help improve the fiscal position and public indebtedness.

Development in Debt Management.

During 2008, the Ministry of Finance installed DMFAS (Version 5.3) in order to improve its debt management capabilities. The system created by the UNCTAD will be able to process all data related to the country’s domestic debt and provide a database for the debts and it is in the process of being linked with the database of the Central Bank of Egypt, which would contribute to the standardization of concepts and full compatibility to the data of this debt.

Debt Management Unit at the Minister of Finance Technical Office has succeeded extending the domestic debt average life to two years from a low of 0.3 years in 2004 by increasing its medium and long term bond issuance in order to avoid any refinancing risk.

A new three-year public debt management project is in its final stages and once introduced will help and

22support the Egypt’s public debt management and further develop government securities market. The project focuses on:• Implementing sound issuance practices,

• developing a comprehensive medium-term debt,

• management strategy covering both domestic and external debt,

• introducing new financial tools such as short sell-ing, bond lending, as well as buyback and ex-change operations,

• developing the primary and secondary market,

• and promoting secondary market liquidity and pricing transparency.

Prior to the financial crisis, the Ministry of Finance was committed to implementing a medium term fiscal consolidation plan designed to reduce the budget deficit by one percent every year. As a first step the Government introduced an energy subsidy reduction package last July 2006. It has also announced deep reforms in the sales and real estate taxes with a view to widening the tax base and enhancing revenues. The Treasury Single Account Law passed June 2006 by Parliament (See Appendix D) gave the Ministry of Finance better control over its cash management operations and hence improved debt management.

Annual Growth Rates for Export Proceeds and Import Payments(1991/1992 2009/2010)

% G

row

th R

ates

20

10

0

10

20

30

40

50

60 Exports ProceedsImports Payments

2009

/2010

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

2000

/01

1999

/00

1998

/99

1997

/98

1996

/97

1995

/96

1994

/95

1993

/94

1992

/93

1991

/92

FIG. I.14.a Source: CBE

Quarterly Growth Rates for Export Proceeds and Import Payments(2006/2007 2010/2011)

% G

row

th R

ates

50

40

30

20

10

0

10

20

30

40

50Imports payments

Export proceeds

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

FIG. I.14.b Source: CBE

EGX 30 witnessed an increase during the year 2010 close at 7,142 pts as end of December 2010 increasing by 15 percent compared to 6,209 pts at December 2009. As for market capitalization, it reached LE 448 billions, or 43 percent of GDP at the end of September 2010, compared to LE 565 billions, or 54 percent of GDP at the end of September 2009.

Optimism and restored confidence in the economy has helped the CBE build up its NIRs…

Annual Net International Reserves (NIRs) (1991/1992 - December 2010)

US$ Billions

0 5 10 15 20 25 30 35 40Dec 102009/102008/092007/082006/072005/062004/052003/042002/032001/022000/011999/001998/991997/981996/971995/961994/951993/941992/931991/92

FIG. I.13 Source: CBE

The CBE continues to build its Net International Reserves (NIR), which stood at US$28.6 billions in June 2007 and reached US$36 billion in December 2010. The robust NIR position owes to the increase of Egypt’s competitiveness (Figure I.13, Appendix B - Table 2.8).

Overview

of the Economy

23

I.1.2 .. CHALLENGES AND OPPORTUNITIES AHEAD

Global Economy Outlook

Economic recovery continued to strengthen till end of 2010. Eurozone economic growth has barely slowed in spite of the debt crisis, with Germany’s powerful recovery offsetting bleak conditions in the region’s worst-hit countries.

Nonetheless; inflation, budgetary cuts, euro debt, and trade war arise as key threats. Financial conditions have improved again. Tail risks have been reduced by unprecedented European policy initiatives—the European Central Bank’s Securities Markets Program and euro area governments’ European Stabilization Mechanism—and by a front-loading of fiscal adjustment. However, underlying sovereign and banking vulnerabilities remain a significant challenge amid lingering concerns about risks to the global recovery. In a worst scenario estimation of the current euro area crisis, some economists perceive it as potentially leading to a banking disaster, further recession or collapse of the euro zone.

Growing demand as the economy continues to recover across the world has pushed commodity prices, including coffee, sugar, corn, meats and oilseeds to up 25 percent for 2010, after rising 20 percent in 2009.This may have potentially dire consequences for poverty.

The issue of currency war has reawakened amongst the emerging countries. Countries are imposing capital control measures to stop the destabilizing effects of speculative money. Countries fear of the effect on the appreciation of their currencies resulting in decreasing the country’s trade competitiveness. The IMF is attempting to abate this currency war by establishing global rules to constrain governments’ use of capital controls.

Policies must remain focused on recovery

The financial crisis has shown that with increased globalization, there are huge economic benefits to be reaped through regional and international economic integration, but also risks that need to be mitigated. Longer-term reforms will help improve Egypt’s long-term competitiveness and mitigate future risks. Managing these challenges will enable the Egyptian economy to emerge stronger and more resilient from this exceptionally difficult period.

Egypt’s growth prospects would be enhanced by reforms that support domestic demand and ensure that the economy is well placed to take advantage of the recovery in the international economy. Following the moderate slowdown, growth should return to its more recent historic rate of 6½-7 percent and inflation should moderate. In this context, the reforms with the quickest pay-off are likely to be those that restructure the public finances to support fiscal consolidation, and promote private investment, including by attracting FDI. Longer-term reforms should address the improvement of the business climate and the implementation of labor-market reforms, including offering support and assistance to workers in the process of reacting to economic evolution. Improved education and training helps workers keep up with technological advances and to upgrade skills. Strengthening social protection measures, such as more effective and targeted unemployment benefits, will ease the transition to stronger growth rates and encourage long-term skill upgrading.

24

I.2 .. GOVERNMENT FINANCES BUDGET EXECUTION: 2001/2002 - 2009/2010

RevenuesThe actual revenues as a percent of budgeted or projected revenues have overall been strengthened between 2001/2002 and 2004/2005. The medium forecasting of revenues is currently being enhanced in the macro-fiscal unit with a view of making budget projections more accurate.

Concerning overall budget revenues, since 2005/2006 there is a larger inflow than budgeted. This partly reflects the impact of the new tax law: settlement of arrears and a widening tax base that yielded higher proceeds despite rate cuts. It also reflects the pick up in customs revenues after the sharp fall that followed the tariff rate reductions of September 2004.

Budget Execution data (table I.2.1) indicates that the total revenues have achieved 12.9 percent of the budget for the first quarter of the fiscal year 2010/2011. During the same period, realized non-tax revenues were 8.5 percent of the budgeted.

ExpendituresLooking at the expenditure levels provided for the past four years, we find that total expenditures executed are largely on track. Some expenditure items are overestimated but only by a small margin. For the first quarter of 2010/2011, the expenditure implementation was18.4 percent of the budgeted.

The Budget DeficitWhile fiscal consolidation is the key to achieving a sustainable budget deficit, an equally important challenge on how to generate more revenues and improve revenue projections in order to make more informed expenditure estimates is currently being addressed. Current tax reformation is one step towards that objective. The macro-fiscal unit at the Ministry of Finance is developed and enhanced to be able to provide a more useful and accurate outlook of the budget, thus improving performance against budget estimates.

Overview

of the Economy

25

Table I.2.1: Budget Execution - Selected Items

LE Millions2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

Budget Actual % Budget Actual % Budget Actual % Budget Actual %Jul-Sep Actual

% BudgetJul-Sep Actual

%

Total Revenues 163,906 180,216 110.0 209,009 218,500 104.5 276,795 278,569 100.6 224,987 268,114 119.2 33,061 14.7 285,810 36,832 12.9

Tax Revenues 105,644 114,327 108.2 132,759 137,378 103.5 166,569 163,182 98.0 145,544 170,494 117.1 25,221 17.3 200,424 29,555 14.7

Income Tax 53,642 58,535 109.1 66,173 67,075 101.4 83,322 80,212 96.3 58,749 76,618 130.4 7,023 12.0 88,657 7,550 8.5

Individual Taxes 10,768 9,720 90.3 13,496 11,506 85.3 16,792 14,295 85.1 14,512 16,403 113.0 2,667 18.4 19,264 3,264 16.9

Corporate Taxes

42,874 48,815 113.9 52,677 55,569 105.5 66,529 65,917 99.1 44,237 60,215 136.1 4,357 9.8 69,392 4,286 6.2

Goods & Services

36,913 39,436 106.8 47,425 49,987 105.4 61,349 62,741 102.3 61,376 67,095 109.3 13,172 21.5 80,920 15,686 19.4

International Trade

9,601 10,370 108.0 13,284 13,957 105.1 15,150 14,074 92.9 14,018 14,702 104.9 3,026 21.6 15,500 3,411 22.0

Other 5,488 5,986 109.1 5,877 6,359 108.2 6,749 6,155 91.2 11,401 12,079 105.9 1,999 17.5 15,348 2,908 18.9

of which Property Tax

1,204 1,543 128.2 1,494 2,052 137.3 3,517 2,691 76.5 8,106 8,770 108.2 1,720 21.2 12,306 2,651 21.5

Non Tax Revenues 58,262 65,889 113.1 76,250 81,122 106.4 110,226 115,387 104.7 79,443 97,621 122.9 7,840 9.9 85,386 7,277 8.5

Grants 3,482 3,886 111.6 3,166 971 30.7 5,557 7,646 137.6 7,700 4,333 56.3 (272) (3.5) 5,156 39 0.7

Other Non Tax Revenues

54,780 62,003 113.2 73,084 80,151 109.7 104,669 107,740 102.9 71,743 93,288 130.0 8,112 11.3 80,231 7,239 9.0

Total Expenditure 217,275 222,029 102.2 275,652 277,432 100.6 356,844 347,679 97.4 323,917 365,987 113.0 68,345 21.1 403,168 74,324 18.4

Wages and Salaries 51,431 52,153 101.4 61,844 62,062 100.4 79,039 75,194 95.1 87,484 85,369 97.6 19,658 22.5 95,309 21,275 22.3

Defense 17,200 17,718 103.0 19,050 19,228 100.9 21,549 22,267 103.3 22,649 23,453 103.6 6,029 26.6 25,215 8,951 35.5

Interest 50,747 47,700 94.0 51,979 50,396 97.0 52,930 52,782 99.7 71,066 72,333 101.8 18,876 26.6 91,143 19,944 21.9

Domestic 47,283 44,667 94.5 48,086 46,687 97.1 48,477 49,186 101.5 67,480 69,493 103.0 17,711 26.2 86,646 18,886 21.8

Foreign 3,464 3,033 87.6 3,893 3,709 95.3 4,452 3,596 80.8 3,586 2,840 79.2 1,165 32.5 4,497 1,058 23.5

Investment 20,240 25,498 126.0 27,650 32,095 116.1 38,493 42,138 109.5 36,480 48,350 132.5 7,742 21.2 40,119 6,983 17.4

Other 77,657 78,960 101.7 115,129 113,651 98.7 164,834 155,298 94.2 106,238 136,481 128.5 16,041 15.1 151,382 17,171 11.3

Cash Deficit/Surplus (53,369) (41,813) 78.3 (66,643) (58,932) 88.4 (80,050) (69,110) 86.3 (98,931) (97,872) 98.9 (35,284) 35.7 (117,358) (37,492) 31.9

Source: Ministry of Finance

26

I.3 .. CITIZEN BUDGET

New Initiative of the Ministry of Finance the first “Citizen Budget” has been issued in Egypt in an initiative of the Ministry of Finance aiming at increasing societal participation in determining the order of priorities of public spending on the levels of both the state and each governorate and town, according to Egyptian Finance Minister, Dr. Youssef Boutros Ghali.

The Citizen Budget is considered as one of the mechanisms established to reinforce financial decentralization since it would allow each citizen to know the sums allocated to the different aspects of public services such as education, health, culture, youth & sports, etc. in the citizen’s governorate or home town. Consequently, this will allow the citizen to suggest the projects deemed of higher priority in the area of residence of the citizen—a sort of societal participation required in the decision making process which eventually serves the society and its priorities.

The Finance Minister added the new initiative would allow publishing a summary of the structure of revenues and expenditures on the national level in addition to a review of the most important decisions and issues related to the Egyptian financial policy. The purpose is to raise citizens’ awareness of the components of the budget of their country and the developments that take place on a yearly basis.

The citizen budget will be issued annually following the People’s Assembly’s approval of the State public budget. It will take the form of a brief statement which will initially include public expenditures and revenues on the state level. This is to be followed by detailed statements of both revenues and expenditures on the levels of governorates and their componential towns.

The citizen budget is a miniature form of the public budget; thus, it enables the citizen to identify the sums allocated to the different sectors and services, in addition to the sources of public revenues, volume of total deficit, development of governmental debt, its indicators, and manner of servicing this debt.

The best interest of the citizen and the priorities of development in Egypt are the factors that determine the features of the budget. Public spending aims, eventually, at raising the standard of living and securing the basic services for the people. The State public budget is developed in such a way that puts in consideration the best interest of the future generations; thus, the decisions taken today build on that and are carefully designed to establish equal opportunities among the different generations in both benefits and burdens. The citizen, at the end, is the real owner of the budget, so the citizen has to be fully aware of its details and must play a role in determining its orientations.

Issuing the citizen budget was a part of a series of executive measures taken by the Ministry of Finance in the framework of a policy of transparency, data disclosure and controlling the financial performance of the State public budget. The first such measure was to re-order the budget sections in line with international standards and to automate the effort of preparing and executing the public budget. This will allow a systematic disclosure of information, periodically and at short intervals. It will also automate governmental payments electronically, present the details of the public budget according to both economic and functional classifications, and publish on the actual performance of the budget all through the fiscal year on a monthly basis in the financial report. The report is issued monthly by the Ministry of Finance, and will be available on the ministry’s website.

Some of the most important constitutional amendments introduced at this stage, make it mandatory for the Ministry to prepare and present the budget proposals and the final financial statements of the State public budget to the People’s Assembly according to early set deadlines. Article 115 was amended to stipulate that the projected budget be presented to the Assembly three months at least before the new fiscal year, providing for sufficient time for discussions before finally approving and passing the budget. Previously, the budget was presented shortly before the new fiscal year, not allowing for sufficient time for discussion of budget details.

Article 118 was amended as well. It now stipulates that the final financial statement of the State budget be presented to the People’s Assembly within a maximum of six months following the end of the fiscal year. Previously, the final statement was presented around a year later, which had negative effects on the controlling role of the Assembly in reviewing the final performance of the budget. It had also adversely affected the efficiency and accuracy of preparing the budget of the following year and taking the proper economic decisions in the right time. The minister explained that these amendments would ameliorate the controlling role of both the parliament and the society over the State public budget and all the relevant governmental bodies.

In September 2005, the Ministry of Finance had the State public budget law 53 of 1973 amended. The new law re-orders the sections of the budget in accordance with the government auditing system developed by the International Monetary Fund in 2001. Updating the sections of the budget has facilitated reading and following up the budget performance after it was too difficult and complicated for the layman and even for many specialists. Re-ordering the budget sections,

Overview

of the Economy

27

also adopted by most countries around the world, has led to a smoother tracking of the development of the performance and comparison to that of other countries according to the international standards. This has also made it possible to analyze and ameliorate the financial policy performance in Egypt. Under the adopted financial controls, the new law made it obligatory to set a ceiling for the public expenditure reserves (not to exceed 5% of the total uses of the State public budget without the interest). This ensures classifying the components of expenditures in a clear, explicit way, setting strictly defined areas of spending while the reserve should be confined only to unexpected and emergency cases.

Financial reforms also included the passing of the unified budget account in 2006 according to which the accounts of the governmental agencies were transferred from the commercial banks to a unified account in the Central Bank. This complies with the principle of putting the comprehensive budget, including the accounts of the governmental agencies, under the supervision and follow up of the Ministry of Finance as a main step towards establishing transparency and managing and controlling the state expenditure.

Currently, the Ministry of Finance is implementing a program of automating all the processes of collected revenues and managing expenditures to uphold the principle of disclosure, controlling expenditure and reducing the cost of monetary management. In the first step, salary and pension payments were automated issuing around 688,000 ATM cards back then, while the total electronic cards for pension payments has now exceeded 1.5 millions.

All these policies and measures aim at improving the standard of preparing and implementing the public budget, reinforcing societal and official control over the performance of the State public budget. This leads to more financial control and discipline and better management of the state resources towards the society’s basic requirements according to the priorities and needs of the citizens.

On the other hand, the Citizen Budget statement can be seen as a brief simplified guide which necessarily addresses the ordinary citizen about the public budget of the state for the fiscal year 2010/2011 which was approved by the People’s Assembly. This statement identifies, among other things, the goals of the financial policy in Egypt and the new elements introduced by the budget this year on the national level as well as the governorates and towns, for their residents, together with an explanation of the principal features of the current year’s budget, including the sources of revenues, distribution of expenditures, clarifying the most important social protection programs, subsidizing the limited income brackets, the basic results of the public budget, the impact on economic performance and its future aspiration, and governorate projects.

Also, the citizen budget is a device used in different countries aiming at the financial education of the people. It also helps in clarifying the confusion concerning the manner of allocating funds and spending resources in the public budget by disclosing the real figures of the data of public spending and the public resources with their allocations.As for the citizen budgets for each governorate, the initiative was taken by the two governorates of Menoufiya and Assiut in collaboration with the Ministry of Finance to prepare the first such budgets locally; the experience will be followed by the other governorates in the near future. This will include an explanation of the revenues and expenditures of each governorate, the allocated funds for services on the level of towns within the governorate and the volume of investments allocated for each entity.

Moreover, this would enable the citizen, especially on the local level, to play a controlling and follow-up role concerning the performance of the services provided to the citizen in the State public budget. The system helps the citizens to identify the volume of local revenues collected from the governorate and the financial deficit of the governorate covered by the state budget. In addition, this renders the local officials even more accountable since citizens will be able to question how efficient and efficacious spending is, as managed by the governorate and its towns and villages according to the funds allocated by the State budget for spending on different services.

Coordination among the governorates is planned to adopt the citizen budget principle in all the governorates starting with the 2011/2012 budget which will be published on the Ministry’s website following its approval by the People’s Assembly as a guide for understanding the public budget of the target fiscal year.

28

-4 -2 0 2 4 6 8 10

Final Consumption Demand

Q1 10/11

2009/2010

2008/09

2007/08

2006/07

2005/06

2004/05

2003/04Investment Demand

%

Annual Percent Contribution of Investment Demand &Total Consumption to the Growth in Domestic Demand(2003/2004 September 2010)

Annual Percent Contribution of Domestic Demand &Net Exports to GDP Growth (2003/2004 September 2010)

%

Contribution of DomesticDemand toGDP Growth

4 2 0 2 4 6 8 10

Contribution of Net ExternalDemand to GDP Growth

Q1 10/11

2009/2010

2008/2009

2007/2008

2006/2007

2005/2006

2004/2005

2003/2004

Quarterly GDP Growth Rates (2006/2007 - 2010/2011)

0

2

4

6

8

10

Q1 -

10/11

Q4-

09/10

Q3-

09/10

Q2-

09/10

Q1-

09/10

Q4-

08/09

Q3-

08/09

Q2-

08/09

Q1-

08/09

Q4-

07/08

Q3-

07/08

Q2-

07/08

Q1-

07/08

Q4-

06/07

Q3-

06/07

Q2-

06/07

Q1-

06/07

7.4

7.6

7.46.8

7.05.6

4.1

4.3

4.5

4.65.0

5.8

5.5

5.57.6

6.7

6.5%

0

1

2

3

4

5

6

7

8

9

10

11

12Unemployment Rate (%)

Real GDP (% Growth Rate)

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

2000

/01

1999

/00

Real GDP and Unemployment Growth Rates(1999/2000 - 2009/2010)

% G

row

th R

ates

Figure I.1b Egypt’s economy grew by 5.5 precent during Q1 - 2010/10 compared to 4.5 percent in Q4-2008/09.

Figure I.2* Domestic demand continues to be the driving force for the economy. Positive net external demand reveals the effect of imports slowdown.

Source: MOED

Source: MOED

Figure I.1a Supported by the economic successes in fiscal years 2007/2008, and 2006/2007, the economy reinstated its resilience during the financial crisis and grew by 4.7 along the fiscal year 2008/2009 and 5.2 percent during the fiscal year 2009/2010.

Source: MOED

I. A. National Accounts

Figure I.3* Consumption demand remained is the driving force for Domestic Demand. Investment demand is recovering from the impact of the financial crisis.

Source: MOED

* Break series in 2006/2007.

[ [


[ [

I.4 .. THE ECONOMEY AT A GLANCE

Overview

of the Economy

29

Annual Inflation in Domestic Price Indices (January 2007 - October 2010)

% G

row

th R

ates

15

10

5

0

5

10

15

20

25

30

35 PPI Inflation

CPI Urban

WPI Inflation

Oct-

10

Sep-

10

Aug-1

0

Jul-1

0Jun

-10

May-1

0

Apr-10

Mar-10

Feb-

10

Jan-1

0

Dec-0

9

Nov-0

9

Oct-

09

Sep-

09

Aug-0

9

Jul09

Jun-0

9

May-0

9

Apr-09

Mar-09

Feb-

09

Jan-0

9

Dec-0

8

Nov-0

8

Oct-

08

Sep-

08

Aug-0

8

Jul-0

8Jun

-08

May08

Apr-08

Mar-08

Feb-

08

Jan-0

8

Dec07

Nov-0

7

Oct-

07

Sep-

07

Aug-0

7

Jul07

Jun-0

7

May-0

7

Apr-07

Mar-07

Feb-

07

Jan-0

7

Dec-0

6

Nov06

Oct-

06

Sep-

06

Aug06

July

06

June

-06

May06

Apr-06

Mar-06

Feb-

06

Jan-0

6

Annual Effective Exchange Rate Indices (January 2003 - December 2007)

0

30

60

90 Real Effective Exchange Rate

Nom nal Effective Exchange Rate

Dec07

Nov07

Oct-

07

Sep

07

Aug07

Ju-0

7Jun

-07

May07

Apr-07

Mar-07

Feb

07

Jan-0

7

Dec06

Nov-0

6

Oct

06

Sep

06

Aug-0

6ul-

06Jun

-06

May06

Apr-06

Mar-06

Feb

06

J n-06

Dec-0

5

Nov-0

5

Oct

05

Sep-

05

Aug-0

5u -0

5Jun

-05

May-0

5

Apr05

Mar05

Feb-

05

Jan-0

5

Dec-0

4

Nov04

Oct-

04

Sep-

04

Aug04

u -04

Jun-0

4

May-0

4

Apr04

Mar-04

Feb-

04

Jan-0

4

Dec03

Nov03

Oct-

03

Sep

03

Aug03

Jul-0

3Jun

-03

May03

Apr-03

Mar-03

Feb

03

J n-03

Annual Percent Contribution of Public & Private Consumption Demand toTotal Consumption Demand Growth (2003/2004 September 2010)

%0 1 2 3 4 5 6

Final Public Consumption.


Q1 10/11

2009/2010

2008/09

2007/08

2006/07

2005/06

2004/05

2003/04

I. B. Inflation

Figure I.4* The macro-economy has been more favorable to private sector led growth. During the crisies, private consumption witnessed a decline, then recently private consumption has started to pick up.

Source: MOED

I. A. National Accounts (cont.)

Figure I.5* Recent pickup in consumption demand put pressure on foodstuff prices that reflect in headline inflation.

Source: CAPMAS

Figure I.6 Meanwhile, the Egyptian pound continues to be stable in a smooth interbank market.

Source: IMF

Figure I.7 Capital inflows resumed in an improved global financial environment, easing interest rates on T-Bills.

Source: CBE

Annual Interest Rates on T-Bills & Broad Money Growth Rate(January 2008 - November 2010)

%

0

5

10

15

20

25

30Interest Rates on T Bills 91 days

Broad Money Growth Rate

Nov10

Oct

10

Sep

10

Aug10

Jul10

Jun10

May10

Apr10

Mar10

Feb

10

Jan10

Dec09

Nov09

Oct

09

Sep

09

Aug09

Jul09

Jun09

May09

Apr09

Mar09

Feb

09

Jan09

Dec08

Nov08

Oct

08

Sep

08

Aug08

Jul08

Jun08

May08

Apr08

Mar08

Feb

08

Jan08

I.C. Exchange Rate and Monetary Policy


[ [

* See Footnote 2, 3 & 4 in Table I.1 [ [

30

Annual Domestic & Foreign Interest Paymentsas Percent of GDP (2001/2002 - September 2010)

% o

f GD

P % o

f GD

P

0.0

0.5

1.0Foreign Interest Payments

0

1

2

3

4

5

6

7

8

Domestic Interest Payments

Q12010/11

2009/102008/092007/082006/072005/062004/052003/042002/032001/02

0.1

1.4

Annual Growth Rates of Total Expenditures & Total Revenues(2002/2003 September 2010)

% G

row

th R

ate

11.41

8.75

10

5

0

5

10

15

20

25

30

35

40Total Revenues Total Expend tures

Q1 1

0/11

2009

/2010

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

Annual Overall Fiscal Deficit and Cash Deficit (2001 GFS*)as Percent of GDP (2001/2002 - 2010/2011)

10.409.50 9.60

8.20 6.807.30 6.90

8.10 8.50

8.10 7.90

9.109.109.40

6.606.80

5.60

9.20

0

5

10

15Cash Deficit

Overall Fiscal Defic t

Budget10/11

2009/102008/092007/082006/07 2005/062004/052003/042002/03

% o

f GD

P

Quarterly Receipts from Income Tax, Goods &Services Taxes & Customs Duties (2006/2007 2010/2011)

LE Mi lions

0 3000 6000 9000 12000 15000

Goods and Services Taxes

Customs Duties

Income Tax

Q12010/11

Q12009/10

Q12008/09

Q12007/08

Q12006/07

Figure I.8 The global financial-crisis-induced fiscal deficit larger than projected during the pre-crisis conditions.

Source: MOF

I.D. Fiscal Policy

Figure I.9 Revenue growth rate reveals the effect of the increased GDP.

Source: MOF

Figure I.10 Tax proceeds stagnated due to the pressures that the financial crisis exerted on the economy.

Source: MOF

Figure I.11 Fiscal consolidation and the debt management strategy helped contain the growth in domestic interest payments. The stability of the exchange rate has increased the scope for interest rate stability, serving to reduce foreign interest payments.

Source: MOF

* The Budget is based on the IMF 2001 GFS Classification, modified to cash principles. The new classification was adopted by the Egyptian Ministry of Finance by Law 97/2005. [ [

Overview

of the Economy

31

Annual Net International Reserves (NIRs) (1991/1992 - December 2010)

US$ Billions

0 5 10 15 20 25 30 35 40Dec 102009/102008/092007/082006/072005/062004/052003/042002/032001/022000/011999/001998/991997/981996/971995/961994/951993/941992/931991/92

Annual Domestic Debt as Percent of GDP (2002/2003 September 2010)

% of GDP

0 10 20 30 40 50 60 70 80

Net Domestic Publ c Debt

Net Domestic General Government Debt

Net Domestic Budget Sector Debt

Jul Sep 2010/11

2009/10

2008/09

2007/08

2006/07

2005/06

2004/05

2003/04

Figure I.12 Meanwhile, public and Government debt remains under control.

Source: MOF

I.E. Domestic Debt Policy

Figure I.13 The stability of the Egyptian economy is still attracting NIRs.

Source: CBE

Annual Growth Rates for Export Proceeds and Import Payments(1991/1992 - 2009/2010)

% G

row

th R

ates

-20

-10

0

10

20

30

40

50

60 Exports ProceedsImports Payments

2009

/2010

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

2000

/01

1999

/00

1998

/99

1997

/98

1996

/97

1995

/96

1994

/95

1993

/94

1992

/93

1991

/92

Quarterly Growth Rates for Export Proceeds and Import Payments(2006/2007 - 2010/2011)

% G

row

th R

ates

-50

-40

-30

-20

-10

0

10

20

30

40

50Imports payments

Export proceeds

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

Figure I.I4a Egypt’s trade showed robust growth until 2007/2008.

Figure I.I4b The first quarter of 2010/2011 witnessed a reverse in the trend that settled during 2009/2010.

Source: CBE

Source: CBE

I.F. External Sectors

32

36.5%EUROPEAN UNION (EU)

12.3% OTHEREUROPEANCOUNTRIES

Annual Imports Payments by Region(2009/2010)

10.8% USA

21.5% ASIAN COUNTRIES

6.7%OTHER COUNTRIES

11%ARAB COUNTRIES

1.1% AFRICAN COUNTRIES

35.5%EUROPEANUNION (EU)

4.5%OTHEREUROPEANCOUNTRIES

6.6%OTHER COUNTRIES

Annual Exports Proceeds by Region(2009/2010)

18.5%USA

19.9% ARAB COUNTRIES

14.2 % ASIAN COUNTRIES

1.6%AFRICAN COUNTRIES

Figure I.17 The bulk of Egypt’s exports go to the EU and the US.

Source: CBE

I.F. External Sectors (cont.)

Figure I.18 Egypt’s largest imports come from the EU and the US, followed by Asian and Arab countries.

Source: CBE

14.9%OIL

12.1% FOODSTUFF

Annual Main Imported Commodities(2009/2010)

13.8%CHEMICALS

15.6%ELECTRIC APPLIANCES

& EQUIPMENT

14.7%VEHICLES, CARS &

OTHER MEANS OF TRANSPORTATION

15%BASE METALS & PRODUCTS

7.4% CEREALS

6.5%COTTON AND ITS

PRODUCTS & TEXTILE

Source: CBE

Figure I.I6 Egypt’s non-oil imports are diversified. Chemicals, foodstuff, and electric and metal products represent the majority of imports.

54.2% OIL

4.8% FOODSTUFF

Annual Main Exported Commodities(2009/2010)

2.3% CEREALS

9.1% COTTON & ITS

PRODUCTS & TEXTILES

11.2% CHEMICALS

4.2% ELECTRIC APPLIANCES

& EQUIPMENT

9.9% BASE METALS & PRODUCTS

4.3% VEHICLES, CARS & OTHER MEANS OF TRANSPORTATIONFigure I.I5 Oil represents 55 percent of Egypt’s exports. Exports

of the merchandize sector are diversified.

Source: CBE

Overview

of the Economy

33

0 20 40 60 80 100 120

Q1 2010/112009/102008/092007/082006/072005/062004/052003/042002/032001/022000/011999/001998/991997/981996/971995/961994/951993/941992/931991/921990/91

Annual External Debt as Percent of GDP (1990/1991 - September 2010)

% of GDP

Annual Current Account Balance, Trade Deficit and Net Servicesas Percent of GDP (1991/1992 - September 2010)

% o

f GD

P

6

3

0

3

6

9

12

15

18Trade DeficitCurrent Account BalanceNet Services

Q1-

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

2000

/01

1999

/00

1998

/99

1997

/98

1996

/97

1995

/96

1994

/95

1993

/94

1992

/93

1991

/92

0 2000 4000 6000 8000 10000 12000 14000

Q1-2010/11

2009/10

2008/09

2007/08

2006/07

2005/06

2004/05

2003/04

2002/03

2001/02

2000/01

Annual Tourism Statistics (2000/2001 - September 2010)

TourismIncome

(US$ Millions)

(Thousands)

Total Number of Tourist Nights

0 20000 40000 60000 80000 100000 120000 140000

Figure I.19 During the first quarter of 2010/2011, current account witnessed a deficit of 0.3 percent of GDP.

Source: CBE

Figure I.21 The tourism sector isn’t affected by the financial crisis.

Source: CBE


Figure I.22 Egypt’s external debt …

Source: CAPMAS - CBE

24%OTHER EXPORTS

18%PETROLEUM EXPORTS

Annual Foreign Exchange Receipts-Current Account Receipts(2009/2010)

20%TRAVEL

1%NVESTMENT NCOME

0.2% GOV SERVICES

6% OTHER RECEIPTS

16% NET PRIVATE TRANSFERS

2% OFF CIAL TRANSFERS (NET)

5%TRANSPORT

8%SUEZ CANAL Source: CBE

Figure I.20 Egypt’s foreign exchange receipts are well diversified. This diversity provides resilience to external shocks.

34

Total Medium and Long Term Public &Publicly Guaranteed External Debt Service as of October 1st, 2010

US$

milli

ons

2047

2026

2023

2020

2017

2014

2011

2008

2005

2002

1999

1996

1993

2941

2038

2032

2029

2050

2044

Actual Payments

Projections

0

500

1000

1500

2000

2500

3000

3500

4000

4500 TotalInterest

Principal

Figure I.25 The structure of Egypt’s rescheduled debt is favarobale.

Source: CBE


76.4%NON RESCHEDULED

Total Medium and Long Term Public and Publicly Guaranteed ExternalDebt Paris Club Bilateral Debt as of September 30, 2010

25.6%RESCHEDULED

Figure I.26 The maturity structure of its external debt continues to be favaroble.

Source: CBE

91.56%MEDIUM & LONG TERM PUBLIC & PUBLICLYGUARANTEED DEBT

Total Medium & Long Term and Short Term Debt as of September 30, 2010

0.7%SHORT TERM DEBT

8.27%MEDIUM & LONG TERM PUBLIC &PUBLICLY NON GUARANTEED DEBT

Source: CBE

Figure I.24 … also debt position is safe by international standards.

Figure I.23 ...and debt service positions are safe by international standards.

Source: CBE

Annual Debt Service as % of Current Account Receipts(1990/1991 - September 2010)

% of Current Account Receipts

0 5 10 15 20 25 30

Q1 2010/112009/102008/092007/082006/072005/062004/052003/042002/032001/022000/011999/001998/991997/981996/971995/961994/951993/941992/931991/921990/91

Overview

of the Economy

35

Paris Club Debt Restructuring-Present Discount Value 6% Discount Rateas of September 30, 2010

US$

Milli

ons

25,00724,332

29,856 28,067

20000

25000

30000

35000

Third Stage(Sep 10)

Second Stage(Sep 93)

First StageOriginal Debt(May 91)

Figure I.27 In terms of net present value, Egypt’s total external debt has declined from US$29.9 billions in 1991 to US$25 billions in September 2010.

Source: CBE

Figure I.29.a This was largely related to Greenfield investment in new establishments (39.8 percent) oil and gas sector investment (53 percent) and to a lesser extent privatization. FDI in the real estate sector has remained consistently low at 4.5 percent of net FDI inflow during the fiscal year 2009/10.

Source: CBE

Annual Investment in Petroleum and Non-Petroleum Sectors in FDI(2009/2010)

53.1%Net FDI Inflows inPetroleum Sectors

4.5%Real EstateInvestment

2.6%Sales of Assets toNon Residents

39.8%NEW ESTABLISHMENT &

CAPIAL INCREASE

Source: CBE

Figure I.28 Foreign direct investment is expected to return to its upward trend as the global econoomy recovers.

Annual Foreign Direct Investment (1990/1991 September 2010)

US$

Mill

ons

1597.2

6758.2

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Q1-

2010

/11

2009

/10

2008

/09

2007

/08

2006

/07

2005

/06

2004

/05

2003

/04

2002

/03

2001

/02

2000

/01

1999

/00

1998

/99

1997

/98

1996

/97

1995

/96

1994

/95

1993

/94

1992

/93

1991

/92

1990

/91


Figure I.29.b During 2009/10, net FDI inflow in non-petroleum sectors includes US$2.99 billions from new establishments and issued capital or 44.3 percent of total FDI and US$173 millions from sales of companies and productive lines to Non-residents or 2.6 percent of total FDI.

Source: CBE

Annual FDI Inflows in Petroleum and Non-Petroleum Sectors(2004/2005 - 2009/2010)

US$ Mi lions

0 3000 6000 9000 12000 15000

2009/10

2008/09

2007/08

2006/07

2005/06

2004/05

Total FDI Inflows

Net FDI Inflows inPetroleum Sectors

Sales of Assets &Productive Line to

Non Residents

New Establishment&Capital Increase

36

Figure I.31 The Government of Egypt Notes, guaranteed by USAID, have been trading at a premium due to low U.S. Interest Rates.

Source: Reuters

I.H. Debt Securities

Government of Egypt Notes Guaranteed by USAID Due 2015(September 2005 November 2010)

Clos

ing

Price

Clos

ing Y

ield

98.72

PREMIUM

DISCOUNT

112.17

4.61

1.78

80

85

90

95

100

105

110

115

120 Closing Price

0

1

2

3

4

5

6

7

8Closing Yield

Sep

05

Nov 05

Sep

06

Nov 06

Jan 06

Nov 07

Jan 08

Mar 06

Mar 08

Jan 07

Mar 07

May 06

May 07

Nov 08

Jan 09

Mar 09

May 09

May 08

Jul 06

Sep

07Jul

07

Sep

09

Nov 09

Jan 10

Mar 10

Jul 09

Jul 10

Sep

10

Nov 10

May 10

Sep

08Jul

08

Figure I.32 The Egyptian Pound Global Notes, has closed at a price of 100 and a yield of 8.74 as end of December 2010.

Source: Reuters

Local Currancy Notes Due 2012(July 2007 December 2010)

Clos

ing

Prce

Clos

ng Y

ield

100.01PREMIUM

DISCOUNT

8.742

100

60

65

70

75

80

85

90

95

100

105

110

Closing Price

0

5

10

15

20

25

Closing Yield

Sep

07

Nov 07

Jan 08

Mar 08

May 08

May 09

Jul 08

Sep

08Jul

09

Sep

09

Nov 08

Jan 09

Mar 09

Nov 09

Jan 10

Mar 10

May 10

Jul 10

Sep

10

Nov 10

Jan 11Jul

07

Source: MOF

Figure I.33 The Eurobond to mature in April 2020 is trading at a premium causing yield to decline reaching 5.22 percent at the end of December 2010

Yield on Government of Egypt Eurobond Due 2020(April - December 2010)

30-A

pr-10

31-M

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Public Sector Sales (not under Law 203)

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Figure I.30 Privatization has slowed down since its big leap in fiscal years 2005/2006 and 2006/2007.

Source: MOI

[See Appendix B: Table 7.1

[

Overview

of the Economy

37

I.H. Debt Securities (cont.)

Figure I.34 The Eurobond to mature in April 2040 is trading at a premium with a price reaching 106 and a yield of 6.41 percent at the end of December 2010

Source: Reuters

Yield on Government of Egypt Eurobond Due 2040(May - December 2010)

04-M

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5.5

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7.5

6.59

Source: MOF

Figure I.35 Due to a recent increase in CPI, yields have been increased.

T- Bills Yield Primary Issuance (July 2004 - October 2010)

Yiel

d (%

)

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p04

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8.662

8.127

8.364

8.552

4.5

6.5

8.5

10.5

12.5

14.5

16.5364Days

273 Days182 Days91 Days

I.I. Stock Market

Source: Egyptian Stock Market & Reuters

Figure I.36.b Consequently, the EGX-30 increased during the quarter October - December 2010/2011 by 11 percent.

Quarterly EGX-30 Performance (October 2010 - December 2010)

Inde

x Le

vel o

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06500

6600

6700

6800

6900

7000

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7300

Source: Egyptian Stock Market & Reuters

Figure I.36.a However, the market entered a period of correction accompanied by the global financial crisis that pulled its index to decrease since May 2008 and until the end of March 2009. Then, the marcket regained its bullish performance since April 2009 to reach its peack on April 2010. Market performance continues to enhance during the second half of 2010 (July-December 2010).

Annual EGX-30 Performance (April 2009 - December 2010)

Inde

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38

I.I. Stock Market (cont.)

Figure I.38 Since July 2004, the performance of the MSCI-Egyptian Stock Market Index has exceeded both the MSCI-Emerging Markets and MSCI-Emerging Markets & Europe & Middle East indices.

Source: Egyptian Stock Market & MSCI Website

The MSCI-Egypt Index in Comparison with the MSCI-Emerging Markets Index (January 2001 December 2010)

50

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MSCI Emerg ng Markets ofEU & Middle East & Africa

MSCI Emerg ng Markets

MSCI Egypt

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Figure I.37 During October - December 2010, the MSCI-Egypt Price Index, which measures the market price performance, achieved a 7 percent net increase for its return compared to 10 percent net increase for the previous quarter (July - September 2010), and 6 percent decrease compared to the corresponding quarter of 2009. Moreover, the index closed at 1,461 at the end of December 2010 compared to 1368 at the end of the previous quarter (July - September 2010) and 1266 at the end of the corresponding quarter of 2009. This increase reflects the positive effects occurred in the Egyptian stock market recently.

Morgan Stanley Indices for the Egyptian Stock Market(March 2001 - December 2010)

Mar01

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4300Price Index (MSCI Loca )

Gross Index (MSCI Local)

Net Index (MSCI Local)

Inde

x Le

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f Poi

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Figure I.39 The performance of the MSCI-Egyptian Stock Market Index has exceeded the performance of the MSCI-All Country World Index since July 2004.

The MSCI-Egypt Index in Comparison with the MSCI-All Country World Index (January 2001 December 2010)

50

150

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MSCI Egypt

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Overview

of the Economy

39

0 1 2 3 4 5 6 7 85

10

15

20

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35

40

Russia

India

Korea

Mexico

China

Isreal

TurkeyBrazil

Argentina

Indonesia

PeruChile

Morocco

EgyptPolandSouth Africa

I.I. Stock Market (cont.)

Figure I.40 Comparing Valuations of the S&P/IFCG Indices P/E Ratio vs. Dividend Yield (DY) (as of end of June 2009)

Source: S&P / IFC

At the end of June 2009, Egypt’s rank in the monthly percentage change in the S&P/IFCG Price Index was 9th compared to 13th at March 2009, reflecting the trend of improvement in the performance of the Egyptian Capital Market.

Source: S&P / IFC

Table I.3.1: Egypt vs. Emerging Markets:S&P/IFCG Price Index PerformanceSummary (US$) - June 2009

Rank Emerging Markets1-Month

(May 09 - June 09)%Change

YTD %Change

1 Thailand 8.80 37.30

2 Turkey 5.80 35 20

3 Morocco 5 50 5.80

4 Hungary 5.40 18 50

5 Indonesia 4.90 66.40

6 Chile 4.70 52 50

7 China 3 50 38.40

8 Poland 2.70 (5.10)

9 Egypt 2.30 21.40

10 Malaysia 2.00 22.30

11 Israel 2.00 22.40

12 Czech Republic 1.90 7.40

13 South Africa 1.40 22.70

14 Mexico 0.70 17.00

15 Philippines 0.60 29.10

16 Argentina (1.10) 26.60

17 Korea (1.40) 23.70

18 India (2.10) 54.30

19 Peru (4.00) 30.00

20 Brazil (4 20) 54.80

21 Taiwan (7.70) 38.90

22 Russia (9 20) 50 50

Overview

of the Economy

41

I.5 .. OIL AND ENERGY PROFILES IN EGYPT

Egypt is one of the oil and gas producers. The country’s daily production has shown a drastic increase over the last five years especially in natural gas. on the other hand, the country oil production has declined until it has stabilized by year 2002.

Irrespective to the country efforts to sustain the balance between the country production of such depleted energy resources and the demand, the continuous increase in the country consumption from all the oil products and natural gas has resulted in an unbalanced situation causing an increase on the country imported products especially the LPG, gas oil and gasoline.

Energy subsidy is one of the major issues for the country economic reform program. Energy subsidy bill inflated on the last two years to reach over LE60 billions due to the drastic increase on the international oil price and the continuous increase of country consumption.

In an attempt to control the continuous increase in oil and gas consumption rates and to control the negative impact of energy subsidy on the budget deficit, the Government increased prices of oil, natural gas, and electricity over the consecutive budget years 2007/2008 and 2008/2009, on year 2009/2010 no action has been made due to the financial crisis .

In addition, the oil sector has declared a plan to sustain its production rate and meanwhile increase its natural gas production continuously with an objective to gradually the continuous increase on the imported volume of these products and control its financial impact.

Petroleum Minister - Sameh Fahmy has announced plans to increase output to 700,000 barrels of oil per day (bpd) taking advantage of newly discovered fields in the Gulf of Suez and the Western desert, as well as the potential of the new sources in the Far South of the country. Egypt produced 650,000 bpd in 2009, down almost 2.5 percent from the previous years 696,000 bpd. In 1996, Egypt’s production was 994,000 bpd. Proven reserves have been depleted over the past two decades, from 4.5 billions barrels in 1986 to 3.9 billions in 1996 and 3.7 billions barrels in 2006.

Despite this decline, revenues have increased in recent years as a result of an increases in the global oil prices.

The major petroleum companies like Apache, ENI, Shell and BG still continuing their investment plans and production obligation which reflected on the levels of the daily oil & natural gas production. This comes as a result of the enhanced investment environment in the oil sector since start the application of the production sharing agreement on 1976 and continuous enhancement applied to the investment incentives. In addition to the economic incentives offered to these

strong investors to enable Egypt to compete with other oil producing countries.

The Government’s ambitious to expand the oil sector newly discovered sources and the fact that a large area of the country has still not been explored have drawn the major international oil and gas companies. The recent cuts in fuel subsidies, which are likely to be reduced further in the medium term, have created a more favorable market for private petrol and diesel sales companies to the domestic market.

Energy Subsidies (2005/2006 - 2009/2010)

US$

Billi

ons

0

20

40

60

80

100 Subsidies Volume

2009/10 2008/092007/082006/072005/060

20

40

60

80

100LPC Price

Source: EGPC Annual Report. Meanwhile, one of the major player in the oil sector has established a major aggressive exploration comprehensive program on Quarun Oil Company. Apache Corporation as a major shareholder in the company with an agreement with Egyptian General Petroleum Corporation (EGPC) has endorsed and financially supported the program.

The program is looking to establish a daily oil production over 50,000 barrels and includes drilling of 75-85 wells over the next two years, and enhances the water injection scheme to support the oil production.

Other major operating company, ENI has managed to agree with EGPC to extend Belayim Gencession agreement which ended by 2020 for another 10 years, this extension will secure the proper amount of foreign investment needed to support the oil production of Belayim field for the next 20 years. Meanwhile, ENI has continued their efforts through their JV petrobel increasing natural gas production from Port Saied – Elgamiel gas processing facilities in which all the offshore Mediterranean Gas fields are processed.

The upstream activities looks positive in spite of the negative impact resulted from recent global financial crisis which proved the strong ability of Egypt to sustain the foreign investment momentum needed for the Egyptian oil sector.

Interest has been equally active on the refining side, as international firms look to take advantage of

42the increased upstream supply as well as growing domestic demand. Japanese trading firm Mitsui & Co announced that it would be working with South Korea’s GS Engineering & Construction Corp and Egyptian Refining Company on a US$3.1 billions oil refining and hydro cracking heavy products project in Mostorod, North of Cairo.

The plant, that will be completed in 2014, is expected to have an initial output of two millions tons of gas oil per year, rising to 2.5 millions tons when the complex is completed. The new plant will include an 80,000 bpd vacuum distillation unit and a 40,000 bpd hydrocracker, which converts low-quality residues into middle distillate products for which demand is higher.

While Egypt cannot punch on the level of its neighbors in the Middle East in terms of oil production, the Government’s production targets the level of private international activity in the sector is indicative of confidence that reserves justify continued exploration and that the market is strong for producers.

Table I.4.1 Actual Petroleum ProductsSubsidies During ( 2007/2008 – 2009/2010)

ItemsLE Millions

2007/2008 2008/2009 2009/2010

LPG 13,413 11,346 14,009

Gasoline 9,181 6,725 9,338

Gas oil (Solar) 33,148 23,774 24,991

Mazout (fuel oil) 7,492 4,168 8,138

Natural Gas 7,950 4,633 6,542

Total 71,183 50,646 63,017

Source: EGPC Annual Reports

On August 2006, the Egyptian Government announced that gas and electricity subsidies currently granted to energy intensive and non intensive industries would be phased out over three years to cut inefficiencies in the market and help reduce the budget deficit. The Government may feel it has more scope to cut subsidies due to the Central Bank of Egypt’s tight monetary stance and a short-to-medium term disinflationary trend that is expected to continue to the end of the year and beyond. The task has been completed on

1/7/2010 when the final increase on energy (natural gas and electricity) supplied to the intensive energy industries has been applied, the current energy prices is matching with its actual international cost.

Most of the state budget deficit is attributable to the bill of subsidies, 2008/2009 budget only for LPG included almost US$11 billions in energy subsidy compared with US$13 billions on the 2007/2008 budget. This reduction in the value of energy subsidy was mainly due to the drop on the global oil prices, however, the Government aims to a better targeting of energy subsidy and to a reduction in the incurred bill. This exercise will create a fiscal space that will encompass a larger spending on other essential social services.

Subsidy to non intensive industries will be removed over three stages, in which two stages has been applied by 1/7/2010 and one step only left.

In May 2008, the Egyptian Government raised the prices of gasoline, gasoil, kerosene, and natural gas in order to reduce subsides. This important step reduced the burden on the Egyptian budget as seen from the next table;

Table I.4.2 Effect of Increasing EnergyProducts Prices

Items% of Subsidies to the Cost before

May 2008

% of Subsidies to the Cost after

May 2008

Annual Expected Additional Savings

LE Millions

Gasoline 90 54.5 38.8 867

Gasoline 92 63.1 51.1 458

Gasoline 95 57.2 32.8 20

Solar 74.9 63.2 4,488

Kerosene 69.1 54.7 97

Natural Gas for Energy Intensive Industries

23.4 (21.3) 1,603

Total Expected Additional Savings

7,542


Finally, it is worth mentioning that the Government has decided to freeze the increase in the natural gas and the electricity prices for non intensive industries that were due to be implemented over 2009, to support the local industrial projects that are facing the financial crisis.

Overview

of the Economy

43

Table I.4.3 Evolution of the Volume ofthe Consumption of the Gasoline Types(2006/2007 – 2009/2010) Millions Tons

2006/2007 2007/2008 2008/2009 2009/2010Items

Gasoline 95 0.006 0.017 0.019 0.024

Gasoline 92 0.498 0.781 0.943 1.143

Gasoline 90 1.521 1.364 1.064 0.893

Gasoline 80 1.194 1.528 2.034 2.460

Total Gasoline 3.129 3.69 4.060 4.704


Table I.4.4 Evolution of the Volume ofSubsidy of the Gasoline Types(2006/2007 – 2009/2010)

LE Billions2006/2007 2007/2008 2008/2009 2008/2009

Items

Gasoline 95 0.012 0.053 0.040 0.071

Gasoline 92 0.428 2.494 2.059 2.846

Gasoline 90 1.914 3.138 1.930 1.893

Gasoline 80 2.079 3.496 3 225 4.528

Total Gasoline 4.433 9.181 7 255 9.338


Table I.4.5 Evolution of the VolumeConsumed for Each Product 2005/2006 – 2009/2010)

Millions Tons2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Items

Botagez 3.467 3.652 3.854 4.117 4.312

Gasoline 2.974 3.219 3.690 4.060 4 520

kerosine 0.309 0.173 -- -- --

Solar 9.339 9.755 10.650 10.929 11.702

Mazouit 8.396 8.802 9.029 9.401 9.911

Natural gas 24 520 26.004 27.835 29.376 31.612

Total 49.005 51.605 55.058 57.883 62.057


Table I.4.6 Evolution of the VolumeSubsidy for Each Product (2005/2006 – 2009/2010)LE Billions

2005/2006 2006/2007 2007/2008 2008/2009 2009/2010Items

Botagez 8.482 9.693 13.413 11.087 14.009

Gasoline 4.381 4.433 9.181 7.255 9.338

Solar 17.137 18.329 33.148 23.687 24.991

Mazouit 4.156 4.183 7.492 4.651 8.138

Natural gas

7 206 6 585 7.950 6.011 6.542

Total 42.203 43.824 71.183 52.692 63.017


Table I.4.7 Evolution of the Prent Pricing (2006/2007 – 2009/2010)

2005/2006 2006/2007 2007/2008 2008/2009 2008/2009

Average Percent

68.08 84.65 79.02 ± 80 14.009


APPENDICESII

Historical data is available at the Ministry of Finance website: www.mof.gov.eg.

Appendices

47

APPENDIX A: Fiscal Data

Table 1.1.a: Fiscal Data The Budget Sector 1: Summary Table Annual Data : (2004/2005 - 2010/2011)

LE MillionsActual Budget

2004/2005 2005/2006 2006/2007 2007/20082 2008/2009 2009/2010 2010/2011

Revenues 110,864.0 151,266.0 180,214.6 221,403.6 282,504 5 268,114.4 285,810.1

Taxes 75,759 2 97,778 5 114,325.7 137,195.1 163,221.8 170,493 5 200,424.0

Grants 2,853.2 2,379.2 3,886.1 1,462.6 7,983.6 4,332.8 5,155.6

Other Revenues 32,251.6 51,108.3 62,002.8 82,745.9 111,299.1 93,288.1 80,230.5

Expenses 161,610.8 207,810.6 222,029 2 282,290.1 351,499.8 365,986 5 403,168.1

Wages and Compensation 41,545.9 46,719.1 52,152.7 62,838.4 76,147.3 85,369.0 95,308.5

Purchases of Goods & Services 12,612.6 14,428 5 17,027.6 18,470 2 25,071.8 28,059.1 28,856.7

Interests 32,779.8 36,814 5 47,699.8 50,527.8 52,810.1 72,333.0 91,142.8

Subsidies, Social Benefits and Grants 29,705 5 68,896.8 58,442.3 92,371.1 127,033.4 102,974.3 116,616.0

Other Expenses 21,692.3 19,739.9 21,208.4 23,891.7 27,007 2 28,901.3 31,124.7

Purchase of Non Financial Assets 23,274.7 21,211.8 25,498.4 34,190.9 43,430.0 48,349.8 40,119.4

Primary Deficit / Surplus (18,863 2) (13,570.6) (6,997.6) (10,594.6) (19,017.0) (25,705.1) (17,932.7)

Operating Balance (Deficit / Surplus) (50,746.8) (56,544.6) (41,814.6) (60,886 5) (68,995.3) (97,872.1) (117,358.0)

Net Acquisition of Assets (896.2) 6,159.5 (12,882.8) (235.9) (2,831.8) (166.0) 8,282.5

Proceeds of Lending & Sales of Financial Assets, excl. Privatization

2,193.7 8,890.1 (1,360.4) 1,650.9 2,085.6 2,472.7 12272.3

Acquisition of Domestic & Foreign Financial Assets, excl. Treasury Contribution in the Fund of Restructuring Finance

3,089.9 2,730.6 11,522.4 1,886.8 4,916.4 2,638.7 3989.8

Overall Fiscal Balance (51,643.0) (50,385.1) (54,697.4) (61,122.4) (71,827.1) (98,038.1) (109,075.5)

Financing Required 51,643.0 50,385.1 54,697.4 61,122.3 108,452.3 151,083.3 273,326.1

Net Borrowing 50,631 2 50,259.0 54,525.1 60,449.8 108,269.7 150,658.8 273,326.1

Borrowing & Issuance of Securities other than Shares

65,761.8 74,773.0 62,244.0 69,981 2 89,956.6 124,136 2 191,075.8

Payment of Debt Installments 3 (15,130.6) (24,514.0) (7,718.9) (9,531.4) 18,313.1 26,522.6 82,250.3

Net Privatization Proceeds 1,011.8 126.1 172.3 672.5 182.6 424.5 0.0

Memorandum Items:

GDP (LE Millions) 538,500.0 617,700.0 744,800.0 895,500.0 1,042,200 1,206,700.0 1,378,000.0

Revenues (% GDP) 20.6 24.5 24.2 24.7 27.1 22.2 20.7

Expenditures (% GDP) 30.0 33.6 29.8 31.5 33.7 30.3 29.3

Cash Deficit / Surplus (% GDP) (9.4) (9 2) (5.6) (6.8) (6.6) (8.1) (8.5)

Overall Fiscal Balance (% GDP) (9.6) (8 2) (7.3) (6.8) (6.9) (8.1) (7.9)

Source: Ministry of Finance1 The new budget is presented according to the IMF 2001 GFS Standards, modified to cash principles.The new classification was adopted by the Egyptian Ministry of Finance by Law 97/2005. Therefore, Data starting 2005/2006 are not comparable to previous years because a new approach is used in the budget classification.2 There exists some modification in the approved budget by the People’s Assembly for the fiscal year 2007/2008 based on Law No. 114 for the year 2008. Law No.114 has been issued to add two appropriations in the State Budget for the fiscal year 2007/08 and approve a special raise for the state officials. It has also established an increase in the pensions rates and the military pensions. 3 Includes Payments of Outstanding Arrears, Other, Exchange Rate Revaluation and Unidentified.

48

Table 1.1.b: Fiscal Data The Budget Sector 1: Summary Table Quarterly Data (2009/2010 - 2010/2011)

LE Millions

2009/2010 2010/2011

Actual

Jul-Sep Jul-Dec Jul-Mar Jul-Sep

Revenues 33,061.0 94,691.0 151,845.7 36,832.3

Taxes 25,220.7 65,631.7 105,903.5 29,555.0

Grants (272.0) 1,948.6 2,304.8 38.6

Other Revenues 8,112.3 27,110.7 43,637.4 7,238.7

Expenses 68,344.6 152,442.4 238,928.0 74,323.8

Wages and Compensation 19,657.5 38,012.7 57,961.9 21,274.8

Purchases of Goods & Services 3,917 2 9,650.6 15,349.1 3,705.2

Interests 18,875.7 33,233.0 53,798.1 19,943.6

Subsidies, Social Benefits and Grants 11,408.4 39,440.9 62,338.7 12,514.0

Other Expenses 6,744.1 13,762.1 21,333.7 9,903.0

Purchase of Non Financial Assets 7,741.7 18,343.1 28,146.5 6,983.2

Primary Deficit / Surplus (16,085.2) (24,249 5) (33,133.0) (17,256.1)

Operating Balance (Deficit / Surplus) (35,283.6) (57,751.4) (87,082.3) (37,491 5)

Net Acquisition of Assets 322.7 268.9 151 2 291.8

Proceeds of Lending & Sales of Financial Assets, excl. Privatization 486.8 1,049.1 1,844 2 675.5

Acquisition of Domestic & Foreign Financial Assets, excl. Treasury Contribution in the Fund of Restructuring Finance

164.1 780.2 1,693.0 383.7

Overall Fiscal Balance (34,960.9) (57,482 5) (86,931.1) (37,199.7)

Financing Required 34,960.9 61,860.3 86,931.0 37,199.7

Net Borrowing 34,580.1 61,479 5 86,518.0 37,180.8

Borrwing & Issuance of Securities other than Shares 41,955.9 68,855.3 106,693.7 44,770.6

Payment of Debt Installments (7,375.8) (7,375.8) (20,175.7) (7,589.8)

Net Privatization Proceeds 380.8 380.8 413.0 18.9

Memorandum Items:

GDP (LE Millions) 1,206,700.0 1,206,700.0 1,206,700.0 1,378,000.0

Revenues (% GDP) 2.7 7.8 12.6 2.7

Expenditures (% GDP) 5.7 12.6 19.8 5.4

Cash Deficit / Surplus (% GDP) (2.9) (4.8) (7.2) (2.7)

Overall Fiscal Balance (% GDP) (2.9) (4.8) (7.2) (2.7)

Source: Ministry of Finance1 The new budget is presented according to the IMF 2001 GFS Standards, modified to cash principles. The new classification was adopted by the Egyptian Ministry of Finance by Law 97/2005. Therefore, Data starting 2005/2006 are not comparable to previous years because a new approach is used in the budget classification.

Appendices

49

Table 1.2.a: Fiscal DataConsolidated Fiscal Operation of General GovernmentQuarterly Data: July - September (2010/2011)

LE Millions

Budget Sector N I B S I F

Consolidated GGBudget Elimination Net N I B Elimination Net Government

Private & Public Funds

Total Elimination Net

Revenues 36,833 0 36,833 701 82 619 6,884 4,714 11,598 5,323 6,275 43,726

Taxes 29,555 0 29,555 0 0 0 0 0 0 0 0 29,555

Grants 39 0 39 0 0 0 0 0 0 0 0 39

Other Revenues 7,239 0 7,239 701 82 619 6,884 4,714 11,598 5,323 6,275 14,132

Expenses 74,324 5,405 68,919 1,767 0 1,767 8,123 5,118 13,241 0 13,241 83,926

Wages and Compensation

21,275 0 21,275 15 0 15 78 177 254 0 254 21,544

Purchases of Goods & Services

3,705 0 3,705 11 0 11 245 34 279 0 279 3,995

Interests 19,944 4,461 15,483 1,717 0 1,717 0 0 0 0 0 17,200

Subsidies, Social Benefits and Grants

12,514 944 11,570 0 0 0 7,796 4,900 12,696 0 12,696 24,266

Other Expenses 9,903 0 9,903 18 0 18 0 0 0 0 0 9,921

Purchase of Non Financial Assets

6,983 0 6,983 6 0 6 4 7 11 0 11 7000

Cash Deficit / (Surplus) 37,491 5,405 32,086 1,066 (82) 1,148 1,239 404 1,643 (5,323) 6,966 40,200

Net Acquisition of Financial Assets

(292) 0 (292) 2,891 2,099 792 3,481 349 3,830 6,392 (2,562) (2,062)

Repayment to Government of loans and Sales of Financial Assets Excluding Privatization Proceeds

676 0 676 389 0 389 7 0 7 0 7 1,072

Acquisition of Financial Assets

384 0 384 3,280 2,099 1,181 3,488 349 3,837 6,392 (2,555) (990)

Overall Fiscal Balance 37,199 5,405 31,794 3,957 2,017 1,940 4,720 753 5,473 1,069 4,404 38,138

Memorandum Items:

GDP (LE Millions) 1,378,000 1,378,000 1,378,000 1,378,000 1,378,000 1,378,000 1,378,000 1,378,000 1,378,000 1,378,000 1,378,000 1,378,000

Revenues (% GDP) 2.7 0.0 2.7 0.1 0.0 0.0 0.5 0.3 0.8 0.4 0.5 3.2

Expenditures (% GDP)

5.4 0.4 5.0 0.1 0.0 0.1 0.6 0.4 1.0 0.0 1.0 6.1

Cash Deficit / Surplus (% GDP)

2.7 0.4 2.3 0.1 0.0 0.1 0.1 0.0 0.1 (0.4) 0.5 2.9

Overall Fiscal Balance (% GDP)

2.7 0.4 2.3 (0.3) 0.1 0.1 0.3 0.1 0.5 0.1 0.3 2.8


50

Table 1.2.b: Fiscal DataConsolidated Fiscal Operation of General GovernmentQuarterly Data: July - December (2009/2010)

LE Millions

Budget Sector N I B S I FConsolidated

GGBudget Elimination Net N I B Elimination Net GovernmentPrivate &

Public FundsTotal Elimination Net

Revenues 94,692 0 94,692 2,318 126 2,192 12,896 9,504 22,400 9,864 12,536 109,419

Taxes 65,632 0 65,632 0 0 0 0 0 0 0 0 65,632

Grants 1,949 0 1,949 0 0 0 0 0 0 0 0 1,949

Other Revenues 27,111 0 27,111 2,318 126 2,192 12,896 9,504 22,400 9,864 12,536 41,838

Expenses 152,443 9,990 142,453 4,061 0 4,061 12,070 9,900 21,970 0 21,970 168,483

Wages and Compensation 38,013 0 38,013 29 0 29 177 266 443 0 443 38,484


9,651 0 9,651 14 0 14 14 38 52 0 52 9,716

Interests 33,233 8,830 24,403 3,941 0 3,941 0 0 0 0 0 28,344


39,441 1,160 38,281 0 0 0 11,867 9,554 21,421 0 21,421 59,703

Other Expenses 13,762 0 13,762 77 0 77 0 28 28 0 28 13,867


18,343 0 18,343 0 0 0 12 14 26 0 26 18,369

Cash Deficit / (Surplus) 57,751 9,990 47,761 1,743 (126) 1,869 (826) 396 (430) (9,864) 9,434 59,064

Net Acquisition of Financial Assets

(269) 0 (269) 168 2,333 (2,165) 2,334 16 2,350 323 2,027 (408)


1,049 0 1,049 5,028 0 5,028 17 0 17 0 17 6,094


780 0 780 5,196 2,333 2,863 2,351 16 2,367 323 2,044 5,686

Overall Fiscal Balance 57,482 9,990 47,492 1,911 2,207 (296) 1,508 412 1,920 (9,541) 11,461 58,656

Memorandum Items:

GDP (LE Millions) 1,206,600 1,206,600 1,206,600 1,206,600 1,206,600 1,206,600 1,206,600 1,206,600 1,206,600 1,206,600 1,206,600 1,206,600

Revenues (% GDP) 7.8 0.0 7.8 0.2 0.0 0.2 1.1 0.8 1.9 0.8 1.0 9.1

Expenditures (% GDP) 12.6 0.8 11.8 0.3 0.0 0.3 1.0 0.8 1.8 0.0 1.8 14.0

Cash Deficit / Surplus(% GDP)

4.8 0.8 4.0 0.1 0.0 0.2 (0.1) 0.0 0.0 (0.8) 0.8 4.9

Overall Fiscal Balance(% GDP)

4.8 0.8 3.9 0.2 0.2 0.0 0.1 0.0 0.2 (0.8) 0.9 4.9


Appendices

51

Table 1.2.c: Fiscal DataConsolidated Fiscal Operation of General GovernmentQuarterly Data: July - March (2009/2010)

LE Millions



Private & Public

FundsTotal Elimination Net

Revenues 151,846 0 151,846 3,724 371 3,353 20,315 15,363 35,678 15,696 19,982 175,181

Taxes 105,904 0 105,904 0 0 0 0 0 0 0 0 105,904

Grants 2,305 0 2,305 0 0 0 0 0 0 0 0 2,305

Other Revenues 43,637 0 43,637 3,724 371 3,353 20,315 15,363 35,678 15,696 19,982 66,972

Expenses 238,929 16,067 222,862 5,876 0 5,876 17,780 14,571 32,351 0 32,351 261,089



15,349 0 15,349 15 0 15 23 65 88 0 88 15,452

Interests 53,798 14,288 39,510 5,730 0 5,730 0 0 0 0 0 45,240


62,339 1,779 60,560 0 0 0 17,465 14,054 31,519 0 31,519 92,079

Other Expenses 21,334 0 21,334 91 0 91 0 43 43 0 43 21,468


28,147 0 28,147 0 0 0 25 20 45 0 45 28,192

Cash Deficit / (Surplus) 87,083 16,067 71,016 2,152 (371) 2,523 (2,535) (792) (3,327) (15,696) 12,369 85,908

Net Acquisition of Financial Assets (151) 0 (151) 9,307 4,318 4,989 3,261 8 3,269 1,659 1,610 6,448


1,844 0 1,844 1,372 0 1,372 24 0 24 0 24 3,240


1,693 0 1,693 10,679 4,318 6,361 3,285 8 3,293 1,659 1,634 9,688

Overall Fiscal Balance 86,932 16,067 70,865 11,459 3,947 7,512 726 (784) (58) (14,037) 13,979 92,356

Memorandum Items:

GDP (LE Millions) 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700

Revenues (% GDP) 12.6 0.0 12.6 0.3 0.0 0.3 1.7 1.3 3.0 1.3 1.7 14.5



7.2 1.3 5.9 0.2 0.0 0.2 (0.2) (0.1) (0.3) (1.3) 1.0 7.1


7.2 1.3 5.9 0.9 0.3 0.6 0.1 (0.1) 0.0 (1.2) 1.2 7.7


52

Table 1.2.d: Fiscal DataConsolidated Fiscal Operation of General GovernmentAnnual Data: Actual (2009/2010)

LE Millions



Private & Public Funds

Total Elimination Net

Revenues 268,114 0 268,114 6,184 710 5,474 30,338 20,260 50,598 20,812 29,786 303,374

Taxes 170,495 0 170,495 0 0 0 0 0 0 0 0 170,495

Grants 4,332 0 4,332 0 0 0 0 0 0 0 0 4,332

Other Revenues 93,287 0 93,287 6,184 710 5,474 30,338 20,260 50,598 20,812 29,786 128,547

Expenses 365,987 21,522 344,465 9,161 0 9,161 23,371 19,696 43,067 0 43,067 396,693



28,059 0 28,059 18 0 18 73 96 169 0 169 28,246

Interests 72,333 19,122 53,211 8,988 0 8,988 0 0 0 0 0 62,199


102,975 2,400 100,575 0 0 0 22,831 18,954 41,785 0 41,785 142,360

Other Expenses 28,901 0 28,901 88 0 88 0 58 58 0 58 29,047


48,350 0 48,350 2 0 2 71 41 112 0 112 48,464

Cash Deficit / (Surplus) 97,873 21,522 76,351 2,977 (710) 3,687 (6,967) (564) (7,531) (20,812) 13,281 93,319

Net Acquisition of Financial Assets 165 0 165 8,600 3,687 4,913 5,370 205 5,575 5,176 399 5,477


2,473 0 2,473 3,461 0 3,461 32 0 32 0 32 5,966


2,638 0 2,638 12,061 3,687 8,374 5,402 205 5,607 5,176 431 11,443

Overall Fiscal Balance 98,038 21,522 76,516 11,577 2,977 8,600 (1,597) (359) (1,956) (15,636) 13,680 98,796

Memorandum Items:

GDP (LE Millions) 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700 1,206,700

Revenues (% GDP) 22.2 0.0 22.2 0.5 0.1 0.5 2.5 1.7 4.2 1.7 2.5 25.1



8.1 1.8 6.3 0.2 (0.1) 0.3 (0.6) (0.0) (0.6) (1.7) 1.1 7.7


8.1 1.8 6.3 1.0 0.2 0.7 (0.1) (0.0) (0.2) (1.3) 1.1 8.2


Appendices

53

Table 1.3: Fiscal DataBudget Sector Domestic Debt (June 2003 - September 2010) *

LE Millions Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 ** Sep-10

Net Domestic Budget Sector Debt 281,605 326,938 390,508 444,889 478,172 478,699 562,326 663,051 717,279

Gross Domestic Budget Sector Debt 381,384 456,452 543,893 554,837 591,001 599,603 699,667 808,384 862,292

Ministry of Finance Securities 208,592 272,074 340,898 349,958 562,897 568,848 681,837 779,232 812,417

Treasury bills 55,318 63,774 79,907 103,144 118,657 146,439 239,080 266,121 268,786

Bills reverse repo 0 20,000 45,000 0 0 0 0 0 0

Treasury bonds 13,000 13,000 27,000 58,000 57,000 78,500 92,500 159,767 181,267

Treasury bonds and notes issued to CBE

112,875 132,875 147,875 145,554 144,517 121,783 121,113 112,470 112,470

Revaluation bonds 0 13,582 13,582 16,582 19,582 0 0 9,063 18,126

Commercial banks recapitalization bonds

4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000

GASC bonds 2,705 2,705 2,705 1,881 1,881 595 595 0 0

Bank restructuring bonds 12,610 12,938 12,070 12,014 11,886 11,126 11,677 11,883 11,882

Insurance notes 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Eurobonds (held domestically) 4,612 5,647 5,122 5,109 3,868 3,750 4,036 6,005 5,967

Egyptian notes issued abroad and purchased domestically

0 0 0 0 0 0 3,773 3,807 3,797

Housing bonds 132 128 124 122 119 117 115 114 121

The 5 % Government bonds 1,340 1,425 1,513 1,552 1,588 1,636 1,700 1,765 1,764

SIF Bond 1 0 0 0 0 197,799 198,902 201,248 202,237 202,237

Budget Sector Borrowings from NIB 2 153,360 168,543 185,090 197,725 0 0 0 0 0

Facilities from SIF 3 0 0 0 2,065 4,517 2,343 2,343 2,343 2,343

Budget Sector Bank Loans 19,432 15,835 17,905 5,089 23,587 28,412 15,487 26,809 47,532

of which, Economic Authorities’ Deposits in TSA

4,002 3,808 5,384 2,555 21,235 15,014 12,887 12,283 12,624

Budget Sector Deposits 99,779 129,514 153,385 109,948 112,829 120,904 137,341 145,333 145,013

Memorandum Items:

GDP (LE Millions) 417,500 485,300 538,500 617,700 744,800 895,500 1,042,200 1,206,700 1,378,000

Gross Domestic Budget Sector Debt (% GDP)

91.3% 94.1% 101.0% 89.8% 79.4% 67.0% 67.1% 67.0% 62.7%

Net Domestic Budget Sector Debt (% GDP)

67 5% 67.4% 72.5% 72.0% 64.2% 53 5% 54.0% 54.9% 52.2%

Source: Ministry of Finance and Central Bank of Egypt * Outstanding domestic debt stock, due on Central Government, Local Governments, and Public Service Authorities.** PreliminaryNote: Excludes blocked account balances with the Central Bank of Egypt.1 In light of the enhanced trancparency of the new fiscal policy framework, the outstanding debt on Treasury to SIF (through NIB) was registered as a direct liability on the first to the latter on July 1st, 2006. This was associated by the issuance of two treasury bonds in interest of SIF, worth of LE 197.725 billions. The third bond worth LE74.5 millions was issued at end of June 2007.2 Includes outstanding interest payments on Treasury to NIB, and excludes claims on NIB to Treasury. 3 Part of SIF deposits that are used as loan facilities for the budget sector, currently recognized as part of budget sector domestic debt obligations. Previously recorded with SIF total deposits.

54

Table 1.4: Fiscal DataGeneral Government Domestic Debt (June 2003 - September 2010) *

LE Millions Jun-03 Jun-04 Jun-08 Jun-09 Jun-10 Sep-10**

Net Domestic General Government Debt 192,559 227,109 381,965 467,064 574,170 621,591

Gross General Government Domestic Debt 313,138 374,946 513,008 615,875 733,468 780,621

Consolidated Budget Sector Debt 225,617 276,553 371,645 464,843 564,751 611,587

Gross Domestic Debt of the Budget Sector 381,384 456,452 599,603 699,667 808,384 863,792

Less: Budget Sector borrowing from NIB 1 153,360 168,543 - - - -

Less: MOF securities held by NIB 147 9,238 8,502 9,951 13,584 15,764

Less: MOF securities held by SIF 2,260 2,118 18,211 21,282 25,469 31,861

Less: SIF Bond 1 - - 198,902 201,248 202,237 202,237

Less: Facilities from SIF 2 - - 2,343 2,343 2,343 2,343

Consolidated NIB Debt 87,521 98,393 141,363 151,032 168,717 169,034

Gross Domestic Debt of NIB 262,354 294,550 193,071 205,565 227,714 228,031

NIB borrowing from SIF 1 174,833 196,157 51,708 54,533 58,997 58,997

Investment Certificates 61,778 66,915 86,741 90,112 99,782 101,486

Post Office savings 22,300 27,776 49,255 54,487 64,836 65,837

Other 3,443 3,702 5,367 6,433 4,099 1,711

Less: NIB borrowing from SIF 1 174,833 196,157 51,708 54,533 58,997 58,997

General Government Deposits 120,579 147,837 131,043 148,811 159,298 159,030

Budget Sector Deposits 99,779 129,514 120,904 137,341 145,333 145,013

NIB Deposits 9,081 4,393 3,891 4,806 5,510 7,218

SIF Deposits 3 11,719 13,930 6,248 6,664 8,455 6,799

Memorandum Items:

GDP (LE Millions) 417,500 485,300 895,500 1,042,200 1,206,700 1,378,000

Gross Domestic General Government Debt(% GDP)

75.0% 77.3% 57.3% 59.1% 60.8% 56.6%

Net Domestic General Government Debt(% GDP)

46.1% 46.8% 42.7% 44.8% 47.6% 45.1%

Source: Ministry of Finance and Central Bank of Egypt* Consolidated Domestic Debt of the Budget sector, NIB, and SIF. This level of compilation entails the deduction of Budget Sector borrowings from NIB, MOF securities held by the SIF and NIB, the SIF bond, and NIB borrowings from SIF.** Preliminary, Qaurterly Profile.Note: Excludes blocked account balances with the Central Bank of Egypt.1 In light of the enhanced trancparency of the new fiscal policy framework, the outstanding debt on Treasury to SIF (through NIB) was registered as a direct liability on the first to the latter on July 1st, 2006. This was associated by the issuance of two treasury bonds in interest of SIF, worth of LE 197.725 billions.2 Part of SIF deposits used as loan facilities for the budget sector, starting from June 2006 is recognized as part of budget sector domestic debt obligations. Previ-ously recorded with SIF total deposits.3 Data revised to exclude deposits used as loan facilities for budget sector starting from June 2006.

Appendices

55

Table 1.6: Fiscal Data National Investment Bank: Sources and Uses (June 2003 - December 2009)

LE Millions Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Q2-2009/10

Sources 253,272 290,157 316,476 351,205 166,201 189,180 200,758 201,104

Social Insurance Fund for Government Employees 95,886 108,991 122,913 135,735 27,428 29,076 29,638 29,638

Social Insurance Fund for Public & Private Employees

78,947 87,166 96,093 105,703 20,574 22,632 24,895 24,895

Proceeds of Investment Certificates 55,218 60,178 58,485 64,038 68,485 79,232 81,458 87,030

Accumulated Returns on Investment Certificates(Category A)

6,560 6,737 6,852 7,028 7,579 7,509 8,654 8,746

Proceeds of US Dollar Development Bonds 1,736 1,738 1,418 824 483 152 11 10

Post Office Savings 22,300 27,776 33,902 39,097 43,518 49,255 54,487 57,987

NIB Balances held at the Banking System (Net) (9,082) (4,393) (4,917) (3,757) (2,951) (3,881) (4,806) (9,106)

Other * 1,707 1,964 1,730 2,537 1,085 5,205 6,421 1,904

Uses: 253,272 290,157 316,476 351,205 166,201 189,180 200,760 201,104

Government 123,939 134,325 143,751 142,622 0 0 0 0

Economic Authorities 50,094 53,771 58,265 50,196 51,734 51,279 50,062 51,209

Other 79,239 102,061 114,460 158,387 114,467 137,901 150,698 149,895

Sources: Ministry of Finance, Central Bank of Egypt and National Investment Bank.* Including deposits of private insurance funds, savings certificates and the loans and deposits of various authorities.

Table 1.5: Fiscal DataDomestic Public Debt (June 2003 - September 2010) *

LE Millions Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Sep-10 **

Net Domestic Public Debt 193,379 227,275 281,572 332,932 363,274 387,032 475,895 599,612 643,438

Gross Domestic Public Debt 323,197 388,377 469,039 470,264 493,879 537,533 643,628 769,783 816,773

Gross Domestic General Government Debt 313,138 374,946 450,963 449,456 486,241 512,982 615,849 733,387 780,621

Economic Authorities’ Domestic Debt 64,155 71,010 81,725 73,559 80,607 90,844 90,728 100,104 101,039

Less: Economic Authorities’ Borrowings from NIB 50,094 53,771 58,265 50,196 51,734 51,279 50,062 51,469 52,263

Less: Budget Borrowing from Eonomic Authorities 1 4,002 3,808 5,384 2,555 21,235 15,014 12,887 12,239 12,624

Public Sector Deposits 129,818 161,102 187,467 137,332 130,605 150,501 167,733 170,171 173,335

General Government Deposits 120,579 147,894 173,698 117,247 116,964 131,043 148,811 158,531 159,030

Net Deposits of Economic Authorities 9,239 13,208 13,769 20,085 13,641 19,458 18,922 11,640 14,305

Economic Authorities Gross Deposits 24,960 30,946 34,549 26,172 36,050 40,720 38,473 32,334 33,728

Less: SIF Deposits 2/ 3 11,719 13,930 15,396 3,532 1,174 6,248 6,664 8,455 6,799

Less: Budget Borrowing from Eonomic Authorities 1 4,002 3,808 5,384 2,555 21,235 15,014 12,887 12,239 12,624

Memorandum Items:

GDP ( LE Millions) 417,500 485,300 538,500 617,700 744,800 895,500 1,042,200 1,206,700 1,378,000

Gross Domestic Public Debt (% GDP) 77.4% 80.0% 87.1% 76.1% 66.3% 60.0% 61.8% 63.8% 59.3%

Net Domestic Public Debt (% GDP) 46.3% 46.8% 52.3% 53.9% 48.8% 43.2% 45.7% 49.7% 46.7%

Source: Ministry of Finance and Central Bank of Egypt* Consolidated domestic debt due on the General Government and Economic Authorities. This level of compilation excludes outstanding debt of Economic Authorities to NIB.** Preliminary, Quarterly ProfileNote: Excludes blocked account balances with the Central Bank of Egypt.1 This represents part of the Economic Authorities' deposits at TSA that is borrowed by the Budget sector in the form of loan facilities. Hence it represents an interrelated between the Budget and Economic Authorities and is therefore deducted on consolidation from both Gross Public Sector Debt and Deposits of Economic Authorites.2 SIF deposits were previously included in General Government deposits, see Table 1.4 3 Data revised to exclude deposits used as loan facilities for budget sector starting June 2006.

Appendices

57

Table 1.2.a: Macroeconomic DataResources and Uses in Current Prices Quarterly Data (2009/2010 - 2010/2011)

Items

LE Billions

2009/2010 2010/2011

Q1 Q2 Q3 Q4 Q1

Total Resources 392.3 368.0 365.1 396.6 449.2

GDP at Market Prices 311 2 293.4 292.4 309.7 364.3

GDP at Factor Production Cost 298.1 280.9 277.3 294.4 348.9

Net Indirect Taxes 13.1 12.5 15.1 15.3 15.4

Commodity & Services Imports 81.1 74.6 72.7 86.9 84.9

Total Uses 392.3 368.0 365.1 396.6 449.2

Total Final Consumption 283.6 246 5 241.3 265.1 320.4

Final Private Consumption 249.4 214.0 210.3 228.1 280.9

Final Public Consumption 34.2 32.5 31.0 37.0 39.5

Total Investments 45.5 56.5 64.9 61.0 56.3

Investments 42.8 55.7 64.9 61.0 56.3

Change in Stock 2.7 0.8 0.0 0.0 2.7

Commodity & Services Exports 63.2 65.0 58.9 70 5 72.5

Source: Ministry of Economic Development

Table 1.1: Macroeconomic DataPopulation, Labor Force, Employed and Unemployed (2000/2001 - 2008/2009)*

2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009

Population (In Millions) ** 64.65 65.99 67.31 68.65 70.00 71.35 72.94 74.44 76.06

Labor Force (In Millions) 19.13 19.60 20.09 20.58 21.09 21.60 22.13 22.86 23.60

Employed (In Millions) 17.34 17.67 18.08 18.51 19.00 19.54 20.12 20.81 21.41

Unemployed (In Millions) 1.79 1.93 2.01 2.07 2.08 2.06 2.01 2.05 2.19

Population Growth Rate % 2.13 2.06 2.01 1.98 1.97 1.93 2 23 2.06 2.18

Labor Force / Population % 29.59 29.71 29.84 29.98 30.12 30.28 30.44 30.70 31.02

Unemployment Rate % 9.36 9.84 10.00 10.10 9.90 9.50 9.10 8.90 9.30

Source: Ministry of Economic Development* These data are estimated according to the labor survey results by sample which done by CAPMAS, after rectification in the light of measurement model for economic indicators performance.** The total population Excluding Egyptians working abroad, starting 1st January, 2000 and it was 79 millions in 2009/2010.

APPENDIX B: Statistics1. Macroeconomic Data

58

Table 1.2.b: Macroeconomic DataResources and Uses, Percent of GDP in Current Prices Annual Data (2003/2004 - 2009/2010)

ItemsLE Billions % of GDP

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Total Resources 628.9 714.1 812.7 1,004.2 1,241.5 1,371.5 1,521.9 129.6 132.6 131.6 134.8 138.6 131.6 126.1

GDP at Market Prices 485.3 538.5 617.7 744.8 895.5 1,042.2 1,206.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0

GDP at Factor Production Cost

456.3 506.5 581.1 710.4 855.3 994.1 1,150.6 94.0 94.1 94.1 95.4 95.5 95.4 95.4

Net Indirect Taxes 29.0 32.0 36.6 34.4 40.2 48.1 56.0 6.0 5.9 5.9 4.6 4.5 4.6 4.6

Commodity & Services Imports

143.6 175.6 195.0 259.4 346.0 329.3 315.3 29.6 32.6 31.6 34.8 38.6 31.6 26.1

Total Uses 628.9 714.1 812.7 1,004.2 1,241.5 1,371.5 1,521.9 129.6 132.6 131.6 134.8 138.6 131.6 126.1

Total Final Consumption 409.7 453.9 512.0 623.6 745.1 911.4 1,036.4 84.4 84.3 82.9 83.7 83.2 87.4 85.9


347.8 385.3 436.1 539.2 647.6 793.1 901.7 71.7 71.6 70.6 72.4 72.3 76.1 74.7

Final Public Consumption

61.9 68.6 75.9 84.4 97.5 118.3 134.7 12.8 12.7 12.3 11.3 10.9 11.4 11.2

Total Investments 82.2 96.8 115.7 155.3 200.5 200.0 227.9 16.9 18.0 18.7 20.9 22.4 19.2 18.9

Investments 79.6 96.5 115.7 155.3 199.5 197.1 224.4 16.4 17.9 18.7 20.9 22.3 18.9 18.6

Change in Stock 2.6 0.3 0.0 0.0 1.0 2.9 3.5 0.5 0.1 0.0 0.0 0.1 0.3 0.3

Commodity & Services Exports

137.0 163.4 185.0 225.3 295.9 260.1 257.6 28.2 30.3 29.9 30.2 33.0 25.0 21.3


Table 1.3.a: Macroeconomic DataResources and Uses in Constant Prices - (2006/2007 Prices) Quarterly Data (2009/2010 - 2010/2011)

Items

LE Billions

2009/2010 2010/2011

Q1 Q2 Q3 Q4 Q1

Total Resources 286.1 285.9 284.0 283.0 302.9

GDP at Market Prices 219.2 215.3 217.0 227.0 231.2

GDP at Factor Production Cost 209.9 205.9 206.9 215.1 221.4

Net Indirect Taxes 9.3 9.4 10.1 11.9 9.8

Commodity & Services Imports 66.9 70.6 67.0 56.0 71.7

Total Uses 286.1 285.9 284.0 283.0 302.9

Total Final Consumption 192.6 178.9 175.0 182.0 200.9

Final Private Consumption 168.2 156.4 152.7 156.1 175.7

Final Public Consumption 24.4 22.5 22.3 25.9 25.2

Total Investments 31.8 44.0 50.1 44.0 35.0

Investments 29.1 43.2 50.1 44.0 35.0

Change in Stock 2.7 0.8 0.0 0.0 0.0

Commodity & Services Exports 61.7 63.0 58.9 57.0 67.0


Appendices

59

Table 1.3.b: Macroeconomic DataResources and Uses, Growth Rate in Constant PricesAnnual Data (2003/2004 - 2009/2010)

Items

LE Billions Growth Rate %

(2001/2002 Prices) (2006/2007 Prices) (2001/2002 Prices) (2006/2007 Prices)

2003/04 2004/05 2005/06 2006/07 2006/07 2007/08 2008/09 2009/10 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Total Resources 509.0 551.5 608.1 684.6 1,004.2 1,125.7 1,104.4 1,138.9 6.5 8.3 10.3 12.6 12.1 (1.9) 3.1

GDP at Market Prices 407.0 425.2 454.3 486.5 744.8 798.1 835.4 878.4 4.1 4.5 6.8 7.1 7.2 4.7 5.1

GDP at Factor Production Cost

381.0 398.5 426.1 456.2 710.4 761.4 796.8 837.7 4.2 4.6 6.9 7.5 7.2 4.6 5.1

Net Indirect Taxes 26.0 26.7 28.2 30.3 34.4 36.7 38.6 40.7 2.0 2.7 5.6 7.4 6.7 5.2 5.4

Commodity & Services Imports

102.0 126.3 153.8 198.1 259.4 327.6 269.0 260.5 17.2 23.8 21.8 28.8 26.3 (17.9) (3.2)

Total Uses 509.0 551.5 608.1 684.6 1,004.2 1,125.7 1,104.4 1,138.9 6.5 8.3 10.3 12.6 12.1 (1.9) 3.1

Total Final Consumption 342.0 357.5 378.8 401.5 623.6 656.3 693.4 728.4 2.1 4.5 6.0 6.0 5.2 5.7 5.0


292.0 306.1 325.8 348.4 539.2 570.1 602.4 633.3 2.1 4.8 6.4 6.9 5.7 5.7 5.1

Final Public Consumption

50.0 51.4 53.0 53.1 84.4 86.2 91.0 95.1 2.0 2.8 3.1 0.2 2.1 5.6 4.5

Total Investments 68.0 75.0 85.0 105.2 155.3 179.3 163.0 169.9 6.3 10.3 13.3 23.8 15.5 (9.1) 4.2

Investments 65.4 74.7 85.0 105.2 155.3 178.3 160.1 166.4 6.2 14.2 13.8 23.8 14.8 (10.2) 3.9

Change in Stock 2.6 0.3 0.0 0.0 0.0 1.0 2.9 3.5 8.3 (88.5) (99.7) 0.0 0.0 190.0 2.0

Commodity & Services Exports

99.0 119.0 144.3 177.9 225.3 290.1 248.0 240.6 25.3 20.2 21.3 23.3 28.8 (14.5) (3.0)


60

Table 1.4.a: Macroeconomic DataGDP in Public & Private Sectors in Factor Cost in Current Prices Quarterly Data (2009/2010 - 2010/2011)

Sectors

LE Millions

Q1 - 2009/2010 Q1 - 2010/2011*

Public Private Total Public Private Total

Agriculture, Woodlands & Hunting 5.9 50,576.1 50,582.0 6.9 60,123.0 60,129.9

Extractions 37,883.0 7,950.0 45,833.0 44,407.0 10,096.0 54,503.0

Petroleum 16,664.0 2,671.0 19,335.0 19,830.0 3,342.0 23,172.0

Gas 21,084.0 4,301.0 25,385.0 24,422.0 5,620.0 30,042.0

Other Extractions 135.0 978.0 1,113.0 155.0 1,134.0 1,289.0

Manufacturing Industries 7,651.0 38,289.0 45,940.0 8,961.0 44,778.0 53,739.0

Petroleum Refinement 1,650.0 1,422.0 3,072.0 1,950.0 1,711.0 3,661.0

Other Transfer 6,001.0 36,867.0 42,868.0 7,011.0 43,067.0 50,078.0

Electricity 3,133.0 615.0 3,748.0 3,828.0 565.0 4,393.0

Water 804.0 0.0 804.0 916.0 0.0 916.0

Construction & Buildings 1,544.0 10,461.0 12,005.0 1,799.0 12,333.0 14,132.0

Transportation 2,702.0 9,404.0 12,106.0 3,133.0 10,899.0 14,032.0

Communication 2,899.0 5,036.0 7,935.0 3,333.0 5,717.0 9,050.0

Suez Canal 6,500.0 0.0 6,500.0 7,456.0 0.0 7,456.0

Whole Sale & Retail 1,032.0 33,334.0 34,366.0 1,234.0 38,789.0 40,023.0

Financial Intermediaries & Supporting Services 7,067.0 3,838.0 10,905.0 8,123.0 4,399.0 12,522.0

Insurance & Social Insurance 9,923.0 299.0 10,222.0 11,344.0 343.0 11,687.0

Restaurants & Hotels 92.0 10,575.0 10,667.0 107.0 12,223.0 12,330.0

Real Estate Activities 180.0 6,962.0 7,142.0 208.0 8,081.0 8,289.0

Rent 111.0 3,495.0 3,606.0 128.0 4,054.0 4,182.0

Other Real Estate & Business Services 69.0 3,467.0 3,536.0 80.0 4,027.0 4,107.0

Public Government 26,871.0 0.0 26,871.0 31,333.0 0.0 31,333.0


645.9 11,760.1 12,406.0 741.4 13,639.0 14,380.4

Education 0.0 3,135.0 3,135.0 0.0 3,689.0 3,689.0

Health 226.0 3,578.0 3,804.0 261.0 4,133.0 4,394.0

Other Services 419.9 5,047.1 5,467.0 480.4 5,817.0 6,297.4

Grand Total 108,932.8 189,099.2 298,032.0 126,930.3 221,985.0 348,915.3

Source: Ministry of Economic Development *Preliminary

Appendices

61

Table 1.4.b: Macroeconomic DataGDP in Public & Private Sectors in Factor Cost in Current PricesQuarterly Data: (2008/2009 - 2009/2010)

Sectors

LE Millions

Q2 - 2008/2009 Q2 - 2009/2010


Agriculture, Woodlands & Hunting 5.3 29,808.9 29,814 2 6.0 36,580.0 36,586.0

Extractions 26,322.7 5,859.6 32,182.3 29,675.0 6,795.0 36,470.0

Petroleum 11,753.0 1,916.0 13,669.0 12,775.0 2,080.0 14,855.0

Gas 14,459.0 3,060.0 17,519.0 16,770.0 3,670.0 20,440.0

Other Extractions 110.7 883.6 994.3 130.0 1,045.0 1,175.0

Manufacturing Industries 6,410 5 33,232.9 39,643.4 7,696.0 41,327.0 49,023.0


Other Transfer 5,008 5 31,930.9 36,939.4 5,989.0 39,677.0 45,666.0

Electricity 2,582.0 497.0 3,079.0 2,899.0 543.0 3,442.0

Water 768.3 0.0 768.3 888.0 0.0 888.0


Transportation 2,056.7 7,874.8 9,931 5 2,356.0 8,884.0 11,240.0

Communication 2,587.0 5,184.0 7,771.0 2,945.0 5,804.0 8,749.0

Suez Canal 7,210 2 0.0 7,210 2 6,592.7 0.0 6,592.7

Whole Sale & Retail 869.8 31,395.6 32,265.4 999.0 37,755.0 38,754.0




Real Estate Activities 168.3 6,030.9 6,199 2 190.0 6,806.0 6,996.0

Rent 110.4 3,145.8 3,256 2 125.0 3,567.0 3,692.0


Public Government 22,598 5 0.0 22,598 5 26,205.0 0.0 26,205.0


581.4 9,633.7 10,215.1 652.0 11,247.0 11,899.0

Education 0.0 2,661.9 2,661.9 0.0 3,087.0 3,087.0

Health 211.4 2,942.7 3,154.1 244.0 3,443.0 3,687.0

Other Services 370.0 4,029.1 4,399.1 408.0 4,717.0 5,125.0

Grand Total 88,131.4 150,556.5 238,687.9 99,332.7 181,538.0 280,870.7


62

Table 1. 4.c : Macroeconomic DataGDP in Public & Private Sectors in Factor Cost Current Prices Quarterly Data (2008/2009-2009/2010)

Sectors

LE Millions

Q3- 2008/09 Q3- 2009/10



Extractions 27864.0 6020.0 33884.0 30341.0 6745.0 37086.0

Petroleum 12142.0 2090.0 14232.0 13256.0 2300.0 15556.0

Gas 15607.0 3041.0 18648.0 16950.0 3400.0 20350.0

Other Extractions 115.0 889.0 1004.0 135.0 1045.0 1180.0

Manufacturing Industries 6634 5 34679.4 41313.9 7836.0 40836.0 48672.0

Petroleum Refinement 1258.0 1222.0 2480.0 1561.0 1491.0 3052.0

Other Transfer 5376 5 33457.4 38833.9 6275.0 39345.0 45620.0

Electricity 2728.0 517.0 3245.0 3129.0 579.0 3708.0

Water 757.6 0.0 757.6 857.0 0.0 857.0


Transportation 2099.0 6598.0 8697.0 2456.0 7627.0 10083.0

Communication 2501.0 5101.0 7602.0 2836.0 5514.0 8350.0

Suez Canal 5542.0 0.0 5542.0 5888.9 0.0 5888.9

Whole Sale & Retail 871.0 24668.0 25539.0 1009.0 29456.0 30465.0

Financial Intermediaries & Supporting Services 6064.0 3155.0 9219.0 6972.0 3675.0 10647.0

Insurance & Social Insurance 8916.9 290.6 9207.5 10400.0 422.0 10822.0



Rent 98.0 3211.0 3309.0 111.0 3731.0 3842.0

Other Real Estate & Business Services 60.0 2912.0 2972.0 71.0 3342.0 3413.0

Public Government 26193.2 0.0 26193.2 30657.0 0.0 30657.0


625.7 10038.0 10663.7 716.3 11721.0 12437.3

Education 0.0 2858.0 2858.0 0.0 3372.0 3372.0

Health 230.0 3043.0 3273.0 261.0 3456.0 3717.0

Other services 395.7 4137.0 4532.7 455.3 4893.0 5348.3

Grand Total 92289.2 147223.1 239512.3 104867.6 172425.0 277292.6

Source: Ministry of Economic Development .

Appendices

63

Table 1.4.d : Macroeconomic DataGDP in Public & Private Sectors in Factor Cost Current PricesQuarterly Data (2008/2009 - 2009/2010)

Sectors

LE Millions

Q4- 2008/09 Q4- 2009/10



Extractions 33,298.0 7,435.0 40,733.0 37,745.0 8,613.0 46,358.0

Petroleum 13,721.0 2,496.0 16,217.0 15,900.0 2,892.0 18,792.0

Gas 19,458.0 4,020.0 23,478.0 21,708.0 4,655.0 26,363.0

Other Extractions 119.0 919.0 1,038.0 137.0 1,066.0 1,203.0



Other Transfer 5,473.0 35,965.0 41,438.0 6,321.0 41,299.0 47,620.0

Electricity 2,982.0 499.0 3,481.0 3,444.0 555.0 3,999.0

Water 751.5 0.0 751 5 841.0 0.0 841.0


Transportation 3,965.0 8,109.0 12,074.0 4,528.0 9,443.0 13,971.0

Communication 2,619.0 6,177.0 8,796.0 2,752.0 7,032.0 9,784.0

Suez Canal 6,033.8 0.0 6,033.8 6,821.0 0.0 6,821.0

Whole Sale & Retail 940.0 25,150.1 26,090.1 1,066.0 29,123.0 30,189.0


Insurance & Social Insurance 8,223.6 319.6 8,543 2 9,807.0 383.0 10,190.0



Rent 131.0 3,619.0 3,750.0 147.0 4,111.0 4,258.0




627.4 9,812.0 10,439.4 713.2 11,508.0 12,221.2

Education 0.0 2,831.0 2,831.0 0.0 3,234.0 3,234.0

Health 229.0 2,961.0 3,190.0 256.0 3,333.0 3,589.0

Other services 398.4 4,020.0 4,418.4 457.2 4,941.0 5,398 2

Grand Total 100,127.1 153,839 5 253,966.6 115,870.7 178,523.6 294,394.3


64

Table 1. 4.e : Macroeconomic DataGDP in Public & Private Sectors in Factor Cost Current PricesAnnual Data (2008/2009-2009/2010)

Sectors

LE Millions

2008/09 2009/10



Extractions 121,779.7 26,186.6 147,966.3 135,644.0 30,103.0 165,747.0

Petroleum 52,710.0 9,049.0 61,759.0 58,595.0 9,943.0 68,538.0

Gas 68,610.0 13,596.0 82,206.0 76,512.0 16,026.0 92,538.0

Other Extractions 459.7 3,541.6 4,001.3 537.0 4,134.0 4,671.0



Other Transfer 21,027.0 133,239.3 154,266.3 24,586.0 157,188.0 181,774.0

Electricity 10,995.0 2,048.0 13,043.0 12,605.0 2,292.0 14,897.0

Water 2,977.4 0.0 2,977.4 3,390.0 0.0 3,390.0


Transportation 10,470 5 30,491.8 40,962.3 12,042.0 35,358.0 47,400.0

Communication 10,246.1 20,939.0 31,185.1 11,432.0 23,386.0 34,818.0

Suez Canal 26,825.8 0.0 26,825.8 25,802.6 0.0 25,802.6



Insurance & Social Insurance 34,513 2 1,175.6 35,688.8 40,105.0 1,416.0 41,521.0


Real Estate Activities 1,132.3 25,442.9 26,575.2 1,298.0 28,964.0 30,262.0

Rent 435.4 13,070.8 13,506.2 494.0 14,904.0 15,398.0




2,399.5 39,938.7 42,338.2 2,727.4 46,236.1 48,963 5

Education 0.0 11,132.9 11,132.9 0.0 12,828.0 12,828.0

Health 869.4 12,101.7 12,971.1 987.0 13,810.0 14,797.0

Other services 1,530.1 16,704.1 18,234.2 1,740.4 19,598.1 21,338 5

Grand Total 379,208.1 614,847.0 994,055.1 429,033.8 721,585.8 1,150,619.6


Appendices

65

Table 1.5.a: Macroeconomic DataGDP in Public & Private Sectors in Constant Prices - (2006/2007 Prices) Quarterly Data (2009/2010-2010/2011)

Sectors

LE MillionsGrowth Rates %

Q1 -2009/2010 Q1 - 2010/2011*

Public Private Total Public Private Total Public Private Total

Agriculture, Woodlands & Hunting 4.1 33,410.0 33,414.1 4.3 34,367.0 34,371.3 4.9 2.9 2.9

Extractions 23,420.0 5,175.0 28,595.0 22,860.0 5,412.0 28,272.0 (2.4) 4.6 (1.1)

Petroleum 10,025.0 1,799.0 11,824.0 10,225.0 1,834.0 12,059.0 2.0 1.9 2.0

Gas 13,303.0 2,677.0 15,980.0 12,539.0 2,846.0 15,385.0 (5.7) 6.3 (3.7)

Other Extractions 92.0 699.0 791.0 96.0 732.0 828.0 4.3 4.7 4.7

Manufacturing Industries 5,224.0 26,874.0 32,098.0 5,558.0 28,563.0 34,121.0 6.4 6.3 6.3

Petroleum Refinement 919.0 690.0 1,609.0 992.0 740.0 1,732.0 7.9 7.2 7.6

Other Transfer 4,305.0 26,184.0 30,489.0 4,566.0 27,823.0 32,389.0 6.1 6.3 6.2

Electricity 2,583.0 399.0 2,982.0 2,918.0 301.0 3,219.0 13.0 (24.6) 7.9

Water 664.0 0.0 664.0 705.0 0.0 705.0 6.2 6.2

Construction & Buildings 1,135.0 8,587.0 9,722.0 1,267.0 9,666.0 10,933.0 11.6 12.6 12.5

Transportation 2,048.0 7,043.0 9,091.0 2,199.0 7,561.0 9,760.0 7.4 7.4 7.4

Communication 2,520.0 4,999.0 7,519.0 2,745.0 5,678.0 8,423.0 8.9 13.6 12.0

Suez Canal 6,479.4 0.0 6,479.4 7,257.0 0.0 7,257.0 12.0 12.0

Whole Sale & Retail 801.0 19,601.0 20,402.0 867.0 21,001.0 21,868.0 8.2 7.1 7.2


5,251.0 2,912.0 8,163.0 5,511.0 3,051.0 8,562.0 5.0 4.8 4.9

Insurance & Social Insurance 7,801.0 155.0 7,956.0 8,266.0 165.0 8,431.0 6.0 6.5 6.0

Restaurants & Hotels 80.8 9,741.3 9,822.1 85.0 10,923.0 11,008.0 5.2 12.1 12.1

Real Estate Activities 139.0 5,265.0 5,404.0 144.0 5,508.0 5,652.0 3.6 4.6 4.6

Rent 90.0 2,766.0 2,856.0 93.0 2,894.0 2,987.0 3.3 4.6 4.6

Other Real Estate & Business Services 49.0 2,499.0 2,548.0 51.0 2,614.0 2,665.0 4.1 4.6 4.6

Public Government 18,464.0 0.0 18,464.0 19,221.0 0.0 19,221.0 4.1 4.1


496.7 8,626.2 9,122.9 525.6 9,112.0 9,637.6 5.8 5.6 5.6

Education 0.0 2,260.0 2,260.0 0.0 2,373.0 2,373.0 5.0 5.0

Health 166.0 2,575.0 2,741.0 175.0 2,717.0 2,892.0 5.4 5.5 5.5

Other Services 330.7 3,791.2 4,121.9 350.6 4,022.0 4,372.6 6.0 6.1 6.1

Grand Total 77,111.0 132,787 5 209,898 5 80,132.9 141,308.0 221,440.9 3.9 6.4 5.5


66

Table 1.5.b: Macroeconomic DataGDP in Public & Private Sectors in Constant Prices - (2006/2007 Prices) Quarterly Data (2008/2009 - 2009/2010)

Sectors


Q2 - 2008/2009 Q2 - 2009/2010



Extractions 22,469.1 4,940.7 27,409.8 23,223.0 5,133.0 28,356.0 3.4 3.9 3.5

Petroleum 10,019.0 1,638.0 11,657.0 10,070.0 1,646.0 11,716.0 0.5 0.5 0.5

Gas 12,360.0 2,587.0 14,947.0 13,058.0 2,732.0 15,790.0 5.6 5.6 5.6



Petroleum Refinement 879.0 713.0 1,592.0 875.0 710.0 1,585.0 (0.5) (0.4) (0.4)

Other Transfer 4,092.8 25,324.2 29,417.0 4,274.0 26,475.0 30,749.0 4.4 4.5 4.5

Electricity 2,320.0 397.0 2,717.0 2,497.0 395.0 2,892.0 7.6 (0.5) 6.4

Water 709.0 0.0 709.0 755.0 0.0 755.0 6.5 0.0 6.5

Construction & Buildings 965.0 8,867.8 9,832.8 1,067.0 9,999.0 11,066.0 10.6 12.8 12.5

Transportation 1,732 5 6,731.6 8,464.1 1,820.0 7,123.0 8,943.0 5.1 5.8 5.7

Communication 2,553 2 5,193.8 7,747.0 2,825.0 5,910.0 8,735.0 10.6 13.8 12.8

Suez Canal 6,995.0 0.0 6,995.0 6,379 5 0.0 6,379 5 (8.8) 0.0 (8.8)



5,056.8 2,884.9 7,941.7 5,300.0 3,023.0 8,323.0 4.8 4.8 4.8

Insurance & Social Insurance 7,181.4 144.4 7,325.8 7,538.0 153.0 7,691.0 5.0 6.0 5.0

Restaurants & Hotels 72.2 7,325.7 7,397.9 80 2 8,290.0 8,370 2 11.1 13.2 13.1

Real Estate Activities 144 2 5,155.0 5,299 2 150.0 5,390.0 5,540.0 4.0 4.6 4.5

Rent 94.8 2,700.5 2,795.3 98.0 2,825.0 2,923.0 3.4 4.6 4.6


Public Government 17,182.0 0.0 17,182.0 17,970.0 0.0 17,970.0 4.6 0.0 4.6


491.7 8,467.5 8,959 2 517 5 8,872.0 9,389 5 5.2 4.8 4.8

Education 0.0 2,300.0 2,300.0 0.0 2,402.0 2,402.0 0.0 4.4 4.4

Health 178.7 2,548.0 2,726.7 187.0 2,674.0 2,861.0 4.6 4.9 4.9

Other Services 313.0 3,619.5 3,932 5 330 5 3,796.0 4,126 5 5.6 4.9 4.9

Grand Total 73,568.4 122,607.7 196,176.1 76,032.0 129,873.0 205,905.0 3.3 5.9 5.0


Appendices

67

Table 1. 5.c : Macroeconomic DataGDP in Public & Private Sectors in Constant Prices - (2006/2007 Prices)Quarterly Data (2008/2009-2009/2010)

Sectors

LE Millions Growth Rate %

Q3- 2008/09 Q3- 2009/10Public Private Total


Agriculture, Woodlands & Hunting 4.1 25635.0 25639.1 4.3 26527.0 26531.3 4.9 3.5 3 5

Extractions 23530.0 5259.0 28789.0 22839.0 5334.0 28173.0 (2.9) 1.4 (2.1)

Petroleum 10288.0 1949.0 12237.0 9855.0 1777.0 11632.0 (4.2) (8.8) (4.9)

Gas 13139.0 2567.0 15706.0 12876.0 2772.0 15648.0 (2.0) 8.0 (0.4)


Manufacturing Industries 5194.2 26471.8 31666.0 5422.0 27943.0 33365.0 4.4 5.6 5.4

Petroleum Refinement 827.0 667.0 1494.0 833.0 670.0 1503.0 0.7 0.4 0.6

Other Transfer 4367.2 25804.8 30172.0 4589.0 27273.0 31862.0 5.1 5.7 5.6

Electricity 2343.0 374.0 2717.0 2499.0 370.0 2869.0 6.7 (1.1) 5.6

Water 715.1 0.0 715.1 765.0 0.0 765.0 7.0 0.0 7.0

Construction & Buildings 1075.0 8695.0 9770.0 1205.0 9999.0 11204.0 12.1 15.0 14.7

Transportation 1756.0 5556.0 7312.0 1876.0 6017.0 7893.0 6.8 8.3 7.9

Communication 2215.0 4975.0 7190.0 2384.0 5632.0 8016.0 7.6 13 2 11 5

Suez Canal 5336.4 0.0 5336.4 6081.6 0.0 6081.6 14.0 0.0 14.0

Whole Sale & Retail 770.0 21027.9 21797.9 825.0 22333.0 23158.0 7.1 6.2 6 2


5249.0 2872.0 8121.0 5551.0 3011.0 8562.0 5.8 4.8 5.4

Insurance & Social Insurance 7407.0 151.0 7558.0 7892.0 158.0 8050.0 6.5 4.6 6 5

Restaurants & Hotels 73.0 7556.5 7629 5 78.0 8987 5 9065.5 6.8 18.9 18.8

Real Estate Activities 138.0 5321.0 5459.0 143.0 5539.0 5682.0 3.6 4.1 4.1

Rent 88.0 2820.0 2908.0 91.0 2933.0 3024.0 3.4 4.0 4.0

Other Real Estate & Business Services 50.0 2501.0 2551.0 52.0 2606.0 2658.0 4.0 4.2 4 2

Public Government 17684.0 0.0 17684.0 18474.0 0.0 18474.0 4.5 0.0 4 5


515.9 8029.0 8544.9 545.5 8380.0 8925.5 5.7 4.4 4 5

Education 0.0 2331.0 2331.0 0.0 2434.0 2434.0 0.0 4.4 4.4

Health 186.0 2414.0 2600.0 191.0 2527.0 2718.0 2.7 4.7 4 5

Other services 329.9 3284.0 3613.9 354.5 3419.0 3773.5 7.5 4.1 4.4

Grand Total 74,005.7 121,923 2 195,928.9 76,584.4 130,230.5 206,814.9 3.5 6.8 5.6


68

Table 1. 5.d : Macroeconomic DataGDP in Public & Private Sectors in Constant Prices - (2006/2007 Prices)Quarterly Data (2008/2009-2009/2010)

Sectors





Extractions 24,662.0 5,506.0 30,168.0 24,161.0 5,428.0 29,589.0 (2.0) (1.4) (1.9)

Petroleum 10,215.0 1,739.0 11,954.0 10,154.0 1,729.0 11,883.0 (0.6) (0.6) (0.6)

Gas 14,347.0 3,001.0 17,348.0 13,902.0 2,901.0 16,803.0 (3.1) (3.3) (3.1)

Other Extractions 100.0 766.0 866.0 105.0 798.0 903.0 5.0 4 2 4.3


Petroleum Refinement 780.0 668.0 1,448.0 741.0 661.0 1,402.0 (5.0) (1.0) (3 2)

Other Transfer 4,342.7 29,207.7 33,550.4 4,581.0 30,984.0 35,565.0 5.5 6.1 6.0

Electricity 2,641.0 355.0 2,996.0 2,823.0 344.0 3,167.0 6.9 (3.1) 5.7

Water 690.4 0.0 690.4 743.0 0.0 743.0 7.6 0.0 7.6


Transportation 3,200.0 6,517.0 9,717.0 3,411.0 6,975.0 10,386.0 6.6 7.0 6.9

Communication 2,380.0 6,316.0 8,696.0 2,401.0 7,623.0 10,024.0 0.9 20.7 15.3

Suez Canal 5,745.4 0.0 5,745.4 6,388.0 0.0 6,388.0 11.2 0.0 11.2



4,920.0 2,234.0 7,154.0 5,215.0 2,367.0 7,582.0 6.0 6.0 6.0

Insurance & Social Insurance 7,438.0 143.0 7,581.0 7,945.0 149.0 8,094.0 6.8 4 2 6.8

Restaurants & Hotels 73.9 7,413.3 7,487 2 81.0 8,310.0 8,391.0 9.6 12.1 12.1


Rent 112.0 3,095.0 3,207.0 116.0 3,215.0 3,331.0 3.6 3.9 3.9


Public Government 18,100.0 0.0 18,100.0 18,733.0 0.0 18,733.0 3.5 0.0 3 5


535.1 8,112.7 8,647.8 567.0 8,560.0 9,127.0 6.0 5 5 5 5

Education 0.0 2,360.0 2,360.0 0.0 2,482.0 2,482.0 0.0 5 2 5 2

Health 201.0 2,450.0 2,651.0 212.0 2,585.0 2,797.0 5.5 5 5 5 5

Other services 334.1 3,302.7 3,636.8 355.0 3,493.0 3,848.0 6.3 5.8 5.8

Grand Total 78,011.1 126,108.7 204,119.8 80,508.9 134,614.0 215,122.9 3.2 6.7 5.4


Appendices

69

Table 1. 5.e : Macroeconomic DataGDP in Public & Private Sectors in Constant Prices -(2006/2007 Prices) Annual Data (2008/2009-2009/2010)

Sectors

LE Millions

2008/09 2009/10



Extractions 93,291.6 20,435.1 113,726.7 93,643.0 21,070.0 114,713.0

Petroleum 40,322.0 7,066.0 47,388.0 40,104.0 6,951.0 47,055.0

Gas 52,588.0 10,484.0 63,072.0 53,139.0 11,082.0 64,221.0




Other Transfer 16,932 2 105,225.7 122,157.9 17,749.0 110,916.0 128,665.0

Electricity 9,665.0 1,536.0 11,201.0 10,402.0 1,508.0 11,910.0

Water 2,739.5 0.0 2,739 5 2,927.0 0.0 2,927.0

Construction & Buildings 4,280.1 34,608.1 38,888 2 4,777.0 39,230.0 44,007.0

Transportation 8,621.5 25,368.8 33,990.3 9,155.0 27,158.0 36,313.0

Communication 9,441.2 20,817.8 30,259.0 10,130.0 24,164.0 34,294.0

Suez Canal 26,075.0 0.0 26,075.0 25,328.5 0.0 25,328.5






Rent 383.0 11,257.0 11,640.0 395.0 11,739.0 12,134.0




2,010.1 32,791.0 34,801.1 2,126.7 34,438.2 36,564.9

Education 0.0 9,151.9 9,151.9 0.0 9,578.0 9,578.0

Health 721.1 9,865.5 10,586.6 756.0 10,361.0 11,117.0

Other services 1,289.0 13,773.6 15,062.6 1,370.7 14,499.2 15,869.9

Grand Total 300,957.8 495,878.3 796,836.1 310,254.3 527,516.0 837,770.3


70

Table 1. 6 : Macroeconomic DataGDP Growth Rates in Public & Private Sectors in Constant Prices - (2006/2007 Prices) Annual Data (2008/2009-2009/2010)

Sectors2008/09 2009/10 *


Agriculture, Woodlands & Hunting 3.1 3.2 3 2 4 5 3.5 3.5

Extractions 4.7 11.7 5.9 0.4 3.1 0.9

Petroleum 4.5 7.3 4.9 (0 5) (1.6) (0.7)

Gas 4.9 17.3 6.8 1.0 5.7 1.8



Petroleum Refinement (7.1) (0.4) (4 2) (0 5) 0.2 (0.2)

Other Transfer 4.6 4.1 4 2 4.8 5.4 5.3

Electricity 6.1 (0.2) 5 2 7.6 (1.8) 6.3

Water 7.0 7.0 6.8 0.0 6.8

Construction & Buildings 11.0 11.5 11.4 11.6 13.4 13 2

Transportation 5.6 6.7 6.4 6 2 7.1 6.8

Communication 12.0 15.8 14.6 7.3 16.1 13.3

Suez Canal (7.2) 0.0 (7 2) (2.9) 0.0 (2.9)





Real Estate Activities 3.3 3.8 3.8 3 5 4.3 4.2

Rent 3.5 3.6 3.6 3.1 4.3 4.2



Education, health, social, cultural, entertainment & personal services 6.5 4.3 4 5 5.8 5.0 5.1

Education 0.0 4.0 4.0 0.0 4.7 4.7

Health 3.3 4.5 4 5 4.8 5.0 5.0

Other services 8.4 4.9 5 2 6.3 5.3 5.4

Grand Total 3.5 5.4 4.7 3.1 6.4 5.1

Source: Ministry of Economic Development*Preliminary

Appendices

71

Table 1. 7 : Macroeconomic DataShare of Public & Private Sectors in GDP in Constant Prices - (2006/2007 Prices)Annual Data (2008/2009-2009/2010)

Sectors

(Structure %)

2008/09 2009/10 *


Agriculture, Woodlands & Hunting 0.0 21 5 13.4 0.0 20.9 13 2

Extractions 31.0 4.1 14.3 30.2 4.0 13.7

Petroleum 13.4 1.4 5.9 12.9 1.3 5.6

Gas 17 5 2.1 7.9 17.1 2.1 7.7



Petroleum Refinement 1.1 0 5 0.8 1.1 0.5 0.7

Other Transfer 5.6 21 2 15.3 5.7 21.0 15.4

Electricity 3 2 0.3 1.4 3.4 0.3 1.4

Water 0.9 0.0 0.3 0.9 0.0 0.3


Transportation 2.9 5.1 4.3 3.0 5.1 4.3

Communication 3.1 4 2 3.8 3.3 4.6 4.1

Suez Canal 8.7 0.0 3.3 8.2 0.0 3.0


Financial Intermediaries & Supporting Services 6.7 2 2 3.9 6.9 2.1 3.9




Rent 0.1 2.3 1 5 0.1 2.2 1.4

Other Real Estate & Business Services 0 2 2.1 1.4 0.2 2.0 1.4

Public Government 23 5 0.0 8.9 23.7 0.0 8.8

Education, health, social, cultural, entertainment & personal services 0.7 6.6 4.4 0.7 6.5 4.4

Education 0.0 1.8 1.1 0.0 1.8 1.1

Health 0 2 2.0 1.3 0.2 2.0 1.3

Other services 0.4 2.8 1.9 0.4 2.7 1.9

Grand Total 100.0 100.0 100.0 100.0 100.0 100.0


72

Table 1.8.a: Macroeconomic DataTotal Production in Public & Private Sectors Current Prices Quarterly Data: (2009/2010 - 2010/2011)

Sectors

LE Millions

Q1 - 2009/2010 Q1 - 2010/2011



Extractions 37,983.0 7,173.0 45,156.0 41,873.0 8,289.0 50,162.0

Petroleum 16,534.0 2,547.0 19,081.0 18,220.0 2,671.0 20,891.0

Gas 21,182.0 3,475.0 24,657.0 23,342.0 4,301.0 27,643.0




Other Transfer 11,642.9 85,296.5 96,939.4 13,459.0 98,176.0 111,635.0

Electricity 4,356.0 1,375.0 5,731.0 5,026.0 1,586.0 6,612.0

Water 964.1 0.0 964.1 1,100.0 0.0 1,100.0


Transportation 3,235.8 12,510.4 15,746.2 3,705.0 14,765.0 18,470.0

Communication 3,949.4 6,427.0 10,376.4 4,502.0 7,198.0 11,700.0

Suez Canal 8,200.9 0.0 8,200.9 6,668.9 0.0 6,668.9






Rent 97.7 3,000.3 3,098.0 112.0 3,361.0 3,473.0


Public Government 31,997 5 0.0 31,997.5 37,940.0 0.0 37,940.0


1,453.0 18,094.8 19,547.8 1,655.0 20,588.0 22,243.0

Education 0.0 3,996.0 3,996.0 0.0 4,475.0 4,475.0

Health 706.0 5,968.2 6,674.2 797.0 6,860.0 7,657.0

Other Services 747.0 8,130.6 8,877.6 858.0 9,253.0 10,111.0

Grand Total 134,016.6 276,939 5 410,956.1 148,286.8 319,181.1 467,467.9


Appendices

73

Table 1.8.b: Macroeconomic DataTotal Production in Public & Private Sectors Current Prices Quarterly Data: (2008/2009 - 2009/2010)

Sectors

LE Millions

Q2 - 2008/2009 Q2 - 2009/2010


Agriculture, Woodlands & Hunting 6.4 37,526.6 37,533.0 7 2 46,023.0 46,030 2

Extractions 28,225.8 6,180.1 34,405.9 30,765.1 6,874.0 37,639.1

Petroleum 11,916.0 1,916.0 13,832.0 12,952 2 2,080.0 15,032 2

Gas 16,019.8 3,060.0 19,079.8 17,472.3 3,370.0 20,842.3


Manufacturing Industries 19,926.3 87,849 2 107,775.5 24,015 5 108,130.6 132,146.1


Other Transfer 11,282.7 83,881 2 95,163.9 13,491 5 103,102.0 116,593 5

Electricity 4,101.4 1,278.0 5,379.4 4,604.9 1,396.3 6,001.2

Water 1,084.7 0.0 1,084.7 1,253.7 0.0 1,253.7

Construction & Buildings 2,605.0 21,597 5 24,202.5 3,278.0 27,084.4 30,362.4

Transportation 5,116.0 10,345.0 15,461.0 5,860.5 11,670.8 17,531.3

Communication 4,000.1 7,395.7 11,395.8 4,753.7 8,510.0 13,263.7

Suez Canal 7,395.1 0.0 7,395.1 6,761.8 0.0 6,761.8


Financial Intermediaries & Supporting Services 7,350.7 4,158.0 11,508.7 8,150.8 4,602.7 12,753 5

Insurance & Social Insurance 8,868 5 380.0 9,248 5 10,145.3 427.6 10,572.9

Restaurants & Hotels 103.0 15,396 2 15,499.2 117.8 18,415.0 18,532.8

Real Estate Activities 206.6 6,185.1 6,391.7 233.1 6,980 2 7,213.3

Rent 112.4 3,236.6 3,349.0 127.3 3,670.0 3,797.3

Other Real Estate & Business Services 94 2 2,948.5 3,042.7 105.8 3,310 2 3,416.0


Education, health, social, cultural, entertainment & personal services 1,545.0 16,763.6 18,308.6 1,732.0 19,582.0 21,314.0

Education 0.0 3,795.3 3,795.3 0.0 4,401.4 4,401.4

Health 850.0 5,732.3 6,582.3 981.1 6,706.9 7,688.0

Other Services 695.0 7,236.0 7,931.0 750.9 8,473.7 9,224.6

Grand Total 120,604.3 256,405.8 377,010.1 138,035 2 308,823.3 446,858 5


74

Table 1. 8.c : Macroeconomic DataTotal Production in Public & Private Sectors Current Prices: Quarterly Data (2008/2009 - 2009/2010)

Sectors

LE Millions

Q3- 2008/09 Q3- 2009/10



Extractions 30649.0 6334.0 36983.0 33069.9 7054.1 40124.0

Petroleum 13295.0 2090.0 15385.0 14314.0 2290.0 16604.0

Gas 17119.0 3041.0 20160.0 18480.0 3350.0 21830.0




Other Transfer 12260.0 86890.0 99150.0 14110.0 101220.0 115330.0

Electricity 4400.0 1235.0 5635.0 5046.8 1383.1 6429.9

Water 1077.0 0.0 1077.0 1218.3 0.0 1218.3


Transportation 5720.0 7910.0 13630.0 6692.9 9143.6 15836.5

Communication 3860.0 7297.0 11157.0 4377.0 7887.8 12264.8

Suez Canal 5684.1 0.0 5684.1 6039.9 0.0 6039.9






Rent 99.7 3256.3 3356.0 112.9 3783.6 3896.5




1624.0 17540.5 19164.5 1858.6 20466.4 22325.0

Education 0.0 3867.0 3867.0 0.0 4562.5 4562.5

Health 867.0 5865.0 6732.0 983.9 6661.0 7644.9

Other services 757.0 7808.5 8565.5 874.7 9242.9 10117.6

Grand Total 126,011 2 254,179.3 380,190 5 145,353.9 295,211.6 440,565 5


Appendices

75

Table 1. 8.d : Macroeconomic DataTotal Production in Public & Private Sectors Current Prices Quarterly Data(2008/2009-2009/2010)

Sectors

LE Millions

Q4- 2008/09 Q4- 2009/10


Agriculture, Woodlands & Hunting 10.8 38,343.7 38,354 5 12.6 44,119.0 44,131.6

Extractions 37,027.0 7,765.8 44,792.8 41,972.3 8,996.7 50,969.0

Petroleum 15,143.0 2,496.0 17,639.0 17,547.8 2,892.0 20,439.8

Gas 21,606.0 4,020.0 25,626.0 24,104.4 4,655.0 28,759.4


Manufacturing Industries 20,720.3 98,309.9 119,030.2 24,751.6 111,359 5 136,111.1


Other Transfer 12,904.3 94,810.9 107,715.2 14,903.7 106,870.0 121,773.7

Electricity 4,818.0 1,283.1 6,101.1 5,564.5 1,427.1 6,991.6

Water 1,064.1 0.0 1,064.1 1,190.8 0.0 1,190.8


Transportation 7,552.0 11,257.0 18,809.0 8,624.3 13,108.9 21,733.2

Communication 4,067 5 8,795.0 12,862 5 4,274.1 10,012.4 14,286.5

Suez Canal 6,188 5 0.0 6,188 5 6,995.9 0.0 6,995.9

Whole Sale & Retail 1,329 2 35,928.0 37,257 2 1,507.4 41,603 5 43,110.9


Insurance & Social Insurance 8,866.0 345 5 9,211 5 10,690.4 414.0 11,104.4


Real Estate Activities 557.1 7,301 2 7,858.3 636.9 8,308.7 8,945.6

Rent 133.1 3,715.9 3,849.0 149.4 4,221.1 4,370.5



Education, health, social, cultural, entertainment & personal services 1,501.5 17,406.2 18,907.7 1,704.1 20,478.9 22,183.0

Education 0.0 4,001 2 4,001 2 0.0 4,570.8 4,570.8

Health 738 5 5,719.7 6,458 2 825.0 6,438.3 7,263.3

Other services 763.0 7,685.3 8,448.3 879.1 9,469.8 10,348.9

Grand Total 138,813.3 271,499.9 410,313.2 161,476.2 312,277.8 473,754.0


76

Table 1. 8.e : Macroeconomic DataTotal Production in Public & Private Sectors in Factor Cost Current PricesAnnual Data (2008/2009-2009/2010)

Sectors

LE Millions

2008/09 2009/10


Agriculture, Woodlands & Hunting 29.3 170,503.8 170,533.1 34.0 201,822.2 201,856 2

Extractions 133,884.8 27,452.9 161,337.7 147,680.3 31,213.8 178,894.1

Petroleum 56,888.0 9,049.0 65,937.0 63,034.0 9,933.0 72,967.0

Gas 75,926.8 13,596.0 89,522.8 83,398.7 15,676.0 99,074.7

Other Extractions 1,070.0 4,807.9 5,877.9 1,247.6 5,604.8 6,852.4

Manufacturing Industries 81,279 5 365,771.6 447,051.1 96,149.1 427,648.1 523,797 2


Other Transfer 48,089.9 350,878.6 398,968 5 55,964.2 409,368.0 465,332 2

Electricity 17,675.4 5,171.1 22,846 5 20,242.2 5,792 5 26,034.7

Water 4,189.9 0.0 4,189.9 4,762.8 0.0 4,762.8


Transportation 21,623.8 42,022.4 63,646 2 24,882.7 48,688.3 73,571.0

Communication 15,877.0 29,914.7 45,791.7 17,906.8 33,608.2 51,515.0

Suez Canal 27,468.6 0.0 27,468.6 26,466.5 0.0 26,466 5



Insurance & Social Insurance 35,642.6 1,380.5 37,023.1 40,576.2 1,570.9 42,147.1


Real Estate Activities 1,151.8 25,727.0 26,878.8 1,319.7 29,247.5 30,567 2

Rent 442.9 13,209.1 13,652.0 501.6 15,035.7 15,537.3




6,123.5 69,805.1 75,928.6 6,949.7 81,115.3 88,065.0

Education 0.0 15,659.5 15,659 5 0.0 18,009.7 18,009.7

Health 3,161.5 23,285.2 26,446.7 3,587.0 26,666.2 30,253 2

Other services 2,962.0 30,860.4 33,822.4 3,362.7 36,439.4 39,802.1

Grand Total 519,445.4 1,059,024 5 1,578,469.9 593,152.1 1,235,493.8 1,828,645.9


Appendices

77

Table 1.9.a: Macroeconomic DataTotal Production in Public & Private Sectors in Constant Prices - (2006/2007 Prices) Quarterly Data: (2009/2010 - 2010/2011)

Sectors


Q1 -2009/2010 Q1 -2010/2011*


Agriculture, Woodlands & hunting 4.9 42,054.6 42,059 5 5.1 43,159.0 43,164.1 4.1 2.6 2.6

Extractions 26,357.0 5,424.0 31,781.0 25,678.0 5,668.0 31,346.0 (2.6) 4 5 (1.4)

Petroleum 11,309.0 1,799.0 13,108.0 11,475.0 1,834.0 13,309.0 1.5 1.9 1.5

Gas 14,833.0 2,677.0 17,510.0 13,980.0 2,846.0 16,826.0 (5.8) 6.3 (3.9)

Other Extractions 215.0 948.0 1,163.0 223.0 988.0 1,211.0 3.7 4 2 4.1


Petroleum Refinement 5,711.0 2,069.0 7,780.0 6,114.0 2,201.0 8,315.0 7.1 6.4 6.9

Other Transfer 9,837.0 68,976.0 78,813.0 10,433.4 72,890.0 83,323.4 6.1 5.7 5.7

Electricity 4,166.0 1,026.0 5,192.0 4,706.3 774.0 5,480.3 13.0 (24.6) 5.6

Water 942.0 0.0 942.0 1,000.2 0.0 1,000.2 6.2 0.0 6.2


Transportation 2,829.0 10,897.0 13,726.0 3,037.6 11,698.5 14,736.1 7.4 7.4 7.4

Communication 3,898.0 7,159.0 11,057.0 4,246.0 8,131.4 12,377.4 8.9 13.6 11.9

Suez Canal 6,473.3 0.0 6,473.3 7,250.2 0.0 7,250.2 12.0 0.0 12.0

Whole Sale & Retail 1,655.0 29,620.0 31,275.0 1,791.4 30,750.0 32,541.4 8.2 3.8 4.0


6,549.0 3,637.0 10,186.0 6,873.3 3,810.6 10,683.9 5.0 4.8 4.9

Insurance & Social Insurance 7,826.0 271.0 8,097.0 8,292.2 288.5 8,580.7 6.0 6 5 6.0

Restaurants & Hotels 138.0 18,620.0 18,758.0 145.2 20,777.0 20,922 2 5.2 11.6 11.5


Rent 91.6 2,843.8 2,935.4 94.7 2,960.0 3,054.7 3.4 4.1 4.1

Other Real Estate & Business Services 79.5 2,550.0 2,629 5 82.7 2,650.0 2,732.7 4.0 3.9 3.9



1,245.5 14,788.0 16,033 5 1,317.3 15,481.6 16,798.9 5.8 4.7 4.8

Education 0.0 3,135.0 3,135.0 0.0 3,250.0 3,250.0 3.7 3.7

Health 586.0 4,919.0 5,505.0 617.8 5,140.0 5,757.8 5.4 4 5 4.6

Other Services 659.5 6,734.0 7,393 5 699.5 7,091.6 7,791.1 6.1 5.3 5.4

Grand Total 107,559.8 229,495.4 337,055.2 112,112.6 243,119.6 355,232 2 4.2 5.9 5.4


78

Table 1. 9.b : Macroeconomic DataTotal Production in Public & Private Sectors in Constant Prices - (2006/2007 Prices)Quarterly Data: (2008/2009 - 2009/2010)

Sectors


Q2 -2008/2009 Q2 - 2009/2010


Agriculture, Woodlands & hunting 5 5 31,423.7 31,429.2 5.7 32,407.0 32,412.7 3.6 3.1 3.1

Extractions 24,999.6 5,200.1 30,199.7 25,839.4 5,406.6 31,246.0 3.4 4.0 3 5

Petroleum 11,005.0 1,638.0 12,643.0 11,055.0 1,646.0 12,701.0 0.5 0.5 0 5

Gas 13,759.0 2,587.0 16,346.0 14,536.0 2,732.0 17,268.0 5.6 5.6 5.6

Other Extractions 235.6 975.1 1,210.7 248.4 1,028.6 1,277.0 5.4 5.5 5 5

Manufacturing Industries 15,107.0 68,921.6 84,028.6 15,507.5 71,945.0 87,452 5 2.7 4.4 4.1

Petroleum Refinement 5,496.0 2,187.0 7,683.0 5,471.0 2,177.8 7,648.8 (0.5) (0.4) (0.4)

Other Transfer 9,611.0 66,734.6 76,345.6 10,036.5 69,767 2 79,803.7 4.4 4.5 4 5

Electricity 3,745.1 1,022.1 4,767.2 4,030.8 1,017.0 5,047.8 7.6 (0.5) 5.9

Water 1,006.8 0.0 1,006.8 1,072.1 0.0 1,072.1 6.5 0.0 6 5


Transportation 4,370.6 9,070.5 13,441.1 4,591.3 9,597.9 14,189 2 5.0 5.8 5.6

Communication 3,877.5 7,325.5 11,203.0 4,290.3 8,335.7 12,626.0 10.6 13.8 12.7

Suez Canal 7,174.4 0.0 7,174.4 6,543.1 0.0 6,543.1 (8.8) 0.0 (8.8)


Financial Intermediaries & Supporting Services 6,323.1 3,558.5 9,881.6 6,627 2 3,728.8 10,356.0 4.8 4.8 4.8

Insurance & Social Insurance 7,239.8 305.0 7,544.8 7,599.3 323 2 7,922.5 5.0 6.0 5.0



Rent 96.6 2,777.8 2,874.4 99.8 2,906 5 3,006.3 3.3 4.6 4.6


Public Government 23,504.0 0.0 23,504.0 24,080.3 0.0 24,080.3 2.5 0.0 2 5


1,340.5 14,755.5 16,096.0 1,384 5 15,489.1 16,873.6 3.3 5.0 4.8

Education 0.0 3,299.9 3,299.9 0.0 3,446 2 3,446.2 0.0 4.4 4.4

Health 705.0 5,001.1 5,706.1 737.8 5,248.4 5,986.2 4.7 4.9 4.9

Other Services 635.5 6,454.5 7,090.0 646.7 6,794 5 7,441.2 1.8 5.3 5.0

Grand Total 102,141.0 212,521.1 314,662.1 105,307.1 225,118.1 330,425.2 3.1 5.9 5.0


Appendices

79

Table 1. 9.c : Macroeconomic DataTotal Production in Public & Private Sectors in Constant Prices - (2001/2002 Prices) Quarterly Data: (2008/2009 - 2009/2010)

Sectors




Agriculture, Woodlands & Hunting 4.9 32590.0 32594.9 5.1 33655.0 33660.1 4.1 3.3 3.3

Extractions 26234.0 5518.0 31752.0 25471.1 5607.6 31078.7 (2.9) 1.6 (2.1)

Petroleum 11430.0 1949.0 13379.0 10948.9 1777.0 12725.9 (4 2) (8.8) (4.9)

Gas 14591.0 2567.0 17158.0 14298.9 2772.0 17070.9 (2.0) 8.0 (0 5)

Other Extractions 213.0 1002.0 1215.0 223.3 1058.6 1281.9 4.8 5.6 5 5

Manufacturing Industries 15112.0 69971.0 85083.0 15638.1 73705.9 89344.0 3 5 5.3 5.0

Petroleum Refinement 4705.0 1970.0 6675.0 4739.1 1978.9 6718.0 0.7 0.5 0.6

Other Transfer 10407.0 68001.0 78408.0 10899.0 71727.0 82626.0 4.7 5.5 5.4

Electricity 3785.0 964.0 4749.0 4037.0 953.7 4990.7 6.7 (1.1) 5.1

Water 1015.0 0.0 1015.0 1085.8 0.0 1085.8 7.0 0.0 7.0

Construction & Buildings 2355.0 20498 2 22853.2 2540.0 23356.0 25896.0 7.9 13.9 13.3

Transportation 2860.0 8919.0 11779.0 2995.0 9556.0 12551.0 4.7 7.1 6.6

Communication 3441.0 7110.0 10551.0 3703 5 8048.9 11752.4 7.6 13 2 11.4

Suez Canal 5473.0 0.0 5473.0 6237.3 0.0 6237.3 14.0 0.0 14.0

Whole Sale & Retail 1066.7 31138.0 32204.7 1142.9 33044.0 34186.9 7.1 6.1 6 2


6544.0 3590.0 10134.0 6920 5 3763.8 10684.3 5.8 4.8 5.4

Insurance & Social Insurance 7427.0 289.0 7716.0 7912.3 302.4 8214.7 6 5 4.6 6 5

Restaurants & Hotels 116.7 14700.0 14816.7 124.7 17389.0 17513.7 6.9 18.3 18 2

Real Estate Activities 170.0 5466.0 5636.0 176.2 5689.9 5866.1 3.6 4.1 4.1

Rent 89.0 2911.0 3000.0 92.0 3027.6 3119.6 3.4 4.0 4.0

Other Real Estate & Business Services 81.0 2555.0 2636.0 84.2 2662.3 2746 5 4.0 4.2 4 2

Public Government 24129 5 0.0 24129.5 25207.4 0.0 25207.4 4 5 0.0 4 5


1354.0 13690.0 15044.0 1421.9 14285.4 15707.3 5.0 4.3 4.4

Education 0.0 3201.0 3201.0 0.0 3342.4 3342.4 0.0 4.4 4.4

Health 721.0 4604.0 5325.0 740.4 4819 5 5559.9 2.7 4.7 4.4

Other services 633.0 5885.0 6518.0 681.5 6123 5 6805.0 7.7 4.1 4.4

Grand Total 101,087.8 214,443 2 315,531.0 104,618.8 229,357.6 333,976.4 3 5 7.0 5.8


80

Table 1. 9.d : Macroeconomic DataTotal Production in Public & Private Sectors in Constant Prices - (2006/2007 Prices) Quarterly Data:(2008/2009-2009/2010)

Sectors




Agriculture, Woodlands & Hunting 9.1 30,235.0 30,244.1 9.5 31,162.0 31,171 5 4.4 3.1 3.1

Extractions 27,465.4 5,781.7 33,247.1 26,915.3 5,715.0 32,630.3 (2.0) (1.2) (1.9)

Petroleum 11,290.0 1,739.0 13,029.0 11,222.6 1,729.0 12,951.6 (0.6) (0.6) (0.6)

Gas 15,941.0 3,001.0 18,942.0 15,446.6 2,901.0 18,347.6 (3.1) (3.3) (3.1)

Other Extractions 234.4 1,041.7 1,276.1 246.1 1,085.0 1,331.1 5.0 4.2 4.3

Manufacturing Industries 14,943.0 78,742.0 93,685.0 15,253.3 82,366.5 97,619.8 2.1 4.6 4 2

Petroleum Refinement 4,860.0 2,055.0 6,915.0 4,617.0 2,033.5 6,650 5 (5.0) (1.0) (3.8)

Other Transfer 10,083.0 76,687.0 86,770.0 10,636.3 80,333.0 90,969.3 5.5 4.8 4.8

Electricity 4,194.9 902.1 5,097.0 4,484.0 874.1 5,358.1 6.9 (3.1) 5.1

Water 976.8 0.0 976.8 1,051 2 0.0 1,051 2 7.6 0.0 7.6

Construction & Buildings 2,595.0 21,240.0 23,835.0 2,902 2 23,562.0 26,464.2 11.8 10.9 11.0

Transportation 6,480.4 9,664.8 16,145 2 6,907.7 10,344.0 17,251.7 6.6 7.0 6.9

Communication 3,706.0 8,915.0 12,621.0 3,738.7 10,659.0 14,397.7 0.9 19.6 14.1

Suez Canal 5,892.7 0.0 5,892.7 6,551.8 0.0 6,551.8 11.2 0.0 11.2



6,150.0 2,792.0 8,942.0 6,518.8 2,958.2 9,477.0 6.0 6.0 6.0

Insurance & Social Insurance 7,621.0 253.0 7,874.0 8,062 5 263.6 8,326.1 5.8 4.2 5.7



Rent 113.9 3,166.7 3,280.6 118.0 3,289.5 3,407 5 3.6 3.9 3.9




1,261.2 14,380.3 15,641 5 1,336.0 15,023.1 16,359.1 5.9 4.5 4.6

Education 0.0 3,343.0 3,343.0 0.0 3,465.0 3,465.0 0.0 3.6 3.6

Health 618.3 4,825.9 5,444.2 652.1 5,041.0 5,693.1 5.5 4.5 4.6

Other services 642.9 6,211.4 6,854.3 683.9 6,517.1 7,201.0 6.4 4.9 5.1

Grand Total 108,651.9 222,535.9 331,187.8 111,957.3 236,130.4 348,087.7 3.0 6.1 5.1


Appendices

81

Table 1. 9.e : Macroeconomic DataTotal Production in Public & Private Sectors in Constant Prices - (2006/2007 Prices) Annual Data (2008/2009-2009/2010)

Sectors

LE Millions

2008/09 2009/10



Extractions 104,130.4 21,472 2 125,602.6 104,582.8 22,153 2 126,736.0

Petroleum 44,806.0 7,066.0 51,872.0 44,535 5 6,951.0 51,486 5

Gas 58,434.0 10,485.0 68,919.0 59,114 5 11,082.0 70,196 5

Other Extractions 890.4 3,921 2 4,811.6 932.8 4,120 2 5,053.0


Petroleum Refinement 20,662.0 8,244.0 28,906.0 20,538.1 8,259 2 28,797.3

Other Transfer 39,578 2 277,510.6 317,088.8 41,408.8 290,803.2 332,212.0

Electricity 15,542.0 3,943 2 19,485 2 16,717.8 3,870.8 20,588.6

Water 3,886.6 0.0 3,886.6 4,151.1 0.0 4,151.1

Construction & Buildings 9,319.4 79,359.1 88,678 5 10,289 2 89,255.0 99,544 2

Transportation 16,412.6 37,852.8 54,265.4 17,323.0 40,394.9 57,717.9

Communication 14,584 5 29,570.5 44,155.0 15,630 5 34,202.6 49,833.1

Suez Canal 26,643.3 0.0 26,643.3 25,805 5 0.0 25,805 5


Financial Intermediaries & Supporting Services 25,272.1 13,420.5 38,692.6 26,615 5 14,087.8 40,703.3

Insurance & Social Insurance 29,687.7 1,102.0 30,789.7 31,400.1 1,160 2 32,560.3



Rent 389.4 11,574.2 11,963.6 401.4 12,067.4 12,468.8




5,136.2 56,911.8 62,048.0 5,387.9 59,585.6 64,973 5

Education 0.0 12,849.9 12,849.9 0.0 13,388.6 13,388.6

Health 2,599.3 19,128.0 21,727.3 2,716.3 20,027.9 22,744 2

Other services 2,536.9 24,933.9 27,470.8 2,671.6 26,169.1 28,840.7

Grand Total 416,663.8 866,858.2 1,283,522.0 429,443.0 920,101.5 1,349,544.5


82

Table 1.10 : Macroeconomic DataTotal Production Growth Rates in Public& Private Sectors in Constant Prices - (2006/2007 Prices) Annual Data (2008/2009-2009/2010)

Sectors2008/09 2009/10 *


Agriculture, Woodlands & Hunting 2 5 2.9 2.9 4.1 3.1 3.1

Extractions 5.3 11 2 6.3 0.4 3 2 0.9

Petroleum 5.7 7.3 5.9 (0.6) (1.6) (0.7)

Gas 5.0 17.3 6.7 1.2 5.7 1.9

Other Extractions 3 5 3.8 3.7 4.8 5.1 5.0

Manufacturing Industries (0.3) 3.7 3.0 2.8 4.7 4.3

Petroleum Refinement (8.1) (0.1) (5.9) (0.6) 0 2 (0.4)

Other Transfer 4.3 3.8 3.9 4.6 4.8 4.8

Electricity 6.0 (0.3) 4.7 7.6 (1.8) 5.7

Water 6.9 6.9 6.8 6.8


Transportation 4.4 5.0 4.8 5.5 6.7 6.4

Communication 11.4 14.8 13.7 7.2 15.7 12.9

Suez Canal (7.4) (7.4) (3.1) (3.1)

Whole Sale & Retail 5 2 5.5 5.5 6.1 5.7 5.7

Financial Intermediaries & Supporting Services 4.4 4.2 4.3 5.3 5.0 5 2



Real Estate Activities 3.1 3.4 3.4 3.5 4.3 4 2

Rent 3 2 3.3 2.3 3.1 4.3 4 2

Other Real Estate & Business Services 3.1 3.5 3.5 3.9 4 2 4 2

Public Government 3.0 3.0 3.4 3.4


4.9 4.3 4.4 4.9 4.7 4.7

Education 3.8 3.8 4 2 4 2

Health 3.4 4.5 4.4 4.5 4.7 4.7

Other services 6 2 0.7 1.2 5.3 5.0 5.0

Grand Total 3 2 4.6 4.2 3.1 6.1 5.1


Appendices

83

Table 1. 11 : Macroeconomic DataShare of Public & Private Sectors in Total Production inConstant Prices - (2006/2007 Prices) Annual Data (2008/2009-2009/2010)

Sectors

2008/2009 2009/2010 *

(Structure %)


Agriculture, Woodlands & Hunting 0.0 15.6 10 5 0.0 15.1 10.3

Extractions 25.0 2 5 9.8 24.4 2.4 9.4

Petroleum 10.8 0.8 4.0 10.4 0.8 3.8

Gas 14.0 1.2 5.4 13.8 1.2 5.2

Other Extractions 0 2 0.5 0.4 0.2 0.4 0.4

Manufacturing Industries 14 5 33.0 27.0 14.4 32 5 26.8


Other Transfer 9 5 32.0 24.7 9.6 31.6 24.6

Electricity 3.7 0 5 1 5 3.9 0.4 1 5

Water 0.9 0.0 0.3 1.0 0.0 0.3

Construction & Buildings 2 2 9 2 6.9 2.4 9.7 7.4

Transportation 3.9 4.4 4 2 4.0 4.4 4.3

Communication 3 5 3.4 3.4 3.6 3.7 3.7

Suez Canal 6.4 0.0 2.1 6.0 0.0 1.9


Financial Intermediaries & Supporting Services 6.1 1 5 3.0 6 2 1 5 3.0



Real Estate Activities 0 2 2.6 1.8 0 2 2 5 1.8

Rent 0.1 1.3 0.9 0.1 1.3 0.9

Other Real Estate & Business Services 0.1 1 2 0.9 0.1 1 2 0.9


Education, health, social, cultural, entertainment & personal services 1 2 6.6 4.8 1.3 6 5 4.8

Education 0.0 1 5 1.0 0.0 1 5 1.0

Health 0.6 2 2 1.7 0.6 2 2 1.7

Other services 0.6 2.9 2.1 0.6 2.8 2.1

Grand Total 100 100 100 100 100 100


84

Table 1.12: Macroeconomic Data Annual Inflation In Domestic Price Indices (2007 - 2010)

2007 2008 2009 2010

CPI

WPI PPI

CPI

PPI

CPI

PPI

CPI

PPIUrban

Overall Egypt

Core UrbanOverall Egypt



Core

January 12.5 12.7 10.6 15.9 8.7 10.5 11.5 10.4 17.2 14.3 14.0 14.7 (2.7) 13.6 13.6 7.4 12.9

February 12.8 -- 10.8 16.5 11.2 12.1 -- 12.3 21.2 13.5 14.2 13.6 (7.6) 12.8 12.5 6.9 13.1

March 13.0 13.2 11.1 15.7 11.4 14.4 15.8 15.6 23.7 12.1 11.6 11.2 (10.4) 12.2 11.8 7.0 13.7

April 11.6 -- 10.6 12.3 7.3 16.4 -- 17.9 25.7 11.7 12.2 10.3 (11.8) 11.4 11.0 6.6 15.9

May 10.0 10.7 9.0 9.3 5.7 19.7 21.1 20.0 32.9 10.2 9.8 8.5 (12.4) 10.5 9.9 6.7 9.9

June 8.6 -- 6.3 8.5 6.9 20.2 -- 20.7 33.8 9.9 9.8 7.9 (12.0) 10.7 10.2 6.7 8.1

July 7.8 8.8 6.3 7.4 5.7 22.0 23.1 22.2 32.3 9.9 9.7 7.2 (13.4) 10.7 10.3 7.1 10.3

August 8.2 -- 7.4 8.2 5.0 23.6 25.7 23.0 29.4 9.0 8.4 5.8 (8.4) 10.9 11.5 8.2 10.3

September 9.3 10.5 6.9 10.1 12.1 21.5 22.2 22.0 22.6 10.8 10.2 6.3 (6.7) 11.0 11.7 7.6 14.1

October 7.5 -- 5.3 6.4 10.6 20.2 21.2 22.3 13.0 13.3 12.8 6.5 1.6 11.0 11.4 7.8 21.9

November 6.9 7.0 5.6 5.4 12.0 20.3 20.9 21.4 5.1 13.2 12.9 6.6 8.7 10.2 10.2 8.6

December 6.9 -- 6.3 6.5 10.7 18.3 18.7 19.4 (0.3) 13.2 13.1 6.9 13.4

Source: CAPMASNote: Starting January 2005, CPI data is based on the weights derived from 2004/2005 income and expenditure survey, and using January 2007 as a base month. Prior to this date, the basket and weights were derived from 1999/2000 income and expenditure survey Note: Starting September 2005, WPI data is based on the average weights derived from indices of Industrial and agricultural sectors for the 2 years period extending from 1999/2000 to 2000/2001. Prior to this date, the basket and weights were derived from inNote: The new series of Producer Price Index was issued by CAPMAS starting September 2007, using 2004/2005 prices of goods and services as a base period, and deriving sub-group weights from average values of agricultural, industrial and services production Note: The Central Bank of Egypt launched “ Core Inflation Index”derived from the CAPMAS headline CPI, however it excludes items characterized by inherent price volatility and those with managed prices, specifically ‘fruits and vegetables’ (8 8 percent of head)

Appendices

85

Table 1.13.a: Macroeconomic DataInvestment Distributed among Economic SectorsQuarterly Data: (2010/2011)

Sectors

July - September* (LE Millions)

(Structure %)GovernmentEconomic

AuthoritiesPublic Business

SectorPrivate Business

SectorGrand Total

Targeted Executed Targeted Executed Targeted Executed Targeted Executed Targeted Executed

Agriculture, Irrigation & Reclamation

2,584.7 675.6 337.3 19.9 131.0 0.0 4,500.0 862.0 7,553.0 1,557.5 2.8

Crude Oil & Mining 6.0 0.4 39.0 0.2 1,845.0 273.0 33,490.0 8,500.0 35,380.0 8,773.6 15.6

Manufacturing Industries & Oil Products

382.4 53.6 81.7 3.6 13,439.0 1,018.2 27,500.0 7,700.0 41,403.1 8,775.4 15.6

Electricity, Water & Natural Gas 2,890.7 1,842.4 3,350.1 728.8 13,679.0 1,965.6 0.0 0.0 19,919.8 4,536.8 8.1

Construction & Buildings 459.8 15.1 1.2 0.0 1,264.0 255.6 6,000.0 1,550.0 7,725.0 1,820.7 3.2

Total 6,323.6 2,587.1 3,809.3 752.5 30,358.0 3,512.4 71,490.0 18,612.0 111,980.9 25,464.0 45.3

Transportation & Communication

8,184.3 2,134.9 6,104.6 506.4 8,248.8 1,017.7 30,000.0 7,706.0 52,537.7 11,365.0 20.2

Suez Canal 0.0 0.0 571.5 107.8 0.0 0.0 0.0 0.0 571.5 107.8 0.2

Internal Trade 0.0 0.0 337.8 58.1 90.7 8.1 13,000.0 4,000.0 13,428.5 4,066.2 7.2


145.0 1.5 400.2 6.1 999.0 215.3 0.0 0.0 1,544.2 222.9 0.4

Restaurants & Hotels 3.2 0.3 36.8 0.0 502.0 100.0 7,000.0 1,500.0 7,542.0 1,600.3 2.8

Total 8,332.5 2,136.7 7,450.9 678.4 9,840.5 1,341.1 50,000.0 13,206.0 75,623.9 17,362.2 30.9

Real Estate Activities 244.9 184.7 1,230.2 532.2 0.0 0.0 26,800.0 5,000.0 28,275.1 5,716.9 10.2

Education Services 5,214.5 793.0 164.9 9.3 0.0 0.0 3,000.0 600.0 8,379.4 1,402.3 2.5

Health Services 3,876.3 668.5 336.9 59.3 0.0 0.0 2,500.0 550.0 6,713.2 1,277.8 2.3

Other Services 16,316.9 3,252.7 3,439.8 680.1 180.7 5.0 5,450.0 1,100.0 25,387.4 5,037.8 9.0

Total 25,652.6 4,898.9 5,171.8 1,280.9 180.7 5.0 37,750.0 7,250.0 68,755.1 13,434.8 23.9

Other 703.6 0.0 0.0 0.0 0.0 0.0 0.0 703.6 0.0 0.0

Grand Total 41,012.3 9,622.7 16,432.0 2,711.8 40,379.2 4,858.5 159,240.0 39,068.0 257,063.5 56,261.0 100.0


86

Table 1.13.b: Macroeconomic DataInvestment Distributed among Economic SectorsQuarterly Data: (2009/2010)

Sectors

July - December (LE Millions)




SectorGrand Total



2,457.7 1,174.2 241.0 26.4 131.0 0.0 4,330.0 1,804.0 7,159.7 3,004.6 13.4

Crude Oil & Mining 10.2 1.5 1,170.2 3.5 2,251.4 683.5 38,022.0 21,103.0 41,453.8 21,791.5 97.1


680.9 180.2 58.1 21.2 5,946.4 2,292.2 17,678.0 10,340.0 24,363.4 12,833.6 57.2

Electricity, Water & Natural Gas 3,370.5 3,986.0 3,962.0 1,640.6 13,958.0 4,352.0 0.0 0.0 21,290.5 9,978.6 44.5

Construction & Buildings 710.3 38.2 0.7 0.0 500.0 430.3 3,000.0 1,450.0 4,211.0 1,918.5 8.5

Total 7,229.6 5,380.1 5,432.0 1,691.7 22,786.8 7,758.0 63,030.0 34,697.0 98,478.4 49,526.8 220.7


10,208.0 3,059.6 7,191.0 1,678.5 7,244.7 2,230.1 22,665.0 13,684.7 47,308.7 20,652.9 92.0

Suez Canal 0.0 0.0 562.0 327.8 0.0 0.0 0.0 0.0 562.0 327.8 1.5

Internal Trade 0.0 0.0 156.6 32.0 123.7 49.0 5,000.0 2,800.0 5,280.3 2,881.0 12.8


111.6 3.5 354.7 12.0 919.6 227.5 0.0 0.0 1,385.9 243.0 1.1


Total 10,324.6 3,064.2 8,300.7 2,052.8 8,588.0 2,667.6 31,665.0 18,722.7 58,878.3 26,507.3 118.1

Real Estate Activities 199.7 45.0 648.2 775.7 0.0 0.0 13,000.0 7,500.0 13,847.9 8,320.7 37.1

Education Services 5,453.6 1,893.8 123.9 1.9 0.0 0.0 1,640.0 650.0 7,217.5 2,545.7 11.3

Health Services 3,736.3 950.4 320.0 116.3 626.0 0.0 1,300.0 550.0 5,982.3 1,616.7 7.2

Other Services 12,082.6 6,904.4 2,209.3 538.2 127.6 16.7 4,165.0 2,500.0 18,584.5 9,959.3 44.4

Total 21,472.2 9,793.6 3,301.4 1,432.1 753.6 16.7 20,105.0 11,200.0 45,632.2 22,442.4 100.0

Other 161.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 161.2 0.0 0.0

Grand Total 39,187.6 18,237.9 17,034.1 5,176.6 32,128.4 10,442.3 114,800.0 64,619.7 203,150.1 98,476.5 100.0


Appendices

87

Table 1.13.c: Macroeconomic DataInvestment Distributed among Economic SectorsQuarterly Data: (2009/2010)

Sectors

July - March (LE Millions)



SectorPrivate Business Sector Grand Total



2665.3 2020.2 241.0 71.2 131.0 0.3 4330.0 2801.0 7367.3 4892.7 3.0

Crude Oil & Mining 10.2 2.2 1170.2 7.2 2251.4 1135.5 38022.0 35609.0 41453.8 36753.9 22.5


710.4 229.1 58.1 30.0 5946.4 3177.4 17678.0 14610.0 24392.9 18046.5 11.0

Electricity, Water & Natural Gas 7859.1 6229.7 3962.0 2971.7 13958.0 7808.0 0.0 0.0 25779.1 17009.4 10.4

Construction & Buildings 711.6 46.3 0.7 0.0 500.0 745.6 3000.0 2300.0 4212.3 3091.9 1.9

Total 11956.6 8527.5 5432.0 3080.1 22786.8 12866.8 63030.0 55320.0 103205.4 79794.4 48.9


11507.2 6056.1 7219.9 2858.9 7244.7 3763.5 22665.0 23029.7 48636.8 35708.2 21.9

Suez Canal 0.0 0.0 562.0 480.0 0.0 0.0 0.0 0.0 562.0 480.0 0.3

Internal Trade 0.0 0.0 156.6 90.9 123.7 76.1 5000.0 5200.0 5280.3 5367.0 3.3


111.9 12.9 354.7 33.8 919.6 401.4 0.0 0.0 1386.2 448.1 0.3

Restaurants & Hotels 5.0 1.6 89.3 8.5 300.0 241.5 4000.0 3038.0 4394.3 3289.6 2.0

Total 11624.1 6070.6 8382.5 3472.1 8588.0 4482.5 31665.0 31267.7 60259.6 45292.9 27.7

Real Estate Activities 205.4 103.1 648.2 1528.0 0.0 0.0 13000.0 13500.0 13853.6 15131.1 9.3

Education Services 5321.7 2225.3 126.9 9.0 0.0 0.0 1640.0 1250.0 7088.6 3484.3 2.1

Health Services 3785.4 1754.5 337.0 165.9 626.0 0.0 1300.0 1100.0 6048.4 3020.4 1.8

Other Services 17600.0 11274.4 2209.4 1008.4 127.6 35.0 4165.0 4300.3 24102.0 16618.1 10.2

Total 26912.5 15357.3 3321.5 2711.3 753.6 35.0 20105.0 20150.3 51092.6 38253.9 23.4

Other 20.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 20.6 0.0 0.0

Grand Total 50,513.8 29,955.4 17,136.0 9,263.5 32,128.4 17,384.3 114,800.0 106,738.0 214,578.2 163,341.2 100.0


88

Table 1.13.d: Macroeconomic DataInvestment Distributed among Economic SectorsAnnual Data: (2009/2010)

Sectors

July - June (LE Millions)




SectorGrand Total



2,783.2 2,599.6 245.4 98.2 131.0 0.3 4,330.0 3,865.0 7,489.6 6,563.1 2.9

Crude Oil & Mining 10.2 8.1 1,170.2 24.0 2,251.4 1,797.5 38,022.0 40,361.4 41,453.8 42,191.0 18.8


728.5 547.5 58.1 74.4 5,946.4 6,557.1 17,678.0 18,300.0 24,411.0 25,479.0 11.4

Electricity, Water & Natural Gas 7,654.0 6,935.9 4,161.4 3,819.4 13,958.0 10,914.5 0.0 0.0 25,773.4 21,669.8 9.7

Construction & Buildings 712.2 58.8 0.7 0.0 500.0 1,001.9 3,000.0 3,100.0 4,212.9 4,160.7 1.9

Total 11,888.1 10,149.9 5,635.8 4,016.0 22,786.8 20,271.3 63,030.0 65,626.4 103,340.7 100,063.6 44.6


11,995.7 9,442.8 7,578.9 4,153.8 7,244.7 3,236.4 22,665.0 27,572.2 49,484.3 44,405.2 19.8

Suez Canal 0.0 0.0 562.0 542.5 0.0 0.0 0.0 0.0 562.0 542.5 0.2

Internal Trade 0.0 0.0 156.6 156.8 123.7 146.5 5,000.0 5,600.0 5,280.3 5,903.3 2.6


111.9 13.9 354.7 182.6 919.6 662.4 0.0 0.0 1,386.2 858.9 0.4


Total 12,114.4 9,460.6 8,741.4 5,050.1 8,588.0 4,367.3 31,665.0 37,210.2 61,108.8 56,088.2 25.0

Real Estate Activities 270.3 181.1 825.4 2,060.0 0.0 0.0 13,000.0 15,500.0 14,095.7 17,741.1 7.9

Education Services 5,413.3 2,955.9 130.6 14.7 0.0 0.0 1,640.0 1,600.0 7,183.9 4,570.6 2.0

Health Services 3,849.4 2,369.5 338.0 273.3 626.0 550.0 1,300.0 1,350.0 6,113.4 4,542.8 2.0

Other Services 17,919.4 14,231.0 2,386.2 1,440.0 127.6 64.0 4,165.0 5,451.7 24,598.2 21,186.7 9.4

Total 27,452.4 19,737.5 3,680.2 3,788.0 753.6 614.0 20,105.0 23,901.7 51,991.2 48,041.2 21.4

Other 15.8 6,220.7 0.0 13,985.9 0.0 0.0 0.0 0.0 15.8 20,206.6 9.0

Grand Total 51,470.7 45,568.7 18,057.4 26,840.0 32,128.4 25,252.6 114,800.0 126,738.3 216,456.5 224,399.6 100.0


Appendices

89

Table 1.15: Macroeconomic DataTotal Investment in Economic Authorities Distributed among Financial ResourcesAnnualy Data (2010/2011)

Items

2010/2011

Implemented *

(LE Millions) %

Internal Resources 9,232.8 21.7

External & Internal Grants and Aid 86.3 3.0

National Investment Bank Loans 6,182.9 10.7

External Loans 905.0 4.4

Other Sources 25.0

Total 16,432.0 16 5

Source: Ministry of Economic Development. Economic sectors re-classified according to 1993 national accounts.*Preliminary

Table 1.14: Macroeconomic DataTotal Investment in Government Sector Distributed among Financial ResourcesAnnualy Data (2010/2011)

Items

2010/2011

Implemented *

(LE Millions) %

Internal Resources 7,627.8 9.9

External & Internal Grants and Aid 4,411 2 16 5

Treasury 28,815.2 28.1

External Loans 158.1 32 5

Total 41,012.3 23 5

Source: Ministry of Economic Development. Economic sectors re-classified according to 1993 national accounts.*Preliminary

90

Table 1.16: Macroeconomic Data Net FDI in Petroleum and Non-Petroleum Sectors (2004/2005 - 2009/2010)

2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

US$ Million

% of Net FDI

US$ Million

% of Net FDI

US$ Million

% of Net FDI

US$ Million

% of Net FDI

US$ Million

% of Net FDI

US$ Million

% of Net FDI

Net Foreign Direct Investment 3,902 100 6,111 100 11,053 100 13,237 100 8,113 100 6,758 100

Net Investment in Non-Petroleum Sector

1,362 34.89 4,279 70.02 8,038 72.72 9,100 68.75 2,756 33.97 3,169 46.89

New Establishment & Issued Capital increase

926 23.72 3,348 54.78 5,227 47.29 6,368 48.11 2,314 28.52 2,690 39.81

Sales of Companies & Productive Assets to Non-Residents

420 10.75 906 14.82 2,772 25.08 2,337 17.66 304 3.74 173 5.46

Real Estate Investment 17 0.42 26 0.42 39 0.35 395 2.98 138 1.71 305 4.52

Net Investment in Petroleum Sector

2,540 65.11 1,832 29.98 3,015 27.28 4,136 31 25 5,357 66.03 3,589 53.11

Source: Central Bank of Egypt

Table 1.17: Macroeconomic DataForeign Investments in Companies (January - March 2009 )

Law LE Millions

Jan - Mar 2009

Law No. 8/1997

Issued Capital 14.10

Foreign Participation 9.50

Percent of Total 67%

Law No. 159/1981

Issued Capital 4.60

Foreign Participation 1.60

Percent of Total 35%

Source: General Authority for Investment (GAFI) 1 Foreign Participation include foreign participation in issued capital for new established compaines and capital increase and expansion growth for existing companies2 Issued Capital include issued capital for new established compaines and capital increase and expansion growth for existing companies

Appendices

91

Table 1.18 : Macroeconomic DataTourism* (2002/2003 - 2008/2009)

LE Millions - Current Prices

2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2008/2007 2008/2009

Value Added 6 5 7.7 12.7 16.7 18.8 25.9 32.4 34.4

Employment (in Thousands) 217.0 239.0 260.0 285.0 315.0 345.0 380.0 --

Investment ** 2.7 2.2 2 5 2.7 3 2 4.6 5.3 5.2

Source: Ministry of Economic Development. * Tourism refers to hotels and restaurants** Includes private & public sectors

92

Table 2.1: Monetary DataMonetary Survey: Reserve Money and Counterpart Assets (January - November 2010) *

LE Millions2010

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov**

Reserve Money (M0) *** 192,232 187,077 196,106 199,951 192,250 203,071 209,567 217,936 216,655 210,432 221,924

Currency in circulation out-side the CBE

134,073 135,578 136,438 137,852 141,877 144,253 148,283 151,661 153,079 153,037 155,660

Banks’ deposits in local cur-rency with CBE

58,159 51,499 59,668 62,099 50,373 58,818 61,284 66,275 63,576 57,395 66,264

Counterpart Assets of Reserve Money

192,232 187,077 196,106 199,951 192,249 203,071 209,567 217,936 216,655 210,432 221,924

Net Foreign Assets 176,524 178,084 179,809 181,980 188,375 190,234 190,478 191,915 191,648 193,724 194,312

Net Domestic Assets 15,708 8,993 16,297 17,971 3,874 12,837 19,089 26,021 25,007 16,708 27,612

Net Claims on Government (A+B-C)

108,612 106,372 97,535 88,419 86,894 (7,463) 106,173 122,637 121,251 118,250 114,095

A- Securities 1 124,559 124,559 124,559 124,559 123,900 121,533 130,597 130,597 130,597 130,597 130,597

B- Credit facilities 39,359 37,546 27,519 19,131 19,501 26,504 31,737 48,333 47,214 45,206 41,331

C- Deposits 55,306 55,733 54,543 55,271 56,507 56,362 56,161 56,293 56,560 57,553 57,833

Net Claims on Public Economic Authorities (A-B)

(9,732) (10,589) (12,395) (12,863) (11,583) (11,064) (10,637) (12,162) (11,416) (11,162) (12,175)

A- Claims on public economic authorities

7,300 8,082 8,257 9,731 10,530 2,250 2,955 3,493 4,717 5,671 6,198

B- Deposits 17,032 18,671 20,652 22,594 22,113 13,314 13,582 15,655 16,133 16,833 18,373

Net Claims on Deposit Money Banks (A-B) 2 4,492 10,571 17,906 29,517 16,673 21,009 19,141 39,202 48,769 47,670 43,062

A- Claims on deposit money banks

24,693 30,364 37,756 49,516 37,313 41,786 39,945 59,735 69,293 68,453 63,890

B- Deposit money banks ‘ deposits in foreign currency with CBE

20,201 19,793 19,850 19,999 20,640 20,777 20,804 20,533 20,524 20,783 20,828

Net Claims on Other Banking Institution (A-B) 2 5,563 5,566 5,935 5,352 5,115 8,001 8,051 7,107 7,853 7,647 7,677

A- Claims on other banking institution

5,644 5,639 6,008 5,425 5,190 8,077 8,127 7,186 7,932 7,727 7,768

B- Deposit other banking institution’s deposits in foreign currency with CBE

81 73 73 73 75 76 76 79 79 80 91

Net Other Items (A+B) (93,227) (102,927) (92,684) (92,454) (93,224) (96,784) (103,639) (130,763) (141,450) (145,697) (125,047)

A- Unclassified Assets and Liabilities 3 9,544 11,509 7,605 (909) 7,335 4,725 (7,321) (6,007) (6,824) (8,421) (5,492)

B- Open Market Operation

(102,771) (114,436) (100,289) (91,545) (100,559) (101,509) (96,318) (124,756) (134,626) (137,276) (119,555)

Source: CBE* Derived from the CBE ‘s balance sheet.** Preliminary*** Revised series excluding open market operations from banks’ local currency deposits at the CBE and including them into other items (net).1 As a result of the settelment of rescheduled loans, the CBE foreign liabilties dropped on the liability side and on the assets side, Claims on Government and the Unclassied Asstes declined as well.2 All banks (exl.CBE) are considered deposit money banks.3 Including capital account.# According to the updated statistical treatment adopted by the IMF, SDRs allocations are to be classified as foreign liabilities rather than in capital accounts.

2. Monetary Data

Appendices

93

Table 2.2: Monetary DataBanking Survey: Domestic Liquidity and Counterpart Assets (January - November 2010) *

LE Millions2010


Domestic Liquidity (M2) 867,734 875,586 888,176 890,376 896,033 917,459 922,637 935,234 948,172 961,244 963,375

Money Supply (M1) 197,256 199,684 201,868 205,416 204,718 214,040 213,291 218,489 220,472 222,674 224,890

Currency in circulation outside the banking system

126,332 127,972 128,433 130,271 133,082 135,209 139,528 141,715 143,799 142,783 145,052

Demand deposits in local currency

70,924 71,712 73,435 75,145 71,636 78,831 73,763 76,774 76,673 79,891 79,838

Quasi-Money 670,478 675,902 686,308 684,960 691,315 703,419 709,346 716,745 727,700 738,570 738,485

Time & saving deposits in local currency

512,854 517,521 528,844 529,535 534,126 545,303 550,259 558,142 569,542 576,948 581,354

Demand, time & saving deposits in foreign currencies

157,624 158,381 157,464 155,425 157,189 158,116 159,087 158,603 158,158 161,622 157,131

Counterpart Assets ## 867,734 875,586 888,176 890,376 896,033 917,459 283,386 935,234 948,172 961,244 963,375


Domestic Assets 606,542 604,939 611,797 601,437 622,270 635,051 639,251 629,341 636,028 645,951 658,293

Domestic Credit 743,613 743,659 750,883 746,878 760,243 775,268 794,354 786,269 792,347 803,678 814,649

Net Other Items (137,071) (138,720) (139,086) (145,441) (137,977) (140,217) (1,550,113) (156,928) (156,319) (157,727) (156,356)

Source: CBE* Extracted from the consolidated balance sheet of the banking sector.** Preliminary## As a result of the settelment of rescheduled loans, the CBE foreign liabilties dropped on the liability side and on the assets side, Claims on Government and the Unclassied Asstes declined as well.

Table 2.3: Monetary DataBanking Survey: Deposits in Local Currency (January - November 2010)

LE Millions2010


Total Deposits in Local Currency 583,778 589,233 602,279 604,680 605,762 624,134 624,022 634,916 646,215 656,839 661,192

Demand Deposits 70,924 71,712 73,435 75,145 71,636 78,831 73,763 76,774 76,673 79,891 79,838

Public business sector ** 6,974 6,755 7,194 7,146 7,834 8,938 7,351 7,823 7,385 7,663 7,696

Private business sector 35,897 37,523 37,947 39,768 35,407 41,246 37,323 39,648 38,729 41,144 41,097

Household sector 28,855 28,413 28,852 28,966 29,021 29,510 29,983 29,990 31,279 31,790 31,673

Minus: Purchased cheques & drafts 802 979 558 735 626 863 894 687 720 706 628

Time and Saving Deposits 512,854 517,521 528,844 529,535 534,126 545,303 550,259 558,142 569,542 576,948 581,354




Source: CBE* Preliminary** Including all public sector companies subject or not to law No. 203 for 1991.

94

Table 2.5: Monetary DataBanking Survey: Domestic Credit and Net Other Items (January - November 2010)

LE Millions2010

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov*

Domestic Credit 743,613 743,659 750,883 746,878 760,247 775,268 794,354 786,269 792,347 803,678 814,649

Net Claims on the Government (A+B-C)

316,409 315,520 318,462 309,219 306,043 309,839 328,227 321,567 326,269 331,656 339,461

A- Securities 425,373 424,759 436,973 439,378 438,160 433,106 446,653 423,361 430,968 440,333 451,307

B- Credit facilities 39,461 37,668 27,651 19,371 19,745 26,808 32,065 48,661 47,532 45,525 41,660

C- Government deposits 148,425 146,907 146,162 149,530 151,862 150,075 150,491 150,455 152,231 154,202 153,506

Net Claims on Public Economic Authorities (A-B)

4,916 3,233 2,423 920 10,408 16,302 18,231 13,212 15,050 16,614 17,078

A- Claims on public economic authorities

40,421 40,826 42,044 50,538 51,800 48,635 49,711 45,940 48,776 50,283 51,676

B- Deposits 35,505 37,593 39,621 49,618 41,392 32,333 31,480 32,728 33,726 33,669 34,598

Claims on Public Business Sector ** 37,569 37,920 36,708 36,961 37,431 29,985 30,701 30,902 30,727 31,828 31,935

Claims on Private Business Sector

295,602 297,357 303,855 309,889 315,891 326,350 325,004 327,919 326,748 329,083 330,851

Claims on Household Sector

89,117 89,629 89,435 89,889 90,474 92,792 92,191 92,669 93,553 94,497 95,324

Net Other Items (137,071) (138,720) (139,086) (145,441) (137,977) (140,217) (155,103) (156,928) (156,319) (157,727) (156,356)

Capital Accounts (151,401) (154,616) (150,019) (154,042) (154,676) (170,877) (169,811) (172,034) (168,878) (170,280) (171,424)

Net Unclassified Assets and Liabilities

14,330 15,896 10,933 8,601 16,699 30,660 14,708 15,106 12,559 12,553 15,068

Source: CBE* Preliminary** Including all public sector companies subject or not to law No. 203 for 1991.# According to the updated statistical treatment adopted by the IMF, SDRs allocations are to be classified as foreign liabilities rather than in capital accounts.

Table 2.4: Monetary DataBanking Survey: Deposits in Foreign Currencies (January - November 2010)

LE Millions2010


Total Deposits in Foreign Currencies 157,624 158,381 157,464 155,425 157,189 158,116 159,087 158,603 158,158 161,622 157,131

Demand Deposits 33,573 33,314 33,857 29,998 33,870 33,901 33,981 35,815 34,013 36,321 33,542

Public business sector ** 1,233 1,282 1,122 1,048 1,175 1,055 1,020 997 1,116 1,584 1,207



Minus: Purchased cheques & drafts

108 103 115 106 79 140 101 69 66 83 79

Time and Saving Deposits 124,051 125,067 123,607 125,427 123,319 124,215 125,106 122,788 124,145 125,301 123,589




Source: CBE* Preliminary** Including all public sector companies subject or not to law No 203 for 1991.

Appendices

95

Table 2.6: Monetary DataBanking Survey: Foreign Assets and Liabilities (January - November 2010)

LE Millions2010



Foreign Assets 295,174 302,666 312,163 324,950 314,226 322,209 322,696 352,669 359,653 361,285 354,820

Central Bank of Egypt 184,967 186,532 188,132 190,248 196,598 198,605 198,884 200,322 200,054 202,151 202,761

Banks 110,207 116,134 124,031 134,702 117,628 123,604 123,812 152,347 159,599 159,134 152,059

Foreign Liabilities 33,982 32,019 35,784 36,011 40,463 39,801 39,310 46,776 47,509 45,992 49,738

Central Bank of Egypt 8,443 8,448 8,323 8,268 8,223 8,371 8,406 8,407 8,406 8,427 8,449

Banks 25,539 23,571 27,461 27,743 32,240 31,430 30,904 38,369 39,103 37,565 41,289

Source: CBE* Preliminary +According to the updated statistical treatment adopted by the IMF, SDRs allocations are to be classified as foreign liabilities rather than in capital accounts.

Table 2.7: Monetary DataCBE - Official Reserve and Foreign Currency Assets (July - December 2010)

$US Millions2010

Jul Aug Sep Oct Nov Dec*

A- Official Reserve Assets 1 34,967 35,338 35,465 35,581 35,682 36,194

(1) Foreign Currency Reserves (in convertible foreign cur-rencies) 2 29,291 29,740 29,843 29,818 29,520 30,911

a) Securities 3 27,106 27,101 27,486 28,212 27,790 29,034

b) Total Currency and Deposits with, 2,185 2,639 2,357 1,606 1,730 1,877

I- Other National Central Banks, BIS and IMF 670 1,218 323 518 516 705

II- Banks Headquartered in the Reporting Country 66 66 66 66 66 66

Located Abroad, of which

III- Banks Headquartered Outside the Reporting Country

1,450 1,356 1,968 1,022 1,148 1,107

Located in the Reporting Country, of which 3 3 3 3 12 3

(2) IMF Reserve Position 2 0 0 0 0 0 0

(3) SDRs 2 1,240 1,238 1,263 1,286 1,259 1,255

(4) Gold (including gold deposits and, if appropriate, gold swapped) 2,884 3,005 3,134 3,249 3,310 3,388

Volume in fine troy ounces 2,430,844 2,430,844 2,430,844 2,430,844 2,430,844 2,430,844

( 5) Other Reserve Assets ( specify ) 1,552 1,356 1,225 1,228 1,592 640

Financial derivatives 0 0 0 0 0 0

Loans to nonbank nonresidents 0 0 0 0 0 0

Other 1,552 1,356 1,225 1,228 1,592 640

B- Other Foreign Currency Assets ( specify ) 1 5,133 8,616 10,276 10,004 9,184 7,264

Securities not included in official reserve assets

Deposits not included in official reserve assets 4,984 8,467 10,127 9,858 9,038 7,118

Loans not included in official reserve assets 149 149 149 146 146 146

Financial derivatives not included in official reserve assets 0 0 0 0 0 0

Gold not included in official reserve assets 0 0 0 0 0 0

C-Currency in SDR Basket 0 0 0 0 0 0

Source: CBE* Preliminary.1 Official reserve assets and other foreign currency assets ( approximate market value ).2 Form for presenting data in the template on international reserves/foreign currency liquidity (Information to be disclosed by the monetary authorities and other central government, excluding social security).3 Of which issuer headquartered in reporting country but located abroad.

96

Table 2.8: Monetary Data International Reserves and Reserve Template (January - December 2010 )

$US Millions2010

Jan## Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Net International Reserves 34,211 34,324 34,508 34,654 35,100 35,221 35278*** 35,527 35,534 35,545 35,571 36,005

Gross Official Reserves 34,235 34,349 34,528 34,681 35,128 35,248 35,304 35,554 35,561 35,574 35,604 36,038

Gold 1,680 1,680 1,680 1,680 1,680 2,180 2,180 2,180 2,180 2,180 2,180 2,180

SDRs 1,301 1,264 1,249 1,248 1,214 1,210 1,240 1,238 1,263 1,286 1,259 1,255

Foreign Currencies 31,189 31,329 31,524 31,678 32,161 31,774 31,798 32,052 32,029 32,017 32,076 32,517

IMF Reserve 65 76 75 75 73 84 86 84 89 91 89 86

Source: CBENote: US$1.01 billion paid out being the redumption of the 5 years Egyptian Eurobond and the Paris Club Installation. ## Compared with December 2009 figure , the NIR has increased about USD 49 million despite the payment of USD 704 million of Egypt external debt to : Paris Clube member Countries , Egyptian sovereign Eurobonds and Egyptian notes .*** Compared with June 2010 figure , the NIR has increased about US$ 55 millions despite the payment of US$ 678 million of Egypt external debt to : Paris Club member Countries , Egyptian sovereign Eurobonds and Egyptian notes.

Table 2.9: Monetary DataOutstanding T-Bills Balances (July 2009 - July 2010)

End ofT-Bills Outstanding Balances (LE Billions)

Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

Total 242.2 241.9 250.4 243.8 249.3 251.8 263.8 270.3 285.3 288.8 272.2 266.1 273.8

With banks 216.8 216.4 222.7 217.6 186.0 199.6 194.5 191.0 195.5 190.3 183.2 176.5 178.2

Outside the banking system 25.4 25 5 27.7 26 2 63.3 52 2 69.3 79.3 89.7 98 5 89.1 89.6 95.6

End ofAverage Interest Rate (%) *

Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

91 day T-Bills 10.18 9.63 9.61 9.72 10.12 9.84 9.71 9.63 9.71 9.74 10 21 10.18 10.16

182 day T-bills 10.25 9.73 9.69 9.95 10.54 10.77 10.42 9.97 10.30 10 20 10.37 10 54 10.46

364 day T-Bills 10.37 9.85 9.72 10.24 10.98 11.47 11.66 11.21 10.44 10 29 10 54 10.93 10.80

Source: CBE * Average T-bill interest rate calculated according to the last auction in the month.

Appendices

97

Table 2.10: Monetary DataDiscount and Interest Rates on Deposits and Loans in Egyptian Pounds(January 2008 - November 2010)

End of Period Rates

CBE Discount Rate *

Three Months Deposits Rates **

Lending Rate (Less than one year loans) **

Three Months T-bills

Investment Certificates * #

Post Office Savings Deposits *

Jan-08 9.00 6.00 12.10 6.54 10.00 9.50

Feb-08 9.00 6.00 12.10 5.51 10.00 9.50

Mar-08 9.00 6.00 12 20 5.23 10.00 9.50

Apr-08 9.00 6.10 12.10 6.49 10.00 9.50

May-08 9.00 6.30 12.00 6.72 10.00 9.50

Jun-08 10.00 6.50 12.00 9.69 10.00 9.50

Jul-08 10.00 6.60 12 20 10.07 10.00 9.50

Aug-08 11.00 -- -- 11.48 10.00 9.25

Sep-08 11 50 6.90 12.40 13.06 10.00 9.25

Oct-08 11 50 7.20 12.40 13.22 10.00 9.25

Nov-08 11 50 7.30 12 50 12.19 10.00 9.25

Dec-08 11 50 7.40 12 50 11.59 10.00 9.25

Jan-09 11 50 7.30 12.60 11.55 10.00 9.25

Feb-09 10 50 7.30 12.60 11.06 10.00 9.25

Mar-09 10.00 7.10 12.40 10.52 10.00 9.25

Apr-09 10.00 7.00 12.30 10.41 10.00 9.25

May-09 9.50 6.70 12.30 10.36 10.00 9.25

Jun-09 9.00 6.50 12.10 10.27 10.00 9.25

Jul-09 9.00 6.20 12.10 10.19 10.00 9.00

Aug-09 8.5 ## 6.10 12.00 9.76 10.00 9.00

Sep-09 8.50 6.00 11.60 9.60 9 50 9.00

Oct-09 8.50 5.90 11.40 9.69 9 50 9.00

Nov-09 8.50 5.90 11.30 9.90 9 50 9.00

Dec-09 8.50 5.90 11.00 9.97 9 50 9.00

Jan-10 8.50 5.90 11.10 9.92 9 50 9.00

Feb-10 8.50 5.90 11.00 9.73 9 50 9.00

Mar-10 8.50 6.00 11.10 9.61 9 50 9.00

Apr-10 8.50 6.00 11.10 9.66 9 50 9.00

May-10 8.50 5.90 11 20 10.08 9 50 9.00

Jun-10 8.50 5.90 11.10 10.26 9 50 10 20

Jul-10 8.50 6.30 11.10 10.20 9 50 10 20

Aug-10 8.50 6.30 10.90 9.70 9 50 9.70

Sep-10 8.50 6.40 10.90 9.40 9 50 9.40

Oct-10 8.50 6.60 11.00 9.30 9 50 9.30

Nov-10 8.50 -- -- 8.70 9 50 8.70

Source: CBE Note: Starting January 2002, the method of calculated interest rates was changed from weighted averages to simple arithmatic means.Note: Since September 2007, the number of the banks in the sample has been increased.* Using end of period rates.** Starting September 2005, data reflects weighted average monthly interest rates for a sample of banks representing 80 percent of banking system operations. Prior to this date, figures reflect simple average weekly interest rates for most banks’ operation.# Simple Interest.# Calculated as additional interest of 0 25 percent for deposits of one year maturity.## The CBE decide to cut the discount rate by 50 basis points to 8.5 percent om July 30, 2009.

98

Table 3.1: Balance of PaymentsAnnual Data (2004/2005 - 2009/2010)

US$ Millions2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 *

Trade Balance (10,359.4) (11,985.9) (16,290.6) (23,415.4) (25,173.3) (25,120.0)Export Proceeds** 13,833.4 18,455.1 22,017.5 29,355.8 25,168.9 23,873.1

Petroleum 5,299.0 10,222.4 10,107.9 14,472.6 11,004.5 10,258.6 Other Exports 8,534.4 8,232.7 11,909.6 14,883.2 14,164.4 13,614.5

Import Payments** (24,192.8) (30,441.0) (38,308.1) (52,771.2) (50,342.2) (48,993.1)Petroleum (3,975.3) (5,359.2) (4,127.9) (9,561.0) (7,032.3) (5,161.0)Non Oil Imports (20,217.5) (25,081.8) (34,180.2) (43,210.2) (43,309.9) (43,832.1)

Services (net) 7,842.2 8,190.7 11,498.3 14,966.1 12,502.4 10,339.0 Receipts 15,029.6 17,437.9 20,455.5 27,211.0 23,801.3 23,562.9

Transportation, of which 4,259.6 4,947.1 6,371.3 7,559.7 7,481.0 7,216.5 Suez Canal Dues 3,306.8 3,558.8 4,169.6 5,155.2 4,720.6 4,516.8 Travel 6,429.8 7,234.6 8,183.0 10,826.5 10,487.6 11,591.3 Investment Income 910.6 2,001.8 3,044.7 3,289.4 1,936.7 829.0 Government Services 157.2 358.2 253.5 188.3 252.8 217.9 Other Receipts 3,272.4 2,896.2 2,603.0 5,347.1 3,643.2 3,708.2

Payments (7,187.4) (9,247.2) (8,957.2) (12,244.9) (11,298.9) (13,223.9)Transportation 902.4 1,214.9 1,272.9 1,620.1 1,491.9 1,229.7 Travel 1,438.3 1,619.6 1,917.6 2,895.3 2,739.3 2,327.5 Investment Income, of which 1,164.4 1,471.1 1,867.7 1,929.7 1,774.8 5,193.7 Interest Paid 583.7 586.5 608.2 674.9 612.2 553.6 Government Expenditures 656.6 1,319.9 1,195.9 1,313.8 1,182.3 1,534.5 Other Payments 3,025.7 3,621.7 2,703.1 4,486.0 4,110.6 2,938.5

Balance of Goods & Services (2,517.2) (3,795.2) (4,792.3) (8,449.3) (12,670.9) (14,781.0)Transfers 5,427.8 5,547.1 7,061.3 9,337.6 8,246.6 10,463.4

Private (net), of which: 4,371.7 4,975.4 6,261.0 8,377.1 7,632.3 9,509.4 Remittances of Egyptian Working abroad 4,329.5 5,034.2 6,321.0 8,559.2 7,805.7 9,753.4 Official (net) 1,056.1 571.7 800.3 960.5 614.3 954.0

Balance of Current Account 2,910.6 1,751.9 2,269.0 888.3 (4,424.3) (4,317.6)Balance of Capital and Financial Account 3,377.7 3,511.3 853.0 7,557.5 2,284.8 8,325.4 Capital Account 0.0 (37.6) (39.0) 2.3 (2.6) (36.2)Financial Account 3,377.7 3,548.9 892.0 7,555.2 2,287.4 8,361.6

Direct Investment Abroad (39.0) (145.3) (535.6) (1,112.7) (1,340.5) (976.6)Direct Investment in Egypt 3,901.8 6,111.4 11,053.2 13,236.5 8,113.4 6,758.2 Portfolio Investments Abroad (net) 1 540.6 (729.1) (557.5) (959.5) (410.8) (522.2)Portfolio Investments in Egypt (net), of which: 831.1 2,764.0 (936.7) (1,373.6) (9,210.7) 7,879.3

Bonds 2 25.9 2,690.2 (550.7) 775.0 (1,013.2) 1,357.3 Other Investments (net) (1,856.8) (4,452.1) (8,131.4) (2,235.5) 5,136.0 (4,777.1)

Net borrowing 1,000.6 1,425.8 2,039.1 1,178.0 1,251.7 2,350.0 Medium and Long-Term Loans (783.8) (927.5) (234.3) (657.5) 121.5 (522.8)Drawings 3 727.9 795.6 1,780.4 1,008.6 2,010.3 1,228.9 Repayments (1,511.7) (1,723.1) (2,014.7) (1,666.1) (1,888.8) (1,751.7)M.T. Suppliers’ Credits (525.8) (101.2) (191.5) (143.6) (429.1) (39.7)Drawings 4 86.2 625.4 89.0 20.4 59.6 51.8 Repayments 5 (612.0) (726.6) (280.5) (164.0) (488.7) (91.5)S.T. Suppliers’ Credits (net) 2,310.2 2,454.5 2,464.9 1,979.1 1,559.3 2,912.5

Other Assets (3,180.0) (5,102.8) (10,941.6) (4,402.5) 3,744.0 (9,669.1)CBE 23.0 3.3 (215.3) (48.1) 49.0 (40.7)Banks (2,171.6) (4,197.7) (9,900.5) (2,486.1) 8,313.8 (2,073.0)Other (1,031.4) (908.4) (825.8) (1,868.3) (4,618.8) (7,555.4)

Other Liabilities 322.6 (775.1) 771.1 989.0 140.3 2,542.0 CBE 0.0 2.2 16.0 0.2 6.3 1,187.1 Banks 322.6 (777.3) 755.1 988.8 134.0 1,354.9

Net Errors & Omissions (1,810.6) (2,009.8) 2,160.3 (3,025.4) (1,238.0) (652.1)Overall Balance 4,477.7 3,253.4 5,282.3 5,420.4 (3,377.5) 3,355.7 Change in Reserve Assets (Increase = -) (4,477.7) (3,253.4) (5,282.3) (5,420.4) 3,377.6 3,377.6

Source: Central Bank of Egypt* Preliminary** Including free zones.1 Including US$ 2,638 millions as foreign direct investment in petroluim sector, and US$ 419.5 millions as reciepts from selling some local companies to foreign investors during FY 2004/2005.2 The Sovereign euro bonds (US$) were issued by the Government of Egypt on July 1st, 2001, at the nominal value of US$ 1.5 billion, where inflows reflect the acquisition of these bonds by foreign financial institutions thereof, and outflows reflect purchases by resident banking and insurance sectors. During the first quarter of FY 2005/2006 foreigners’ subscriptions to US$ 2.8 billions for other Egyptian bonds and notes. 3 FY 2001/02 includes Arab Monetary Fund Loans.4 FY 2001/02 includes US$ 156.1 millions meduim term buyers credit from the USA.5 FY 2001/02 includes US$ 253.5 millions repayment to England.

3. Balance of Payments Data

Appendices

99

Table 3.2: Balance of PaymentsQuarterly Data (2008/2009 - 2010/2011)

US$ Millions2009/2010 2010/2011*

Q1 Q2 Q3 Q4 Q1Trade Balance (6,254.0) (5,675.2) (6,607.8) (6,583.0) (6,630.3)

Export Proceeds** 5,390.3 6,126.4 5,450.4 6,906.0 6,102.0 Petroleum 2,427.3 2,559.4 2,063.3 3,208.6 2,793.6 Other Exports 2,963.0 3,567.0 3,387.1 3,697.4 3,308.4

Import Payments** (11,644.3) (11,801.6) (12,058.2) (13,489.0) (12,732.3)Petroleum (1,393.0) (802.6) (1,067.3) (1,898.1) (1,592.8)Non Oil Imports (10,251.3) (10,999.0) (10,990.9) (11,590.9) (11,139.5)

Services (net) 3,301.5 2,982.8 2,477.8 1,576.9 2,622.7 Receipts 6,271.5 5,998.4 5,472.0 5,821.0 6,695.4

Transportation, of which 1,708.1 1,762.1 1,759.5 1,986.8 2,014.5 Suez Canal Dues 1,106.8 1,155.2 1,104.1 1,150.7 1,254.1 Travel 3,229.8 2,776.7 2,716.4 2,868.4 3,653.2 Investment Income 258.2 248.2 155.1 167.5 82.0 Government Services 34.6 63.7 38.6 81.0 15.2 Other Receipts 1,040.8 1,147.7 802.4 717.3 930.5

Payments (2,970.0) (3,015.6) (2,994.2) (4,244.1) (4,072.7)Transportation 290.0 317.3 312.7 309.7 380.0 Travel 714.0 602.0 462.3 549.2 632.3 Investment Income, of which 972.3 882.6 1,094.2 2,244.6 1,904.1 Interest Paid 196.5 88.2 188.8 80.1 184.4 Government Expenditures 292.5 311.5 522.1 408.4 504.3 Other Payments 701.2 902.2 602.9 732.2 652.0

Balance of Goods & Services (2,952.5) (2,692.4) (4,130.0) (5,006.1) (4,007.6)Transfers 2,459.1 1,902.8 2,806.8 3,294.7 3,205.4

Private (net), of which: 1,804.0 1,655.7 2,815.9 3,233.8 3,057.0 Remittances of Egyptian Working abroad 1,855.7 1,724.2 2,877.4 3,296.1 3,119.4 Official (net) 655.1 247.1 (9.1) 60.9 148.4

Balance of Current Account (493.4) (789.6) (1,323.2) (1,711.4) (802.2)Balance of Capital and Financial Account 2,836.6 449.4 1,877.0 3,162.4 1,032.3 Capital Account (14.0) (2.4) (0.4) (19.4) (7.9)Financial Account 2,850.6 451.8 1,877.4 3,181.8 1,040.2

Direct Investment Abroad (94.2) (141.2) (413.2) (328.0) (284.1)Direct Investment in Egypt 1 1,731.0 894.8 1,706.2 2,426.2 1,597.2 Portfolio Investments Abroad (net) (41.2) (89.3) (562.1) 170.4 (58.1)Portfolio Investments in Egypt (net), of which: 2 1,186.0 377.7 5,547.5 768.1 5,900.3

Bonds 3 (81.2) (112.0) (62.6) 1,613.1 722.7 Other Investments (net) 69.0 (590.2) (4,401.0) 145.1 (6,115.1)

Net borrowing 619.5 967.6 647.5 115.4 (163.6)Medium and Long-Term Loans (448.8) (109.6) (500.5) 536.1 (630.0)Drawings 222.0 101.0 171.5 734.4 114.6 Repayments 4 (670.8) (210.6) (672.0) (198.3) (744.6)M.T. Suppliers’ Credits 21.0 (24.5) (7.3) (28.9) (11.4)Drawings 32.1 9.9 2.6 7.2 13.6 Repayments (11.1) (34.4) (9.9) (36.1) (25.0)S.T. Suppliers’ Credits (net) 1,047.3 1,101.7 1,155.3 (391.8) 477.8

Other Assets (1,744.2) (1,535.7) (5,139.1) (1,250.1) (6,557.5)CBE (5.4) (81.2) 52.6 (6.7) (21.7)Banks (1,261.7) 1,668.8 (3,305.6) 825.5 (6,323.7)Other (477.1) (3,123.3) (1,886.1) (2,068.9) (212.1)

Other Liabilities 1,193.7 (22.1) 90.6 1,279.8 606.0 CBE 1,203.6 3.8 (27.1) 6.8 0.0 Banks (9.9) (25.9) 117.7 1,273.0 606.0

Net Errors & Omissions (291.5) 939.8 (99.1) (1,201.3) (215.4)Overall Balance 2,051.7 599.6 454.7 249.7 14.7 Change in Reserve Assets (Increase = -) (2,051.7) (599.6) (454.7) (249.7) (14.7)

Source: Central Bank of Egypt* Preliminary** Including free zones.1 Including Foreign Direct Investment in the petroleum sector, as from Q1 of fiscal year 2004/2005.2 (Q2-2007/08), including Egyptian pound denominated of US$1072.5 millions (inflow), net foreign transactions on Egyptian T- Bills of US$ 1958.1 millions (outflow), and net foreign transactions in CDs of US$ 648.9 millions (outflow).3 The Sovereign euro bonds (US$) were issued by the Government of Egypt on July 1st, 2001, at the nominal value of US$ 1.5 billion, where inflows reflect the acquisition of these bonds by foreign financial institutions thereof, and outflows reflect purchases by resident banking and insurance sectors. During the first quarter of FY 2005/2006 foreigners’ subscriptions to US$ 2.8 billions for other Egyptian bonds and notes. 4 Excluding US$ 50.8 millions that represents bank’s repayments, thus reflected in bank’s liabilities.5 An inflow resulting from a decline in assets.

100

Table 3.3a: Balance of PaymentsMain Commodity BalancesAnnual Data: (2008/2009 - 2009/2010)

US$ Millions2008/2009 2009/2010

Exports ImportsSurplus/Deficit


Oil Commodity Balance 11,004.5 7,032.3 3,972.2 10,258.6 5,161.0 5,097.6

Crude oil 4,004.3 2,613.0 1,391.3 4,475.0 1,876.7 2,598.3

Oil products 2,818.2 3,993.5 (1,175.3) 2,623.6 2,921.4 (297.8)

Bunker and jet fuel 1,087.0 425.8 661.2 934.0 362.9 571.1

Natural gas 3,095.0 0.0 3,095.0 2,226.0 0.0 2,226.0

Foodstuff Commodity Balance, of which 853.5 3,648.5 (2,795.0) 900.9 4,205.0 (3,304.1)

Meat and preparations, thereof 19.5 515.8 (496.3) 8.6 623.3 (614.7)

Fish and preparations, thereof 6.4 227.2 (220.8) 7.9 340.5 (332.6)

Dairy products and eggs 162.6 359.4 (196.8) 166.1 401.0 (234.9)

Fruits 112.0 50.7 61.3 176.3 123.2 53.1

Tea 5.8 164.8 (159.0) 14.7 194.5 (179.8)

Animal & vegetable fats, greases &oil and products 150.0 1,417.9 (1,267.9) 113.5 1,248.0 (1,134.5)

Raw sugar and its products 74.6 240.5 (165.9) 96.2 321.7 (225.5)

Tobacco 105.3 407.8 (302.5) 84.0 509.6 (425.6)

Cereals Commodity Balance, of which 238.5 2,249.0 (2,010.5) 441.7 2,585.8 (2,144.1)

wheat 37.5 1,227.6 (1,190.1) 24.2 1,402.2 (1,378.0)

Maize 6.2 501.4 (495.2) 7.7 506.6 (498.9)

Rice 77.2 5.4 71.8 215.4 14.8 200.6

Oleaginous fruits and seeds, and plants for manufacturing 50.0 295.2 (245.2) 71.8 423.5 (351.7)

Commodity Balance of Cotton & its Products & Other Textiles, of which

1,579.1 1,764.8 (185.7) 1,731.5 2,249.5 (518.0)

Cotton 82.9 98.7 (15.8) 125.0 107.0 18.0

Cotton yarm 101.9 178.1 (76.2) 127.0 225.5 (98.5)

Cotton textiles 519.2 367.1 152.1 484.1 479.3 4.8

Ready-made clothes 608.2 607.8 0.4 665.8 825.6 (159.8)

Synthetic fibers 71.4 367.3 (295.9) 90.8 466.2 (375.4)

Carpetand other floor coverings 135.2 49.0 86.2 169.6 78.6 91.0

Chemicals Commodity Balance, of which 2,154.5 4,619.8 (2,465.3) 2,126.7 4,783.9 (2,657.2)

Organic & inorganic chemicales, and carbon 642.9 2,122.5 (1,479.6) 577.4 1,722.6 (1,145.2)

Pharmaceuticals 454.9 1,654.2 (1,199.3) 393.5 2,032.0 (1,638.5)

Fertilizers 739.6 208.9 530.7 725.0 256.8 468.2

Commodity Balance of Electric Appliances & Equipment & Parts thereof, of which

956.6 4,370.6 (3,414.0) 791.2 5,428.2 (4,637.0)

Motors, generators, tranformers & parts thereof 31.7 364.8 (333.1) 33.4 676.6 (643.2)

Household electric-motor machines 167.2 353.3 (186.1) 167.4 631.7 (464.3)

Air conditioners 119.2 224.1 (104.9) 84.7 203.7 (119.0)

House refragerators & electric freezers 25.5 151.1 (125.6) 27.5 217.5 (190.0)

TV & sending & reciving equipment for telephones & radios 81.7 341.4 (259.7) 62.3 382.0 (319.7)

Computers and software 173.1 723.5 (550.4) 127.6 1,061.4 (933.8)

Commodity Balance of Base Metales & Products, of which 2,051.7 6,013.1 (3,961.4) 1,876.2 5,225.1 (3,348.9)

Iron ore, steel & products, thereof 1,153.6 4,538.1 (3,384.5) 974.2 3,572.3 (2,598.1)

Aluminum ore 395.7 402.3 (6.6) 409.9 397.2 12.7

Copper and its articles 84.2 336.1 (251.9) 83.5 323.1 (239.6)

Commodity Balance of Vehicles, Cars & Other Means of Transportation, of which

1,103.4 4,174.1 (3,070.7) 806.6 5,100.0 (4,293.4)

Lifts and bulldozers and parts, thereof 637.2 1,171.8 (534.6) 513.5 1,096.4 (582.9)

Cars & vehicles for transport of passengers & goods 77.2 1,021.6 (944.4) 108.5 1,444.7 (1,336.2)

Car accessories and spare parts 267.6 1,382.8 (1,115.2) 147.6 1,945.1 (1,797.5)


Appendices

101

Table 3.3b: Balance of PaymentsMain Commodity BalancesQuarterly Data: (2009/2010 - 2010/2011)

US$ Millions

July/September2009/2010 2010/2011



Oil Commodity Balance 2,427.3 1,393.0 1,034.3 2,793.6 1,592.8 1,200.8

Crude oil 1,137.0 236.8 900.2 1,270.0 374.0 896.0

Oil products 541.3 1,063.4 (522.1) 829.6 1,127.0 (297.4)

Bunker and jet fuel 190.0 92.8 97.2 257.0 91.8 165.2

Natural gas 559.0 0.0 559.0 437.0 0.0 437.0

Foodstuff Commodity Balance, of which 167.7 948.8 (781.1) 213.3 1,236.1 (1,022.8)

Meat and preparations, thereof 1.8 164.4 (162.6) 1.4 349.2 (347.8)

Fish and preparations, thereof 2.3 55.8 (53.5) 2.8 69.7 (66.9)

Dairy products and eggs 40.3 79.0 (38.7) 40.6 116.1 (75.5)

Fruits 27.7 21.0 6.7 25.7 36.2 (10.5)

Tea 3.5 24.4 (20.9) 4.6 28.2 (23.6)

Animal & vegetable fats, greases &oil and products 27.1 363.3 (336.2) 17.1 286.9 (269.8)

Raw sugar and its products 12.3 28.2 (15.9) 49.9 65.1 (15.2)

Tobacco 21.9 153.2 (131.3) 16.3 130.4 (114.1)

Cereals Commodity Balance, of which 88.1 482.3 (394.2) 69.9 673.0 (603.1)

wheat 7.8 208.8 (201.0) 0.0 328.9 (328.9)

Maize 0.4 113.7 (113.3) 18.5 154.6 (136.1)

Rice 54.8 4.4 50.4 11.2 2.5 8.7

Oleaginous fruits and seeds, and plants for manufacturing 8.3 104.5 (96.2) 9.2 93.7 (84.5)

Commodity Balance of Cotton & its Products & Other Textiles, of which

387.3 572.2 (184.9) 471.1 551.2 (80.1)

Cotton 14.7 28.1 (13.4) 28.3 15.1 13.2

Cotton yarm 29.0 56.9 (27.9) 44.6 34.9 9.7

Cotton textiles 119.4 124.5 (5.1) 121.9 141.1 (19.2)

Ready-made clothes 141.0 230.6 (89.6) 182.5 202.4 (19.9)

Synthetic fibers 13.2 105.3 (92.1) 36.4 128.7 (92.3)

Carpetand other floor coverings 48.2 16.0 32.2 42.1 15.4 26.7

Chemicals Commodity Balance, of which 361.6 1,095.5 (733.9) 659.9 1,109.8 (449.9)

Organic & inorganic chemicales, and carbon 109.4 431.8 (322.4) 128.0 394.8 (266.8)

Pharmaceuticals 65.6 466.5 (400.9) 106.7 445.4 (338.7)

Fertilizers 105.9 38.6 67.3 290.3 90.4 199.9

Commodity Balance of Electric Appliances & Equipment & Parts thereof, of which

192.8 1,215.1 (1,022.3) 211.2 1,367.7 (1,156.5)

Motors, generators, tranformers & parts thereof 4.6 111.4 (106.8) 8.9 163.3 (154.4)

Household electric-motor machines 53.9 167.2 (113.3) 56.3 160.1 (103.8)

Air conditioners 18.7 28.8 (10.1) 22.7 79.7 (57.0)

House refragerators & electric freezers 3.3 46.5 (43.2) 8.4 54.6 (46.2)

TV & sending & reciving equipment for telephones & radios 12.8 75.7 (62.9) 18.6 128.0 (109.4)

Computers and software 28.4 294.6 (266.2) 32.1 237.7 (205.6)

Commodity Balance of Base Metales & Products, of which 382.2 1,228.7 (846.5) 435.9 1,363.5 (927.6)

Iron ore, steel & products, thereof 202.3 832.6 (630.3) 252.3 954.9 (702.6)

Aluminum ore 71.3 92.7 (21.4) 85.2 85.3 (0.1)

Copper and its articles 8.3 90.2 (81.9) 32.4 107.7 (75.3)

Commodity Balance of Vehicles, Cars & Other Means of Transportation, of which

171.4 1,465.7 (1,294.3) 193.4 1,380.0 (1,186.6)

Lifts and bulldozers and parts, thereof 118.1 306.2 (188.1) 145.1 313.3 (168.2)

Cars & vehicles for transport of passengers & goods 13.8 293.3 (279.5) 18.6 346.4 (327.8)

Car accessories and spare parts 36.5 415.1 (378.6) 26.3 534.5 (508.2)


102

Table 3.4: Balance of PaymentsExports and Imports by Regional Distribution: Quarterly Data (2009/2010 - 2010/2011)

US$ MillionsExports Proceeds * Imports Trade Balance

2009/10 2010/11 2009/10 2010/11 2009/10 2010/11

Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1

Total 5,390 6,126 5,450 6,906 6,102 12,631 10,815 12,058 13,489 11,682 (7,241) (4,688) (6,608) (6,583) (5,580)

European Union (EU) ** 1,855 2,188 2,071 2,366 2,162 4,442 4,382 4,572 4,495 4,156 (2,587) (2,194) (2,500) (2,129) (1,995)

Other European Countries 165 239 359 310 329 1,595 1,294 1,483 1,643 1,509 (1,430) (1,054) (1,124) (1,333) (1,180)

United States of America 1,198 1,239 974 998 871 1,664 1,310 830 1,497 367 (465) (71) 144 (499) 504

Arab Countries 939 1,224 1,209 1,389 1,167 1,004 1,158 1,401 1,843 1,508 (65) 66 (191) (454) (342)

Asian Countries 735 907 692 1,067 815 2,653 2,083 2,607 3,174 2,947 (1,919) (1,176) (1,916) (2,107) (2,132)

African Countries 75 100 76 131 143 76 107 181 196 163 (1) (8) (105) (66) (20)

Russian Federation & C.I S 23 28 36 32 21 230 330 440 360 367 (207) (302) (404) (328) (347)

Australia 3 4 6 5 5 50 42 70 84 97 (47) (38) (64) (79) (93)

Other Countries and Regions 398 198 27 609 591 918 110 475 198 567 (520) 88 (448) 411 24

Source: Central Bank of Egypt* Including imports of free zones.** The EU includes the ten countries which joined its membership as of May 2004.# Preliminary

Table 3.5: Balance of PaymentsTourism Statistics (2003/2004 - September 2010)

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Q1-2010/11

Total Arrivals (in Thousands) 7,512 8,651 8,693 9,788 10,706 12,294 13,758 5,117

Total Number of Tourist Nights (in Thousands)

73,002 85,730 85,113 96,270 110,968 123,384 136,370 56,190

Tourism Income over Tourist Nights (dollar/night)

75 75 85 83 98 85 85 65

Average Number of Nights(per Tourist)

14.9 12 2 10.4 9.8 10.4 10.0 9.9 11.0

Source: Ministry of Tourism

Appendices

103

4. Debt DataTable 4.1: Debt DataExternal Debt by Type (2003/2004 - September 2010)

US$ Millions 1 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Sep-10

Total Debt 29,872 28,949 29,593 29,898 33,893 31,531 33,694 34,700

Medium and Long Term Public and Publicly Guaranteed Debt

27,820 26,979 27,871 28,369 31,356 29,324 30,662 31,772

Suppliers’ and Buyers’ Credit 1,333 781 980 792 764 324 313 404

Multilateral Loans 5,081 5,058 5,205 6,815 7,361 8,169 9,978 2 10,405 2

Bilateral Loans 20,818 20,026 19,524 19,192 20,579 18,905 17,292 17,874

Sovereign Bonds 588 614 612 320 296 277 226 215

Arab International Bank Deposits * 0.00 500 300 0.00 0.00 0.00 0.00 0.00

Guaranteed Notes ** 0.00 0.00 1,250 1,250 1,250 1,250 1,250 1,250

Egyptian Pound Global Notes 0.00 0.00 0.00 0.00 1,106 399 386 388

Sovereign Notes # 0.00 0.00 0.00 0.00 0.00 0.00 1,217.00 1,236.00

Short Term Debt 1,967 ## 1,855 1,633 1,450 2,519 2,124 2,955 2,871

Private Sector Debt 85 115 89 79 18 83 77 57

Source: Central Bank of Egypt1 Using end of period exchange rate2 Includes US$ 1,191 millions representing SDR allocation by IMF to its member countries, Egypt’s SDR share is 762.53 millions.* It has been agreed to consider the Arab International Bank Deposits as Meduim and Long Term External Debt since December 2004.** For more details, see Appendix C - Economic News, Public Debt Management. # Sovereign Notes for US$1000 millions due 2020and US$500 millions due 2040 reduced by US$282.41 millions reflecting residents’ purchases.## Including US$ 500 millions Arab International Bank Deposits.

104

Table 4.2: Debt DataExternal Debt Arrears as at the End of Septmeber 2010

US$ Millions 1

as of september 30th, 2010

Current OutstandingArrears

(P+I)Total Debt

Grand Total 34,697.41 2.49 34,699.90

Medium and Long Term Public and Publicly Guaranteed Debt 31,771.55 0.03 31,771 58

a) Paris Club Bilateral Debt 17,347.59 0.03 17,347.62

(i) Rescheduled Debt 12,897.94 0.00 12,897.94

(ii) Non-Rescheduled Debt 1 4,449.65 0.03 4,449.68

b) Suppliers' Credit 27.05 0.00 27.05

c) Other Bilateral Debt 904.04 0.00 904.04

d) Multi-Lateral Agencies 2 10,405.01 0.00 10,405.01

e) Sovereign Bond 214.58 0.00 214.58

f) Guaranteed Notes 1,250.00 0.00 1,250.00

g) Egyptian Pound Global Bond 387.59 0.00 387.59

h) Sovereign Notes 3 1,235.69 0.00 1,217.59

Long and Medium Term Private Sector Non-guaranteed Debt 3 55.00 2.46 57.46

Short Term Debt 2,870.86 0.00 2,870.86

Deposits (Non Residents) 1,121.36 0.00 1,121.36

Other 1,749.50 0.00 1,749.50

Source: Central Bank of Egypt1 Using End of Period Exchange Rate.2 Includes US$300.09 millions Buyer Credits and US$67.47 millions Supplier Credits.3 Includes US$ 1,191 millions representing SDR allocation by IMF to its member countries, Egypt’s SDR share is 762.53 millions.4 Sovereign Notes for US$1000 millions due 2020and US$500 millions due 2040 reduced by US$282.41 millions reflecting residents’ purchases.

Appendices

105

Table 4.3: Debt DataOutstanding Stock as at the end of Septmeber

US$ Millions 1Total Debt

Sep-07 Sep-08 Sep-09 Sep-10

Grand Total 31,923.85 32,481.43 32,399 57 34,699.90

Meduim and Long Term Public and Publicly Guaranteed Debt 30,073.07 29,747.83 29,887.00 31,771 58

a) Paris Club Bilateral Debt 2 19,546.58 18,953.69 18,521.09 17,347.62

(i) May 1991 (Third Stage) 15,068.73 14,385.83 14,067.81 12,897.94

(ii) Post Cut-Off Date 4,477.85 4,567.86 4,453 28 4,449.68

b) Other Bilateral Debt 733.43 827.07 868.31 904.04

c) Supplier's Credit 75.71 75.69 67.84 27.05

d) Multilateral Agencies 3 7,084.15 7,270.75 8,513.15 10,405.01

e) Sovereign Bond 310.68 291.43 266.17 214.58

f) Sovereign Notes 0.00 0.00 0.00 1,235.69

g) Guaranteed Notes 1,250.00 1,250.00 1,250.00 1,250.00

h) Egyptian Pound Global Note 1,072.52 1,079 20 400.44 387.59

Long and Meduim Term Private Sector Non-Guaranteed Debt 73.86 82.91 83.64 57.46

Short Term Debt 1,776.92 2,650.69 2,428.93 2,870.86

Deposits (Non Residents) 636.60 983 50 1,326.62 1,121.36

Other 1,140.32 1,667.19 1,102.31 1,749.50

Source: Central Bank of Egypt* Using end of period exchange rate1 Debt owed to Paris Club Members Countries but not guaranteed by them.2 Includes US$ 377.15 millions Buyers’ Credits.3 Includes US$ 1,187 millions representing SDR allocation by IMF to its member countries, Egypt’s SDR share is 762.53 millions.

Table 4.4: Debt DataShort Term Debt - Outstanding Stock as at the the End of September

US$ Millions 1Total Debt

Sep-07 Sep-08 Sep-09 Sep-10

Grand Total 1,776.92 2,650.69 2,428.93 2,870.86

Deposit (Non-Residents) 636.60 983.51 1,326.61 1,121.36

Trade Credits 1,029.88 1,498.65 1,082.32 1,745 58

Cash Loans 30.00 44.98 20.00 3.92

Banking Facilities 80.44 123.55 0.00 0.00

Source: Central Bank of Egypt1 Using end of period exchange rate.

106

Table 4.5: Debt DataMedium and Long Term Public and Publicly Guaranteed Debt in Original Currencies as at the End of September 2010

Currency NameSeptember 30, 2010

Millions of Original Currencies

US$ Millions * Percentage

Danish Kroner 661 121 0.35

Norwegian Kroner 28 5 0.01

Swedish Kroner 188 28 0.08

Swiss Franc 526 540 1 56

British Pounds Sterling 145 230 0.66

Canadian Dollar 146 142 0.41

US Dollar ** 14,269 14,269 41.12

Kuwaiti Dinar 565 1,982 5.71

Saudi Riyal 148 40 0.11

U.A.E. Dirham 110 30 0.09

Japanese Yen 365,324 4,383 12.63

Australian Dollar 118 114 0.33

EUR0 7,095 9,684 27.91

SDR 1,534 2,387 6.88

Egyptian Pound 4,241 746 2.15

Total 34,700 100

Source : Central Bank of Egypt* Using end of period the exchange rate

Appendices

107

Table 4.6: Debt DataTotal Medium and Long Term Public & Publicily Guaranteed External Debt Service as of October 1st, 2010

Period US$ Millions 1

Period US$ Millions 1

Principal 2 Interest Total Principal 2 Interest Total

2010 / 2 288.48 123.34 411.82 2031 / 1 85.93 24.80 110.73

2011 / 1 1,037.88 346.37 1,384 25 2031 / 2 79.57 24.34 103.91

2011 / 2 3 1,204.71 344.43 1,549.14 2032 / 1 75.45 23.87 99.32

2012 / 1 1,010.09 316 51 1,326.60 2032 / 2 73.74 23.47 97 21

2012 / 2 4 1,401.08 324 58 1,725.66 2033 / 1 68.17 23.02 91.19

2013 / 1 1,064.05 291 29 1,355.34 2033 / 2 62.85 22.66 85 51

2013 / 2 1,096.60 292.60 1,389 20 2034 / 1 61.34 22 25 83 59

2014 / 1 1,100.48 270.99 1,371.47 2034 / 2 57.81 21.91 79.72

2014 / 2 1,155.75 272.60 1,428.35 2035 / 1 57.59 21 51 79.10

2015 / 1 1,180.96 251 25 1,432 21 2035 / 2 56.67 21.18 77.85

2015 / 2 5 2,477.36 252.00 2,729.36 2036 / 1 53.49 20.81 74.30

2016 / 1 1,242.73 202.66 1,445.39 2036 / 2 52.31 20.49 72.80

2016 / 2 1,238.48 201 59 1,440.07 2037 / 1 51.15 20.12 71 27

2017 / 1 785.17 181.35 966 52 2037 / 2 49.51 19.82 69.33

2017 / 2 787 28 181.16 968.44 2038 / 1 37.11 19.46 56 57

2018 / 1 774.43 163.78 938 21 2038 / 2 21.58 19.36 40.94

2018 / 2 790 24 162.92 953.16 2039 / 1 18.63 19 25 37.88

2019 / 1 752.16 146.11 898 27 2039 / 2 18.24 19 22 37.46

2019 / 2 774.41 144.75 919.16 2040 / 1 7 501.68 19.13 520.81

2020 / 1 6 1,470.89 129 20 1,600.09 2040 / 2 15.88 2.42 18.30

2020 / 2 729.36 105.82 835.18 2041 / 1 14.21 2.33 16 54

2021 / 1 672.90 91.13 764.03 2041 / 2 13.64 2.31 15.95

2021 / 2 646.49 88.86 735.35 2042 / 1 12.01 2 22 14 23

2022 / 1 449 26 76.01 525 27 2042 / 2 9.68 2 21 11.89

2022 / 2 472.36 75.97 548.33 2043 / 1 9.61 2.14 11.75

2023 / 1 439.12 66.54 505.66 2043 / 2 8.71 2.14 10.85

2023 / 2 460.16 65.89 526.05 2044 / 1 7.62 2.09 9.71

2024 / 1 431.18 57.21 488.39 2044 / 2 7.39 2.08 9.47

2024 / 2 440.19 55.98 496.17 2045 / 1 7.39 2.02 9.41

2025 / 1 417.93 47.86 465.79 2045 / 2 6.71 2.02 8.73

2025 / 2 433.98 46.07 480.05 2046 / 1 3.91 1.96 5.87

2026 / 1 397.45 38.83 436 28 2046 / 2 3.80 1.98 5.78

2026 / 2 387.86 36.59 424.45 2047 / 1 3.80 1.94 5.74

2027 / 1 135.33 30.91 166 24 2047 / 2 1.16 1.95 3.11

2027 / 2 150.84 31.53 182.37 2048 / 1 0.84 1.93 2.77

2028 / 1 124.44 29.02 153.46 2048 / 2 0.44 1.95 2.39

2028 / 2 135 28 29.09 164.37 2049 / 1 0.31 1.91 2.22

2029 / 1 116 57 27.29 143.86 2049 / 2 0.31 1.94 2.25

2029 / 2 112.01 26.97 138.98 2050 / 1 0.31 1.91 2.22

2030 / 1 92.63 25.81 118.44 2050 / 2 0.06 1.94 2.00

2030/ 2 95.77 25.52 121 29

Grand Total 30,584.98* 6,128.48** 36,713.46

Source: Central Bank of Egypt1 Using the Exchange Rate of September 30, 20102 Includes assumptions on disbursements of undisbured portion of contracted loans.3 Includes US$ 214.58 millions soverign bonds maturing.4 Includes US$ 378.59 millions Egyptian pound Euro bond maturing.5 Includes US$ 1,250 millions guaranteed notes maturing.6 Includes US$ 750.69 millions sovereign notes maturing.7 Includes US$ 485 millions sovereign notes maturing.* Includes US$ 1186 64 millions representing SDR allocation by IMF to its member countries, Egypt’s SDR share is 762.53 millions.** Includes US$ 155.08 millions representing forcast interest of SDR allocation.

108

5. Banking Sector DataTable 5.1: Banking Sector The Four State-Owned Banks’ Holdings in Joint Venture Banks (End December 2006)

Percent Share Available for Sale (%) National Bank of Egypt Banque Misr Banque Du Caire Bank of Alexandria Total Share

Export Development Bank of Egypt 11.43 9.85 11.59 0.00 32.87

Egyptian Saudi Finance Bank 3 23 0.00 2.08 0.00 5.31

Suez Canal Bank 0.01 0.00 0.00 0.00 0.01

Egyptian Workers Bank 0.00 5.11 4.71 0.00 9.82

Credit Agricole Bank 0.00 0.03 0.00 0.00 0.03

Commercial International Bank (CIB) 0.00 0.04 0.00 0.00 0.04

National Societe Generale Bank 0.00 0.10 0.00 0.00 0.10

BNP Paribas Le Caire 0.00 0.00 4.41 0.00 4.41

Cairo International Bank (Kambala) 5.89 6.52 0.00 0.00 12.41

Cairo Amman Bank 0.00 0.00 5.78 0.00 5.78

Misr Europe Bank 10.00 0.00 10.00 0.00 20.00

African Bank for Exporting & Importing 3.33 2.00 4.29 2.68 12.30

Samba financial Group 0.00 0.00 2.34 0.00 2.34

Elwatany Bank of Egypt 0.00 0.02 0.00 0.00 0.02

Housing & Development Bank 0.00 0.04 0.00 0.00 0.04

Public Development Bank of Sudan 2.81 0.00 0.00 0.00 2.81

National Bank for Development 0.08 0.00 0.00 0.00 0.08


Appendices

109

Table 6.1: Insurance Sector Insurance Companies’ Overall Accounts 2004/2005 - 2009/2010

LE Millions 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 Q1-09/10 Q2-09/10

Total Assets 20,117 22,283 24,942 33,385 33,022 34,053 33,641

Banks and Fund Cash 214 350 624 728 426 691 456

Investments 16,813 18,695 21,256 28,994 28,911 29,630 30,022

Debtors and Sundry Debtors 3,004 3,033 2,978 3,357 3,358 3,401 2,828

Other Assets 86 205 84 306 327 331 335

Liabilities and Shareholders’ Rights 20,117 22,283 24,942 33,385 33,049 34,053 33,641

Policyholders’ Rights 12,651 14,295 16,441 20,701 22,420 22,863 22,993

Creditors and Sundry Creditors 3,188 3,393 3,328 3,545 3,683 3,726 3,625

Other Provisions 528 542 547 604 541 546 520

Shareholders’ Rights 3,750 4,053 4,626 8,535 6,405 6,918 6,503

Source: Ministry of Investment

6. Insurance Sector Data

Table 6.2: Insurance Sector Net Premiums of Life Insurance Companies 2004/2005 - 2009/2010

LE Thousands 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 Q1-09/10 Q2-09/10

Public Sector 824,135 874,149 933,071 1,084,385 1,170,513 295,048 552,381

Private Sector (Egyptian) 99,599 111,386 135,920 160,118 196,548 82,232 127,871

Private Sector (Foreign) 512,976 707,346 1,241,574 1,943,884 1,584,056 511,521 972,075

Total Net Premiums 1,436,710 1,692,881 2,310,565 3,188,387 2,951,117 888,801 1,652,327

Net Claims Paid by Life Insurance Companies2004/2005 - 2009/2010

LE Thousands 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 Q1-09/10 Q2-09/10

Public Sector 567,742 864,247 803,601 920,695 953,057 217,979 481,813


Private Sector (Foreign) 88,842 195,795 455,875 631,018 929,852 219,432 450,103

Total Net Claims Paid 728,298 1,138,504 1,348,552 1,692,834 1,989,675 465,066 989,503


110

Table 6.3: Insurance SectorNet Premiums of Property and Casualty Insurance Companies2004/2005 - 2009/2010

LE Thousands 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 Q1-09/10 Q2-09/10

Public Sector 830,913 913,307 976,090 1,453,060 1,644,794 506,638 937,847



Total Net Premiums 1,100,295 1,262,439 1,477,927 2,173,897 2,644,696 827,534 1,542,658

Paid Up Net Claims by Property and Casualty Insurance Companies2004/2005 - 2009/2010

LE Thousands 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 Q1-09/10 Q2-09/10

Public Sector 639,294 730,279 786,345 1,057,638 1,607,413 460,759 889,352



Total Net Claims Paid 763,285 870,300 982,023 1,379,362 1,448,382,824 575,263 1,142,938


Appendices

111

7. Privatization DataTable 7.1: Asset Management ProgramSale of Public Sector and Stakes in Joint Ventures 1

2000/2001 - 2009/2010Total Sales

Companies/Assets/Land

(under law 203) 2

Other Public Sector Sales

(not under law 203)Joint Venture Sales 3 Total Sales GDP % of Total

Sales to GDP

NumberValue in LE

MillionsNumber

Value in LE Millions

NumberValue in LE

MillionsNumber

Value in LE Millions

Value in LE Billions

2000/2001 11 252 -- -- 7 118 18 370 391 0.09

2001/2002 7 73 -- -- 3 879 10 952 379 0 25

2002/2003 6 49 -- -- 1 64 7 113 418 0.03

2003/2004 9 428 -- -- 4 115 13 543 485 0.11

2004/2005 16 824 -- -- 12 4,819 28 5,643 539 1.05

2005/2006 47 1,843 1 5,122 17 7,647 65 14,612 618 2.37

2006/2007 45 2,774 1 9,274 7 1,559 53 13,607 745 1.83

2007/2008 20 745 -- -- 16 3,238 36 3,983 896 0.44

2008/2009 15 1,130 -- -- 2 83 17 1,213 1,042 0.12

2009/2010 -- -- -- -- 4 50 4 50 1,207 0.00

Grand Total 4 337 23,980 2 14,396 74 18,586 414 56,976

Source: Ministry of Investment1 This is a new classification for the privatized companies. 2 Year 2005/2006 includes the sale of 20 percent of Telecom Egypt, and year 2006/2007 includes sale of 80 percent stake in Bank of Alexandria.3 All Joint Venture figures represent value of public sector stake.4 Grand Total from 1991-June 2010, accumalative value.Note: December 2009 refelects a preleminary data. Note: Law No. 203 - 1991, concerning Public Sector EnterprisesNote: The Classical Privatization Program was put on hold due to the preparation of the "Citizen Ownership Program", that has been recently postponed in light of the impact of the global financial crisis on the market.

Appendices

113

APPENDIX C: Economic News

C.1 Egyptian Customs Authority (ECA) Improvement

ECA is a pioneer among the Government entities that based on a computer system since1981. Customs Technology development is running on gradual stages that were commenced in 1991, when a new system was installed as a milestone in a global comprehensive Technology Development Plan. Year 2009 witnessed another leaping stage to develop an automated environment that complies with international standards to ensure the enhancement of all customs procedures that achieves both the efficient performance and apply strict measures of security which will have a great impact on transparency, security, and simplicity. This reform is aiming to construct an operative framework that provides a customs and non-customs operations, which is:

1. Customs Operations

• Improving the efficiency of IT infrastructure.

• Comply with the international standards to have the ability to exchange information.

• Improving the information systems programs running in ECA.

• Building a data warehouse that provides ECA with all types of statistical reports.

• Integration among the various entities.

• Studying and preparing to develop the X-ray inspection systems and containers’ GPS detection including the integration between them.

• Start the study to build centralized unified valuation system.

2. Non-Customs Operations

• Improving the customs institutes and connecting them electronically.

• Studying the establishment of an integrated HR system.

• Developing a propriety ECA email.

• Developing ECA website.

• Developing ECA training institute and preparing for e-learning capacity.

• Building an administrative information system for ECA.

• Investigating the improvement of ECA video conference network to connect all the customs locations and ECA institutes.

• Facilitating to contact all locations through video conference, IP telephony, IP Camera.

C.2 Economic Highlights

C.2.1 Investing Across Boarders

Investing Across Borders report states that Egypt has one of the fastest establishment processes. The World Bank released a pilot ‘Investing Across Borders’ report which covers 87 countries and overlooks four indicators: Investing across sectors; starting a foreign business; accessing industrial land, and arbitrating commercial disputes. According to the report, Egypt has one of the fastest establishment processes of all countries covered by the IAB. The report also states that foreign companies have to go through investment promotion agencies to establish subsidiaries in Egypt. With regard to arbitrating commercial disputes, the report notes that Egypt restricts arbitration of disputes over immovable property and of intra-company disputes. However, the report does not measure all the aspects related to foreign investment, macroeconomic stability, market size, corruption and the quality of infrastructure facilities.

C.2.2 Monthly Wages Improvement

The National Pay Council has recommended a minimum monthly wage of LE 400 from its current level of LE 280 as assigned by the wage law No. 53 of 1984 for private sector workers. The Council added that the minimum wage should be revised regularly, not exceeding three years. The council was treated as an advisory body by the Government and any decision would still need to be passed by parliament. The Council had in 2008 decided to raise minimum pay to 250-300 pounds a month but decision was not implemented and the basic wage in law remains at the 1984 figure of 35 pounds a month. The decision on the minimum wage is not yet finalized and is to be presented to the Cabinet and to be first approved by the Prime Minister before being passed to Parliament.

C.2.3 Tourism Speed Up

The number of tourist arrivals in Egypt has reached 14 million year-to-date in 2010, and the tourism sector is expected to see annual growth of not less than 18 percent by the end of 2010. There are currently 240,000 operating hotel rooms with around 212,000 additional rooms under construction that the total number of tourist nights has increased to 140 million. The importance of tourist arrivals appears in creating job opportunities, that for each one million tourists; around 200,000 job opportunities are created. In 2010 alone, the tourism sector managed to add 600,000 additional jobs. The tourism sector has seen a strong rebound over the fiscal year ending June 2010, with

114annual growth in tourism receipts rising 10.5 percent to US$11.6 billion in FY2009/2010 after contracting (3.1) percent in FY2008/2009 and total tourist arrivals rising to 13.8 million in FY09/10 from 12.3 million in FY08/09. While revenues from tourism may constitute around 5 to 6 percent of GDP, its importance lies in the sector’s contribution to the increasing level of liquidity in the economy and, thus, its knock-on effect on consumer spending and private consumption, which is key for real GDP growth in Egypt. The sector is also a key employer in Egypt absorbing around 11percent of total employment opportunities in Egypt. As anecdotal evidence suggests, the sector growth has been accelerating at a satisfactory pace since the last available published data (2Q2010), and as further re-iterated by the Minister’s statement, which led to forecast that tourism revenues reach US$12.3 billion by end of the current FY2010/2011 as economic recovery gains more ground in Europe (the largest source of tourists), and incoming tourists from Middle East continue to increase.

C.2.4 New Steel Licenses

A new steel license is between Egyptian and Turkish consortium. The bidding process sees applications which are split into two categories; the first where licenses are given to companies that were not awarded any licenses in 2008 (which includes Ezz Steel, Bishai, Suez, Tiba, Arcel or Mittal and Kharafi Steel) and the other category were licenses would be awarded only in the case of insufficient bids received from the first one. Companies are entitled to apply to rebar and/or billet production licenses wherein the maximum capacity of each license shall be 500,000 tonnes. In the case of the oversubscription of licenses, the companies shall enter into a public auction, where a priority would be given to existing factories that had not yet received permits in 2008 and to new companies. On a macro perspective, the developments are a positive for Egypt’s steel dynamics as the country would continue to have a deficit in terms of existing steel production capacities relative to demand, which would work in favor of domestic steel producers on the pricing side.

C.2.5 Rise of Food Subsidies

A new World Bank study shows that measures taken by the Egyptian Government in expanding the base, and better targeting food subsidies, over the past two years have led to raising the share of the low-income individuals from subsidies by 70 percent. On average, the value of subsidy/individual has increased from LE27 to LE106, representing a 70 percent increase over the period under review. The number of families benefiting from subsidized bread has widened from 76 percent to 81 percent, the study showed, while those benefiting from ration cards have increased from 57 percent to 68 percent over the same period. Cairo, however, remains the biggest beneficiary of food subsidies, the study added, despite some governorates in Upper Egypt having higher level of low-income groups.

C.2.6 New Mining Wealth Law

Egyptian Mineral Resources Authority has finalized drafting of the new mineral wealth. The new law regulates activities governing mines and quarries and exploration and economic use of minerals in Egypt that would be conducive to attracting investments in the sector. The draft law will be referred to parliament for discussion and approval, the negotiations are currently taking place with the foreign partner in the Al Sokkari gold mine to amend an agreement which was signed in 1994 that will enable Egypt to obtain its share starting 2011 instead of 2012. The mine agreement stipulates that Egypt obtains 3 percent of annual production and the rest is equally distributed among both parties. The new law will apply to mining and quarrying licenses issued before its ratification, with changes in annual rents paid for the mines and quarries being applicable five years after the law’s implementation. The Egypt Mineral Resource Authority (EMRA), currently under the Ministry of Petroleum, would be responsible for the regulation of mineral exploitation activities and issuance of licenses. Highlights of the law had included a transfer in the authority governing mines and quarries from the governorates (municipal authorities) to the EMRA, in addition to a periodical revision of the annual rent paid for the mine or quarry and payment of a 10 percent fee on the production of a mine or quarry, as will be determined by the executive regulations. The new law could be considered a positive development for the mining industry in Egypt. Minerals’ extraction and economic use have been neglected in Egypt, partly due to the relatively low feasibility of the extraction in previous years and, to a big extent, the regulatory impediments facing mining activities in Egypt. The ratification of this new law would help boost investment in the industry, especially foreign, considering the rise in commodity prices internationally, and the announcement of availability of mineral resources in several areas across Egypt. Currently, a limited number of companies operate in the industry, focusing mainly on extraction of clay and other materials for cement production, with the recent entry of some companies in the extraction of other minerals, including gold.

C.2.7 Butane Distribution Mechanism

The cabinet will discuss the outcome of studies conducted regarding the new proposed distribution mechanism of butane canisters through the ration card system. These studies were conducted by the Ministries of Social Solidarity, Finance, Local Development and Petroleum. Under the new proposed scheme, and through the ration card, each family comprising one to three individuals will be entitled to one canister, a canister and a half for a family of four-to-five individuals, and two canisters for families of more than six individuals. The proposed price is expected to be LE5/canister, with an additional LE2 for home delivery. The mechanism also includes the option of providing canisters wit h a partial subsidy and without a ration card, in which case the price will be LE25/canister.

Appendices

115

Butane gas is the energy product most subsidized by the Government and mostly used by the low-income class and higher income groups who reside in areas that are not linked to the national gas grid. The liberalization of canister prices, for non-ration card holders, could have negative repercussions on inflation, when implemented fully on a national level, and could create a black market for the canisters, while being partially implemented in some areas.

C.2.8 Expansion of Delivery of Natural Gas

The Ministry of Petroleum announced its plan to increase supply of natural gas to homes in order to reach an additional 750 thousand consumers by the end of FY 2010/2011, an annual increase of 55 percent. The Egyptian Natural Gas Holding Company (EGAS) asserts that the year 2009/2010 will witness the expansion in the delivery of natural gas to Upper Egypt to reach 100 thousand consumers mainly in Minya, Luxor and Sohag.

C.2.9 No Raise for Gasoline and Diesel Prices

The Government does not intend to raise the prices of gasoline and diesel and has not taken any decisions about fuel prices. The queues for fuel in gas stations in a number of governorates is a result of the rumours regarding an imminent price increase, although their prices will not be raised soon. There is a five-year plan to raise energy prices that keeps getting postponed due to different reasons, with the exception of the part related to raising energy prices for industries, as it might come up in the government’s statement that is delivered to Parliament at the beginning of the parliamentary sessions. The Government plans to raise the prices of energy products to restructure energy subsidies are constituting around 60 percent of total subsidies in the state budget, with the final decision regarding the timing of the increase being more politically driven.

C.2.10 Increments for Non-Energy Intensive Industries

The Government plans to increase prices of natural gas for non-energy intensive industries to US$2.25/mBTU in January 2011, after deciding to raise the price from US$1.7/mBTU to US$2.0/mBTU effective July 2010. The increase in the price of gas for these industries was scheduled for implementation over three phases, but will now be done over five steps, including one in January 2011, another in July 2011 when the price will be raised to US$2.45/mBTU, and in January 2012, when the price will be raised to US$2.65/mBTU, provided that conditions in these industries improve and exports increase. This schedule has not been finalized yet by the different parties involved in the decision-making process. The Government realises that the US$3/mBTU charged for energy-intensive industries is now below cost level, but the

Government cannot, at this point, raise the price, for fear of its negative impact and the extensive pressure the government is under. The peak hours for electricity consumption, have been identified as 19:30 to 23:00 in the summer and 17:00 to 21:00 in the winter. The price of electricity will increase by 5 percent in these peak periods for energy-intensive industries according to the Government’s recent decision, effective July 2010. The Government chose to postpone the implementation of similar charging for the household sector, due to its potential negative impact on users. While the consecutive increments in gas prices for the non-energy intensive industries to have a significant impact on the companies and, therefore, inflation, any pick-up in demand for these companies’ products could allow them to use the periods of gas price rises to raise their final products’ prices to improve their margins, impacting inflation at the time. Regarding energy-intensive industries, the cost of gas used by these industries is on the rise, in tandem with the rise in production costs of gas, from the Mediterranean especially, but expect that Government will postpone increasing the price of gas for these industries until at least after the presidential elections and a more solid recovery in the economy.

C.2.13 State Budget Law and Investment Law

Law No. 114 of 2008 was issued to introduce two complementary items to the budget amounting to LE24.5 billions (US$4.3 billions) to enhance the supplements on petroleum prices, increase the civil and military pension of employees, and increase the amounts of commodities granted by virtue of Government aid. The law also increased the vehicle registration fees and cancelled tax exemption on treasury shares issued by the Egyptian Government.

The above law also introduced a change of the Invest¬ment Law No. 8 of 1997 and cancelled the free zone status and accordingly, the income tax free treatment of existing or future projects in the fields of manufac¬turing of fertilizers, steel and petroleum, as well as the manufacturing, liquefying and transport of natural gas.

C.3 Banking Sector Reform 1

The Banking Sector Reform Program is an integral part of the economic reform program aiming at creating a sound and diversified financial sector, capable of contributing to Egypt’s growth and providing access to financial services to a much broader segment of the Egyptian population, within this context, the Banking Sector Reform program aims at strengthening the banking sector and increasing its robustness to enable it to face global and regional competition effectively and help achieve the targeted economic growth. The First Phase of the Banking Sector Reform Program addressed

116banking sector weaknesses and targeted setting up the infrastructural base for the banking sector while the current phase of the program. The Second Phase targets rooting an operative framework for the sector by deepening the Egyptian banking sector, enhancing its efficiency, competitiveness, transparency and risk management practices.

Phase I of the Reform Program entailed four main pillars; (i) Privatization and consolidation of the banking sector (ii) Addressing the non performing loans issue. (iii) Financial and managerial restructuring of state-owned banks, (iv) Upgrading CBE Banking Supervision. The plan commenced in September 2004.The following summarizes the landmark developments accomplished during Phase I of the Reform Program:

1. Divesture of state owned banks’ shares in joint venture banks eliminating conflict of interest, and indirect state ownership and intervention. This reform pillar succeeded in attracting foreign and regional strategic investments and inviting banking know-how by means of drawing regional and international strategic investors, and the FDl proceed generated were used in the operational and financial restructuring of state owned banks.

2. The privatization of “Bank of Alexandria was acknowledged as one of the most successful privatization transactions in the MENA region in recent years.

3. Dealing with weak banks by means of consolidations with larger banking institutions and supporting them with loans from the Central Bank of Egypt (CBE), which was instrumental in securing depositors’ funds and protecting the financial system and ensuring its safety amidst the financial crisis.

4. Consolidations were encouraged to create robust entities with strong management, efficient processes and proper financial coverage, whereby:

◊ The number of banks has declined from 57 banks in December 2004 to a current number of 39 banks.

◊ The Banking Sector’s Net worth increased by more than 140 percent from LE32 billion in 2004 to LE78 billion in November 2010

◊ Increasing the number of operative branches from 1,795 in 2004 to 2,517 in November 2010.

5. Implementation of a complete operational and financial reform for state owned commercial banks to create strong viable efficient banks able to compete and sustain future economic growth, whereby:

◊ Recapitalization measures of state owned commercial banks were taken based on results of an independent audit, due diligence and IFRS conversions from EAS.

◊ Operational and structural reform was launched and implemented (3 years) for two banks covering 4 backbone areas namely HR, Risk Management, IT & MIS with the assistance of two international consultants (ABN Amro for Banque Misr and ING Bearings for National Bank of Egypt).

◊ Establishment of a specialized fund in November 2005 for the reform and upgrading of the state owned banks to fund the hiring of qualified management staff and experts.

6. Setting a national policy for dealing with Non-Performing Loans (NPL’s) to improve economic performance and enhance growth which lead to:

◊ Settlement agreements for over 90 percent of NPL’s through introducing several new approaches and programs to the Egyptian banking sector.

◊ Full settlement of State Owned Enterprises NPL’s.

7. Completing Phase I of Upgrading the Banking Supervision Unit in line with international standards by implementing a risk based approach.

With core objectives focusing on deepening the Egyptians banking sector, enhancing its efficiency, competitiveness, transparency and risk management practices to ensure that it will effectively conduct its role in financial intermediation sustaining domestic economic growth and development.

Phase two targets furnishing the following strategic components:

1. Supervise and monitor the launch of a complete operational and financial restructuring plan for the three state owned specialized banks (PBDAC, EALB, and ID&WB).

2. Follow up on the operational and institutional restructuring of National Bank of Egypt (NBE) , Banque Misr (BM) and Bank du Caire (BDC) to ensure sustainability of Phase I restructuring achievements and finalizing the requirements necessary to improve their efficiency in financial intermediation and risk management.

3. Implement Basel II framework in the Egyptian banking sector.

4. Adopting an initiative promoting the development and growth of banking activities/services catering for various sectors especially the SMEs sector.

5. Review and enforce the implementation of corporate governance rules in the banking sector and the CBE.

In so doing, the CBE set the foundation by marking a detailed strategic plan to promote a solid environment targeting the execution and implementation of the following tools:

1 Source: Central Bank of Egypt.

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117

1. Conduct an audit of the three state owned specialized banks based on international accounting standards.

2. Design a complete operational restructuring plan for the three state owned specialized banks and monitor its implementation over the period 2009-2011.

3. Set profitability and efficiency benchmarks for NBE, BM and BDC to assess management performance starting fiscal year 2009I2010.

4. Divest CBE’s shareholding in British Arab Commercial Bank, Arab African International Bank and the United Bank.

5. A technical support protocol has been signed between the CBE and the European Central Bank with seven European National Central Banks to provide necessary expertise and technical assistance to implement Basel II requirements in the Egyptian banking sector. The strategy of the CBE in implementing Basel II is based on two fundamental principles; simplicity and consultation with banks, to ensure that all Egyptian banking system units will apply Basel II framework. The project is planned for three years starting January 2009 and ending December 2011, implementation of the project is gradual through four main phases, Phase I was finalized in June 2009, and currently the project is in Phase II which is scheduled to end in June 2011.

6. Develop and implement a comprehensive plan in coordination with all stakeholders to enhance “Access to Finance” to cater for the needs of underserviced sectors, especially SME’s.

7. Enforce Corporate Governance rules within the banks especially with regard to regulating the relationship between the Executive Management and the Board of Directors, managing conflict of interest issues, the role, responsibilities of Board Committees, especially the Audit Committee.

8. Review and enforce the rules of Corporate Governance of the CBE.

C.4 Commentary on Fx-interbank System

On December 23, 2004, the CBE launched the Foreign Exchange Interbank System, whereby banks can source foreign exchange among other participating banks and, by end-day, and be able to square their positions. The CBE was highly committed to supporting the system, reaffirming its soundness and reliability to participants, dealers and investors. Once confidence was restored, foreign capital found its way into the economy since its freedom of exit was guaranteed by the system.

The FX Interbank System has largely contributed to the pound’s gradual appreciation against the dollar.

The Egyptian pound has risen 9 percent against the dollar since December 2004. The exchange rate hovered around LE 5.690/US at the end of September 2010 compared to LE 6.2137/US in December 2004. Average monthly turnover reached almost US$3.7 billions since January 2005 to September 2010.

It is also worth mentioning that the FX Interbank System had completely eliminated the parallel market by sufficiently covering all market needs, preventing any manipulation or speculation in the FX market. In January 2004, a year before the new system was launched, the parallel market was trading dollars at almost a 13 percent premium to the official exchange rate. This margin has diminished to zero since January 2005.

During the first quarter of 2010/2011, Egypt’s external transactions ran an overall surplus of US$14.7 million in the balance of payments, despite the increase in the current account deficit to US$802 million by 62.6 percent (against US$493.4 millions during 2009/2010), while the capital and financial account retreated to a net inflow of about US$ 1.0 billion (against US$ 2.8 billion in the corresponding period of the previous FY). The CBE augment the Gross Official Reserve Assets to the tune of US$ 36 billion (NIR US$36 billions) by end December 2010. The trade deficit registered US$6.6 billion reflecting the raise in both merchandise exports and imports. Export proceeds rose by 13.2 percent to US$6.1 billion, from a rise in oil and non-oil exports (down by 15.1 percent and 11.7 percent, respectively). On the other hand, merchandise import payments increased by 14.3 percent and in non-oil imports an increase by 8.7 percent.

In light of the growing stability in the FX market and the rising of NIR, the FDI did not found their way back into the market since confidence was restored and the freedom of exist was guaranteed by the system recording a net inflow of FDI of US$1.6 billion for the first quarter of 2010/2011 compared to US$ 1.7 billion during the corresponding quarter down by 7.7 percent, as net investments in the oil sector retreated to US$575.7 million while the net Greenfield investments

pick up to US$978.3 million.

C.5 Monetary Policy2

In an attempt to bring greater predictability to mon¬etary policy and move away from direct intervention, the CBE introduced a more consistent form of monetary management. The CBE abandoned the exchange rate as the nominal anchor and developed a cohesive monetary policy framework that effectively anchors inflation expectation. The newly adopted monetary policy framework is periodically reviewed and evalu¬ated by the International Monetary Fund during tech¬nical assistance missions, and so far progress

2 Source: Central Bank of Egypt.

118has been satis¬factory. Several institutional and operational changes were initiated to help facilitate monetary policy formulation and assessment, and lay the groundwork for formally adopting an inflation ¬targeting regime over the medium-term.

After a long period of being reactive under a fixed exchange rate regime, the design of monetary policy has changed to allow more proactive action by the CBE. The Coordinating Council on Monetary Policy (CCMP), headed by the Prime Minister, was established to ensure that government policies are consistent and properly coordinated to support proactive monetary policy.

According to the law No.88 of 2003 for the Central Bank, the Banking Sector and Money, the overriding objective of monetary policy is price stability. In line with this vision, the CBE designed an interest rate corridor to guide the over¬night interest rate, which is the operational target.

A semi-structural model, which accounts for inflation expectation and a proactive interest rate policy, was developed to provide benchmarks for monetary pol¬icy decision. To ensure the transparency of monetary policy and proper communication to the market, the MPC publishes a press statement after each meeting on the CBE’s external website.

These endeavors have been successful: the corridor has been accepted as the policy rate and has become a key determinant of market interest rates; volatility in the overnight interest rates has declined; and the market finds MPC statements credible.

On October 2009, the CBE published a very important macro indicator, namely the “Core Inflation” measure. This measure is used in the analysis of inflation trends and in the assessment of inflationary pressures within the economy. The details of this measure are published on the CBE’s website: www.cbe.org.eg/monetary-policy/monetary-policy-e.htm , the monetary policy tab includes the CBE’s monetary policy framework, monetary policy decisions, Core Inflation and monthly inflation notes. This part of the site is updated frequently and additional material will be added over time as part of increasing transparency and communication.

The CBE is committed to further improving the con¬duct of monetary policy in the coming period to ensure that its objectives are met and clearly communicated to the market. Steps taken in this di¬rection were both operational and institutional.

1. Operational Steps:

• During the transition to a formal inflation targeting regime, the CBE will meet its inflation objectives by steering short-term interest rates and monitoring the monetary and credit developments on a regular basis.

• It will continue to closely monitor all developments in the economy, especially the factors affecting

inflation, and will not hesitate to adjust the key CBE rates in either direction if necessary to insure price stability over the medium term.

• The instruments of the CBE include open market operations and two standing facilities, an overnight lending and a deposit facility. The interest rates on the standing facilities, the lending and the deposit rates, are the two key CBE interest rates. These rates provide a ceiling and a floor for the overnight rate in the money market. By setting the rates on the standing facilities, the MPC determines the corridor within which the overnight rate should fluctuate. Effectively steering the overnight rate within this corridor is the CBE’s operational target. Initially, the width of the corridor has been set at three percentage points. The width of the corridor was reduced by 50 bps in September 2005 and by an additional 50 bps in October 2005.

• For the first time, in August 2005, the CBE issued its own securities to manage market liquidity. The maturity of these securities varies between one day and 280 days.

• By the end of January 2007, the CBE re-introduced the deposit auctions as an instrument to absorb liquidity in addition to the existing ones.

2. Institutional Steps:

• The Coordinating Council on Monetary Policy (CCMP), headed by the Prime Minister, was set up in April 2005. Members of the CCMP include the Governor and Deputy Governor of the CBE, Minister of Finance, Minister of Investment as well as a number of academicians. In its first meeting, the objectives of monetary policy were announced and the importance of CBE independence was discussed. The CCMP meets once every quarter.

• To carry out its better-defined mandate, the CBE established a Monetary Policy Committee (MPC), which initially convened on the first Thursday of every month and changed later to be the Thursday each six weeks to decide on key policy rates. The MPC consists of nine members: the Governor, the two Deputy Governors, and six members of the CBE’s Board of Directors. To enhance transparency, bolster the credibility of the CBE and help anchor inflation expectations, MPC’s decisions are communicated to the market through a policy statement released on the CBE’s external website after each meeting.

• The Monetary Policy Unit (MPU) was established as an independent body within the CBE, and is expected to play a key role in providing objective monetary policy analysis, assessment, and modalities of communication with the market through its research and other functions. It is also tasked with developing and continuing to improve the semi-structural model that provides a cohesive framework for monetary policy, consistent with a flexible exchange rate policy. The structure and functions of the MPU were outlined in several

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technical assistance reports prepared by the International Monetary Fund and the United States Financial Services Volunteer Corp. The CBE followed these recommendations closely and currently, the MPU consists of three divisions: monetary policy implementation, monetary policy stance, and monetary policy strategy. The CBE is also actively recruiting members that will strengthen the MPU’s technical staff. An expert from the IMF was recruited to head the MPU’s Monetary Policy Stance Division and a resident IMF expert joined the MPU in October 2005 to assist the staff in the Monetary Policy

Implementation Division.

C.6 Domestic Debt Management

A major element of the ongoing Ministry of Finance Public Debt Management strategy is to enhance and support the development of an effective Government securities market in order to reduce, to a minimum, the “Illiquidity Premium”, “Refinancing Risk” and finally provide reference-prices for other non-Government issuers.

The proposed initiative is part of a broader reforms started during 2004 such as launching its Primary Dealer System, providing regular Issuance Calendar, increase of T-Bond issuance , Re-Opening of various Government securities, the introduction of the 9 Month T-Bill and finally reducing the numbers of T-Bill per week / month while increasing its nominal value.

The Ministry of Finance has been moving gradually to issuing longer and larger Treasury Bonds by means of constant “Issuance” and “Re-Openings” in order to lengthen its debt average life in order to reduce “Refinancing Risk”.

To reinforce the efforts of continuous market development and move to a more transparent and visible phase, four steps are related to the Ministry’s issuance plan for the 2010:

• Focus on a “limited number” of benchmark maturities, precisely the 3, 5, 7 and 10 years.

• Increase the number of Re-Openings of each security in order to raise the target amount outstanding to around LE 10 billion per T-Bond.

• Increase the standardization of the debt issuance, especially for Government Bonds.

During January/March 2010, Treasury issued LE 119.37 billion. As for April/June 2010, the Treasury issued an amount of LE 101.25 billion. During FY 2009/10, the Ministry of Finance is¬sued a total of LE 439.75 billion in tradable debt through 211 auctions.

C.7 International Eurobond

C.7.1 EGPC’ securitized transaction

In July 2005, Egyptian General Petroleum Company (EGPC) entered into a “Prepaid Forward Sale” contract with Petroleum Export Limited (PEL), which issued securi¬tized notes for a nominal value of US$ 1.55 billion. The issue, partly wrapped or guaranteed by MBIA and XL Capi¬tal, commanded an “AAA” rating from S&P and Moody’s. As for the unwrapped portion (US$ 903 millions), it was rated “BBB” by both agencies.

The issue was over three times oversubscribed; the coupon was set at 4.6 percent and 5.3 percent on the wrapped and unwrapped series respectively. Maturing in 2010 and 2011, it was managed by a consortium of Egyp¬tian, American and European banks mainly Morgan Stanley, BNP Paribas, National Bank of Egypt, Bank Misr, EFG-Hermes and HC Securities.

C.7.2 EGPC signed a new contract for more export facility

The Egyptian General Petroleum Corporation (EGPC) has signed a US$2 billion 58-months debt financing facility structured against EGPC exports of naphtha and crude. The facility pays a margin of 275 basis points over LIBOR; lower than the 350 basis points margin paid on EGPC’s 46-months pre-export finance

facility that was signed in November 2009.

C.7.3 Egypt’s sovereign Eurobond backed by USAID (Guaranteed Notes)

On September 2005, Egypt issued its third Sovereign Eurobond, guaranteed by the full faith and credit of the US Government acting through USAID. The notes had a nominal amount of US$ 1.25 billion, a maturity of 10 years and a coupon of 4.45 pct.

C.7.4 Egypt’s Eurobond issued in April 2010

The Egyptian Government announced that ““The Arab Republic of Egypt rated Ba1 Moody’s/BB+ S&P/BB+ Fitch; all stable outlook, has mandated HSBC and Morgan Stanley as joint book runners for a benchmark Reg S/144A USD transaction. The issue is expected to be launched, subject to market conditions, following a set of fixed income investor meetings in Europe and the US, starting April 15th with a detailed schedule to follow. The Notes may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. There will be no public offering of the Notes in the United States. The government had announced earlier in the

120year that it intends to offer a euro-bond in international markets, given the favorable pricing environment and its positive standing as rated by international rating agencies. It has not been confirmed what the amount of the bond or its maturity will be, although a range of US$1 billion to US$1.5 billion and a maturity of at least 5 years have been mentioned by media sources. The offering will be well received by foreign investors, given the interest in Egypt’s current outstanding bond, maturing in 2011. The impetus to offer the bond did not come from the need to increase external debt, which at reasonable levels, but rather to continue to provide an international benchmark for Egypt’s debt and risk assessment. Due to heavy demand reaching US$14 billion, Minister of Finance Dr. Youssef Boutros-Ghali decided to accommodate investors by issuing a 30 years tranche for US $ 500 Million which was the first time ever for Egypt to issue such a tenor. The 30 years coupon was set at 6.875 percent. As of October 30th, 2010 the yield on the 10 and 30 years fell to 4.70

percent and 5.96 percent respectively.

C.8 Local Currency BondsEgypt launched its first global local currency denominated bond in July 2007 with a nominal value of LE 6,000,000 to mature in July 2012. It was issued at a discount with a price of 99.504 and a yield of 8.875 percent and a coupon of 8.75 Pct. The issue has been 2.5 times oversubscribed by international investors despite unstable international capital markets.

C.8.1 Plain Vanilla Notes issued by New Urban Communities AuthorityIn March and April 2010, NUCA issued a LE5 billion notes fully guaranteed by the Ministry of Finance divided into two tranches. The first tranche is a private placement for a nominal amount of LE 2.5 billion with a 13 months maturity and a fixed yield. It sold at a discount and offered an annual yield of 8.65 percent. The yield is based on the weighted average yield on the last auction of 365 day T-bill plus a premium of 0.375 percent.

The second tranche is publicly offered floating rate note with a nominal amount of LE 2.5 billion and a 5 year maturity that pays a semi-annual coupon based on the net weighted average yield (net of taxes) on the last auction of 182 day T-bill before the coupon setting date-plus a premium of 0.625 percent.

In May and June 2010, NUCA issued additional LE 5 billion note similar to the previous one. The first tranche is a private placement for a nominal amount of LE 2.5 billion with a 13 months maturity and a fixed yield. It offered an annual yield of 8.83 percent. And the second tranche is a floating rate note with a nominal amount of LE 2.5 billion and a 5 year maturity that pays a semi-annual coupon based on the net weighted average yield (net of taxes) on the last

auction of 182 day T-bill before the coupon setting date-plus a premium of 0.625 percent. The two issue were rated AAA by local rating agency MERIS.

C.9 Asset Management Program (AMP)

Since July 2004, the Ministry of Investment has adopted an Asset Management Program (AMP) with an advanced strategy based on three main principles: (i) restructuring and maintaining public ownerships as long as companies and assets are still publicly owned and until they are sold; (ii) the sale and ownership transfer of assets, companies and joint ventures; (iii) the promotion of corporate governance processes. Proceeds from the divestiture of public companies and assets are channeled to the Ministry of Finance and the Restructuring Fund (RF). The RF finances the restructuring of companies and early retirement schemes for employees with a higher compensation package. Privatization proceeds will also be used to settle non-performing loans owed to public sector banks by state-owned companies. The Government of Egypt has already settled LE 6.9 billions to the Bank of Alexandria in preparation for its privatization.

The Government will resume its privatization program by offering minority stakes in companies, ranging between 10 percent and 20 percent starting with companies in the chemical industries. The program had been suspended following the attempted offering of Banque Du Caire in June 2008. The Chemical Industries Holding Company discusses plans for each company and their results to agree on which companies will be offered on the stock market. A majority of the joint venture companies, currently being around 600 companies, are eligible for offering on the stock market. The Government had proposed a different asset management program under which Egyptians would receive shares in around 153 companies, for free, and the companies would be registered on the stock market for trading. The proposal has stalled since late 2008.

C.10 Investment Sector

C.10.1 Signing of “Investment Declaration” On July 2007, Egypt has signed the Declaration on International Investment and Multinational Enterprises with the Organization for Economic Cooperation and Development (OECD). The declaration, which was signed by the original OECD member states in 1976, has since been joined by outside nations, predominantly from South America and Eastern Europe. Signing it signals a policy commitment to improving the investment climate in the country and encouraging further participation from multinationals in the growth of the economy. Egypt is the first Arab

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121

as well as the first African country to sign such a declaration.

The invitation to join the declaration represented recognition of recent improvements in the country’s investment climate. This declaration is a way for governments to commit to improving their investment climates, ensuring equal treatment for foreign and domestic investors and encouraging the positive contribution that multinational companies can bring to economic and social progress.

A new OECD report on Egypt entitled ‘Investment Policy Review of Egypt 2007’ due for full release in September 2007 highlighted the rapid growth in foreign direct investment (FDI) in the country. The OECD report cited improved business registration procedures, a streamlined Customs policy and tax reform as drivers behind the growth in FDI. The waiting period for property registration has dropped from 193 days to under a week and the ministry of trade and industry is reducing import tariffs across the board.

C.10.2 GAFI Arab Investors’ Card MemorandumCard Identification

An Egyptian card for Arab Investors issued in accordance with specific GAFI conditions and regulations to be used in the Arab Republic of Egypt in dealing with government Authorities. This card is no substitute for passports or entry visas.

Authorities Handling / Issuing GAFI Arab Investors’ Card

• Ministry of Interior – Civil Affairs Authority: Imprints Arab Investors’ GAFI card with a security level similar to that provided for national identification cards. The Civil Affairs Authority will develop in cooperation with GAFI an Arab Investor’s Database. “The Protocol has been signed and the software and machinery required for implementation have been procured.”

• Ministry of Civil Aviation – Egypt Air holding Company: Issues a permanent Passenger Golden Card for GAFI Arab Investors’ Cardholders. This Golden Card will provide Arab Investors with an array of special offers, discounts and benefits such as booking priority, reduction in the cost of airfare, and extra luggage acceptance, in addition to special benefits in all dealing with the Egypt Air Holding Company. “Protocol signature is still to be determined.”

• Ministry of Aviation – Airports Holding Company: The GAFI Arab Investors’ Cardholder is entitled to use the VIP arrival and departure lounge in (Cairo/Sharm El Sheikh/ Luxor and Hurgada airports). In addition, the cardholder will benefit from special discounts for Limousine services, VIP car rental, etc…, the cost of these services will be included in the GAFI Arab Investors’ Card fare.

• Misr Bank / National Bank: The Investor’s Cardholder is entitled to issue a visa Card or Master Card with specific facilitating terms. “Protocol Signature is still to be determined”

• Hotel Companies and Famous Places.

Current Status

• The general terms and conditions governing the issuing of the Arab Investors’ Card and the use of the GAFI Arab Investors’ Card have been agreed upon.

• A Protocol was signed between GAFI and the Civil Affairs Authority on April 17, 2006,

• Two Protocols are yet to be signed with the Egypt Air Holding Company.

• Upon signature of these two protocols, the GAFI Arab Investors’ Card issuing date and start date will be agreed on.

C.10.3 New Strategy to Increase Small and Medium Enterprises’ InvestmentsA new strategy to increase small and medium enterprises’ (SMEs) investments includes allocating a specific venue for the completion of investment procedures related to SMEs in all investment centers in Cairo and other governorates and allocating certain areas for SMEs in investment zones and areas to encourage the set up of these projects.

C.10.4 Limited liability companiesAs a part of the ministry of Investment’s efforts to facilitate the growth of small and medium sized enterprises, the ministry has issued a decree effectively reducing the minimum capital requirements of limited liability companies from LE 1000 to LE 200. Moreover, SME’s stand to gain access to banks and financial institutions to obtain finance.

C.10.5 New rules ease company exit strategies

The General Authority for Investment and Free Zones (GAFI) has simplified the rules governing the withdrawal of foreign companies from Egypt. Previously a company could not liquidate its assets until GAFI has examined debt owed to public institutions. Now, it only requires letters has no outstanding debts with sovereign institutions. GAFI will not concern itself with companies’ private debts. GAFI reported a 63 percent increase in new company approvals in Q3-FY 2005/2006 over the same period in the previous year. GAFI reported only 45 companies applied for liquidation during that period, though this number should increase once the new rules come into effect.

C.10.6 Special economic zone north west suez gulf • Concluding a comprehensive settlement of the

zone’s problems.

122• Restoring the ownership of 20 square kilometers

• Establishing the main development company.

The General Authority for the Special Economic Zone North West Suez Gulf has successfully located 20 square kilometers in the southern section of the North West Suez Gulf to establish a special zone. This step will enable the authority to establish a new industrial zone according to the law 83/2002.

An establishment agreement for the main development company was signed between the General Authority for the Special Economic Zone North West Suez Gulf, Egyptian-Chinese joint venture, Suez Gulf Development Company and Misr Bank. The new company has an issued capital of LE 200 millions and will be assigned to establish, run and use the new area, which will be the first to provide investors with incentives and guarantees stipulated in the special economic zones’ law.

The special economic zones’ law was issued in 2002 to provide investors with additional benefits such as paying lower taxes of 10 percent for companies and 5 percent on workers’ salaries. The law states simplified taxes and customs rules and that the authority, only, shall, issue all necessary licenses of projects and establish an independent dispute settlement centre.

A contract was signed to establish a one-stop shop, funded by the Government of China and supervised by the Chinese Engineering Company. With the new development company, the area will be ready to receive investors from Egypt and the World, especially China which supports the project and looks forward to commencing the project.

C.10.7 Established new industrial zone A new industrial zone, over 1 million square meters, is being established under the name AL-Tajamouat on the Cairo-Ismailiya Desert Road. AL- Tajamouat is a Jordanian real estate development company experienced with developing industrial zones in Jordan. The new industrial zone will be completed over three phases over roughly seven years. Industrial and service space will be available for sale or rent, including a housing area for employees.

C.10.8 Reduced industrial rent In order to support existing industrial investments and projects suffering under the weight of the financial crisis, therefore the Ministry of Investment agreed to reduce the rent paid by companies in public free zone areas. The Minister stated that companies will now have to pay a maximum of US$2 per square meter, down from 43.50 per square meter. The decision will likely improve the competitiveness of these companies and help them to avoid layoffs. Affected industries include garment and textile manufacturers, and food and pharmaceutical industries.

C.10.9 Private Industrial Zones

The Government Initiated the concept of Private Industrial Zones, there is six available and is in the process of selecting eleven new ones. The financing comes from private money. The Govern¬ment will deliver the land with basic infrastruc¬ture, but it will be up to the owners to maintain the internal infrastructure and do the marketing. This con¬cept has proved successful in the first six industrial zones and there is a huge amount of interest in the new ones. Geographically, these zones are moving closer to the population. This is contrary to the pol¬icy the Government had in the 1970s and 1980s, when they were basically moving away from congested cities.

The Government tackles the issue of unemployment and competitiveness, so they create jobs where people are, focusing on industri¬al zones in the Delta and Upper Egypt, knowing that would never touch agricultural land. There are some new industrial zones close to every population concentration. Some of this will involve agricultural land, but only will do this with the caveat that for each piece of agricultural land transformed for industrial purposes, the Government will reclaim five times the same amount of land in the desert. There is huge interest in industrial investment in Egypt. Getting about 200 applications for new fac¬tories every month and there is demand from all industries: petrochemicals, paper, fertilizers, food industries, furniture, glass, textiles and others.

C.10.10 New three areas to the QIZ zones

The Government will seek to add three more areas to the Qualified Industrial Zones (QIZ) it has with the US. The Government wants to expand the number of (QIZ) to the southern governorates. Textiles, one of Egypt’s largest industries, would not, however, be part of the zone expansion. Focusing on a lot of other products that could benefit from free trade conditions with United States, including food, leather products and electronics. Annual trade between the two countries reached US$8.4 billions in 2008, doubling in the last four years, it would double again in another four years. The QIZ agreement is between Egypt, Israel and the United States. It was implemented in 2005, allowing Egypt to export from the zones to the United States free of tariffs and quotas as long as a certain percentage of Israeli goods are used. There are currently over 16 areas designated as QIZ areas from which duty free exports are allowed to the US. An expansion of focus to non-textiles industries in the new QIZ areas would be a positive step that would allow the Government to attract more investments to these industries and increase economic activity in Upper Egypt.

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123

C10.11 Upper Egypt-Red Sea road

The implementation of the second phase of the Upper Egypt-Red Sea road to be built at a cost of LE1.6 billion, the phase of upgrading the road to be a two-lane road. The new road is expected to spur investment and tourism, linking roads to previously inaccessible areas. The 414-km-long road from Sohag to Safaga. Port is meant to help revive industrial zones in Upper Egypt and link them to Red Sea harbors which are being developed, particularly Safaga, reviving trade and investment in Upper Egyptian governorates. The completion of the first phase of the newly constructed road, more than 20,000 workers and technicians worked on constructing the road over a period of 30 months.

The second phase will be funded from the yield of the State-owned Asset Management Program and carried out by Hassan Allam Company over the course of another 30 months. This road starts from eastern Sohag, in a place called Al-Kawthar, and goes on for around 270 km to Safaga. It also has extensions from Qena and Assuit. The most important thing is that the road goes through hills and mountains of the Eastern Plateau which have historically been a major obstacle cutting off Sohag and the other governorates from the Red Sea ports.

The Governor said that there are plans to link the road to Al-Wadi El-Gedid, completing the network of roads in the south and linking it to the ports. Before the road’s completion, most of Sohag’s land was inaccessible and therefore less suitable for investment. The Governor added that the road has provided access to many areas, in Sohag and along the road, including areas favorable for agriculture development, mining activities, industrial zones and residential developments. Even though Sohag is in the center of Upper Egypt and has a strategic geographic position in the south for trade and investment, the road, for the first time, has linked Sohag to a port in the Red Sea. This road also links the touristic Red Sea route to Sohag, giving access to Sohag’s touristic sites at Akhmim, Abydos and the recently excavated temple of Ramses II. The road also is good news for locally driven handicraft industries like Akhmim’s handmade silk industry which started from the time of the Pharaohs and is being supported by the governorate. The road which was opened only recently has a traffic density of 2,000 cars per week and it is expected to increase with the second phase. When industry starts to pick up on the decrease in transportation prices to the now more accessible port.

Exports from and imports to the area will also be more feasible and never before seen investments are now flowing in. Investments which used to be in the range of tens of millions have recently been reaching hundreds of millions and even billions of Egyptian pounds, with the news of Government infrastructure spending attracting larger investors.

The importance of the Upper Egypt-Red Sea road in terms of allowing for many investment projects that would provide thousands of jobs for local residents. This project comes as part of the Government’s ongoing process of upgrading and improving its infrastructure, which reflects positively on Egypt’s short-to-medium term growth outlook as higher domestic investment activities and Government expenditure fuel real GDP growth at a time when external drivers (trade, tourism, etc) continue to gradually recover. On the other hand, in the longer run such inter-governorate road networks will boost and facilitate domestic transportation.

C.11 Insurance Sector

Although the insurance market in Egypt remains small, the Government believes that it has growth potential, considering the low insurance density (premium per capita) and low penetration rate (premiums per gross domestic product). Insurance density in Egypt increased by 25.7 percent in 2008, reaching LE 99.6 billions, compared to LE 79.2 billions in 2007.

Insurance penetration (Premiums as percent of GDP) has been raised to 1.1 percent for the current FY 2008/2009, where insurance premium volumes amounted to LE 8,186 millions, representing an increase of 39.8 percent from the previous year where the premiums amounted to LE 5,857 millions. Life Business generated LE 3,078 millions and LE 5,108 millions by non-life business.

Since 1998, restrictions on foreign ownership have been abolished. Many foreign insurers, such as AIG, Allianz, ACE, BUPA and Sogecap have entered the Egyptian insurance market and currently there are five companies in the process of being licensed to offer Islamic (Takaful) insurance (already two have taken initial licence and started up, and the others still in the process).

In order to intensify competition in the market, stimulate demand and provide customers with high quality insurance products, rate regulation by the supervisory authority was abolished in 2000. There has also been a gradual reduction in compulsory reinsurance cessions up to 2003.

In addition, an internal control committee has been set up in each insurance and reinsurance company to adopt principles of corporate governance which comply with international standards.

The Government and the Ministry of Investment have made efforts to implement measures aimed at developing the insurance sector. The reform project has five main pillars:

• restructuring of the four state-owned insurers in preparation for their privatisation;

• updating the insurance regulatory and supervisory regime;

124• upgrading the private pension regulatory and

supervisory regime, including outsourcing to professional managers;

• movement towards a more liberalized market; and

• policy reform for third party liability insurance.

The Government has taken steps towards the revival of earlier privatization plans for the four state-owned insurance companies, which include the following steps:

• Selection of international consortium led by of BNP PARIBAS and CIB and consists of Milliman Globle Actuarial Firm, Baker & Mackenzie, and Ernest & Young.

• Establishing Holding Company to manage the four SOIs.

• Establishing a new fifth subsidiary to the Holding Company which is Misr Real Estate Asset Management Company to Acquire and manage the transferred real estate assets from the four SOIs to it, in order to facilitate their restructuring and privatization process.

• Finally, a decision has been taken by the General Assemblies of the SOIs in their extraordinary meetings held on September 2007 to merge Al Shark Insurance Co. and Egyptian Reinsurance Co. with Misr Insurance Co. to create a National Champion Insurer with total equity US$ 339 millions, and total assets amounted to US$ 3,054 millions.

C.11.1 Revamp Insurance Industry

Egypt is preparing three laws to regulate parts of its insurance industry and help insurers boost their meager market penetration. The laws are governing microfinance, private pensions and private health insurance, following reforms in the last few years that opened the industry to private firms, restructured state-owned insurers and regulated insurance brokers. Insurance premiums now amount to about 1.2 percent of Egypt’s GDP, or US$15 per person. Egyptian Financial Supervisory Authority - EFSA is responsible for 28 insurance companies in Egypt, while the 29th the Export Credit Guarantee Company of Egypt was set up under a special law, and is not under EFSA’s supervision.

In 2007, the Government merged two of its state insurance companies into a third one - Misr Insurance Company, and transformed its fourth company - National Insurance Company of Egypt to specialize in life, pensions and health insurance. Private insurers in Egypt include Commercial International Life Insurance Company (CIL), Germany’s Allianz and Arab Misr Insurance Group, whose shareholders include Bahrain-based Arab Insurance Group and Kuwait’s Gulf Insurance Company.

One of the planned laws, will be for the microfinance, will regulate the establishment of small finance companies that will be able to issue insurance policies, offer new products backed by bigger insurers and take on risk on a small scale. The microfinance law is expected to be enacted before the current Parliamentary session adjourns in about three months. The second law expected to go to parliament later in 2010 to regulate private pension companies. It is scheduled to pass shortly after the enactment of a separate social law to set up a compulsory state pension plan covering all Egyptians. The state pension will provide defined benefits, whereas the private companies will establish funds based on defined contributions, which are usually less risky. Under the draft law, insurers will be allowed only to manage pension funds, but not establish new ones themselves.

The third law will govern private healthcare organizations and is scheduled to be introduced to Parliament shortly after a Government health bill is enacted, probably in late 2010. Under the law, EFSA will supervise both risk takers such as health maintenance organizations and third-party administrators, who manage the insurance firms’ portfolios of health insurance. Further work was planned after these laws were passed, and could include a single law on financial regulation that would include the insurance industry.

C.12 Egypt is Weathering the Global Economic Crisis with Good Results

The World Bank Managing Director Juan Jose Daboub paid an official visit to Egypt to reaffirm the partnership between the World Bank and Egypt, and discuss with Government officials and key stakeholders the challenges and opportunities of the current crisis.

Dr. Daboub noted the importance of the Government reform program and policies that helped mitigate the effects of the global economic crisis and limit those of the recent Dubai crisis. “The country appears to be in strong position to weather the worst impacts of the economic crisis. The World Bank Group is committed to continue to support Egypt in further consolidating the development and reform program and initiating innovative approaches in critical sectors. World Bank is eager to continue to work with a demanding middle-income partner like Egypt and is prepared to provide technical as well as financial support and share experiences from other parts of the world,” he said.

This visit was also an occasion to discuss Egypt’s support for the Arab World Initiative which seeks to strengthen the Region’s integration efforts. “As a knowledge leader and a top reformer, Egypt has a unique convening capacity that can help promote regional economic integration to set the Arab world on a higher and sustainable growth path,” Dr. Daboub noted.

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Dr. Daboub met with Senior Government Officials including Egypt’s Prime Minister-Dr. Ahmed Nazif and members of his cabinet as well as representatives of private sector and think tanks. “World Bank is working closely with the Government to support the country’s priorities for the period ahead. Egypt experienced high economic growth in FY06-FY08 and the country has been the largest recipient of Foreign Direct Investments in the Middle East and North Africa (MENA) region,” he affirmed.

During his visit to the Bank-financed project El Kureimat Solar Thermal Power Plant, which supports the construction of an innovative Integrated Solar Combined Cycle power plant with an expected capacity of about 150MW, Dr. Daboub commended the Government’s energy strategy and its aspirations to become a regional leader in renewable energy generation. “This project is a positive step towards increasing the overall efficiency of the power matrix and will indeed contribute to the reduction of greenhouse gas emissions,” Dr. Daboub added.

Over the past years, the World Bank Program in Egypt has expanded and currently supports the infrastructure, financial, water and sanitation, education, health, rural development and environment sectors.

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APPENDIX D: Economic LegislationLegal Developments

Continuous changes in the Egyptian legal system are taking place to maintain and achieve the Government’s current plan of economic reform. The amendments of current legislations and issuance of new laws and regulations reflect the continuous efforts by the Government to consistently enhance its economic monetary reforms.

1. Egyptian Regulatory Reform Activity – ERRADA

The recent economic and financial crisis has demonstrated that Government need to play an active role in regulating markets, promoting social welfare and protecting the environment. So reforms of policy-making, legislative drafting and managing the stock of legislations or regulatory management reforms have again come to the forefront of the challenges facing Governments to facilitate economic development and poverty reduction. In addition, the Government of Egypt needs to send a clear signal to the international community, investors and donors that it is committed to:

• The policy of making all legislations accessible,

• The policy of reviewing all legislations to make it “business friendly”,

• The idea of developing, incrementally, regulatory reforms aimed at improving the quality of Egyptian regulation for the benefit of citizens, business, investors and the protection of the environment.

In accordance with the Government’s strategies to facilitate the drive towards an open market economy and under the guidance and support of the Minister of Trade and Industry, the Egyptian Regulatory Reform Activity was launched in December 2007. The project is aimed at developing a regulatory regime to support economic growth and enhance transparency and competitiveness as well as facilitate equality and fairness in market access, especially in the industry sector.

The Ministerial group of the productive sector sponsors of the initiative are Ministries of Trade and Industry, Agriculture, Finance, Local Development, Investment, Health and Population, Tourism, Housing, Transport, Administrative Development.

The Egyptian Regulatory Reform and Development Activity (ERRADA), has finished the inventory of business related regulations in the 11 ministries and undertook, since February 2008, the phase of reviewing the comprehensive database of nearly 30,000 regulations in force to identify areas where reforms are critical for improving the business environment in Egypt, while increasing its competitiveness. This is also essential for the legal certainty and for the efficiency of the Government.

In May 2009, a delegation from the SIGMA program (Support for Improvement in Governance and Management), that is a joint initiative of the European Union (EU) and the Organization for Economic Cooperation and Development (OECD), principally financed by the EU, and which, under the European Neighborhood and Partnership Instrument, helps its partners by assessing reform progress and identifying priorities for reform, has assessed the progress of ERRADA and its achievements.

The SIGMA delegation recommended the institutionalization of ERRADA into a sustainable regulatory management and reform process aiming at improving the quality of policy-making and legislative drafting. SIGMA suggested that ERRADA would be a good platform to develop a Regulatory Impact Assessment (RIA) capacity for policy makers in Egypt, which is a modern tool of governance used to assess systematically the negative and positive impacts of the proposed and existing regulations, to identify alternative options for achieving the desired policy change, and to determine whether particular sectors are disproportionately affected. It also aims to reinforce the effectiveness of the rules by simplifying and improving the existing regulation.

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2. Status of Recent Economic Legislation

ENACTED LAWS

1. Financial Leasing Law No. 95/1995, amended by Law No. 16/2001

2. Central Depository Law No. 93/2000

3. Money Laundering Law No. 80/2002

4. Special Economic Zones Law No. 83/2002

5. Civil Association and Establishments Law No. 84/2002

6. Telecommunication Law (UTL) No. 10/2003

7. Unified Labor Law No. 12/2003

8. Central Bank, the Banking System and Monetary Law No. 88/2003

9. Electronic Signature Law No. 15/2004

10. Small and Medium Enterprises Law No.141/2004

11. Income Tax Law No. 91/2005

12. Competition Law No. 3/2005

13. Governmental Accounting Law No. 139/2006

14. Real Estate Tax Law No. 196/2008

15. Presidential Decree No. 231 of the year 2004 concerning the organization of the Ministry of Investment

16. Presidential Decree No. 300 of the year 2004 issuing the Customs Tariffs

17. Explanatory Note on Presidential Decree No. 39/2007 Concerning the Issuance of the Customs Tariff

18. Law No. 67 for the year 2010: promulgating the law regulating Partnership with the Private Sector in Infrastructure Projects, Services and Public Utilities

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3. Overview of Selected RecentEconomic Legislation

• Law No.196 of 2008 was issued on June 23rd 2008 to introduce a new real estate tax system, which aims to remedy the obstacles and ambiguities that previous real estate laws could not overcome. By replacing previous real estate tax laws, the new Law stipulates a new set of provisions and procedures which creates a transparent and straightforward real estate tax system. The law is composed of six chapters and two schedules which determines the value of the real estate tax.

• The real estate tax shall be imposed on the owner (natural person or legal entity) of the estate or the person entitled to its exploitation or usufruct right.

• The value of the real estate tax shall be determined at 10 percent of the value of the annual rental value of the estate unit. The annual rental value shall be determined by the “Assessment Committee”, in which the law stipulates its formation and competence. The assessment committee shall determine the annual rental value based on the geographical location and level of construction and utilities connected to the unit. The determination of the rental value shall be reevaluated every five years. At the end of the five year period, new rental values shall be determined, provided that the new assessment of the rental value shall not exceed 30

• The Electronic Signature Law No.15 of 2004 was issued on April 21st 2004. The Law was issued with the objective of promoting the industry of information technology and communication and is composed of 29 Articles.

• The Law grants the electronic signature and electronic documents in commercial, civil and administrative transactions, the same status of the signatures stipulated in the evidence provisions of the Civil and Commercial Laws, provided that the electronic signature or document has fulfilled the required conditions stipulated by the Law.

percent of the previous rental value for residential units and 45 percent for non residential units.

• The rental value assessments shall be published in the official journal after ratification by the Minister of Finance. Real estate taxpayers shall be notified of the rental value assessments by a registered letter at their listed address.

• The real estate tax shall be imposed on all real estate located in Egypt, regardless of its function, located underground or overwater, occupied or unoccupied. However the Law has determined certain estates which shall be exempted from the real estate tax.

• Residential units with an annual rental value evaluated at less than six thousand Egyptian pounds shall be exempted from the real estate tax.

• The law grants the taxpayer the right to appeal the annual rental value and has determined the procedures in which the appeal could be submitted.

• Taxpayers whom commit tax invasion according to the provisions of this law shall face a penalty which is not less than one thousand Egyptian Pounds and does not exceed five thousand Pounds, in addition to compensation to the real estate tax authority equal to the amount of the unpaid tax.

• As a step by the Government to facilitate electronic transactions and information transfer, the “Information Technology Industry Development Agency” was established by virtue of the Law, affiliated with the Ministry of Communications and Information Technology. The Agency is the competent authority for issuing licenses necessary for electronic signature and electronic services, as well as determining the regulatory standards and technical specifications of the electronic signature.

• Any fraud or violation to the provisions of the Law shall be penalized by a fine which is not less than Ten Thousand Egyptian Pounds and does not exceed One Hundred Thousand Pounds.

3.1 The Real Estate Tax Law No. 196 of 2008.

3.2 Electronic Signature Law No. 15 of 2004.

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Presidential decree No. 300/2004 and its amendments concerning the Customs tariff were issued in 2004. The tariff reductions that came into force then were largely driven by national and international changes the Egyptian economy had experienced at the time. The Egyptian Government’s long term development plan since 2004 has been to create an investor friendly environment that is increasingly led by the private sector and that provides rapid job growth. In this context, a new Customs tariff issued by Presidential Decree No. 39/2007 has made amendments deemed necessary to achieve the Government’s economic objectives in a changing environment.

The main objectives of the amendments were as follows:

• To simplify the structure of tariff rates with a view to reducing distortions in tariff rates and facilitating their implementation by all concerned parties. This objective is achieved through the following reductions:

a. 12 percent down to 10 percent;

b. 22 percent down to 20 percent;

c. 32 percent down to 30 percent;

d. 40 percent down to 30 percent (with the exception of bands included in Chapter 87).

• To achieve a balance between tariffs imposed on manufactured products, intermediate goods and raw materials, that are used entirely or in part in the production of final goods, while taking into consideration the contradictory goals of supporting the national industry, reducing the burden on the Egyptian people, and supporting the various productive activities.

• To comply with Egypt’s commitments to the International Convention on the Harmonized Commodity Description and Coding System, as stipulated by Presidential Decree No. 33/1999, by adopting the HS 2007 issuance as the basis for the Egyptian Customs tariff. This will help facilitate Egypt’s external trade, put Egypt’s statistics at par with international standards, and ultimately serve negotiations on bilateral and multilateral trade agreements.

• To review Article 3 of the Customs Law concerning the collection of Customs taxes due on goods that are subject to temporary admission – whether for repair purposes or for completion of manufacturing activities – in order to ensure sound implementation of the Law.

• Eliminate many of the tariff lines and keep only those strictly necessary in order for the tariff schedule to be at par with international practice.

• Reduce the current tariff rates on selected imports of basic commodities, medications (especially those used for chronic illnesses) and intermediate and capital goods used for production activities.

• Support production activities while creating a fair and competitive environment that does not represent a burden on the Egyptian consumer.

• Develop a partnership with all stakeholders to ensure transparency – a pillar of the international trading system – in the decision making process. The tariff schedule was discussed widely with all concerned parties such as commodity councils, chambers of commerce, the Federation of Egyptian Industries, a number of private and public sector production units, and industrial and investment compounds. The objective was to harmonize all points of view, and to ensure that all stakeholders are partners in the decision making process so as to engage all parties and factors concerned with production and commercial operations.

• Contribute to the creation of a clean environment by applying to selected environmental products a Customs duty of 2 percent of the value of the product. (In cases where a lower tariff rate below 2 percent has been in force, the lower rate applies.) This tax will be applied on stations supplying vehicles with natural gas, on parts needed to transform vehicles to use natural gas, on equipment used to monitor and control various products of environmental concern, and on equipment for renewable and new sources of energy (wind and solar energy) and their spare parts.

The Customs Law No. 66/1963 stipulates in Articles 6 and 9 that the Customs tariff should be issued by a Presidential Decree that has the power of law, on condition that it be submitted to the legislative authority in its current cycle as soon as it becomes effective. If Parliament is in recess, it is to be submitted to the following legislative cycle.

3.3 Explanatory Note on Presidential Decree No. 39/2007 Con-cerning the Issuance of the Customs Tariff

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• On July 2006, Law No. 143 of the year 2006 was passed by the People’s Assembly. The Law was issued to amend certain articles of the Stamp Tax Law no. 111 of the year 1980. Such amendments reflected an enhancement in the economic activity and investment promotion, an example of such is the elimination of the stamp tax which was imposed on copies of financial instruments such as checks of all types and values, stocks and commercial bills. Stamp Taxes on certain banking operations such as opening of financial credit, loans and debt returns, letters of credit, opening of banking accounts, extraction of banking statements, portfolio collection were also eliminated. An estimated Tax was imposed on credit facilities balances and loans provided by the bank during the financial year by a value of two of a thousand.

• The Law also eliminated Stamp Taxes imposed on company establishment, certain capital increases, and copies of minutes of board and assembly meetings, such eliminations reflect investment promotion. Other abolished Stamp Taxes include taxes which were imposed on Egyptian nationality issuance decrees, Commercial Navigation documents, invoices and clearance vouchers of a value not less than One Pound, invoices of property taxes. Stamp Taxes which were imposed on all kinds of certificates issued from governmental agencies excluding certain educational certificates were eliminated as well.

• The Law requires a percentage to be paid off insurance installments as a Stamp Tax with rates of 1 percent, 10 percent and eighth in a Thousand, where each percentage rate is determined according to the nature of the insurance. The insurer and the insured bear the due Tax equally, where the insurance company bear the tax imposed on the total insurance installments. However such the Tax is not imposed on reinsurance installments.

• Additionally the Law imposes a Stamp Tax on all brand promoting advertisements, equivalent to 15 percent of the advertisement fee or cost. According to the Law, the Advertising agency is to notify the Tax Authority of all circulated advertisements and its cost, as well as the due Stamp Tax. Entities are to pay the due Tax to the competent Tax Authority; however the advertising agency is to levy the due Tax for advertisements created for natural persons and service it to the Tax Authority.

• Another main feature of the new Law is the dispute settlement for all cases filed or pending at courts of different levels prior to the effective date of this Law are to be settled by servicing a percentage of the tax and other disputed due payments according to the following grades;

◊ 30 percent of the tax and other disputed due payments of sums amounting to One Hundred Thousand Pounds.

◊ 60 percent of the tax and other disputed due payments of sums exceeding the amount of One Hundred Thousand Pounds.

3.4 Law No. 143 of 2006 amending Stamp Tax LawNo. 111 of the year 1980

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• The Minister of Finance has issued the Executive Regulations of the Stamp Duty Law, as well as other ministerial decrees in relation to the general directives and executives regulations of the respective Law.

• The Executive Regulations includes several articles that aim to promote and enhance confidence between taxpayers and the Tax Administration. Additionally, the regulations seek to augment the supervisory role undertaken by the Ministry of Finance in order to ensure and maintain a balanced relationship between the aforementioned parties.

• With regards to the tax due on bank transactions, businesses and documents, as well as the akin to such, the Executive Regulations have defined such taxable bank bases and types, as follows:

According to the amendment, all transactions related to the «Uses» and «Resources» of the General Budget of the State, including the transactions related to non-financial assets (investments), must be recorded on cash basis. With this provision, the Budget recording will be in perfect compliance with the international standards.

◊ An estimated tax shall be levied on the consolidated balances of loans, credit facilities, inventories in all their forms, including bank obligations, i.e. shares, speculations, interest accruals or any other form of funding.

◊ Consolidated balances shall be determined quarterly (referred to hereinafter as the period) according to the total amounts granted to creditors and which are deposited into their own accounts, with the exclusion of such unused amounts that are within the bounds of authorized credit facilities, loans.

◊ The consolidated balance shall be determined at the close of each period (on a quarterly basis) and shall be entered into the opening balance of the following period, accompanied by credit facilities, loans and inventories advanced by banks, after the deduction of paybacks settled during the same period of time.

• In the event where credit accounts appears in credit facilitates, loans at the end of each period, such accounts may not be debited from the total consolidated balances, as well as allocations of loans and accrued interests may not be debited from the total consolidated balances.

• The Executive regulation does not impose an estimated stamp tax on interest accruals or marginal revenues which are not added up to the credit facilities, loans for customers and banks. The estimated stamp tax shall fall due only on such debits from credit accounts of creditors and which are listed in their accounts, except those amounts that are not used from the authorized credit limit of credit cards. The estimated stamp duty may not be levied on debit cards or stored-value cards, including smart cards.and more progressive public finance.

3.4.1 Ministerial Decree No. 525 of 2006 promulgating the Executive Regulation of Law No. 163 of 2006 concerning Stamp Tax Law.

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• On June 17th Law No. 139 of 2006 was ap-proved by the People’s Assembly. Law No. 139 is issued to amend Articles 5, 6 and the first paragraph of article 30 of Law 127 of 1981 concerning Governmental Accounting.

• Recording on cash basis:

According to the amendment, all transactions related to the «Uses» and «Resources» of the General Budget of the State, including the trans-actions related to non-financial assets (invest-ments), must be recorded on cash basis. With this provision, the Budget recording will be in perfect compliance with the international standards.

• Treasury Single Account:

Law No.139 will introduce another significant improvement to the State Budget. The Law states that a single account must hold all the accounts of:

◊ The Ministry of Finance,

◊ The administrative body units,

◊ Local administration and public service

◊ Economic authorities

◊ All other accounts of public and govern-mental agencies already opened.

3.5 Law No.139 of 2006 amending some of the articles ofLaw No. 127 of 1981 concerning Governmental Accounting

• The new accounting system develops a more transparent and effective State Budget. Previously, public money was fragmented into:

◊ 48,400 accounts within the Central Bank of Egypt

◊ 5,000 accounts in other commercial banks

• By the end of December 2005, the cash in these accounts amounted to LE 82.3 billions which represents around 14 percent of GDP.

• The Treasury Single Account will consolidate sub-accounts for each of the above mentioned entities. With this additional remedial step, the Ministry of Finance is heading towards a lower budget deficit and more progressive public finance.

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• The provisions of article 4 of law 186 of 1986 regulating customs exemptions, concerning the collection of customs duty at a fixed rate of 5 percent of the value, shall apply to companies and establishments for all their imported machinery, equipment, devices, means of transportation for materials and vehicles (other than private cars) necessary for establishing projects, including investment projects, hotels, tourist establishments, stated in law 1 of 1973.

• The provisions of article 8 of law 186 of 1986 regulating customs exemptions states that machinery, equipment, devices (other than private cars) shall be temporary released to be rented or used within the country at a tax rate of 20 percent of the value for every year or portion of a year that they remain in Egypt. Article 9 paragraph A generally restricts the usage of items that have been exempted or that have a discounted customs tariff or have a fixed tax rate. According to article 4, it is prohibited to use these items within a specified period for any means other than their main purpose, except after paying the applicable customs duties.

• There was a debate concerning the validity of the fixed rate of 5 percent for machinery, equipment, and devices as specified in article 4. Therefore, the matter was reviewed and discussed by the cabinet committee concerned with settling investment disputes and decided the expansion of the previously mentioned category.

• The application of the 20 percent tax rate as stated in article 8 will be a burden on the projects that import machinery, equipment and devices. This could prevent them from importing such equipment despite the need for them.

• In addition, article 9 paragraph A of the same law states the prohibition of usage of these items until paying taxes and fees and prohibition of transferring them to other projects that have similar privileges. According to the decision of the general assembly of the departments of fatwa and issuing legislations in State Council, these projects became deprived from reusing such machinery, equipment and devices despite the fact that these items could be imported and be exempted or have a discounted rate or have the fixed tax rate of 5 percent.

• For all these reasons, the amendments of the previous articles are required to settle any dispute may arise in the projects stated in article 4 who enjoyed the 5 percent tax rate, and to ease the burden on the institutions and establishments that are willing to benefit from article 8. In addition to permitting the transference of the exempted machinery, equipment and devices or enjoyed a discounted customs tariff rate or have a customs duty of 5 percent to other projects that have the same privileges during the period of seizure without forcing them to pay any customs duties.

• Meanwhile, the law includes re-regulating the period of seizure in exempted commodities or have a discounted tariff rate or have a 5 percent fixed duty rate according to its expiry dates and types and following the principle of graduation in setting the customs duty in cases of transferring such commodities during the seizure period.

• The attached law also states the necessity to revise the requirement for commercial and manufacturing samples for the exempted commodities according to article 2 of the mentioned law to inspect whether these commodities shall be exempted or not.

3.6 Law No. 8 of 2005 amending the Customs ExemptionsLaw No. 186 of 1986

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• Less than two months after the appointment of the new Cabinet, Minister of Finance Youssef Boutros-Ghali presented a new income tax law during the annual conference of the National Democratic Party, held in September 2004. The draft law was circulated and discussed by all stakeholders and then sent to Parliament for approval. The Parliament has passed the new law and the President has signed and issued it in the Official Gazette in June 2005.

• The new income tax law makes the Egyptian tax system more transparent for both national and foreign companies looking to invest in Egypt. It cuts personal and corporate income taxes, and unifies tax exemptions and legislations. It introduces a 50 percent reduction in personal and corporate taxes to a maximum rate of 20 percent. It has also restructured income tax brackets into three categories, with tax rates of 10, 15 and 20 percent. Existing tax exemptions for annual earnings of under LE 5,000 would double. Working spouses would benefit from the new law as each of them would be eligible for an exemption of LE 5,000 on wages. Civil servants would get a personal exemption of LE 4,000 annually.

• Additionally, the law grants a general amnesty for taxpayers in all cases before courts the subject of which is the disagreement between the taxpayer and the Tax Authority on the tax estimation, provided that the disagreed tax amount does not exceed LE 10,000. Moreover, the law provides for a settlement process in tax evasion cases or other offences upon request from the concerned person within one year of the entry into force of the law. These provisions are seen essential in order to encourage Egypt’s informal economy to legalize its status.

• The law also provides for phasing out tax exemptions for newly established companies. Companies listed on the Stock Exchange would also lose the tax exempt status of their paid-in capital.

• In addition to rate reductions, the law provides for streamlining tax administration and merge all income tax legislations into one law. The law is intended to encourage the voluntary submission of tax returns by taxpayers, the timely payment of taxes, and greater compliance of citizens who previously evaded taxes whether because of high rates or cumbersome procedures. A key element of the law is the introduction of self-assessment for taxpayers. This places the burden of proof for

tax evasion on Tax Authority which will now limit its inquiry to a sample of some 5 to 10 percent of all taxpayers. The elimination of what had been viewed as discretionary assessments aims at regaining the missing trust between taxpayers and the Tax Authority.

• The Ministry anticipates a significant improvement in the cost effectiveness of the Tax Authority and a reduction in costs to enterprises and individuals associated with the payment of taxes. The new system raises revenue from a limited number of tax rates and will therefore substantially reduce administration and compliance cost. Avoidance of numerous taxes that yield limited revenue will also facilitate tax assessment and avoid the impression of excessive taxation. The new law also introduces high deterrent penalties against tax fraud.

• The proposed rate reductions and administrative changes will, in the medium term, stimulate the economy. Higher profits for businesses will encourage faster economic growth, thus expanding the tax base and ultimately increasing tax revenues. This should partially make up for the shortfall in tax revenues, estimated at between LE 3.2-3.5 billions. GDP growth rates should increase by 2-2.5 percent giving rise to at least LE two billions in additional revenues.

• A broad tax base with limited exemptions enables revenue to be raised with relatively low rates. The erosion of the tax base through exemptions requires higher tax rates to make up for the loss in revenue. Higher rates only serve to increase the likelihood of tax evasion. Hence, expected improved tax compliance under the new reforms should also cover a large part of the loss in tax receipts.

• Proceeds from an ambitious privatization program that includes 172 state-owned companies, a public sector bank and the stake of the Government in joint venture banks will also be used to finance the temporary increase in the budget deficit.

• Over the longer term the Government will be building up the administrative capacity of the state to collect taxes. In addition, a plan was set, immediately after the issuance of the law, to create awareness of taxpayers in order to encourage them to take part in the reform. This plan depends to a large extent on press and media campaigns directed to all classes of society.

3.7 Law No. 91 of 2005 Concerning the Income Tax

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• Article Eighth of the law issuing the income tax law provide that the Minister of Finance shall issue the Executive Regulation for the tax law.

• Accordingly, the Minister issued decree No.991 of the year 2005 promulgating the Executive Regulations of the Income tax law. The Regulation set forth the guide lines and interpretation of tax law articles, and helps in leading the way to the best application of the concepts laid down in the law, by providing the definitions of the principles stipulated in the law and the procedures needed to apply such principles therein.

• The Executive Regulations consist of 146 articles contained in six books.

• Book One speaks about general provisions which deals with the issues of the calculation of the tax period and the conditions needed to approve a change in the tax period. In addition, the cases when the natural person is considered as having permanent residence in Egypt and the actual headquarters of a legal person as well.

• Book two deals with the Income Tax of natural Persons with regard to the following issues:

◊ Tax scope and rate,

◊ Salaries and the like

◊ Commercial and Industrial activity,

◊ Exemptions,

◊ Revenues of non commercial professions,

◊ Real estate revenues

• Taxes on the profits of the legal persons is the subject of Book Three from the regulations. It deals primarily with determining the scope of the tax and the equation of calculating the average capital stock, the average of loans and advances of determining taxable income .

• Book Four set fourth the withholding of tax at source, and the issues of Deduction, Collection, and Tax advance Payments are the subject of Book Five from the regulations. Book Six sets the obligation of Taxpayers and others which includes notifications, bookkeeping tax return ,tax assessment, tax audit and investigations, collection guarantees and finally appeal procedures.

• All articles set forth in the regulations respond totally to the principles of the income tax law, and aims primarily to support the efficient application of the law.

3.7.1 Minister of Finance decree No. 991 of 2005 promulgating the Executive Regulation of the Income Tax Law

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3.8 Law No. 67 for the year 2010: promulgating the law regulating Partnership with the Private Sector in Infrastructure Projects, Services and Public Utilities

On 18 May 2010, Law No. 67 for the year 2010 (the PPP Law) was issued by the Government of Egypt. The Law comes into force on I July 2010. The Prime Minister will issue executive regulations within three months from the date of enactment. The Law is a major step towards implementing the Government’s economic strategy to promote and increase private sector involvement in public services through increasing the number of public private partnerships (PPPs).

Previously, Egypt carried out PPP projects using the general public procurement rules under Law 89 of 1998. This law which was judged by many as not catering adequately for relatively complex PPP-type contractual structures. One of the principal challenges prior to the new Law was the legislative framework governing the procurement process. The PPP Law facilitates the procurement process by addressing some of these legislative problems. The PPP Law allows for more flexibility while maintaining a well-structured, transparent and competitive procurement process across diverse public sectors including schools, wastewater treatment plants, hospitals, transport/ports, and oil and gas.

The PPP Law provides for a prequalification process that establishes procedures for the invitation for prequalification and selection of qualified bidders. While the old law did allow for limited tenders, it did not expressly provide for a system of prequalification.

The PPP Law creates a specialised PPP Central Unit within the Ministry of Finance responsible for establishing the procedures for tendering and concluding PPP contracts as well as the selection of advisers for the tender of PPP projects. This unit, headed by Rania Zayed, is staffed with specialists to ensure projects are carried out efficiently and in line with international practice.

Previously, PPPs were offered under diverse sector-specific laws which posed problems regarding uniformity, regulation and procurement procedures. The PPP law applies to all infrastructure projects with a project duration of between five and 30 years provided that the total value of the contract is worth one hundred million Egyptian pounds or more.

The old law required contractors to provide a performance bond of between 2% and 5% of the total contract value. This was not workable for contracts which typically have a term of twenty years or more. While there were subsequent amendments to address this, the new Law is more flexible, leaving the value to be determined on a project-by-¬project basis.

The PPP Law allows the government to hold a competitive dialogue with qualified bidders after submission of non-binding bids. The dialogues will take place with each bidder individually and confidentially and on the basis of equality of treatment among bidders. If used correctly, competitive dialogue can be a powerful tool to ensure that bidders can provide the most cost- effective final bid taking into account the government’s priorities.

Under the PPP Law, contracts shall be awarded on the basis of the most economically advantageous offer’ after considering the comparative balance of the elements of the financial and technical offers. The old law provided for award of contract to the lowest price received from a technically compliant bidder and utilised a relatively inflexible point-scoring system which again was strongly price-focused. The PPP Law gives more discretion to the Government to strike a balance between choosing the most technically competent bidder and the most cost effective bid.

The PPP Law also allows for arbitration as a dispute resolution mechanism. The form of PPP contracts also provides for alternative dispute mechanisms prior to submission of the dispute to arbitration. Previously, contracts containing arbitration clauses required the approval of the competent minister on the use of arbitration for the project.

It will be interesting to see the effect this new law will have on Egypt’s PPP projects, bearing in mind that the Executive Regulations have not yet been issued. Careful implementation of the PPP Law is crucial to its success. Overall, the new law should prove to be a major advance for the Government of Egypt as it will provide for a good source of investment capital for much needed infrastructure projects

1 Morgan Stanley website: www.msci.com

Appendices

139

APPENDIX E: Important Definitions

E.1 Special Drawing Rights (SDRs):A member’s quota in the IMF is denoted in SDRs. The quota determines the amount of a member’s subscription, its voting right, its access to IMF financing and its shares of the allocation of the SDRs.

E.2 The Morgan Stanley “MSCI” Organization:1

MSCI is a leading provider of global indices and benchmark related products and services to investors worldwide. It is headquartered in New York, and conducts business worldwide with operations in Geneva, London, Hong Kong, Tokyo, Singapore, Sydney, Frankfurt, Milan, Paris, Princeton and San Francisco.

The business of MSCI is to provide benchmark products and services to the investment management community, to distribute index and company-level data and to license the MSCI indices to third parties for the purpose of creating derivative and proprietary products.

E.2.1 The Benchmark Research Group (BRG) is responsible for research and analysis in connection with the MSCI Indices. The members of the BRG provide expertise in country and company research and analytic research. MSCI has the largest and most experienced research staff in the index business, and therefore it has resources and skills to ensure that the analysis of thousands of securities around the world is as accurate as it can be.

E.2.2 The Index Committee is responsible for all editorial decisions affecting the MSCI Indices, including additions and deletions of constituents within the Indices. The members of the Committee are from MSCI and the BRG. MSCI provides independent and unbiased indices. To this end, MSCI has a strict internal compliance structure ensuring the independence of its editorial decision making.

E.2.3 The Editorial Advisory Board (EAB) serves MSCI in an advisory capacity, providing input on index construction methodology and new product development. The EAB provides a formal forum in which leading senior members of the investment industry worldwide can actively discuss the present and future role of MSCI benchmarks in the investment process. The EAB comprises approximately 18 members from leading pension funds, asset management firms, consultants and academicians from around the world.

E.2.4 The MSCI-Egypt Price Index measures market price performance only. The index measures the sum of the free float-weighted market capitalization returns of all its constituents on a given day.

E.2.5 The MSCI-Egypt Total Return Indices measures the market performance, including price performance and income from dividend payments. MSCI’s Daily Total Return (DTR) methodology reinvests dividends in indices the day the security is quoted ex-dividend (xd-date). Dividends are not considered in price indices.

E.3 The following MSCI-Egypt Total Return Indices are calculated:E.3.1 With Gross Dividends. This series approximates the maximum possible dividend reinvestment. The amount reinvested is the dividend distributed to individuals resident in the country of the company, but does not include tax credits.

E.3.2 With Net Dividends. This series approximates the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties. MSCI uses withholding tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates.

E.3.3 The MSCI ACWI (All Country World Index) IndexSM is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. As of May 2005 the MSCI ACWI consisted of the following 49 developed and emerging market country indices: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Jordan, Korea, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Peru, Philippines, Poland, Portugal, Russia, Singapore Free, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom, the United States and Venezuela.

E.3.4 The MSCI Emerging Markets Index SM is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. As of May 2005 the MSCI Emerging Markets Index consisted of the following 26 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela.

E.3.5 The MSCI EM (Emerging Markets) Europe, Middle East and Africa Index SM is a free float-adjusted market capitalization index that is designed to measure equity market performance in the emerging market countries of Europe, the Middle East & Africa. As of May 2005, the MSCI EM EMEA Index consisted of the following 10 emerging market country indices: Czech Republic, Hungary, Poland, Russia, Turkey, Israel, Jordan, Egypt, Morocco and South Africa.1 Morgan Stanley website: www.msci.com

www.mof.gov.eg

Documents

Egyptian Economic Monitor · I.5. Oil and Energy Proﬁles in Egypt 41 II. APPENDICES 45-139 APPENDIX A: FISCAL DATA 47-55 APPENDIX B: STATISTICS 57-111 1. Macroeconomic Data 47 2