Brief Introduction to Investment Environment and Textile Industry in Egypt

Time: 2017-01-12
Views: 44

Egypt, across Asia and Africa, across the Mediterranean and Europe across the sea, mostly in northeastern Africa, only the Suez Canal to the east of the Sinai Peninsula is located in southwestern Asia. Land area of 100.15 million square kilometers, population 89 million (2014), 96% live in the Nile Valley River Delta region.

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Capital Cairo: Egypt's political, economic and commercial center, population 20 million, one of the world's top ten cities. It is also the most populous city in Arab-African countries.

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Natural resources: water (Nile water), oil, natural gas.

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Egypt - the Silk Road economic zone and the 21st century maritime Silk Road at the intersection of China's overseas investment in the positioning of the territory once again be strengthened.

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First, the Egyptian domestic environment

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1, the political environment

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Egypt, one of the four ancient civilizations, once the Arab power, since 2011 after three years of political turmoil. In June 2014, military governor Sesi in power, immediately put forward a political road map for the end of three years of political turmoil in Egypt to bring the dawn. The new government is very dynamic and social cohesion, although the political turmoil, political transition process will continue for a long time, but the overall social stability. At present, Moody's and other rating agencies will be upgraded to stability in Egypt.

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2, the economic environment

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After the ruling of the Seychelles government not only put forward a set of political roadmap, also developed a set of economic development roadmap, focus on improving the investment environment, attract foreign investment. Economic conditions improved with the support of the Gulf countries and steadily moved forward. The IMF has given a relatively positive assessment of its current economic situation.

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In 2014, Egypt's GDP was 286.538 billion US dollars, an increase of 2.2% per capita GDP of 3436.3 US dollars, belonging to low-income countries. Household final consumption expenditure accounted for 82.8% of GDP, an annual growth rate of 6.53% (Source: World Bank website)

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In March 2015, the Government introduced the New Investment Act, introducing a number of investment incentives to attract more foreign investment and improve the investment environment. Concurrently, the Egyptian Economic Development Conference is also aimed at attracting foreign investment and boosting the economic recovery.

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Many investors believe that Egypt's political situation to stabilize, the gradual improvement of the market economy environment, the Egyptian market has expectations.

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Important / characteristic industries: Egypt's economic diversification in the region among the best, agriculture, industry and service industry accounting for a balanced. Oil and gas, textiles and automobiles are important industries with unique resources such as cotton, tourism and the Suez Canal.

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Oil and gas industry: Egypt is an important oil and gas producer in Africa, with proven reserves of oil and gas ranking fifth and fourth respectively among African countries.

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Textile industry: Egypt has a relatively complete textile industry chain. From cotton cultivation to spinning, fabric and garment production, the entire production process can be completed in Egypt. Textile industry output value accounted for 3% of GDP, accounting for the proportion of manufacturing output value of 27%. Egypt currently has about 5500 textile and garment enterprises, employment of about 150 million people, accounting for 30% of the national industrial employment. (Source: MOFCOM Country Investment Guide) Most spinning and weaving capacity is owned by state-owned enterprises, and 90% of the garment production capacity is owned by the private sector.

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Among them, textile state-owned enterprises operating difficulties, equipment, old, rigid management, debt burden, the main orders from the military, can not compete with imported products and domestic private sector.

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Egypt has the world's largest woven carpet production company - Egypt Oriental Textile Company, with an annual output of carpet capacity of 110 million cubic meters, accounting for 85% of the Egyptian carpet market, the US market 25% and 20% of the European market. (Source: Ministry of Commerce, National Investment Guide)

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In 2014, Egypt exported 2.84 billion US dollars in textiles and garments (US $ 1.548 billion in textiles and US $ 1.292 billion in apparel), mainly to Europe and the United States (the EU is Egypt's largest trading partner, accounting for 40% of Egypt's total foreign trade volume). Imports of textiles and clothing 3.3 billion US dollars (2.389 billion US dollars of textiles, clothing 917 million US dollars). (Source: WTO website)

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China is Egypt's major textile and apparel importer. In 2014, China's textile and garment exports to Egypt 26.15 billion US dollars, an increase of 4.17%, accounting for its total imports nearly 80%.

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In 2015, China's textile and apparel exports to Egypt $ 2,725,000,000, an increase of 4.17%. Among them, clothing 1.176 billion US dollars, an increase of 6.28%, 1.549 billion US dollars of textiles, an increase of 2.25% over the same period imports of textiles and clothing from Egypt 29 million US dollars, down 2.98%. (Customs statistics)

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Cotton: Cotton is Egypt's most important economic crop. Mainly in the long-staple cotton and ultra-long-staple cotton, because of its long, smooth, toughness, known as the "national treasure." The average annual output of the global share of up to 35%.

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Egypt is the largest importer of cotton (accounting for Egypt's total cotton exports 19%), followed by Turkey (accounting for 18%), China is the fourth largest cotton importer (accounting for 12% ).

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Suez Canal: located in Egypt, is connected to Europe, Asia and Africa on three continents of the major international shipping lanes, in international shipping has important strategic significance. 2013/14 fiscal year the channel earned 5.4 billion US dollars.

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In 2014, President Ceci announced the launch of the new Suez Canal expansion project, including widening, deepening the original channel and new channel, and will be up to 190 km of the Suez Canal into a prosperous economic corridor.

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The leading project of the project is the Sino-Egyptian Suez Economic and Trade Cooperation Zone with a planning area of 10 km2. The first phase of 1.34 km2 has been completed. The second phase of the 6 km2 extension area is under construction. The project is planned to be an industrial park The main, while covering commercial, financial, logistics, technology research and development and other industries of modern Metro.

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3, social and cultural environment

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Egypt 99% of the population of the Eastern Hammus, the official language for the Arabic, English and French in the big cities and tourist areas. 90% of the Egyptians believe in Islam, Sunnis, every Friday worship. Communication etiquette both traditional customs, but also the passage of Western etiquette. Egyptians think the right is auspicious, "right better than the left", handshake, dining, delivery and other things to be with the right hand.

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In Egypt, compulsory primary education is compulsory, with an average enrollment rate of 32 per cent in tertiary education.

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Trade unions and other non-governmental organizations in Egypt are more active, with trade and trade unions in most sectors.

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Egypt has five working days a week, Friday, six days of rest.

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Since January 2011 political turmoil since the Egyptian social order situation declines. President Cecil's situation after the situation improved significantly.

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Second, the economic and trade cooperation between China and Egypt

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1, the status of cooperation between China and Egypt

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China and Egypt are the ancient civilizations of the world, and the two countries have a long tradition of friendship. The two countries established diplomatic relations in May 1956, Egypt is the first to recognize the new China's Arab countries and African countries. November 2006 announced the recognition of China's full market economy status.

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In December 2014, Ceci visited China to establish a comprehensive strategic partnership between the two sides, the development of bilateral relations into the fast lane, pragmatic cooperation continues to accelerate. Trade volume for three consecutive years exceeded 10 billion US dollars mark, and the growth rate is much higher than the same period in China and Egypt's overall foreign trade development speed. According to customs statistics, in 2014 bilateral trade between China and Egypt to achieve 11.62 billion US dollars, an increase of 13.8%. China's exports to Egypt were 10.46 billion US dollars, up 25.1 percent year on year.





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