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Kamis, 11 Februari 2016

Egypt Economy

Rahim Tabet | Februari 11, 2016 |
The Egyptian economy is characterized by the release of Arab socialism under Nasser (a state-led economy system) and gradually move to a freer economy under Sadat and Mubarak. Nationalizations were reversed and encouraged foreign investment. Under pressure from the IMF, which provided several loans in the nineties, the privatization of the economy accelerated, among other things, new investment legislation. Since the start of the privatization process in 1994, there are end of June 2002 132 companies entirely and 57 partially privatized companies. Another 125 companies should have been privatized in late 2002, but this failed.
Egypt Economy
But an improvement in the economic situation did not go into. The strong population growth the shortage of jobs has become increasingly urgent.

Tourism has always been a strong pillar of the economy, but the number of tourists has dropped dramatically since the 2011 unrest.

2013 was officially 13.4% of the workforce is unemployed and working about 2 million Egyptians abroad, mainly in Saudi Arabia (924,000), Libya (333,000), Jordan (227,000), and Kuwait (191,000). Unemployment among the highly educated is very high, about 45%. Many highly educated, moreover, always with low-educated, look abroad for work. There is a certain 'brain drain' has started to other countries. Yet all these Egyptians abroad of great importance to the Egyptian economy. namely they send billions of euros every year to their homeland, an important source of income.
Although about 29% of the workforce is employed in agriculture, the proceeds of which sector is relatively low, 14.5% of GDP. The Egyptian economy is currently dominated by the service sector, with a share of approximately 50% of total GDP. (2013) Mining and industry are also an important source of income for Egypt.

Agriculture, livestock and fisheries

Agriculture is still an important sector for the economy, both in terms of employment (29% of the working population) as his share of Egyptian exports (17% of total exports). (2013)
In 1962, the land of the peasants or fellahs '(Arabic for "tillers of the soil') was basically limited to 100 Feddans (1 feddan = 0.42 ha), but had 95% of all farms in 1981, no more than 5 feddan; the average is only 0.9 feddan. By improving irrigation and drainage techniques and the climate is the available agricultural area extended to about 6 million Feddans (= 36,000 km2), about 4% of the entire country, two, sometimes produce three harvests a year. Also, the production yield per feddan increased, but due to the rapid population growth has not led to a reduction in food imports.
Egypt Economy
Also, the expansion of the agricultural insufficient. Since the High Dam at Aswan was completed in 1970, the agricultural area could be increased by approximately 5,000 km2, but much cultivated also went lost by urban and salinization.
Egypt is the world's leading provider of long-fiber cotton and the sixth producer of cotton in the world. The high-quality Egyptian cotton is partly exported while Egypt for its own needs lower quality cotton imports Syria, Turkey and the United States.
Rice cultivation is becoming increasingly important. Egypt has the largest rice production in Africa and takes second place in the cultivation of corn and sugar cane. Further more grains, fruits (citrus) fruit and potatoes are grown.

Egypt produces several dozen types of fruit and vegetable and horticultural sector is experiencing strong growth since 1987. The number of banks exceeding 20,000 with a production of approximately 80,000 tons. The most greenhouse products are grown cucumbers, tomatoes and peppers.
Egypt provides 50% of itself in its demand for agricultural products. Performed are potatoes, onions, citrus fruits, melons, white grapes, strawberries, peppers and spices. Netherlands bears the Egyptian beans.
Egypt Economy
Livestock supplies a quarter of the agricultural contribution to the gross national product. The most common species of large animals (esp. Used for milk and meat, as well as pack and draft animals) are cattle, buffalo, sheep and to a lesser extent, donkeys and goats. Yet to be introduced many dairy products and meat. In particular, many young cattle will be imported. Total milk production was estimated in 2000 at 2.8 million tons, enough to meet domestic demand. Even camels are kept.

The construction of the Aswan Dam has been fishing in the Mediterranean (sardines, shrimp) largely lost. Inland (inter alia in Lake Nasser, behind the dam) provides 80% of the total catch.

Oil, gas, minerals and energy
The oil industry is of great importance to the economy. The main fields are located in the Gulf of Suez, in the Sinai and in areas of the more recent discoveries: the fields of El Alamein, Yidma Abu Gharadek and al-Razzak in the Western Desert. In 1968, Egypt became an oil exporting country.

Egypt, which is not a member of OPEC, produced in the seventies more than 400,000 barrels per day. In the late eighties, this was about 600,000 barrels per day in 1997, Egypt produced per day between 800,000 and 900,000 barrels per day. Of these, about 170,000 were exported. Because Egypt is not a member of OPEC, the Egyptian government may adopt the price of oil.

Oil refinery centers are Alexandria and Cairo. There is a network of pipelines to transport the oil. The pipeline with the largest capacity of Suez to the Mediterranean.
In 1974, there are gas fields discovered in Abu Madi in the Nile Delta. Other fields are located in Abu Gharadek in the Western Desert (1976) and Aboekir, near Alexandria (1977). The gas reserves were estimated in 1997 at 935 billion m3. The natural gas is used only for domestic consumption; to export is only considered when the country has enough for at least 40 years.

Other important minerals are phosphate, iron, manganese and salt, largely unexplored. Coal is found in the Sinai desert and iron ore in the Bahariya oasis and Aswan. For agriculture, the phosphate mines in the Arabian and Libyan deserts of interest, which provide the raw material for the fertilizer to keep the soil fertile now lags behind the silt of the Nile in Lake Nasser. Furthermore, there is some gold in the Arabian Desert, Sinai and Aswan marble produces a famous red granite kind. The Arabian Desert is also found more chromium and manganese.
South of Cairo, in Heluan, is the largest steel plant in Africa and Naj'Hammâdî the largest aluminum smelter.
Egypt for the energy supply is highly dependent on the Aswan dam.


Industry
GENERAL
Industrial production increased between 1950 and 1970 by approximately 20% and since then every year by about 5%. There is a surplus of cheap labor, but a shortage of technically skilled. Most companies are known for their inefficiency, understaffing and lack of capital. Since 1977, Egypt has a policy to attract more foreign capital and privatize many state companies.
Most industries are located in and around the major cities in the Nile Delta (Cairo, the Free Trade Port Said, Alexandria); The main industrial sectors are the textile industry and the food industry (approximately 57% of industrial production). Heavy industry is becoming increasingly important, such as the steel and aluminum industries in Helwan in Nag Hammadi. Other small industries are i.a. cement, automotive and electronic industries. Since 1980 there has been a strong development of the arms industry. In 2013, the industrial sector contributed 37.5% to GDP.

CLOTHING AND TEXTILES
The textile industry is one of the major industries in Egypt. It employs more than 1 million people in this sector. The main textile centers Mahallah al-Kubra and Kafr al-Dawar.
Because many companies will have to close their doors outdated technologies and equipment. These machines can only process namely expensive imported cotton. Modernization of the machine park also has the highest priority.

PHARMACEUTICAL INDUSTRY
The Egyptian pharmaceutical industry in a real growth sector, each year more than 10%. Egypt is the largest producer of pharmaceuticals in the Middle East and North Africa with a share of 30%. A small portion of the total production is exported, mainly to neighboring countries.
Pharmaceutical raw materials and finished products are mainly imported from France, Switzerland, Belgium, Germany and the United States. Imports mainly consist of insulin, vaccines, medicines and baby milk.

ICT
The market for information technology is booming. In mid-2001 Egypt had about 60 internet providers and more than 800,000 Internet users. In January 2002, free internet became available.
The number of mobile phones is growing strongly. It is expected that this number will double within a few years.
Production of self-made hardware is still very limited; 60% of the computer systems is made up of imported components.
Electronic business is still in its infancy due to the low number of internet connections and even very limited use by the population of credit cards.
trade

Export 
The trade of Egypt already has many years of shortages and will likely remain so. In 2013, total US $ 24.6 billion exported and imported US $ 59.2 billion, and so is the trade deficit approximately $ 34.6 billion.
The main export products are cotton and oil and oil products, textiles and rice. Exports to the Netherlands especially concerning mineral fuels and minerals
The main export areas are the former Soviet Union, the EU countries (mainly Italy, Greece) and the United States.
Many consumer products have to be introduced (especially wheat). Furthermore, machinery, chemicals, transport equipment and imported metal. Most imports came from EU countries (mainly Germany, Italy and France) and the United States and Japan. Dutch exports to Egypt mainly consists of food products, chemicals, machinery and transport equipment.
Trade with Arab countries is still low, 4.9% of total imports and 8% of total exports. The main Arab markets are Libya, Saudi Arabia, Jordan and the United Arab Emirates. To strengthen trade relations with the Arab Egypt is committed to an Arab free trade zone.

Transport and tourism
Good roads linking Cairo and Alexandria, the cities along the Suez Canal and in Upper Egypt. The Egyptian network in the eighties expanded and covers a total of more than 45,000 km. On November 14, 1980 the Ahmed Hamdi tunnel was opened under the Suez Canal. The coastal road were improved to Libya and the connection to Sudan.

Already in 1851 Egypt had a railway network. In 1990, the total length of 7726 km. The Egyptian railways transported annually about 800 million passengers and 12 million tons of cargo. In 1987 the metro in Cairo was put into use. The European Investment Bank is financing the expansion of the southern metro line 2 in Cairo.
After the train crash of early 2002 has reserved the Egyptian government 250 million for the modernization of the railways, among others, for the purchase of new wagons and locomotives.

The main ports are Alexandria, Port Said and Suez. A new large port complex was completed in 1986 at Damietta. In 1985 a ferry went into operation between Nuweibeh on the Red Sea and the Jordanian port of Aqaba. The waterways are important as a transport option. The total length is 3350 km, of which almost half is formed by the Nile; the rest consists of channels.

The government wants to expand the ports on the Mediterranean and the Red Sea. West of Alexandria, a new port is being built: Dakheila, with a capacity of 20 million tonnes of cargo traffic annually.
As regards inland is making to improve the navigability of the Nile, the main task of the government.
The Suez Canal after the income of working abroad Egyptians one of the largest sources of foreign currency.


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Item Reviewed: Egypt Economy Rating: 5 Reviewed By: Rahim Tabet