Engineering sector in Egypt

El Salam bridge

The Engineering industrial sector currently accounts for 16% of national GDP. There are around 40,000 industrial establishments employing 2.4 million workers. The sector is starving for design, innovation and creativity that UK companies offer.

Market overview

Egypt has the largest population in the Arab world (approximately 90 million, likely this number will double by the coming 25 years) and is the fourth-largest economy. The country has a strategic location in the centre of the Middle East and North Africa (MENA) region (800 million people) and has links to the three continents of Asia, Africa and Europe. It is the hub for the world’s maritime traffic with commercial ports on the Mediterranean and Red Seas. Egypt is signatory to many regional and international Free Trade agreements which reduce or wave completely the custom duties on exported / imported goods; with corporate income tax at 20% for profits up to EGP 10 million and 25% for exceeding profits.

Key opportunities

  • Egypt imports most of its needs of industrial equipment; conveyor belts, automatic control units up to complete production lines and turnkey factories

  • The government plans to establish 3 new power stations and 10 new solar stations to generate additional capacity of 7,000 Megawatt as part of the government’s five-year electricity plan for 2012/2017

  • The government announced Beni Suef Power Station at a capacity of 2250 MW. It is expected that the station will start operation by 2017 with investments worth USD 2.2 billion

  • The Egyptian government is planning to establish 44 new cities until 2052 with an annual budget of USD 850 million which is considered part of the National Strategic Plan for urban development in Egypt

  • Construction investment is expected to increase to about US$ 21bn by 2017, creating more opportunities for construction equipments, home appliances, and digital controls.

  • Ministry of transport has plans to invest around USD 2 billion in the next years to improve, develop, renew and establish a new system of signalling for the entire network of railways (about 6700 Km)

  • Ministry of transport also plans for constructing new lines with a total length of 1204 Km and a budget of around Euro 12.5 billion on multiple phases

  • As part of phase one in the development of SCC that ends 2017, the construction tender for the second container terminal in Port Said sea port has been issued, with a total area of 600,000 m2, 1,200 m quay length and an estimated budget of EGP 3.8 billion

  • The master plan for the separate side channel for Port Said port’s northern entrance have been prepared, at a 9 km length, 250 m width and an estimated cost of USD 120 million.

  • A Spanish company is preparing the feasibility study and tender documents for the construction of 3 tunnels under the Suez Canal in Port Said. Project implementation costs are estimated at EGP 5 billion.

  • There are over 50 international Oil & Gas companies currently operating in Egypt (for example, Apache, Devon, ENI, BP, BG, Shell) and more than 400 services companies and approximately 143 operating rigs. They import all their equipment needs from the international supply chain vendors.

Latest export opportunities in the Advanced Engineering sector

Latest export opportunities in Egypt

Getting into the market

The best business approach to the market is through finding local agent, distributor or partner. Having a local partner can be vital to successful penetration of the market. There are several reasons for this. Firstly, given the continuing bureaucracy, a local partner can shepherd the foreign business through the delays and obstacles. Secondly, foreign companies require a local agent to bid for government tenders. Thirdly, as the Egyptian market becomes more sophisticated there is a growing demand for after sales service, which a local agent can convincingly provide.

More about doing business in Egypt

Contacts

Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).

To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.

UKTI Events

UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.

Major Events

Electricx Power

www.electricx-egypt.com

Automation Technology Egypt

www.at.com.eg

Latest events in the Advanced Engineering sector

Useful links

More about OMIS and other UKTI services for exporters

Sectors: Construction
Countries: Egypt
Topics: Getting Started
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