north africa day november 12th, istanbul sunum... · presence of significant international...
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Global Expertise / Local Capabilities
BNP PARIBAS EGYPT
“Your Bank reference in Egypt”
NORTH AFRICA DAY
November 12th, 2009
ISTANBUL
Amr ABOU-ZEID Head of EGYPT Trade Center – Cairo
Contents
• Macro Economy insights 2- 8
1. Appreciated Economic Performance in difficult times
2. Egyptian Foreign Trade and BNPP E trade activity
3. Egyptian Economy Overview: Major Economic Sectors
4. Big market of + 80 Mio inhabitant and diversified economy
5. Business Environment – important indicators
• Egyptian Turkish relationships 9 – 10
1. Egypt & Turkey – Growing Synergy
2. Trade balance reflects the growth in favor of Turkey
• Introduction to BNP Paribas Egypt 11-16
1. Organic Growth…
2. Growth Dynamic
3. 55 points of sale
4. Tailor-made approach.
• Trade Centers in Egypt 17-18
Appreciated Economic Performance in difficult times
• Egypt has weathered the impact of the global financial
crisis relatively well due to fiscal and monetary policy
actions
• Slowdown on economic activity in Egypt, with growth
rates of 4.3% down from 7% in 2007
• Economic performance during 2008/09 was favorable.
• But, the economic environment will remain difficult in
the year ahead, but expected to continue to soften in
2009/10,
• Additional reduction in interest rates: inflation
continuing to fall and output growth below potential
• The banking system appears reasonably well placed to
withstand pressures arising from the global crisis.
• Exchange rate flexibility has increased in recent years,
with no exchange controls are imposed on investors,
free transfer of Foreign Currency as long as they are
business genuine (imports, dividends, salary
remittances, etc..)
Egyptian Foreign Trade and BNPP E trade activity
Egypt Import;
BNPP E Import;
BNPP E Market share of Egypt Imports;
Growth Ratios
Q - Q - Q - Q - Q - Q - Q - Q - Q -
Egypt Imports Egypt Exports
Q Q Q Q Q Q Q Q Q Q Q Q Q
BNPP Egypt Imports volumes in EGP bio
Balance of Payment
•Non Oil Import remained at the same level (decreasing expectation),
•Non Oil Export decreased by 24%, which enhanced the trade deficit
•Inward FDI dropped by 50%, due to the international crisis, but still most active country in MENA in attracting FDI
BNPP Egypt market share in Egypt Imports as of end of 2008
• In 2008, the growth of BNPP Egypt imports (171%) was higher then the increase of Egyptian Import (+25%).
• This led to double our market share in the Egyptian importation (+117%) to be 7% in 2008 instead of 3.1% in 2007.
Q Q Q Q Q Q Q Q
Inward FDI in USD bio
Real Estate/ Construction Sector
The government has ambitious plans to transform the country’s infrastructure.
Raw material costs are falling due to the global economic downturn.
Despite the crisis OCI reported a net profit rise of 230% y-o-y for 2008.
About 25% of the building materials used in Egypt are imported, with 75% produced locally “either by domestic
manufacturers or as a result of co-operation with a foreign company under license of JV.
Information Technology sector:
Huge potential in domestic market, with a population of 80 Mio and low computer penetration.
Government programmes, such as newly expanded “PC for every home” and “Notebooks for business”
Relatively constructive economic outlook,
Government drive to make Egypt an outsourcing center.
E-Government services are increasingly provided
Telecommunication sector:
Presence of significant international investors, Orange, Etisalat Misr and Vodafone in the mobile Sector.
Mobile market still has potential to grow, with a penetration rate of just under 57% at end-2008, penetration rates also
reflect registered rather than active user base.
Acquisition of 3G licenses by all three mobile operators.
Egyptian Economy Overview: Major Economic Sectors
Egyptian Economy Overview: Major Economic Sectors
Auto sector:
Strong domestic production industry: 65% of units sold are Egyptian built.
Foreign investment continuous to flow into the industry.
Trade tariff reform between Egypt and the EU will open the market for more overseas manufacturers and expand
export opportunities for domestic passenger.
Nissan, BMW and Toyota are increasing their presence in the country.
Textile sector:
Good international reputation of Egyptian Cotton,
Attempts to privities government-controlled spinning and weaving enterprises may provide opportunities to attract
new investment.
Tourism sector:
Planned growth in accommodation capacity and increasing hotel privatization offer significant opportunities for
hotel management companies
The sector is benefiting from a growing trend among Arab tourists.
Development of new tourism products such as eco-tourism, health tourism and conference tourism.
Agriculture sector:
With a population of 80 Mio and growing, Egypt represents one of the largest markets in the region.
Egypt’s agricultural market contribute roughly 15 % to GDP, while employing almost a third of the population.
Currently only 3.5% of Egypt’s landmass, centered mostly around the nile delta, qualifies as agricultural sector
Big market of + 80 Mio inhabitant and diversified economy
Agriculture & fishing
Mining
Manufacturing
Financial intermediaries
Tourism
Real estate activities
Government services
Education & health GDP by Sector of activity in 2007
Indicator Egypt MENA OECD
Dealing with Construction Permits 156
Procedures (number) 25 19 15
Time (days) 218 159 157
Cost (% of income per capita) 332 358 56
Getting Credit 71
Strength of legal rights index (0-10) 3 3 7
Depth of credit information index (0-6) 6 3 5
Public registry coverage (% of adults) 3 5 9
Private bureau coverage (% of adults) 8 11 60
Trading Across Borders 29
Export Documents (number) 6 6 4
Time to export (days) 14 23 11
Cost to export (US$ per container) 737 1,035 1,090
Import Documents to (number) 6 7 5
Time to import (days) 15 26 11
Cost to import (US$ per container) 823 1,222 1,146
Business Environment – important indicators
Egypt & Turkey – Growing Synergy
Favorable Political and business Cooperation
•The Free Trade Agreement signed on December 27, 2005
•As a result, around 140 Turkish firms (working in various sectors) have opened in Egypt with total investment of USD 500 Mio.
•Two Turkish Industrial Zones are under construction. (one in 6th of October 2 Mio m2, another one in 10th of Ramadan City 2 Mio m2). Almost 200 Turkish companies are expected to operate in those Industrial Zones.
What Attracts Turkish Investors to Egypt
• Egypt is one of the largest signatories of
bilateral trade, investment and double taxation
treaties
• Advancement of Turkish companies in terms of
technology and managerial knowledge,,
• Egypt is a main gate to penetrate other
economic zones, due to its geographical
• QIZ’s (Qualified Industrial Zone) export to
USA with no quotas and custom duty
• Lower operating cost (cheaper Labour cost,
Energy cost,)
BNP Egypt and TEB’s
• Implementation of the Turkish desk in BNP Egypt in 2007.
•Attracting 40 very active corporate accounts and accompanying them in the start up phase
•Volumes started with USD 3 Mio in 2007 to reach 21 Mio in 2008, mostly in Int’l LGs
Trade balance reflects the growth in favor of Turkey
Egyptian Export to Turkey
Egyptian Import from Turkey
Egypt Exports to Turkey 2008 %
IRON & STEEL 227,293,368 24.63%
COPPER 89,529,959 9.70%
TEXTILE 39,491,833 4.28%
RICE 35,166,376 3.81%
UREA (FERTILIZER) 33,839,819 3.67%
COAL 23,159,067 2.51%
COTTON 20,484,933 2.22%
Turkey Exports to Egypt USD %
STEEL 1,065,758,862 67.22%
TEXTILE 78,415,748 4.95%
AUTOMOTIVE 45,439,135 2.87%
IRON 33,970,931 2.14%
CEMENT 29,370,848 1.85%
ELECTRICAL EQUIPMENTS 21,754,992 1.37%
WOOD 17,434,427 1.10%
Exports to Turkey Imports from Turkey
• Egypt has increased
its exports almost to
the double from the
2006 to 2007 to reach
USD 624 Bio.
• Exported goods
include: Raw oil,
Coal, Cotton & Sand
for glass industry.
• Egyptian imports
rose to be USD 1.2
bio in 2008.
• Imported goods
include: Production
Tools, Steel, Raw
material, Tires,
Pharmaceuticals,
Spare Parts
BNP PARIBAS
Egypt
Egypt is a strategic market for the Group BNP Paribas SA (95.2%)
2005 : capital was increased to EGP 500 Mio
2007 : capital was increased to EGP 1,700 Mio
Continuously work on new partnerships with selected clients through our commitment, flexibility andresponsiveness
Wide offer of products
Local and international approach
Brainstorming with clients for tailor made solutions
Market leader in :
Foreign Exchange
Cash Management
Global trade services
Core bank of the main Large Local and multinational companies
BNP Paribas in Egypt : Organic Growth…
5Département/entité
BNP Paribas in Egypt : Growth Dynamics…
Alexandria
•Bab Shark Branch (TC)
•Glym Branch
•Smouha Branch
•Miami Branch
Port Said Branch
Mansoura Branch
Borg El Arab Branch
Alexandria
•Bab Shark Branch (TC)
•Glym Branch
•Smouha Branch
•Miami Branch
Mansoura Branch
Borg El Arab Branch
Alexandria
•Bab Shark Branch (TC)
•Glym Branch
•Smouha Branch
•Miami Branch Port Said Branch
Mansoura Branch
Borg El Arab Branch
Alexandria
•Bab Shark Branch (TC)
•Glym Branch
•Smouha Branch
•Miami Branch Port Said Branch
Mansoura Branch
Borg El Arab Branch
BNP PARIBAS In Egypt – 55 points of sales
Alexandria
•Bab Shark Branch (TC)
•Glym Branch
•Smouha Branch
•Miami Branch
Suez Branch
Luxor Branch
Hurghada Branch
Mansoura Branch
Cairo Region
• Garden City Branch (TC)
• Kasr el Nil Branch
• Dokki Branch
• Heliopolis Branch
• Nozha Branch
• Maadi Branch
• Mohandessin Branch
• Nile City Branch
• 10th Ramadan Branch
• Marghani Branch
• MTI Branch
• Ghandi Branch
• 3 services units
• Sheraton Branch
• Obur Branch
• Nasr City Branch
• Zamalek Branch
• 6th of October Branch
Borg El Arab Branch
Free Transfer of funds: • Business genuine transactions, such like dividends, imports, exports, private
remittances, etc..
• Transferring / Receiving Banks are liable to take all the necessary action to insure the
compliance of the funds with the business / activity of its clients (Know your client)
Foreign Investments in Egypt• 100 % foreign ownership is allowed,
• Branch or fully owned subsidiary
• Representative offices are also permitted
• Local partners is a choice of the foreign investor
Import license:• Import for trading purposes (buy & sell) is only possible for Egyptian Companies.
• Industrial companies can freely imports their raw materials, semi-finished products
according to their industrial register, as long as the imported goods are processed in the
company business.
BNP Paribas Egypt : Tailor-made approach.
Example of services provided by BNP Paribas Egypt :
Credit facilities
International and local trade finance :
Letters of Guarantee (local and international) facilities
Letters of Credit facilities
Discount of commercial papers
Cash management solutions
Forward and Foreign Exchange sofisiticated services
E-banking solution (Connexis cash + Connexis Trade)
Payroll processing and retail banking solutions to employees
In-house bank branch and/or ATMs
These services are in the frame of a negotiated Service Level Agreement
Trade Centers in Egypt
A dedicated Sales Team of trade professionals
–Cairo Trade Center covering the Greater Cairo and all other regions opened in 2004
–Alexandria Trade Center Covering Alexandria and North Delta
• Trade Counters in all corporate branches equipped by qualified trade staff
• Back Office Desk with a long track of experienced and well trained teams, up to date systems,,
Egypt Trade Center - Contacts
Head of Egypt Trade Centers, Cairo
Amr Abou-Zeid Ph.D.
Tél: 002 02 27 92 18 27
Alexandria Trade Center
Nabila Salem
Senior Trade Manager
Tél: 002 03 39 38 959
Alexandria Trade Center
Amr EL-Kady
Senior Trade Manager
Tél: 002 03 39 38 959
Cairo Trade Center
Mohamed Zahran
Senior Trade Manager
Tél: 002 02 27 92 18 27
Disclaimer
•This document has been prepared by BNP PARIBAS for informational purposes only. Although the information in this
document has been obtained from sources which BNP PARIBAS believes to be reliable, we do not represent or warrant its
accuracy, and such information may be incomplete or condensed. This document does not constitute a prospectus or
solicitation and is not intended to be and must not be the sole basis for any evaluation of the securities discussed herein. All
estimates and opinions included in this document constitute our judgement as of the date of the document and may be
subject to change without notice. Changes to assumptions may have a material impact on any recommendations made
herein.
•BNP PARIBAS or its affiliates may, from time to time, have a position or make a market in the securities mentioned in this
document, or in derivative instruments based thereon, may solicit, perform or have performed investment banking,
underwriting or other services (including acting as adviser, manager or lender) for any company, institution or person
referred to in this document and may, to the extent permitted by law, have used the information herein contained, or the
research or analysis upon which it is based, before its publication. BNP PARIBAS or its affiliates will not be responsible for
the consequences of reliance upon any opinion or statement contained herein or for any omission.
•This document is confidential and is being submitted to selected recipients only. It may not be reproduced (in whole or in
part) to any other person without the prior written permission of BNP PARIBAS
•© 2009 BNP PARIBAS. All rights reserved.