Egypt has abundant natural resources, including oil and gas reserves, high-quality soils suitable for agriculture, rich fisheries in the Mediterranean Sea, and a variety of minerals. This diversity of resources opens up opportunities in many different industries and can be a great boon to investors seeking to diversify their portfolios.
Egypt is truly one of the world's hidden gems when it comes to investment opportunities. The country is home to a large and growing population, estimated at nearly 107 million people in 2023. With a median age of just 23 years old, this places Egypt's population on the younger end of the global scale. Compared to the global North's aging demographic, Egypt is a beacon of hope for investors seeking to capitalise on younger, more dynamic markets. Here are some of the industries in Egypt that present high-growth opportunities
Rapid Infrastructure Development
The Egyptian government has enjoyed a period of relative stability since the Arab spring, and this has afforded them the chance to develop the nation's infrastructure to a more mature level. As a result, the country has seen rapid advances in roads and highways, ports, airports, telecommunications networks, and transport. This has made it easier for investors to access the country's markets and resources and created an attractive environment for businesses of all sizes. Additionally, international construction companies are well-positioned to offer their expertise and get involved in this booming sector.
Booming Petroleum Industry
Egypt is the third-largest gas producer in Africa and the country has proven to hold approximately 3.3 billion barrels worth of oil in reserve. This sector's contribution to the Egyptian economy has soared in recent years, increasing by 47% between 2011 and 2020. Getting involved in this industry could prove profitable for anyone with the expertise to do so.
Fertile Soils for Agriculture
With the river Nile providing an abundant source of water, the country's soils are exceptionally fertile for growing a variety of crops. It comes as no surprise that the country's agriculture sector has been thriving since the time of the Pharaohs. Currently, major commodities grown in Egypt include grains, vegetables, fruits, and cotton. Market reforms have also been implemented to improve yields and encourage foreign investment in this sector.
Thriving Tourism Industry
Boasting a rich history, Egypt has long captivated visitors from around the world with its UNESCO-protected monuments and attractions. From the Pyramids of Giza to the Valley of the Kings, Egypt’s world-famous heritage has allowed its tourism industry to survive the global pandemic. These sites, coupled with their beautiful beaches and relative accessibility, continue to attract visitors from all around the world. The tourism sector now accounts for approximately 12% of the country’s GDP – a strong recovery after the COVID-19 travel restrictions of 2020. From hotel and resort project investments to smaller-scale initiatives, there is no shortage of investment prospects for individuals and businesses that want to tap into this extremely robust sector.
Growing Manufacturing Sector
For many years, Egypt has been a prominent manufacturer of textiles and clothing, metals, and plastic components. Recently, however, the country has also been expanding its manufacturing base to include more high-tech industries, such as pharmaceuticals, electronics, and automotive components. This has created a new wave of investment opportunities for investors looking to tap into the country’s growing manufacturing sector.
Egypt's rich cultural heritage, relative political stability, and promising economic prospects make it one of the more intriguing and attractive investment destinations in the MENA region. With infrastructural developments underway and a large, young population driving growth in many sectors, Egypt will likely continue to prove itself as a strong competitor in the global market. If you're looking for an opportunity to invest in a dynamic and rapidly developing market, Egypt should be on your watchlist.
To discuss your business growth in Egypt, contact Imad Adileh, International Business Leader.
