As reported by SACE study, between 2009 and 2013, despite the turmoil that followed the revolution of January 2011, 22 billion euros of FDI flowed into Egypt, of which 3,7 billion from the Bel Paese. The Italian presence in the country currently has 130 companies active in various sectors: services, plants, transport, logistics, tourism and energy. The first Italian group by volume of investments is ENI, the main foreign oil operator. Followed by Edison, Intesa Sanpaolo, Pirelli, Italgen, Danieli, Techint and the Caltagirone Group. However, the Egyptian economic slowdown of the last three years has had a negative impact on trade flows and it is estimated that in this period Italy has reduced its export quota by over 5,5 billion. However, in 2013, with an amount of exports open to 2,8 billion, Italy was the fourth Egyptian supplier with a market share of 5,3%, second in Europe only to Germany (7,9%). AND if we take a look at incoming trade flows, a marked prevalence of refined products emerges (11,9% of the total), underlining the structural energy gap that characterizes the countryfollowed by instrumental mechanics (6,9%), the first reference sector for Italian exports. In particular, Italy has exported to the country internal combustion engines and turbines, machinery for the chemical, petrochemical and petroleum industries and robotic systems for industry. An important contribution also comes from the exchange of crude oil and derivatives. In 2013, 52% of Egyptian exports to Italy concerned crude oil returned to its origin market in the form of refined energy products and chemicals (706 million euro and 260 million, respectively). In the first ten months of 2014, Italian exports to the country recorded an increase of 4,9% compared to the same period of the previous year. The sales of refined products (-33%) and chemicals (-10%) are down sharply. On the other hand, the performance of agricultural products (+265%), electrical and electronic appliances (+47%) and means of transport (+21%) was very positive.
According to SACE, the sectors from which the greatest contribution will be obtained will be those linked to housing construction and large infrastructural works, in particular the wood, furniture and metal sectors, but also instrumental mechanics, thanks to the demand from sectors such as the ceramic one which is rapidly developing in the country. In this regard, the eyes of analysts will be focused on the Sharm el Sheikh International Conference during which the Egyptian government will present its economic development strategy. The goal then becomes to relaunch growth with an important investment plan capable of attracting foreign capital. The most active partners include Saudi Arabia, Kuwait, the UAE and Russia, while the greatest opportunities will be concentrated in five areas: large infrastructure projects; mining industry; housing construction; power; rail transport. Good investment opportunities can also emerge for Italian SMEs interested in the local market. Numerous initiatives to encourage the creation of a private and diversified industrial fabric, which acts as a driving force for the creation of new jobs. In this sense, the subsidized finance initiatives carried out by the Egyptian Central Bank and by the role of the 10 Free-Trade Zones created in recent years to attract new productive investments thanks to tax breaks and exemptions (among the main ones, see those of Alexandria in Egypt, Damietta, Ismailia and Nasr City).
In the current phase of the country's relaunch, the role of Italy and our businesses it can become very important. Favored by the geographical-cultural proximity and by the historical presence in the Egyptian entrepreneurial fabric, Made in Italy cannot miss the opportunity to enter and consolidate its position in a market of almost 90 million people. However, the risks remain high: from the operational one, linked above all to local bureaucracy and energy shortages; the transfer one, exacerbated in recent years due to the lack of hard currency and the quota produced by the auctions managed by the Central Bank; that of non-collection. Precisely for these reasons SACE associates a high risk to the country, highlighting transfer risks (85/100) and non-payment of corporate counterparties (85/100) as the main risks.
