2015: A year of success

By Yasmine Fouda and Rania Imam

Efforts Wrap Up

It has been clear how President Abdel El-Fattah El-Sisi realizes the significance of economic development, efforts being put are directed mostly for enriching the economy to rally among successful emerging markets. Regulations thereby executed targeted short and long term solutions where the average citizen witnesses and benefits from developments, beside heartening major public and private industries, and facilitating procedural business startups and investments -local and foreign. Throughout his first year in office, President Abdel Fattah El-Sisi achieved remarkable developments, ones that are unprecedented in Egyptian economic history – the following report presents a look on the president’s reforms…

Decrees

The New Suez Canal

An ambitious national project that aims to breathe new life into Egypt’s critical financial artery, one that hitches the east and west sides of the world. The new canal’s output raised the country’s Gross Domestic Product (GDP), to become a triumphed historical victory -implemented in short time and paying back even faster.

The Golden Triangle

Where giant industrial, mining, agriculture, touristic and trade reforms in upper Egypt are implemented, and the government seems to devote lots of efforts to employ such progress, due to the vital this project play in enlivening the country. Egypt’s National Authority for Remote Sensing (NARS), through its astrological comprehension, had prepared the Golden Triangle to contain areas between Safaga, Al-Qoseir and Qena. NARS provides digital database of natural resources and developmental potential using satellites’ intelligence, and laboratory and field measuring devices.

The New Capital

During the Egypt’s World Economic Forum to support Egypt, both El-Sisi and Sheikh Mohammed Bin Rashed Al-Maktoum -UAE’s Vice President- signed an agreement to build the new administrative capital in Egypt. In efforts to double Egypt’s industrialized lands to reach from 6 per cent currently to 12 per cent in 40 years, as well as absorbing the country’s tormenting population growth rates. The New Capital extends above an area of 270 square miles -700 kilometers- to the east of Cairo, that lies between Cairo-Suez, Cairo-Ain el-Sukhna and east of the regional ring-road, to cover a land area equivalent to Singapore’s.

The International Airport

An estimated plan to build a huge International Airport- bigger than Heathrew of London- in addition to solar power plants, and around 40 thousand Hotel guest rooms. Estimated costs of this project stands at $45bn, according to Egypt’s Minister of Housing. New talks have been suggesting the construction of local and international network of airports to connect ‘the whole new world’ Egypt is setting to put up.

Universal Commerce City

Considered as one of the projects that is to be near the Suez Canal axis, on a space of 4.2mn square meter, costing EGP 40bn and provides 500 thousand job opportunities.

Reclamation of 40mn Feddan

The president has launched this map to be executed during the course of the coming 4 years, aiming to amplify Egypt’s agriculture fields.

Developing Egypt’s Villages

The president has initiated this restructuring campaign for Egypt’s villages to enhance it with  high quality services and focuses primarily on the areas where its most needed. Facilities like irrigational, sewage and electricity are being upgraded, also the development of medical, education and labour sectors appears to be starting up its way.  Moreover, the expansion of social services/security shelters, and providing job opportunities for the youth through equipping them with loans to start-up their businesses. The programme is also concerned with dealing with solid waste and its effects on climate disruption, building road networks to hook villages up, services of youth and sports. Other aspects the government tends to look after is to house Egyptian families that are most in need for homes, executing strategic housing and construction plans. A recorded 30 per cent of projects planned to restructure and develop 78 most deprived villages is already achieved.

Economic empowerment for 4 thousand Egyptian women

The Ministry of Local Development in collabouration with UN Women -dedicated to gender equality and women empowerment- began this project by initiating 4 thousand small businesses, with a cost of EGP 18mn. This comes among the government’s plans to develop 250 villages and empower marginalised women to manage small businesses after assisting them with training sessions that qualifies them to compete in labour markets. 

Your Project “Mashru’ak”

The national project of social, human and domestic development was set up by El-Sisi with objectives to eliminate any obstacles in citizens’ financing process, through the cooperation of the citizen, the government and the bank. This came to encourage young people and direct them towards building small projects and make use out of their wasted energy. A higher committee has been put together in every governorate to follow-up on all the details regarding Your Project -basically fixated to raise small and medium industries in sectors of agriculture, industry, business and trade.

Massive Siemens Power Plants

The new power plant came as one of the most essential projects to solve the power shortage setbacks, it was prioritized on the government’s agenda during the World Economic Forum; execution of the project is currently implemented in a joint-venture between Siemens and the Egyptian government. 4 Memorandums of Understanding (MOE) with a value of $10bn to construct power plant generators, the MEO includes building combined cycle power systems in stations like Bani Sweif with 4.4 gigawatt (gw) capacity, besides other places like Nubaria, Sidi Kerir, south Cairo, Qena, and Kafr el-Dawar with a total capacity of 6600 megawatts, in addition to building a national factory for manufacturing wind tribune components which will provide one thousand job opportunities.

Sharm el-Sheikh’s Economic Forum Agreements

A total of $60bn -equivalent to EGP 457.8bn- of MEO’s, agreements and investments:

• Zayed Crystal Spark– an administrative, entertainment and trade project characterized by improving life conditions.

• Sheikh Zayed City– 1900 feddan expansion to the city with the tallest building in Egypt with a height of 200m.

• October Oasis-the southern expansion of October city on 10 thousand feddan, with a cost of EGP 14bn and a 25 per cent economic return- done in 7 to 9 years.

• New Alamein city – 40 thousand feddan new coastal city- only 4 km away from Marina.

• Knowledge Village– 10th of Ramadan city, including several universities, schools and technical institute with a charge over EGP 11bn and takes 8 years for implementation.

• Marina Alamein Touristic Center– 2800 feddan, providing 14 thousand job opportunities for the purpose of make use of the north coast province throughout the whole year -not just the summer’s 3 months.
• Ain el-Sukhna Liquid Pouring Station– the government and Dubai Ports International signed investment contracts worth EGP 4bn, which incorporates an extension to the already existing station besides building reservoirs and tanks on 4 sq/km to store petrochemical materials’ circulations -to maintain the Egyptian’s market requirements and supply ships.

IMF’s Report on Egypt- Feb. 2015

The report pointed out optimistic economic predictions for Egypt in support of the government’s plan to bring back economic and total stability. IMF also encouraged Egypt’s efforts to improve infrastructure, reform the energy sector, increase expenditure on health, education and research sectors – as conceded in 2014th constitution- and upgrade public services. The statement also publicized that such regulations proceeded will raise economic growth to 5 per cent, and cut-back unemployment rates to 10 per cent- within the coming 5 years. IMF had also welcomed the monetary policies implemented by the Central Bank of Egypt, that are aimed to drop-off inflation rates to 7 per cent and budget deficits to 8 per cent- by  the year 2019.

Battering Economic Indicators

Growth rate went up from 1.25 per cent – during the previous financial year- to 5.6 per cent in this year’s first-half. The monetary policies aim to achieve a GDP growth to 7 per cent -in the coming 5 years- as well as sustaining a $5 thousand annual individual income. The government is in fact aiming to reduce budget deficit   to 8 per cent from GDP, also a reduction of internal and foreign debt from 97 per cent last year -of GDP- to 85 per cent.

Battling Corruption

The president’s aims to fight any phenomena of corruption are on no accounts hesitated or distracted, he wages this war against the corrupt through legislative, executive and judicial authorities. Sophisticated electronic database recorders are being implanted to decrease rates of inebriated acts of fraud and bribery. El-Sisi has pointed a personal consultant -specialized to fight corruption- which shows how serious the president is in eliminating the long-inhabited corrupted attitude, not just in government institutions… you can find signs of corruption on the streets, illegal mobilized sellers, driving in wrong directions, cutting traffic lights- the public needs to coordinate with the government in the name of battling corruption and alerting authorities of any such acts. “Efforts of combating corruption 135 sqkm and EGP 3.5mn concluded from 344 corruption case between bribery, abusing powerful positions, theft and harming public interests, as well as putting illegal hands on lands owned by the country.” El-Sisi announced during his 3rd monthly speech to the public, May 12th 2015.

War on Terror

There exists a sense of coming threat among the Egyptian public, a danger that had already hit by the Russian jet-plane downing over Sinai. The people had already authorized El-Sisi to defend the nation against predicted terror attacks, it began when masses rushed down the streets of Egypt in support of the Armed Forces Chief of Staff -back then- on 26th of July 2013. The Egyptian military has dedicated its efforts since to abolish terrorism, where it concentrated its operations in the northern part of Sinai -the region where jihadist claim their stronghold- and has achieved most of its planned strikes up-till now.

This all comes in wicked times where world super powers struggle to keep peaceful solutions out of an expected international political crisis. Giving the unsecured state of the Middle East and the mounting stress caused by the Syrian conflict are indicating major changes to occur, not just in the region’s balance of power, but also in leading to alarming international conditions- quite similar to previous world wars. President Abdel Fattah El-Sisi is not oblivious to such threats, indeed, key arms deals have been in effect, in efforts to maintain security and defend the region against any terror intimidations.  It is very important for the Egyptian government to secure Gulf States, Libya and its southern Sudanese borders. Rafales, Mistral aircraft carrier, S-400 missile systems and similar deals had put Egypt in a powerful military position against threats of terrorism and other threats.