Egypt Market

The New Republic is firmly established on the concept of a democratic, civil, and modern state that possesses comprehensive capabilities militarily, economically, politically, and socially. A state that upholds the concepts of citizenship and acceptance of others and seeks to achieve peace, stability, and development. This state strives to enhance policies vital to Egyptian society based on solidifying the concepts of social justice, dignity, and humanity. It also seeks to build the Egyptian human being in an integrated manner, physically, mentally, and culturally. This emanates from the belief that the Egyptian human being is the treasure of his homeland and an icon of its victory and glory.
After the features of the New Republic had been illustrated, efforts were dedicated to cementing its status as the land of development and investment, an oasis of security and safety, and a platform for peace and stability. The Republic is launched with a different vision and thought, commensurate with the magnitude of the challenges and responsibilities—a republic that benefits from the experiences of the past and moves with broader prospects toward the future. The State of Egypt has achieved remarkable progress in all fields and across all levels, with steady and accelerated steps to improve the quality of life, build a robust and balanced economy, and build a homeland worthy of the people of Egypt and its civilization.
By 2030, Egypt will witness a comprehensive renaissance, leveraging its genius location and unique Egyptian personality and taking into consideration the historical phase to achieve sustainable development for a better standard of living for all Egyptians. Depending mainly on science, knowledge, and innovation, Egypt will have a competitive and diversified economic system and a social system characterized by participation, solidarity, and justice, as well as a balanced ecosystem that preserves the human and natural resources gifted to Egypt by Allah. ‌
Egypt’s robust fundamentals, supported by a diversified economy, sustained levels of consumer spending, and a large workforce, have created a dynamic business climate and helped further develop the economy. This has enabled the country to avoid some of the more severe repercussions of the COVID-19 pandemic faced by neighboring nations. According to IMF forecasts, GDP is expected to expand from $402.8 billion in 2022 to $584.9 billion in 2026. While Egypt’s oil and gas sector has been a significant recipient of investment, attracting $74 billion between FY 2014/15 and FY 2019/20, the economy is diversified, with opportunities across multiple sectors. Industry was the largest contributor to the economy in FY 2020–2021, followed by retail, agriculture, and real estate. ‌
Egypt was seen as a global center of knowledge, science, and development throughout antiquity. Today, it stands in an economically advantageous location, straddling the Mediterranean and the Red Seas and at the confluence of Europe, Africa,, and Asia. The Suez Canal, completed in 1869, is one of the world’s busiest shipping lanes. Moreover, Egypt’s population is large and rapidly expanding, at a rate of of around 2.5% a year. It is seen as one of the country’s greatest economic assets if it can be harnessed by effective public policy. Moreover, the country is also characterized by a bottom-heavy population pyramid. The large youth cohort helps to limit the overall burden on the health care system, as evidenced by the relatively successful navigation of the COVID-19 pandemic. ‌
Egypt has made some progress in improving industrial development, but the government is working to focus on specialisation in certain segments – particularly textiles and pharmaceuticals. Indeed, scaling up investment in manufacturing is a policy priority, as the country’s value-added growth in this sector has been sluggish compared to other emerging economies. Namely, the country aims to accelerate industrialisation and shift from low-value-added to high-value-added, technology-intensive manufacturing segments. Nonetheless, despite Covid-19 pandemic-induced economic headwinds, the Egyptian retail sector has made significant progress in recent years, particularly in food retail and e-commerce. These segments saw rapid growth due to lockdowns and rising internet penetration rates. In FY 2019/20 and FY 2020/21 the private sector’s share of total investment in the retail and wholesale sectors amounted to 95% of the total, at $9.5bn and $7.4bn, respectively. ‌
The government of Egypt has placed a strong emphasis on construction as a key engine of urban growth since the ambitious IMF-backed economic reform program in 2016. Much of the sector’s underlying demand is a result of the growing population, which, in turn, has created a need to develop new cities such as the New Administrative Capital. Overall, such mega-projects look set to drive construction activity from 2022 onward. While the COVID-19 pandemic put pressure on real estate sales after a partial lockdown in early 2020, the sector has demonstrated resilience over the medium term. The 3.7% expansion of the real estate sector in FY 2020/21 outpaced that of the general economy and helped offset some of the losses seen in tourism and manufacturing. The market is likely to continue its shift towards high-income, mixed-use retail developments in areas such as East Cairo.‌
The Egypt’s water History
The Nile was an important part of ancient Egyptian life. The Greek historian Herodotus wrote that “Egypt was the gift of the Nile”. As an unending source of sustenance, it played a crucial role in the development of Egyptian civilization. Because the river overflowed its banks annually and deposited new layers of silt, the surrounding land was very fertile. The Ancient Egyptians cultivated and traded wheat, flax, papyrus, and other crops around the Nile.
‌The flooding of the Nile is the result of the yearly monsoon between May and August, causing enormous precipitations on the Ethiopian Highlands whose summits reach heights of up to 12,928 feet (4550 m). Based on the features of the flooding of the Nile, the ancient Egyptians divided the natural year into three broad natural seasons of Akhet, Peret, and Shemu, and invented the ancient Egyptian calendar:
1-Akhet (Inundation or Flood): roughly from September to January.
2-Peret (Emergence or Winter): roughly from January to May.
3-Shemu (Low Water or Harvest or Summer): roughly from May to September
Irrigation
With the help of the ancient Egyptian calendar, the Egyptians constructed canals and irrigation ditches to harness the Nile river’s yearly flood and bring water to distant fields. At its peak, the flood would cover the entire floodplain, which could raise the Nile River 45 feet (13.72 meters) over normal heights. As the waters receded, the floodwaters left behind rich soil. This soil allowed the ancient Egyptians to grow crops. Therefore, they planted wheat and other crops just as the mild winter was beginning and harvested them from mid-April to early May. The Egyptians practiced a form of water management called basin irrigation, a productive adaptation of the natural rise and fall of the river.
Since the crops needed water to grow, the ancient Egyptians also invented a system of canals that they dug to irrigate their crops. Besides, they built gates into these canals to control the flow of the water and built reservoirs to hold water supplies in case of drought.
The Water Challenges
Egypt’s population has been growing rapidly in recent decades, at a rate of 2.1% annually from 1989 to 2018. This added population places pressure on limited water resourcesboth through direct consumption and through increased demand for food and other products.
‌ In 2017, the total renewable water resource per capita was 628 m3/yr already below the level for water scarcity according to the Falkenmark Index4,5. This pressure due to population growth, while straightforward, is essential to include while drawing the picture of historical and future demand for water, as Egypt faces increasing scarcity of natural resources.
Egypt’s figure is expected to drop to 500 cubic meters by 2025. That is without taking into account the impact of the Grand Ethiopian Renaissance Dam, which Egypt says will lower water levels further,
‌ As Ethiopia plans to start filling its Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile next year, Egyptian officials fear it will threaten scarce water supplies in Egypt and power generation at its own dam in Aswan.
Egypt draws almost all of its fresh water supplies from the Nile, one of the longest rivers in the world. The Nile River system flows through 11 countries, cutting through thousands of kilometers of rainforest, savannah, mountains, and desert before emptying into the Mediterranean Sea.
The stakes are high. Talk of physical conflict between the countries along the Nile has receded, but Egypt sees the dam as an existential threat that could decimate Egypts farming and damage power supplies. ‌
HOw Egypt Planning to face the water crisis?
The Egyptian Ministry of Water Resources and Irrigation announced a four-point plan to cope with its water crisis, as talks on Ethiopia’s Nile dam continue to stall.
‌ Egypt and Sudan are currently exploring their options on how to deal with Ethiopia's second filling of the Grand Ethiopian Renaissance Dam (GERD) as a fait accompli.
The Egyptian Ministry of Water Resources and Irrigation announced in a statement that the government has a four-pronged strategy that extends until 2050 to solve all water-related problems and crises in the country.
‌ The First axis of the strategy is starts with steps to improve the overall quality of water to be safely reused without causing health issues. This would positively reflect on citizens' health and prevent any spread of diseases, the statement explained.
‌ The second axis of the strategy boils down to rationing water usage through a new management system, establishing water distribution facilities, expanding modern irrigation systems, and using solar energy as one of the most important alternatives to renewable energy. The government also launched a 50 billion Egyptian pound (about $3.17 billion) national program for the rehabilitation of 20,000 kilometers of canals.
‌ The third axis of the government strategy consists of developing water resources to adapt to the repercussions of climate change. This includes a number of protection and mitigation projects against floods through rain harvesting facilities along the northwest coast in Sinai, the Red Sea and Upper Egypt governorates. A basket of coastal protection projects has been implemented stretching over about 120 kilometers with plans to cover 120 kilometers more, in addition to a string of pumping stations. This falls within the scope of an integrated protection system against the dangers of floods, the statement added.
‌ The fourth axis consists of training and capacity building among water workers, while raising awareness on the water risks in the country and the laws needed to protect water resources.
‌ In a press statement , Abdel Ati pointed to population growth and climate change as the main challenges facing Egypt's water sector. A surge in Egypt’s population by about 75 million people is expected by 2050. According to the most recent census, the population has exceeded 100 million people. This adds to the pressures straining water resources in Egypt.
‌ The items of this strategy must be executed in parallel with educating citizens on the importance of conserving water, reducing waste and modernizing irrigation systems,” Abdel-Dayeman said “expert at the National Water Research Center
‌ ‌ ‌ The government has drafted a $50 billion water resources strategy that extends until 2050 and may climb to $100 billion. He also announced a national plan for water resources until 2037.
Minister of Irrigation Mohamed Abdel-Aty confirmed his country’s efforts to achieve maximum water use efficiency in light of the long-standing dispute with Ethiopia over the controversial Grand Ethiopian Renaissance Dam (GERD).
Abdel-Aty said his ministry has also launched major national projects to rehabilitate canals, shift to modern irrigation systems, and expand smart irrigation applications. Other major projects will expand the reuse of agricultural drainage water and protect against floods, both inland and along coasts.
‌ Another plan aims to push farmers toward modern irrigation systems in desert lands, and then in other lands. “Work is underway to equip 4 million acres with water-saving drip and sprinkler irrigation systems as an alternative to flood irrigation," Mohamed Ghanem, the official spokesman for the Ministry of Water Resources and Irrigation said. "Agriculture consumes the largest proportion of the Nile's water."
‌ ‌ Since Egypt’s water flow from Ethiopia is about 50 billion cubic meters, Ethiopia’s intention to store 10 billion cubic meters would mean a 20 percent reduction to Egypt in one year. This would be a shock similar to climate changes, floods or droughts. In times of shocks, the infrastructure’s ability to mitigate their effects is put to the test, he added.
‌ Some of Egypt’s new projects for water treatments:
‌ Bahr Al Baqr Wastewater Treatment Plant.
length: 190 km
Total capacity of 5.6 million m3 / day
Cost: 739 million USD ‌ Guinness has set 3 new records for "Bahr Al-Baqar" water treatment plant project in Egypt
1- The world's largest treatment plant with a production of 64.8 m3/s,
2- The largest 360 kg/s sludge treatment plant,
3- The largest ozone generating and operating plant. (1 unit) with productivity of 0 .1792/s.
The plant has 4 units of 1.4 million m3/day/unit, which are set up on 155 acres, according to Ministry of Irrigation data. ‌‌

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