ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
EGYPTIAN EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
Besides the minor political tension that has
been going on in the region, Egypt has
maintained a stable political environment
during 2009 that is considered investor
friendly. Projections were limiting the economic growth
rate between 3-4% but the Egyptian economy
has grew by 4.7% during fiscal year
2008/2009, recording one of the best growth
rates among emerging countries.
On the economic front, the Egyptian economy
has outbalanced the impact of the global
financial crisis throughout year 2009 mainly on
the back of the measures undertaken by the
Egyptian government, including the US$ 3
billion subsidy to support the infrastructure
projects and to stimulate the economy as well
as rising the domestic demand by declining
commodity prices. In addition, the country’s
sound banking system, whereby high risk
investments is rejected, have helped to
alleviate the effect of the crisis. Moreover, the Central Bank has reduced the
overnight deposit and lending rates six
consecutive times during 2009 to reach 8.25%
for deposits and 9.75% for lending, which in
turn decreased the inflation rate to reach 10%
during 2009 down from 18% the previous year.
The FDIs highly surpassed expectations by
27% to record US$8.1 billion in fiscal year
08/09 highlighting investors' confidence in
Egypt's potential. Furthermore, Egypt's Net
International Reserves reached US$ 34.2
billion in December 2009, compared to
US$ 34.1 billion last year.
However, like the rest of the world, Egypt
faced a fall in international trade and external
demand which has negatively affected Egypt's
Export, Suez Canal and tourism proceeds,
which have collectively materialized a negative
Balance of Payments in fiscal year 2008/2009.
Despite exposure to the consequences of
global imbalances in international prices and
effects of the global financial turmoil during
2008/2009, the Egyptian government
managed to remain the budget deficit
stabilizing at 6.9%.*
* Information provided by EGX
Key Information Contacts
Ministry of Finance www.mof.gov.eg
Ministry of Investment www.investment.gov.eg
Central Bank of Egypt www.cbe.org.eg
Egyptian Financial Supervisory Authority www.efsa.gov.eg
Misr for Clearing, Depository and Central Registry www.mcsd.com.eg
SMEs Market (NILEX) www.nilex.egyptse.com
2008/09-ORIGINS OF GROSS DOMESTIC PRODUCT (%)
2008/09-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)
Manufacturing
Mining (incl. oil & gas)
Agriculture
Other
Wholesale & Retail Trade
General government
Transportation
14.34
Private consumption
Government consumption
Gross fixed investment
Exports of goods & services
Imports of goods & services
Changes in stocks
80
13.37
70
60
10.89
16.10
50
40
8.54
30
20
8.03
28.73
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