Significant Accomplishments of 2018

Below is a glimpse of some of the mega-projects introduced in 2018, accompanied with some information on the progress of the project. The projects discussed below are a summary of those presented by the various authorities governing the sectors described within, and as such, the details herein are as accurate and up to date as possible.
The majority of these projects were also featured in our 2018 ‘Egypt Land of Opportunities’ book as open opportunities for investment, and there timely completion is an indication that the Egyptian economy is rapidly developing. One of the central purposes of this year’s version of our publication, is to highlight the abundance of opportunities which truly exist within the country, as well as to provide an analysis of the projects which we had previously mentioned but were not completed. 

Petrochemicals Sector

Around 69 projects, costing a total of EGP 728 billion have been initiated within the petroleum sector, which have impacted the Egyptian economy greatly

 

 

Notable Projects

– Signing of 63 agreements for investments estimated at 14.7 billion pounds
– Opening 3 bids which provided grants to 11 sectors in the amount of $136.7 million
– Signing 34 contracts for development grants worth approximately $19.1 million
– 186 new oil discoveries
– Increased number of ports to receive and import liquified natural gas
All in all, investments in the oil and gas sectors rose from 4.9 to $8.8 billion, which contributed an increase in the production capacity from 3.7 to 5.7 million tons per year. 
The development of the Dhahar field is also one of the most notable projects.
The first phase was completed at the end of 2018, and increased production to 1.2 billion barrels of gas per day, which is expected to increase further, to 2.9 billion barrels per day in addition to the development project of the Neduku Nores which consists of a drilling a number of wells to increase gas production.

Initiation of three projects for the development of oil refineries

– Construction of 14 lines, spanning 576 km for transporting crude oil, as well as a number of storage tanks.

– 20 pipelines to transport 408 km of gas
– Initial distillation tower at Midor
– Gas recovery unit in Assiut
– Issuance of nearly 360 contract licenses for the exploitation of gold

Tourism Sector

The 39 new projects developed in this sector have been amongst the most heavily funded, and are all created with the primary goal of restoring tourism to Egypt. The total costs of the 39 projects are EGP 5.4 billion.

The first major project focused on creating a new international tourism
campaign which is due to run for three years.

– Other projects included the development and establishment of 10 hotels costing EGP 2.6 billion, the most important of which is the development of the Ritz-Carlton Hotel, the Steigenberger Hotel, and the establishment of the Hotel and Conference Center and Choueifat Conference Center.
– Installation of the dancing fountain with the multimedia display at the New Cairo Family Park at a cost of EGP 23.1 million.
– The completion of the first and second phases of the development of Nile berths on the route of long Nile cruises at a cost of EGP 11 million.

Another category of projects have been devoted to the restoration and
improvement of Egypt’s many archeological sites and artifacts.

Notable Projects

– Opening of the Egyptian Grand Museum
– Reconstruction of the Museum of Islamic Art at Bab El Khalk
– Completion of the Royal Jewelery Museum in Alexandria
– Opening of 4 smaller national museums in the governorates of Matrouh, Sohag, Suez and Ismaily, at a total cost of EGP 384 million

– The completion of the restoration of the Melloui and Tel Basta museums, the Rummel Cave in Matrouh costing EGP 15 million
– Development of the area surrounding the pyramids, costing EGP 541 million.
– Completion of the development of the World Cultural Heritage Site in Dahshour,
– Completion of the ruins of Mt Rahina and Saqqara
– Completion of the lighting of the Luxor Temple, the lighting of Ramessium and the three tombs of the Valley of the Kings at a cost of EUR 2.24 million
– Restoration of 9 historical mosques

Private Sector Investments in Tourism

50 hotel projects are currently underway, placing Egypt at the top of Hotel developments in Africa. With this in mind, the Starwood group, has initiated expansion into the Egyptian market by launching the ST. Regis hotel, set to open in March with an investment of $1 billion. The Hitlon group has also made an announcemt stating that they aim to increase hotel rooms managed by the group in Egypt by 40 percent by the end of 2022. Additionaly, The Emaar group has plans to develop a hotel in Marassi resort on the Mediterranean coast, named Vida Hotels and Resorts in Egypt. Furthermore, the Al Rahma company also announced increases in the company’s capital from EGP 15 million to EGP 75 million to develop its hotel units. Another evidence of the willingness of international chains to move on with their long term development plans in Egypt is the signing of Intercontinental Hotel Group for a 187 room hotel in Cairo. BMI also expects to increase the number of its hotels in Cairo from 730 to 930 by 2021. Overall, Egypt’s tourism sector is bouncing back, and is considered diverse and dynamic with a potential to expand beyond the cultural and leisure segments. Niche tourism areas include residential, eco, business, religious and conference segments. Health care tourism is also another area set to expand, driven by numerous developments of medical centers at touristic areas, as witnessed by Porto Ghalib in Marsa Alam and Marassi developments in the north-west coast. The Tourism development authority (TDA) acknowledges the state’s policy of industry development, since tourism is the second highest contributor to gross national income. The TDA also develops desert lands to create regions for tourism and eases investor relations.

Real Estate

As a result of the state’s interest in providing suitable housing for citizens of various classes, around 915 projects have been implemented, costing a total of EGP 85 billion. The first goal for these projects was to provide suitable housing for low and middle income groups, and this was done through the following initiatives:
– Establishment of 270,000 units of social housing at a total cost of about EGP39 billion pounds,
– Implementation of 13,000 units for youth housing cost of EGP 1.1 billion
– Implementation of 73, 000 housing units for those living in dangerous areas with the hopes of eliminating slums and working to remove the sources of danger and industrial pollution from areas with high population density. The next phase of the developments in this sector were focused on improving drinking water so that clean water is available to the entire population. To enable this, 236 new projects were initiated at a total cost of EGP 31 billion.
These include:
– Opening 66 sanitation treatment plants with a total capacity of 2.9 million m3 / day
– Implementation of drainage networks and stations for 522 projects to increase the number of areas served by sanitation.

Agriculture

This sector has undergone significant expansions in an effort to make the most of the varied reserves of land available in the country. To do this, 75 new projects have been implemented at a cost of EGP 17.5 billion, centering around land reclamation, improving the efficiency of field irrigation in order to rationalize water consumption, increasing land use, and the establishment of silos and hangars to accommodate an increased wheat storage capacity.

 

Notable projects

– Opening of the Egyptian Grand Museum
– Reconstruction of the Museum of Islamic Art at Bab El Khalk
– Completion of the Royal Jewelery Museum in Alexandria
– Opening of 4 smaller national museums in the governorates of Matrouh, Sohag, Suez and Ismaily, at a total cost of EGP 384 million

– The completion of the restoration of the Melloui and Tel Basta museums, the Rummel Cave in Matrouh costing EGP 15 million
– Development of the area surrounding the pyramids, costing EGP 541 million.
– Completion of the development of the World Cultural Heritage S in Dahshour,
– Completion of the ruins of Mt Rahina and Saqqara
– Completion of the lighting of the Luxor Temple, the lighting of Ramessium and the three tombs of the Valley of the Kings at a co of EUR 2.24 million
– Restoration of 9 historical mosques

Private Sector Investments in Tourism 

50 hotel projects are currently underway, placing Egypt at the top of Hotel developments in Africa. With this in mind, the Starwood group, has initiated expansion into the Egyptian market by launching the ST. Regis hotel, set to open in March with an investment of $1 billion. The Hitlon group has also made an announcemt stating that they aim to increase hotel rooms managed by the group in Egypt by 40 percent by the end of 2022. Additionaly, The Emaar group has plans to develop a hotel in Marassi resort on the Mediterranean coast, named Vida Hotels and Resorts in Egypt. Furthermore, the Al Rahma company also announced increases in the company’s capital from EGP 15 million to EGP 75 million to develop its hotel units.
Another evidence of the willingness of international chains to move on with their long term development plans in Egypt is the signing of Intercontinental Hotel Group for a 187 room hotel in Cairo. BMI also expects to increase the number of its hotels in Cairo from 730 to 930 by 2021.

Overall, Egypt’s tourism sector is bouncing back, and is considered diverse and dynamic with a potential to expand beyond the cultural and leisure segments. Niche tourism areas include residential, eco, business, religious and conference segments. Health care tourism is also another area set to expand, driven by numerous developments of medical centers at touristic areas, as witnessed by Porto Ghalib in Marsa Alam and Marassi developments in the north-west coast. The Tourism development authority (TDA) acknowledges the state’s policy of industry development, since tourism is the second highest contributor to gross national income. The TDA also develops desert lands to create regions for tourism and eases investor relations.

Real Estate

As a result of the state’s interest in providing suitable housing for citizens of various classes, around 915 projects have been implemented, costing a total of EGP 85 billion.
The first goal for these projects was to provide suitable housing for low and middle income groups, and this was done through the following initiatives:
– Establishment of 270,000 units of social housing at a total cost of about EGP39 billion pounds,
– Implementation of 13,000 units for youth housing cost of EGP 1.1 billion
– Implementation of 73, 000 housing units for those living in dangerous areas with the hopes of eliminating slums and working to remove the sources of danger and industrial pollution from areas with high population density.

The next phase of the developments in this sector were focused on improving drinking water so that clean water is available to the entire population. To enable this, 236 new projects were initiated at a total cost of EGP 31 billion. These include:

– Opening 66 sanitation treatment plants with a total capacity of 2.9 million m3 / day
– Implementation of drainage networks and stations for 522 projects to increase the number of areas served by sanitation.

Agriculture

This sector has undergone significant expansions in an effort to make the most of the varied reserves of land available in the country. To do this, 75 new projects have been implemented at a cost of EGP 17.5 billion, centering around land reclamation, improving the efficiency of field irrigation in order to rationalize water consumption, increasing land use, and the establishment of silos and hangars to accommodate an increased wheat storage capacity

Notable projects

– Development of field irrigation for 100 thousand feddans in the provinces of Al-Beheira and Kafr El-Sheikh at a cost of $243 million, aiming to improve the efficiency of field irrigation, water supply and the increase of agricultural land,
– Reclamation of 15,000 feddans in the center of Bir al-Abed in North Sinai at a cost of EGP 381 million, The National Service Project implemented a number of projects in the agriculture sector, the most important of which were:

– Investing in animal feed, developing livestock by fertilizing 200 thousand cattle at a cost of EGP 1.2 billion pounds
– Establishment of 186 agricultural farms at the Mohammed Najib military base
– Establishment of a fish farming project in the Pool of Ghalion at a cost of EGP 1 billion. This includes 1359 basins and canals 107 km in length.

Education

– Construction of over 3000 schools (equating to 40,000 new classrooms) across all levels
– Providing specialized training for teachers and administrative personnel
– Development of national curriculum 45 new Japanese schools were also built and equipped, adding 837 classrooms at a cost of EGP 938 million. Addtionally, 1.1 million teachers and administrative staff, and 130 thousand technical teachers were trained. Finally, 42 new technical education  rograms were developed which added to Cairo’s literacy rate substantially.

Technology

In order to propel the technology sector so that it is one of the fastest growing in the region, Telecom Egypt has become a national integrated telecom operator and increased its contribution to the public treasury to EGP 8.22 billion.
Due to an injection of over investments totaling EGP 2 billion. The number of companies operating in the telecommunications sector reached 1611, with 150 thousand new jobs being created as a result of this increase.

Notable Developments

– The National Post Authority now provides integrated electronic services in 4000 post offices.
– Over 2,500 km of new roads in Sinai and the Eastern and Western Deserts have been upgraded with mobile phone services.
– The technological zones in Borg El Arab and Assiut were established at a total cost of EGP 400 million. The work system was installed at the documentation offices at a cost of EGP 20 million, which had the greatest impact on facilitating the work cycle services in 4000 post offices.
– Over 2,500 km of new roads in Sinai and the Eastern and Western Deserts have been upgraded with mobile phone services.

Transport and Logistics

To assist in the decongestion of the roads, particularly those in Cairo, approximately 383 projects have been implemented within the roads and bridges sector. Aside from improving traffic liquidity, these projects aim to ease the transfer of goods across the country and improve efficiency in the routes to areas outside Cairo.

Notable Projects

– 6 axes on the Nile
– Implementation of 230 industrial work (car bridges, car and pedestrian tunnels)
– Establishment of the Dabaa axis with a total length of 315 km
– Establishment of 4 links to connect with the existing road network which connect Wadi Haggoul and Zafarana, as well as Beni Suef
– Construction of the western arch of the regional ring road (from the Cairo / Assiut West Road to the Cairo / Alexandria Desert Road)
– Construction of the Shubra / Benha road
– Establishment of the Rawd Al Faraj axis (Phase II), With regard to the railway sector, the government has sought to implement a number of projects aimed at the overall development of railway lines in order to improve the level of services provided to the public.

Notable Projects

– Adding approximately 400 km of railway lines and related equipment

– Development and supply of 3000 vehicles and 180 tractors
– Development of 1,100 crossings and signaling systems for 1000 crossings.
– Development and maintenance of 156 new railway stations.

The majority of these projects have already been completed at a total cost of EGP 3.8 billion. The remaining projects will be finalized by the end of 2022.
Significant focus has also been placed on the existing metro system, and as such, there are 5 projects in place which aim to develop and modernize the first and second lines of the Cairo tunnels, at an estimated cost of EGP 3.9 billion.

Further developments for the metro lines include:

– Supplying 20 air-conditioned trains for the first metro line
– Development and modernization of 17 existing trains
– Supply and installation of surveillance cameras and metal detectors in 47 stations
– Supplying and installing 850 gates and 100 ticket machines Ports are also an area of focus for both the private and the public sector and a number of projects will be implemented at an estimated total cost of EGP 2.3 billion. The overall aim is to make the most of Egypt’s unique geographical location and the Suez Canal, which is an essential shipping link between East and the West.

The aforementioned projects include:

– Establishment of the Qustal and Arqeen ports
– Development and expansion of the Safaga Port

– Finalizing development of the first and second stages of the port of Hurghada.
– Finalizing the first phase of the Suez port at a total cost of EGP 985 million,
– Finalizing the first and second phases of the development of the Nuweiba port. Due to the above developments, the Red Sea port area has expanded 1370000 meters, allowing for the transfer of 3700 thousand passengers per year

Aviation

To further encourage economic development, the Civil Aviation Authority has recognized the need to expand the aviation network within the country. This breaks down to two essential lines of work, the first being focused at creating more airports, and the second aims at updating the existing airports and their security. All in all, a total of 54 projects were completed at a total cost  of EGP 18.2 billion.

 

Notable Projects

– Creation of 5 new airports, namely: Administrative Capital Airport, Bardawil International Airport, Sphinx International Airport, Bernice Airport, Ras Sidr Airport.
– Development of runways and exit corridors to accommodate a maximum number of aircrafts.
– The air cargo fleet was also replaced and renewed with high operating aircrafts and long-range capabilities.
– Air navigation systems and meteorological centers have been developed
– Replacement and development of radar and air surveillance systems
– Security systems were also upgraded to enhance airport security.
– Securing cargo villages at airports and expanding the terminal at Hurghada Airport to accommodate 7.5 million passengers annually at a total cost of EGP 2 billion.
– In addition to the maintenance of the corridors at Cairo airport, and raising efficiency, a number of rapid exit corridors were also added to accommodate more aircrafts.

Energy Sector

To counteract electricity outages within the country, and particularly within Cairo, 169 projects were implemented, costing approximately EGP 308 billion. The main purpose of these projects was to increase the electricity capacity of the Egyptian National Electricity Grid to 52000 megawatts (MW). One of the main features of the project included opening a number of electrical, gas and steam, and renewable energy power plants, adding an additional 22 000 MW to the existing electricity capabilities of the country.

Notable projects

The below power plants are the largest, and provide a total capacity of
14400 MW:

– Beni Suef Power Plant
– New Administrative Capital power plant
– Al-Boruls Power

Additionally, 4 steam stations were opened in the below locations to provide
a total capacity of 4840 MW:

– Ain Sokhna
– North of Giza
– Suez
– Ataka

Additional achievements in this sector include:

– Opening 10 new gas stations with a total capacity of 4992 megawatts

– Strengthening the high voltage transmission network by increasing the capacity of transformers to 13,000 mega volt amps (MVA),
– Increasing the capacity of transformers to 53000 MVA to enable an increase in the capacity of medium and low voltage
– Increasing the cable lengths by 11,000 km for high voltage and increasing the length of lines and cables for medium and low voltage by 25,000 km Aside from the creation of new plants, maintenance has also been carried out on several of existing plants to maximize production.

Healthcare Sector

As part of the state plan to improve the health services provided to citizens, approximately 247 new projects were implemented at a total cost of EGP 24 billion. These projects included upgrading medical equipment in 376 hospitals within Egypt to enable the treatment of more patients. Additionally, the government was successful in screening five million citizens for virus “C”, and treating those who were found to have the virus free of charge, with the overall aim of making Egypt a virus C free country by 2020. Finally, developments in the sector have included improving the emergency services, which consisted of providing 300 new ambulances, and providing new road networks to enable easy of transport. To provide a supportive regulatory framework, a new and comprehensive Social Insurance Law was also released.