Egypt already has complete manufacturing sub-sectors, such as food and beverages, steel, pharmaceuticals, and automobiles, and has the conditions to become the primary destination of global manufacturing. In addition, there are multiple industrial zones and special economic zones (SEZ) between different provinces, providing investors with a simplified tax and tariff system.
Food and beverage
Egypt’s food and beverage (F&B) sector is largely driven by the country’s rapidly growing consumer base, and the region’s population size ranks first in the entire Middle East and North Africa. It is the fourth largest halal food market in the world, after Indonesia, Turkey and Pakistan. The expected population growth is a strong indicator that demand will continue to grow. According to data from the Egyptian Food Industry Export Council, food exports in the first half of 2018 totaled US$1.44 billion, led by frozen vegetables (US$191 million), soft drinks (US$187 million) and cheese (US$139 million). Arab countries accounted for the largest share of Egyptian food industry exports at 52%, valued at US$753 million, followed by the European Union, with a share of 15% (US$213 million) in total exports.
According to the Egyptian Chamber of Food Industry (CFI), there are more than 7,000 food manufacturing companies in the country. Al-Nouran Sugar Company is the first large-scale machine-made sugar factory in Egypt that uses sugar beets as raw materials. The plant has Egypt's largest vegetable sugar production line with a daily output of 14,000 tons. Egypt is also home to global leaders in food and beverage manufacturing, including Mondelēz, Coca-Cola, Pepsi and Unilever.
Steel
In the steel industry, Egypt is a strong global player. The output of crude steel in 2017 ranked 23rd in the world, with an output of 6.9 million tons, an increase of 38% over the previous year. In terms of sales, Egypt relies heavily on steel bars, which account for about 80% of all steel sales. As steel is a basic component of infrastructure, automobiles, and construction, the steel industry will continue to be one of the cornerstones of Egyptian economic growth.
Medicine
Egypt is one of the largest pharmaceutical markets in the Middle East and North Africa. Pharmaceutical sales are expected to grow from US$2.3 billion in 2018 to US$3.11 billion in 2023, with a compound annual growth rate of 6.0%. Major companies in the domestic pharmaceutical industry include Egypt International Pharmaceutical Industry (EIPICO), Southern Egypt Pharmaceutical Industry (SEDICO), Medical United Pharmaceutical, Vacsera and Amoun Pharmaceuticals. Multinational pharmaceutical companies with production bases in Egypt include Novartis, Pfizer, Sanofi, GlaxoSmithKline and AstraZeneca.
