Analyzing Egypt's Trade: Economic Changes Since Industrial Revolution

This report examines the significant impact of trade on Egypt's economic development, starting from the industrial revolution. It delves into the evolution of Egyptian industries, from old sectors like construction, mining, and shipbuilding to modern industries such as automotive, synthetic, electrical, steel, and textiles. The report highlights the role of exports and imports, including the influence of foreign direct investment and various trade agreements on the nation's financial, political, diplomatic, and civil aspects. The analysis covers the effects of trade on various sectors, including insurance, banking, transport, and tourism, providing a comprehensive overview of Egypt's economic transformation through trade.

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Introduction
Trading activities have the ability to change any nation’s economic development over a
period of time. Various countries involved deeply in trade since industrial revolution have
changed a lot in terms of economic development and stability. The content of this papers
explains the benefits Egypt as a nation has enjoyed from trade since the beginning of industrial
revolution. Trade is one of the key activities which helped to bring Egypt to the current position
it is at the current moment. The economy of Egypt has improved over the years as a result of
trade organized by the Egyptian government. The content of the paper therefore mainly focus on
the benefits of trade in relation to free and international trade. The paper discuses old industries
in Egypt prior to and after revolution in Egypt as well as the modern industries in the nation.
Egypt has benefited from trade through exportation of various commodities as well as imports.
Egypt over the years has been exporting and importing goods from her trade partners. The
content further explains how foreign development investments affects the country discussing
various fields affected by the FDI investments as well as the main stakeholders likely to be
affected by the investment. The content summarizes by listing various trade agreements the
nation has signed both bilateral and multilateral their effect to country financially, politically as
well as diplomatic and civil.
Effects of trade on Egypt since industrial revolution

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Main Old industries in Egypt
Egypt as a nation started trade prior to industrial revolution where made various goods in
small industries which were only made to provide good for survival but not for trade. The
country had various people with various skills and these individuals worked to maintain these
small industries (AbdelRehim and Shawki 4). The old industries in Egypt also developed base on
the demands created by culture, the Egyptians had a strong belief on afterlife and this therefore
resulted into various demands for the leaving to make preparations for the afterlife.
Construction and architectural industry
Construction started long time ago in Egypt, the nation had architects and artists who had
the construction knowledge. The Egyptians started with the construction of old monumental
pyramid in their old kingdoms where they use to bury the royal families. The construction sector
moved further the new tombs which were small in size used in the new kingdom in the valley of
the dead (AbdelRehim and Shawki 4). The Egyptian builders as known during this time also
helped with building of houses which took various designs.
Mining industry
Egyptians mined precious stones as well as other minerals. Egyptians used raw materials
of silica and soda to make various types of glasses which were sold to the royals only. The
demand for glass by the royals resulting into formation of small industries in Egypt. Various
stones were mined in this industry. Architectures in Egypt used various stone from the mines to
make various shapes of their gods as well as kings and in building. The Egyptians also used
stones to make tools as a result of wood scarcity (AbdelRehim and Shawki 4). The mining
industry was totally monopoly owned by the Egyptian government and were managed by very
few trusted government officials.

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Ship building industry
Ship building was another industry valued in Egypt, ships were made from wood and
papyrus reeds (AbdelRehim and Shawki 4). Papyrus reeds formed the main parts of the ship as
wood was a scarce resource in Egypt. This industry was valued and Egypt was the first nation to
sail ships with sails.
Today’s national industries in Egypt
The mechanical part in Egypt throughout the most recent years prompting creation and
development of current enterprises in different locales in Egypt as examined underneath:
Car industry
El Nasr Automotive Manufacturing Company is Egypt's state owned auto association
which was set up in 1960 and is located in Helwan, Egypt. By the year 1962, the association
started manufacturing of distinctive vehicles under the freedom granted by Zastava Automobiles,
Daimler AG, Kia, and Peugeot. Their present lineup includes the Jeep Cherokee; the open-top,
Wrangler-based Jeep AAV TJL; the Kia Spectra; the Peugeot 405; and the Peugeot 406.
Distinctive creators, for instance are, AAV - Arab American Vehicles, the Ghabbour Group,
WAMCO - the Watania Automotive Manufacturing Company, and Manufacturing Commercial
Vehicles (MCV) convey autos in Egypt. MCV was set up in 1994 to address Mercedes-Benz in
the business vehicle division in Egypt, making an extent of transports and trucks for nearby
arrangement and for exchange all through the Arab World, Africa, Latin America and Eastern
Europe. The amassing plant at Salheya uses approx. 2500 individuals. Likewise there is Russian
AutoVAZ creating Lada
Synthetic industry

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Abu Qir Fertilizers Company (AFC) is one of the greatest producers of nitrogen
composts in Egypt and the Middle East. It makes around half of the Egyptian Nitrogen
Fertilizers. The association and the primary Ammonia Urea plant was developed at 1976. It is
arranged at Abu Qir Bay, 20 kilometers East of Alexandria, and there is Egypt Basic Industries
Corporation (EBIC), one of the greatest creators of Greenfield soluble base plant.
Electrical industry
Olympic Group is the greatest Egyptian get-together of associations working generally in
the field of nearby contraptions. The standard things it creates are garments washers, coolers,
electric water warmers and gas cookers. It also works in its fields and land. Bahgat Group is a
primary association in the fields of equipment and electrical home mechanical assemblies,
undertakings, advancements, arrange get to giving, and T.V. stations. The social event is made
out of the going with associations: Egy Aircon, International Electronics Products, Electrical
Home mechanical assemblies, General Electronics and Trading, Goldi Trading, Goldi Servicing,
Egy Medical, Egyptian Plastic Industry, Egy House, Egy Speakers, Egy Marble, Dreamland and
Dream TV.
Steel industry
EZDK is a State-had endeavor and is the greatest steel association in Egypt and the
Middle East. By and by a bit of Ezz Industries, which contains four steel plants in Alexandria,
Sadat City, Suez and tenth of Ramadan City. Besides, it fuses furthermore Al-Jawhara (Gemma)
Company for Ceramic and Porcelain tiles. EZDK is the greatest free creator of steel in the
Middle East and North Africa (MENA) locale and is the market pioneer in Egypt. It is situated at
the 65th place on the planet most prominent steel creators as indicated by the World Steel

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Institute with signify formation of 4.5 Million Tons for consistently addressing around seventy
five percent of Egypt mean yearly age (6 Million Tons).
Clothing and textile industry
Materials and clothing is one of the greatest gathering and exchanging frames in the
country and a giant work defend. The Egyptian garments industry is engaging for two reasons.
At first, its region to European markets, whose rapidly changing styles require smart reviving,
Egypt's property region to style-perceptive Europe is a figured good position. Also, the age of
bits of apparel is a low-capital and high-work raised industry, and t masses of 66 million gives a
readied workforce and a trademark neighborhood customer feature that goes about as a
springboard for sends out.
The material business contributes with one fourth of Egypt's non-oil convey proceeds,
with Cotton materials including the principle part of Egypt's TC exchange carton. The all-
inclusive public portion totaling to 90% of cotton turning, 60% of surface age and 30% of
garments creation in Egypt. Misr Fine Spinning and Weaving is the greatest endeavor of its kind
in Africa and the Middle East. The private part clothing industry is a champion among the most
one of a kind amassing shapes in Egypt.
The necessities of dealers to Egypt of materials and calfskin were set out in the Egyptian
Ministerial Decrees 626/2011 and 660/2011. The Egyptian trade oversight office, the General
Organization for Export and Import Control (GOEIC), asked in June 2012 for an examination
and verification of each shipment, unless the vendor is protected by GOEIC. The Ministerial
Decrees ask for outside stock insist on their consistence with the required quality and security

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models of Egypt. Arafa Holding is an overall clothing maker and retailer, working through a
strong vertically organized stage at the area and widespread levels.
Contract and development industry
Orascom Construction Industries is a fundamental Egyptian EPC helping with planning,
procurement and advancement legally binding laborers based in Cairo and 20 dynamic countries.
OCI was developed in Egypt in 1938 and controlled by Onsi Sawiris. It was nationalized in 1953
and again de-nationalized in the year 1977. The association is the primary multinational Egyptian
organization, and is one of the middle Orascom Group associations. As a solid producer, OCI
asserted and worked bond plants in Egypt, Algeria, Turkey, Pakistan, northern Iraq and Spain,
which had a joined yearly age farthest point of 21 million tons. The Talaat Moustafa Group
(TMG), one of the greatest blends in Egypt, was set up by the past Talaat Moustafa and currently
owned by Tarek Talaat Moustafa.
Administration industry
Insurance and banking
The cash keeping division has encountered many stages since the establishment of the
fundamental bank in 1856, trailed by the ascent of private zone and joint meander banks in the
midst of Open Door Policy in the 1970s season. Likewise, the Egyptian dealing with a record
part has been encountering changes, privatization, and mergers and acquisitions from 1991 up to
today. The sparing cash structure incorporates 57 state business banks. This fuses 28 business
banks, four of which are state-asserted, 26 theory banks with which 11 are joint meander banks
and 15 are branches remote banks, and three specific banks. But private and joint meander banks
are creating, many remain for the most part little with few branch frameworks. Egypt's dealing
with a record structure has encountered genuine changes since the 1990s and today clients are

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looked with a changed and modernized system which is controlled and coordinated by all around
recognized standards. Notwithstanding the way that the home advance grandstand is youthful in
Egypt and 'in the not too distant past nonnatives can't yet get a home advance for a property in
Egypt. Before long, another home advance law will enable purchasers to take out property
credits. This will open up the market essentially and influence a whirlwind of change and land to
activity soon.
Transport industry
Transport in Egypt are engaged in Cairo and, as it were, take after the case of settlement
along the Nile. The essential line of the nation's 4,800-kilometer is (3,000 mi) railroad running
from Alexandria to Aswan and operates under the Egyptian National Railways. The gravely kept
up road compose has stretched out rapidly to more than 21,000 miles covering the Nile Valley to
Nile Delta, Mediterranean to Red Sea floats as well as the Sinai and springs Western betray.
Despite the abroad courses, Egypt Air gives strong noteworthy to an explorer with objectives
move within the nation starting from its Cairo focus point (Bulliet and Richard 324). The Nile
River system (around 1,600 km (990 mi).) and has the basic channels (1,600 km) for basic local
transportation. The Suez Canal is an important course of worldwide exchange and course,
interfacing the Mediterranean and Red Sea. The administration of transportation, close by other
regulatory bodies are accountable for transportation in Egypt. Genuine ports are Alexandria, Port
Said, and Damietta on the Mediterranean, and Suez and Safaga on the Red Sea.
Tourism industry

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The Egyptian tourism industry is a champion among the most basic divisions in the
economy, to the extent high work and moving toward remote cash. It has various constituents of
tourism, mainly genuine attractions especially in Cairo, Luxor and Aswan, yet also shoreline and
other sea work outs (Helgren, Jennifer and Colleen 354). The Egyptian government gets a lot of
revenues from tourism since it is an important wellspring of cash and wander.
Imports and exports in Egypt for the last 10 to 15 years
Egypt exports and imports various goods from the trading partners with petroleum
forming the largest part of the country’s export product since 1976. Before 1976, the country
exported cotton as the main product to other countries. After 1976 petroleum products became
the principal product the nation exports to her partners. In the year 1999, Egypt exported fuel
which accounted for 37% of her total exports. In the same year the country obtained an estimate
$ 3.5 billion in merchandise export (Cohen and Stephen 73). During this year the nation exported
textile yarn as one of the main product export together with cotton forming up 7% of the total.
The nation also exported fabric and finished garments forming 7.9 percent of the total export that
year. The trend remained the same until the year 2004 where the trend changed.
In this year, Egypt exported finished products totaling to 38.4% where petroleum
products were at 38.3 %, semi-finished goods forming 7.1 percent. Cotton, textile and garments
were at 4.1 %. During time main imports from the trading partners were intermediate goods were
at 29.5% of all goods imported (Global Economic Prospects 163). The country imported 22% of
Investments goods, 14.1 percent of all the imports and consumer goods both durable and non-
durables at 14 %. The country obtains most of the imports from the United States and EU where
30.6 % comes from EU, 12.3 % from the Arab countries provided the country with 12.3% of all
imports, Asia 8.7% and United States supplying the country with 35.7 % of all products.

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Exports imports
Petroleum products Investment goods
Cotton Consumer goods
Textiles Petroleum and petroleum products
Garments
Main trade partners
Egypt as a nation has various trading partners and exchange various goods in the global
market. The Egyptians started trade with the Soviet Union prior to 1973 where Egypt obtained
30 % of her imports from the Soviet bloc and exports 55 % of her products to the same bloc. In
the year 1999, Egypt discovered another trading partner in the EU countries where Egypt exports
were marked at 35% while imports from the EU nations were at 36 % (Cohen and Stephen 73).
The united State provided Egypt with 14 percent imports while Egypt exported 21 percent of her
goods to the United States. Libya and Saudi Arabia are also key partners trading with Egypt
exchanging various commodities with the countries. Egypt also trades with Netherlands, Franco
Monaco, India and Italy (Global Economic Prospects 163). Below is the list of main Egyptian
trading partners as well as trade exchange.
Country Exports Imports Balance
World 6,160.7 10,892.7 -4,732.0
Italy-San Marino-Holy See 757.7 537.8 219.9
Bunkers, ship stores 566.7 566.7
United States 520.9 1,272.9 -752.0

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Country Exports Imports Balance
India 465.0 146.6 318.4
Free zones 384.9 1,529.7 -1,144.8
Spain 287.9 127.5 160.4
Netherlands 228.0 178.9 49.1
Saudi Arabia 185.3 252.8 -67.5
France-Monaco 166.5 448.7 -282.2
United Kingdom 147.0 262.4 -115.4
Foreign development investment DI, fields this investment is being used and how
this has affected the main stakeholders
Foreign direct investment the FDI is one the integral segment of a free and effective
global economic system which fuels development in various countries. Egypt as a nation
operating in the global market is trying to catch up with other more developed nations and has
yet revolved on the application of FDI. For the country to benefit from the FDI various factors
such as infrastructure and national policies must be effective (Action Plan 25 ). Egypt with her
desire to move further up exploits the concept FDI and over the years welcomed foreign and
private investors in the nation. Since the year 1974, Egypt has allowed multinational investors
where all transfer restrictions were eliminated. The government of Egypt uses laws to govern the
foreign investments.
Capital Market law of 1992 regulates the increase in stock exchange markets. Other laws
used by the Egyptian government include, investment incentives guarantee law of 1997

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establishing free market zones and other series of laws providing conditions for private and
foreign participation in sectors such as banking sector, insurance transportation sector, electricity
sector as well as telecommunication sector (Tsikata, Yaw and Gyasi 30). The Egyptian
government applies FDI through one of the ministries created in the year 2004. Egypt being the
host government has a lot of money in terms of inflow as well as enjoy increment in terms of
exports and imports. The main field of investment in Egypt is oil and gas sector in Egypt.
Through the investments oil production sector has developed over a long time where petroleum
and petroleum products has increased. The rate of employment increases for both stakeholders as
well as both countries involved enjoy trade links.
The main stakeholders investing in the field of oil production in Egypt include:
FDI Stakeholders
 United Kingdom major stakeholder
 Egypt the host
 France
 Italy
 Arabic countries
Trade agreements and effects in Egypt
Agreements
Egyptian- European partnership: This agreement was assigned by the two countries to
liberalize trade off converting Egypt the largest center for trades.

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Area agreement greater Arab free trade: this ratified the convention of the current free
trade between the 22 Arab countries.
Common market for eastern and southern Africa: this was signed by Egypt as well as
other 19 countries making possible for these countries to trade freely without any fee in the
created zone.
Free trade agreement between Egypt and Turkey: this agreement provides free trade
between Turkey and Egypt and this has allowed the country to enjoy the Turkish market.
The agreement between Egypt and Mercosur gathering: this was assigned in August
between the people of Mercosur and the Egyptians and aims at economic and political
development.
Convention on convention of debt to French investment: this was assigned between
Egypt and French with the aim of allowing the French to invest in Egypt up to the equivalent
debt of $25.135 million euros.
Agreement to encourage and protect investments: this is an international agreement
assigned bilaterally, regionally and multilaterally to regulate international investments.
Effects of the agreements signed by Egypt
The geographical position of Egypt places it at the center of trade and this has
resulted to Egypt getting involved with various nations. Based on this the politics of foreign
trade in Egypt has made it the focal point for regional and international services. The nation
has also been the center for production as well re-export (Hoekman et.al 40). Egypt based on
various trade agreements enjoy both political, economic, diplomatic and civil benefits.
Through the international agreements, Egypt has been able to benefit from the trade links
created by the agreements. The free trade links has enabled the nation to trade freely and