Sand to Silicon: Debunking Modern Myths about the Cradle of Civilization

What do you think when you hear the word pyramids? Andmummies? What about Tahrir Square protests? For the nation credited as the cradle of civilization, it can be as hard to shake age-old stereotypes as it is to deflate the modern myths and misunderstandings that have sprung up in more recent years. But for many international investors and business leaders taking a fresh look at Egypt, the economic, political, and cultural markers are sending clear signals — today’s Egypt is forging a new path, and it’s starting to look like a very smart investment. If that comes as a surprise, read on for the facts behind three modern-day Egyptian myths that it may pay well to understand. Myth: Without the pyramids, Egypt would be irrelevant — tourism is the only thing keeping the country’s economy afloat. Actually, tourism is far from Egypt’s only source of income. Oil and gas are the country’s most valuable resources, and they’re delivering. A recent gas discovery off the Mediterranean Coast could mark not only a return to domestic fuel self-sufficiency, but to natural gas exports — no small feat for the most populous nation the Arab world. Thanks to deliberate diversification, Egypt’s economy has proven resilient to both internal and external shocks. And as political conditions have stabilized, investment has begun to rebound, a trend that only promises to accelerate following new, pro-growth government policies. Today, there are investment opportunities in an array of sectors, from agriculture and food production, to healthcare and life sciences, to automotive and consumer goods. And these opportunities aren’t just theoretically promising. The Egyptian economy grew 3.8% in 2016. With continued strategic investments and sound economic policies to buoy the nation’s young and widening labor force, Egypt’s growth is forecast by the International Monetary Fund (IMF) to rise 6% over the medium term. Myth: Egypt is still ancient — while the rest of the world modernized, Egypt is stuck in the past. Spend some time in Cairo and it’s impossible to miss — a vibrant startup scene, incubators bursting with everything from mobile app designers to environmentally conscious clothing lines to next-gen medical devices. It’s a new kind of Egyptian spring, a startup spring, and it’s just getting started. Each year, 300,000 Egyptians obtain university degrees, 35,000 of which are in science, technology and engineering-related fields. But Egypt’s culture of innovation isn’t just about tech, it reaches into many facets of public life. With an ambitious and tech-savvy generation just coming into their own, the most diverse Parliament in history, plus economic ministries led by experienced technocrats, it’s easy to see how Egypt can deliver on its “2030 Strategic Development Strategy” — a bold suite of economic development, social justice, knowledge, innovation, and environmental goals and targets. Already, the new Parliament has taken steps to protect Egypt’s most vulnerable populations through food subsidies including a school meal program, free children’s medicines and infant milk, health insurance for female primary providers, and vocational training for young people. And President Sisi’s government is now laying the groundwork for even more smart reforms. By mounting a series of public dialogues, government leaders are giving youth audiences a platform to voice their views and get practical advice for tapping into the economy and other vital bloodstreams of Egyptian life. Myth: Another wave of protests could topple the government all over again. Egypt is far too close to the instability of the Middle East — and far too risky to invest in. Not according to Standard & Poor’s, Fitch, or Moody’s — all of which have upgraded Egypt’s sovereign credit ratings from negative to stable in recognition of both the strength and depth of the government’s reform program. And not by the standards of the analysts at the International Monetary Fund who approved a three-year, $12 billion Extended fund Facility (EFF) to Egypt, already disbursing the initial tranche of $2.75 billion. It’s certainly not too risky for the business community benefitting from Egypt-U.S. trade, which soared above $6 billion in 2015. Today, to make what is already a solid investment environment even more favorable, the government is rolling out a series of difficult economic reforms, including the introduction of a value-added tax (VAT), liberalization of the exchange rate, and a reduction of fuel subsidies. No more a risky bet, Egypt’s economy is on the rise. And in a clear signal of improvements to come, U.S. multinational companies are helping Egypt identify barriers to investment for future policymaking, from improving intellectual property protections to dispute settlement procedures. Download the fact sheet to learn more.