COUNTRY EGYPT

COUNTRY EGYPT

POLITICAL & ECONOMIC OUTLOOK

� Brief summary of political situation:On June 30th an unprecedented mass revolt s of about 30 Million people ended on July 3rd with the ousting of a one year Presidency for Dr. Mohammad Morsi previous head of the Muslim Brothers Political Party Freedom and Justice. The interim new President of Egypt is the President of the Constitutional Court that Appointed Dr. Mohammad El Baradei as Deputy President for International Political Affairs and Dr. Hazem El Beblawy as Prime Minster. Who also has a long track record in the Private Sector as well as being a civilian institutional builder.

� Election Watch:Parliamentary Elections as well as Presidential elections have a clear road map announced and declared.

COUNTRY EGYPT

� Brief summary of economic growth: The real economy grew by 2.2% year on year in the second quarter of 2012/13, taking growth for the first half to 2.4%. Growth for the full year could slow, to 2%, as political instability continues to weigh on the economy. Growth will remain well below potential in 2013-17, averaging around 4% a year. As a result of continued domestic political uphe-aval, macro economic imbalances and financial constraints, output will also be constrai-ned. Moreover, weak global demand, particularly in the euro zone, could affect Egyptian exports and Suez Canal revenues (which fell in March). Assuming that the political situa-tion begins to stabilize after a new parliament and government are in place, growth should pick up from 2014. The weakening of the Egyptian pound contributed to the depression of both private consumption and imports. A weaker pound nevertheless, will make exports more competitive, contributing to an expansion of export volumes from 2013/14. This would be further supported by a recovery in tourism and manufacturing. Rising government consumption will provide some support to private demand, although it will slow as the government eventually introduces a measure of austerity. Investment, meanwhile, remains low, but should pick up strongly after a loan agreement is concluded with the IMF. Investment growth will be supported in the medium term as delayed projects get under way, in turn providing a needed boost to employment.

� Inflation:Inflation will remain a concern as consumer price inflation rose 6.3% on an annual basis in January, and inflation in Egypt is expected to remain a lingering problem for policyma-kers in the coming months given the impact from the ongoing crisis, flared even more so by the recent depreciation of the currency. Consumer prices are expected to rise 11.0% on an average annual basis in 2013. Fiscal measures, disruptions in the supply chain, a much weaker currency, and relatively high commodity prices—particularly for food and fuel will all help to keep inflation on the government's list of worries. The Central Bank of Egypt will tread lightly with regard to monetary policy as it seeks to deliver stability and is caught between, the benefits of cutting its policy rates to spark growth or hiking rates to control inflation and maintain the value of the currency and awaits signals from the central banks of the more advanced economies.

PRINCIPAL BANKS WE WORK WITH/PARTNER BANK

1. - ARAB INTERNATIONAL BANK2. - ARAB INVESTMENT BANK3. - ARAB AFRICAN INTERNATIONAL BANK4. - AFRICAN EXPORT IMPORT BANK5. - AL BARAKA BANK6. - BANK OF ALEXANDRIA7. - BANQUE MISR8. - BANQUE DU CAIRE9. - COMMERCIAL INTERNATIONAL BANK10. - EGYPTIAN GULF BANK11. - EXPORT DEVELOPMENT BANK12. - FEISAL ISLAMIC BANK13. - INDUSTRIAL DEVELOPMENT BANK14. - NATIONAL BANK OF EGYPT15. - SOCIÉTÉ ARABE INTERNATIONALE DE BANQUE 16. - SUEZ CANAL BANK17. - THE UNITED BANK OF EGYPT18. - WATANY BANK OF EGYPT (NATIONAL BANK OF EGYPT)19. - WATANY BANK FOR DEVELOPMENT (ABOU DHABI ISLAMIC)

COUNTRY EGYPT

OPPORTUNITIES FOR ITALIAN COMPANIES

� Main Sectors and Opportunities: Oil and Gas exploration, Medical Services, Education, Retail, Food & Beverage as well as Distribution and Logistics.

� Taxes for Establishment Joint Ventures: Manufacturing companies do not require by law local partners as they can be 100% foreign owned, however, having a local partner does facilitate logistics and could facilitate smoother operations. Trading companies on the other hand, to date, are not allowed to be 100% foreign owned.

� Reference Laws: Investment Law 43, or Law 159 or Law No. 8 are all available laws for incorporation of companies in Egypt.

COUNTRY EGYPT

LOCAL LEGAL FIRMSIbrachy Law FirmMr. Tarek GadallahPartner4 El Sad El Aaly Street, 4th FloorDokki, Cairo, EgyptTel & Fax + 20 2 333 810 99E-mail tarek.gadallah@ibrachy.comWeb www.ibrachy.com

Hassouna & Abou Ali Law FirmMr. Ahmed G. Abou AliManaging PartnerCairo Center Bldg., 5 Th Floor2, Abdel Kader HamzaGarden City, Cairo, EgyptTel + 20 2 2792 4101 - 2792 4102Fax + 20 2 27924104E-mail agaa@hassouna-abouali.comWeb www.hassouna-abouali.net

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OTHER USEFUL LINKSItalian Chamber of Commerce in Egypt33 Abdel Khalek Sarwat St., Cairo 11511 - EgyptTel + 20 2 23922275 - 23937944Fax + 20 2 23912503Web www.cci-egypt.orgMr. Soliman El WazzanGeneral Secretary/CEOE-mail soliman.elwazzan@cci-egypt.org

National Bank for Development (Subsidiary of Abou Dhabi Islamic Bank)Mr. Mohamed El SayedHead of Financial Institutions & trade Finance Services9 Rostom St., Garden City - Cairo – EgyptTel + 20 2 27984036Fax + 20 2 27983607Mobile + 2 01006688866 – 01002154330E-mail mohamed.elsayed@adib.aeWeb www.nbdegypt.com

Al Watany Bank of Egypt (Subsidiary of National Bank of Kuwait)Mr. Sherief F. KhalilSenior Relationship Manager Institutional BankingNew Cairo - Plot No. 155 - the first sector - City Center DistrictTel +202 – 26149391E-mail sherief.khalil@alwatany.netWeb www.alwatany.net