Industry

=INDUSTRY=

**History**

 For years Egypt was principally known for its agricultural commodities, until the 19th century when leader Muhammad Ali revived Egypt’s industry for textiles, oil squeezing, sugar and military goods. This industrial revival lasted, and by WWI Egypt was well known for its textiles. [|(2)] In 1920 the Banque Misr was created in an effort to create another revival of Egypt’s industry. The bank established a base for companies and factories that helped advance Egyptian industry, as well and aid in the protection with Egyptian products. At the time of the 1952 Revolution Egypt was more industrially advanced than other neighboring Arab countries and most of Africa. During the Nasser administration the government helped in created and industrial base and expansion. [|(1)] Due to this a dependence on political influences became an important part of Egyptian industry. The Revolution also started many heavy industry projects including petroleum, chemical, iron and steel. From 1967 to 1973 the October 1973 War, or the Ramadan War, slowed Egypt’s production but was revitalized at war’s end. [|(3)] In 1974 the Open Door Policy was introduced by President Anwar Al-Sadat with the goal to move Egypt from a centralized to more liberal economy. One way to do this was to attract foreign and domestic private investment. More recently in 1991 and Economic Reform Program was introduced which encourages trade and exports, removing obstacles and stimulating production. [|(4)] 

Environment:
Unfortunately while Egypt’s economy prospers from the industrial growth, the environment suffers. Many Egyptian factories burn mazot for power, the heavy oil byproduct left over from crude oil. With factories being placed in the same general areas, there is an intense concentration of greenhouse gases that come from burning mazot. Efforts are being made to switch to fuels such as gas, with the hope of decreasing emissions and improving air quality, but much more still needs to be done to improve Egypt’s pollution issues. [|(7)]

**Types of Industries**

The industries Egypt has mostly specialized in are mining, textiles, foods and beverages, and furniture. What Egypt mainly mines is crude oil and natural gas from the Gulf of Suez. Compared to the Gulf countries Egypt has very little crude oil and it has been exporting less recently. But, their exports in natural gas are expected to rise as they conclude agreements with Israel and Jordan. In addition to oil, Egypt has limestone, phosphate, and iron ore deposits which they mine. They also have other minerals such as manganese, gold, zinc, tin, lead, copper, potash, sulphur, and uranium but they are not mined very much since mining and transporting them has proven to be costly. The textile, food, beverage, and furniture industries account for the largest part of manufacturing revenues. Another growing industry is construction. Increasing demand for houses has made it continuously grow over the years. All of these different industries have contributed a lot to Egypt’s economy and have made the economy grow. [] []
 * Impact**

The industrial sector has played a big role in Egypt’s economy and its contribution to the GDP is increasing steadily. Its role in the GDP has increased from 17% in 2006 to 17.5% in 2007. Industrial production in 2005 has amounted to L.E 254 billion. Clearly, Egypt’s industry has had a huge impact on their country in many positive ways providing their country with more money and job opportunities.


 * Foreign Investment**

Egypt has also started to attract more foreign investment. Cheap labor is a main reason as to why Egypt has been attracting investors but on top of that, the Industrial Development Authority has taken steps to reduce prices of land and energy to attract even more investors. Another thing that attracts investors to Egypt is the seven fully equipped public free zones they have. They are also located near ports which is useful because about 50% of the production must be exported. The number of industrial facilities in Egypt has risen from 24.5 thousand facilities in 2005 to 27 thousand facilities in 2006, a 10% increase. In 2007, 100 new Turkish factories were established with an investment amount of $200 million. Egypt hopes to attract even more investors with the low costs they offer to further help their economy.


 * __Exports__**

Egypt exports many of its resources to various countries. The United States of America imports most of Egypt's exports. It's other trading partners include Italy, France, Greece, Germany, Great Britain, and Japan. After the Modernization Program that was set up with the help of the European Union, exports have risen drastically in recent years. From 2001 to 2005, the total exports went from $4.2 billion to $10.7 billion, staggering rate of 156%. Petroleum accounted for half of the total exports in 2005. The volume of non-petroleum export increased from $2.3 billion in 2001 to $4.2 billion in 2005. The Egyptian exports increased to about $8.5 billion in May 2006 at a rate increase 46 percent from the targeted plan of the fiscal year 2005/06. As for the food sector, these exports reached L.E. 2.127 billion. The agricultural exports are increasing, and in 2005, they reached $3 billion. Their main exports are:
 * Natural gas
 * Cotton
 * Semi-finished steel ad iron products
 * Other petroleum products
 * Textile floor coverings (carpets)
 * Non-Cotton household furnishings and clothing
 * Aluminium
 * Stone, Sand, Cement, and lime
 * Fertilizers, pesticides, and insecticides
 * Synthetic rubbers, wood, cork, gums, and resins
 * Feedstuff and food grains (farm produce)

 __ 1) []__ 2)   [] 3)  []  4)   [] 5) [] 6) [|http://internationaltrade.suite101.com/article.cfm/top_egyptian_exports_imports] 7) http://ipsnews.net/news.asp?idnews=39730

