At least three quarter (75%) of businesses in Egypt are optimistic that they will succeed in the current international trade environment, according to a new HSBC survey of over 8,500 companies across 34 markets: ‘Navigator: Now, next and how for business’.
Egyptian businesses have been the prime beneficiaries of a number of government-driven intiatives and reforms that have resulted in growing foreign direct investment, a stable exchange rate, and reinvigorated growth in exports. However, while the overall dynamic has improved, fewer businesses in Egypt (63%) have a positive outlook on international trade – lower than the global average of )78%(.
This comes as no surprise. As businesses become increasingly cognizant (57%) of governments across the world becoming more protective of domestic firms, exploring intra-regional trade for cross border growth opportunities – particularly with Saudi Arabia and the UAE – is coming into greater focus.
Commenting on the report, Chaker Zeraiki, Head of Global Trade and Receivables Finance, HSBC Bank Egypt said: "Egypt’s recent strong reform programme and growth in natural gas explorations have improved the confidence of Egypt’s medium and long-term outlook. This is a key a driver in attracting and strengthening inflows of capital. Speaking to our corporate customers, it is clear that businesses are giving greater focus on regional growth opportunities. This likely reflects Egypt’s unique geographic positioning as the cross-road of intra-regional trade, as well as the drive to promote export which is key to the government’s agenda.”
The Navigator survey also shows that more than half of companies globally (51%) expect that free trade agreements (FTAs), where they apply to their country and industry, will benefit them over the next three years. FTAs are particularly popular in emerging markets, with 60% of firms saying they will have a positive impact (52% in Egypt), compared to 45% of firms in developed markets.
This divergence can also been seen in perceptions of the impact of new regulations. While businesses in Ireland (61%), the US (44%), Singapore (40%) and China (37%) worry about regulations increasing the cost of doing business, their peers in countries including Vietnam (45%), Thailand (43%), India (39%) and the UAE (37%) think regulations will increase their competitiveness.
“Digitalisation is considered fundamental to the Egyptian Economy, with technological innovations playing a catalytic role in accelerating national economic growth. The National
E-Commerce strategy, launched March 2017, is excepted to enhance the digital economy in the medium term. We expect technology, digitisation and data to play an increasingly important strategic role by enabling businesses to develop their products and services, reach new customers and cut costs by improving operational efficiency” said Nancy Tawfik, Head of Client Coverage, HSBC Bank Egypt.
When asked about key factors for growth within their control, Egypt’s businesses highlighted capturing greater market share and upskilling their workforce – in addition to cross border expansion, as their means of achieving their strategic objectives. In support, 84% of those surveyed in Egypt identified use of data and analytics as their main means to optimise performance. This includes the use of sales and transactional data, customer personal data and operational data.
Notably, more businesses 10 years or older (47%) are making greater use of operational data than businesses less than 5 years old (21%), likely reflecting increased capacity to invest in technology amongst more established firms.
-Ends-
© Press Release 2018Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
