According to the U.S. Department of Commerce, the stock ofU.S. direct investment in Egypt stood at USD 21.1 billion as of2014, representing 32% of U.S. direct investment in Africa. In2014, Egypt was the largest recipient of U.S. direct investmentin Africa, and second in the Middle East after the UAE. The U.S.is among the top 10 largest foreign direct investors in Egypt. Apache Corporation, a global oil and gas exploration and

production company based in Houston, Texas, entered Egyptin 1993 and is now the largest American investor in the coun-try, with current investments totaling over USD 18 billion andanother USD 1.2 billion planned in 2015. Apache holds over6.7 million gross acres in the Western Desert. The companyalso operates in the USA, Canada, United Kingdom and Aus-tralia. Other American petroleum companies with operationsin Egypt include ExxonMobil, Halliburton, IPR TransOil andMerlon International.The stock of U.S. capital excluding petroleum production and

refining totaled USD 2.3 billion as of end of February 2015, dis-tributed among 1,151 companies. American non-petroleumfirms are active in most economic sectors in Egypt, with man-ufacturing companies holding the largest share (38%) of the

U.S. non-petroleum capital in Egypt. Large U.S. investors inthese sectors include 3M, American Automotive, AmericanStandard, Bristol-Myers Squib, Cargill, Coca-Cola, Colgate-Pal-molive, Dow Chemicals, Edison International, Energizer, Gen-eral Electric, General Motors, Gillette, Heinz, Hundz Soil,Johnson & Johnson, Merck, PepsiCo, Pfizer, Procter & Gambleand Xerox.Financial services is the second largest sector after manu-

facturing for U.S. investment in Egypt, accounting for 33% ofthe U.S. non-petroleum capital in Egypt. AIG, American Ex-press, BNY Mellon, Citigroup, Coldwell Banker, MetLife, andVisa are all participants in the financial services sector. TheU.S. has significant presence in other service sectors as well.Alcatel-Lucent, Cisco, Hewlett-Packard, IBM and Microsoftall operate in the telecommunication and information tech-nology sector. The Egyptian fast-food market is dominated byU.S.-based franchises including Baskin-Robbins, Burger King,Chili’s, Cinnabon, Cold Stone Creamery, Dairy Queen, T.G.I.Friday’s, Hardee’s, Hard Rock Café, KFC, Little Caesars, Mc-Donald’s, Outback Steakhouse, Pizza Hut, Starbucks andRuby Tuesday.

AmCham Corporate Partner

33 Soliman Abaza Street, Dokki 12311 • Cairo, Egypt • Tel: (+20-2) 3338-1050 • Fax: (+20-2) 3338-1060 www.amcham.org.eg

Produced by: Business Studies & Analysis Center (BSAC) Website: www.amcham.org.eg/bsac • E-mail: studies@amcham.org.eg

© April 2015 The American Chamber of Commerce in Egypt

U.S. Contribution in Companies’ Capital(Stock end of February 2015)

Source: GAFI

U.S. Investment in Egypt

U.S. Foreign Assistance to EgyptIn FY 2014, Egypt received USD 1.5 billion in for-

eign aid from the United States government. Of

this, USD 1.3 billion was from the Foreign Military

Financing account, USD 200 million was from the

Economic Support Funds account, and USD 3 mil-

lion was from the International Narcotics Control

and Law Enforcement account. Egypt was ranked

second globally, behind Israel, in economic and

military assistance from the U.S.

Egypt Top 10 GSP Exports (2014)

The U.S. Generalized System of Preferences (GSP) is aprogram that provides preferential duty-free treatmentfor 3,509 products from 122 beneficiary developingcountries. The GSP program was initiated on January 1, 1976,

authorized under the Trade Act of 1974. The GSPstatute automatically expired for all beneficiary devel-oping countries (except for AGOA-eligible countries)on July 31, 2013.The U.S. Congress is considering

legislation that would extend authorization beyondthis date. Egypt has been a beneficiary country under GSP

since its initiation, yet GSP accounts for only 4.8% ofEgypt's total exports to the U.S., as over 80% of Egypt’sexports to the U.S. are not eligible for GSP treatment.This ranks Egypt 22nd among GSP beneficiary devel-oping countries. GSP-eligible exports fell by 5.4% in2014 compared to 2013.

Note: Although GSP authorization expired July 31, 2013, this chart includes GSP products if retroactive authorization is enacted.Source: USITC

The GSP Program

• Architecture/Construction/Engineering Services

• Electricity Power Systems

• Franchising

• Medical Equipment and Supply

• Renewable Energy

• Safety and Security Industry

• Telecommunications Equipment and Services

• Water/Wastewater Resources

Leading Sectors for U.S. Business in Egypt in 2014

Source: U.S. Commercial Service

Sector Number of Companieswith U.S. Capital

U.S. Contribution toCapital (USD million)

Engineering 50 297.4Pharmaceuticals 17 189.2Textiles and Clothing 55 139.3Chemicals 66 81.4Food and Beverages 35 60.2Building Materials 9 55.0Metallurgical 27 37.2Mining 4 3.5Wood Manufacturing 8 0.7Total Industry 271 863.8Petroleum Services 43 321.4Commercial Services 119 65.9Health Services 24 27.4Transportation 21 21.7Consultancies 105 10.3Public Services 62 3.4Education 20 2.4Journalism and MediaProduction 38 2.1Storage 3 1.2Human Resources 2 0.0Total Services 437 455.8Banks 5 615.1Financial Services 13 91.4Investment Funds 16 32.2Total Finance 34 738.7Real Estate Development 30 58.2Contracting 49 35.9Infrastructure 14 5.8Housing 1 0.1Total Construction 94 100.0Information Technology 141 33.1Communication 24 6.1IT Services 37 5.2Total IT 202 44.4Total Tourism 72 36.5Land Reclamation 32 10.6Agro-Industry 1 7.1Livestock Production andFisheries 7 2.6Other Agriculture 1 0.5Total Agriculture 41 20.8Grand Total 1,151 2,259.9

Egypt_US_Relations_Profile2015-5_Layout 1 4/30/15 9:09 PM Page 1

TRADE AND INVESTMENT PROFILEEGYPT - U.S.The United States is committed to assisting the economic reform in Egypt and to working with the Egyptian government tosecure the ambitious vision laid out during its Economic Development Conference in March 2015. In 2014, the U.S. com-mitted USD 300 million for the Egyptian-American Enterprise Fund and USD 250 million for Overseas Private InvestmentCorporation (OPIC) loans to support SMEs. In November 2014, executives representing 70 companies met with PresidentEl-Sisi under the auspices of the U.S. Chamber of Commerce to strengthen business ties between the two countries and toencourage new investments in Egypt. Egypt is the 53rd largest trading partner of the U.S., with a total trading volume ofover USD 7.9 billion in 2014. This is an increase of 16.5% from 2013 and accounts for 2.8% of Egypt’s GDP and 4.0% ofMENA-U.S. merchandise trade. Egypt’s exports represent 1.3% of MENA exports to the U.S. while its imports make up7.5% of MENA imports, ranking it sixth in the region and first in Africa.

MENA Exports to the U.S. (2014)Total Value = USD 111.0 billion

MENA Imports from the U.S. (2014)Total Value = USD 87.0 billion

Source: U.S. Census Bureau

State TradeAround 26% of Egypt’s trade with the U.S. is conducted with Louisiana, which is also the largest exporter toEgypt among all 50 states, with a share of 31.1%. Petroleum and coal products dominated Louisiana’s exportbasket to Egypt in 2014, followed by oilseeds and grains. California is the largest importer of Egyptian goodsin the U.S., with a share of 16.5%. The number-one Egyptian export to California is apparel, followed bytextile furnishings.

Trade TrendsThe U.S trade surplus with Egypt grew by 42.3% in 2014. U.S. exports to Egypt increased by 25.4% to USD 6.5 billionin 2014 from USD 5.2 billion in 2013, while imports from Egypt dropped by 12.4% to USD 1.4 billion in 2014 fromUSD 1.6 billion in 2013.

Egypt-U.S. Trade Values

Imports from the U.S.Total Value = USD 6.5 billion

Source: U.S. Census Bureau

Non-Petroleum Exports to the U.S.Total Value = USD 1.4 billion

Qualifying Industrial Zones (QIZs)The Qualifying Industrial Zones (QIZs) Protocol be-tween Egypt, Israel and the United States was signedon December 14, 2004, and implementation beganon February 16, 2005.Originally, QIZ products were required to have

11.7% of their content comprised of Israeli inputs,but this requirement was negotiated downwards to10.5%, applicable as of January 2008. Value addedmay be in the form of labor or material components.Products are eligible for duty-free treatment pro-vided they are directly exported to the United Stateswithout passing through any other location beforearrival at the U.S. border.Egypt’s designated QIZs encompass the largest in-

dustrial centers and the most important textiles andclothing manufacturers: 83% of QIZ companiesproduce textiles and clothing items, while thoseproducing processed agricultural products accountfor 6.2%. The largest number of QIZ-listed compa-nies are concentrated in Alexandria, which hosts22% of all listed companies. Beni Suef and Minyaare the most recent additions to QIZ designatedzones in Egypt. In 2014, QIZs spurred USD 845.3 million in Egyptian exports to the U.S. and supported 280,000 Egyptian jobs. Total

QIZ exports have increased by 4.9% from USD 845.3 billion in 2013 to USD 886.8 billion in 2014. The QIZ Protocol hasresulted in a 54.2% increase in Egypt’s textiles and clothing (TC) exports to the U.S. from USD 582.6 million in 2004 toUSD 886.4 in 2014, and TC exports from QIZs account for the majority of Egypt’s total TC exports to the U.S. Under theQIZ Protocol, frozen fruits and vegetables exports surged in 2014, marking an increase of 86.8% over 2013, while preservedfruits and vegetables exports grew by 62.5% in 2014.

Source: U.S. Census Bureau

April 2015

Egypt Top 10 QIZ Exports (2014)

Source: USITC

Falling U.S. imports from Egypt are mainly a result of a sharp drop in Egyptian petroleum exports to a mere USD 1 millionin 2014, a 99.5% annual decrease from USD 200 million in 2013. This can be attributed to Egypt’s domestic-market oilsupply shortages on the one hand, and a general decrease in U.S. demand for oil imports due to its own increased do-mestic shale oil production on the other hand. Egypt’s non-petroleum exports to the U.S. reached USD 1.4 billion in2014, a mere 0.4% drop compared to 2013. Apparel dominated the export basket with a share of 58.4% of total exportsto the U.S., followed by textiles and furnishings which accounted for 12.4%. Egyptian imports from the U.S were dominated by petroleum and coal products, which more than doubled in 2014 to

reach USD 1.1 billion, equivalent to 17.2% of total imports from the U.S. Oilseeds and grains accounted for 16.9% oftotal imports, increasing by 32.3% to reach USD 1.0 billion in 2014.

California

Texas

Georgia

New York

Louisiana

State Rank in Exports to Egypt

State Rank in Imports from Egypt

2,0321,134

281

194

232

12

5

3

1

(Value in USD million)

122

2072

1484New Jersey

6193Maryland

3234

North Carolina

Florida

5

Top States Trade with Egypt in 2014

Source: U.S. Census Bureau

QIZ locations in Egypt

Egypt_US_Relations_Profile2015-5_Layout 1 4/30/15 9:10 PM Page 2