The agriculture sector is considered a major sector for the Egyptian economy being the sector responsible for providing nutritional security, and the main source that provides entries of other productive and service sectors, in addition to the role of agriculture exports in improving the balance of payments. It absorbs about 34% of the Egyptian labourers.

 

Agriculture and Irrigation sector has achieved sustainable increase in the volume of investments implemented over the period (1981/82). The private sector had the leading role in implementing these investments. The implemented investments over the period (1981/82-2004/05) have exceeded LE 100 billion, and the volume of investments implemented in 2005/06 reached about LE 8.6 billion, representing about 6.3% of the total investments. About LE 7.6 billion are directed to the agriculture and land reclamation and the private sector participates in implementation at LE 7.25 billion, and the investments of the irrigation sector reaches about LE 1 billion implemented through the Ministry of Public Works and Irrigation.

 

The real growth rate in the agriculture sector rose from 2.6% in 1981/82 to reach to 3.97% in 2005/06. The sector could develop its performance during this period, in comparison to 1981/82, and in 2005/06 (expected) shows the following achievements:

- The cultivated area rose from 6.2% feddans to about 8.47% million feddans at an increase of 33%.

- Crop area rose from 11.2 feddans to about 14.9 feddans.

- The value of agricultural production (at the current prices) rose from LE 5.7 billion to about LE 106.6 billion.

- The agricultural product (at the current prices) rose form LE 4.1 billion to about LE 81.3 billion.

- Value of agricultural exports rose from LE 471 million to about LE 7 billion at a rate of increase more than 10 folds.

- Number of workers in agriculture sector, forests, and fishing rose from 4 million to about 5069 workers.

 

Agriculture sector witnessed a sustainable increase of the quantitative production in the different agricultural crops over the period (1981/82-2005/06) due to the agricultural vertical and horizontal efforts. A comparison between figures of the 1981/82 and 2005/06 (expected) shows the following:

 

- Grain production increased from 8 million tons to 22.99 tons.

- Vegetable production increased from about 8.8 million tons to about 8.95 million tons.

- Fruit production increased from 2.6 million tons to about 8.95 million tons.

-Red meat production increased from 265,000 tons to 774,000 tons.

- Poultry production increased from 144,000 tons to about 990,000 tons.

-Egg production increased from about 3.2 billion eggs to about 9 billion eggs.

- Fish production increased from 210,000 tons to about 885,000 tons.

 

Over the past twenty-five years, the agriculture sector succeeded in controlling food gap, and complete self-sufficiency was achieved in vegetables, fruits, fresh milk, eggs, and fish.

- Self-sufficiency in wheat reached 50%.

- Self-sufficiency in red meat reached 75%.

- Self-sufficiency in sugar reached 89.7%.

During the period (1981/82-2005/06), horizontal development projects realized an increase in the cultivated area that reached 2.3 million feddans. Under President Mubarak's platform, it is targeted to reclaim 1 million feddans over the coming six years, and to establish 400 new villages in the desert in the framework of the valley development project at an average of 170,000 feddans that contribute to providing 420,000 job opportunities at an average of 70,000 job opportunity annually.

 

- Infrastructure works have been implemented over an area of 1.314 million feddans over the period 1981/82-2005/06, of which 162,000 feddans were implemented in 2003/04.

The year 2004/05 witnessed the implementation of interior reclamation over an area of about 132.5,000 feddans.

 

- Interior reclamation works were implemented on an area of 787.8,000 feddans, of which about 150.5,000 feddans were reclaimed in 2003/04.

During 2004/05, interior reclamation works were implemented over an area of about 132.5,000 feddans.

 

The period (1981-2006) witnessed an expansion in horizontal agricultural development projects especially in the second half of the 1990s. A series of mega projects in the southern valley, represented in Toshka, Wast Owainat, Darb al-Arba'ein, As-Salam Canal and North Sinai development projects had begun. These projects are carried out according to the latest technologies in agriculture and irrigation. These projects are also marked by producing economic and chemicals and pesticide-free crops.

 

This mega project was initiated on January 9, 1997 with the digging of Sheikh Zayed Canal and erection of Mubarak jumbo lifting station. When completed, the project will add 540,000 feddans of agricultural lands to be irrigated through the River Nile. The canal and the lifting station cost LE 5.5 billion. General implementation of the project reached 85 percent and the total implemented works amounted to LE 4900 million.

 

The main 50.8-km-long canal in addition to phase I works for branches 1 and 2 has been completed. Construction of Mubarak's jumbo lifting station has been finalized. Water was pumped into the main canal.

 

The first tow units of the lifting station were operated. Water was also pumped into sub-branches (1,2) and in branch (2) in order to supply water to phase I lands  of the project (54,000 feddans). 12,000 feddans have been reclaimed and cultivated and the rest of the land has been prepared for cultivation. Works in branches (1), (2) and (3) have been 75 percent completed and a culvert for branches (3) and (4) is under construction. Southren Valey Company began to cultivate 120,000 feddans and began phase I by cultivating 7,000 feddans, and phase II by cultivating 23,000 feddans.

The project started in 1998 with the objective of reclaiming 255,000 feddans to be irrigated with renewable underground water. Around 47,500 feddans were reclaimed to 2003/04. These lands were cultivated with wheat, barley, maize, fruits, vegetables and aromatic and oil plants. The production of East Owinat, distinguished by high quality, was exported to world market.

 

This project adds 12,000 of reclaimed land in the Western Desert to be irrigated by underground water and cultivated on a clean-agriculture basis. President Mubarak distributed ownership contracts on beneficiaries in new 16 villages in the region.

 

It adds 620,000 feddans to be irrigated by the underground water, distributed as follows:

About 220,000 feddans in the west of the Suez Canal (phase I of as-Salam Canal). National structure works in the west of the Suez Canal have been implemented at a cost of LE 386 million, including the cultivation of 165,000 feddans.

 

About 400,000 feddans on the east bank of the Suez Canal and into Sinai (phase II of as-Salam Canal). Main works of Sheikh Gaber Lake, east of the canal at a length of 86.5, in addition to the lifting stations and bridge preparations have been finalized. Also, south al-Qantara Sharq at a length of 35 km, together with the two related lifting stations and Baloza and Farma drainage stations were completed. Interior reclamation works on an area of 115,000 feddans in Raba'a and Beer al-Abd. Cultivated area reached 31,000 feddans in addition to 11,000 feddans that are being prepared for summer cultivation, and 38,000 feddans are under minor reclamations, and wash for their plants before the end of the year.

- Till now, total costs of the project reached about LE 5.7 billion.

 

Irrigation is the commanding sector for various development activities in Egypt, as it provides current water needs, in addition to developing and preserving our water resources to cover our future needs. Thus, the irrigation sector has obtained huge investments the matter that had a great impact on implementing a number of mega irrigation products allover the country. Total investments implemented during the period (1981/82-2004/05) reached about LE 30.651 billion, including about LE 2.4 billion as investments of year 2004/05. In 2005/06 plan, about LE 1.557 billion were allocated for irrigation activities. These investments contributed to extend irrigation and irrigation networks to cover all the state.

  

Description	1981/82	2005/06	Growth Rate%
Length of uncovered canal (Thousand km)	21,0	32,2	10.5
Tile drainage area (Million km)	2.3	5.54	140.9
Lengths of uncoveren drains (Thousand km)	11.5	23.7	97.4

 

Major Implemented Projects

During the period (1981/82-2004/05), many major irrigation projects have been implemented within irrigation programmes targeted to be implemented by the year 2017 at a cost of about LE 145 billion.

 

- Implementing national programmes, together with horizontal expansion to add 3.4 million feddans by the year. Under this project, the Southern Valley project was implemented (Sheikh Zayed Canal) as well as North Sinai development project (Phase I of as-Salam Canal and Sheikh Gaber Canal).  Infrastructure works of 1.3 million feddans are completed and about 1.12 million feddans are underway.

 

- Implementing a programme for upgrading irrigation on an area of 3.5 million feddans (okd lands). This annual construction average for this program amounted to about LE 200 million. During 2004/05 irrigation upgrading works have been implemented on an area of 40,000 feddans at a cost of LE 215.3 million.

 

- Implementing a program for developing and establishing reservoirs and grand barrages with total investments of about LE 10 billion until 2017. The average annual implementation of this project during 2004/05 reached LE 340.5 million. Salient implemented projects under this program were the following:

 

- New Isna barrages project and its power station with a capacity of 634 megawatt/hour. This project serves 300,000 feddans at a cost of LE 650 million.

 

- Naga'a Hammadi barrages project at a cost of LE 1400 million to improve the irrigation for 750,000 feddans. This project is due to be completed in 2008.

 

- Building an additional sluice for Isna barrage at a cost of LE 165million.

 

- Water resources development program in cooperation with the Nile Basin countries and the program for exploiting underground water and recycling treated swage water. The annual average for implementing this program during 2004/05 is LE 219.8 million.

 

- Program for preserving resources and protecting the River Nile through raising efficiency of irrigation and drainage water networks. The annual average construction cost for this program showed LE 228.9 million.

 

- Program for replacing and renovating about 1500 irrigation and irrigation and drainage lifting stations ye to 2017. A number of 500 stations were completed at a cost of LE 199 million. During 2004/05, works at a total cost of LE 379.8 million have been implemented.

 

- Under a program for developing agricultural drainage water, tile drainage networks have completed for and area of 5.3 million feddans. General drainage networks were upgraded for an area of 6.8 million feddans. The annual average construction cost for this program showed LE 370 million. During 2004/05, works at a cost of LE 443.7 million have been implemented.

 

- Program for preserving and raising the efficiency of the High Dam and Aswan Reservoir, the annual average construction cost for this program showed about LE 76 million. During 2004/05, works at a cost of LE 127.3 million have been implemented.

 

- Program for protecting Egyptian coast that aims to preserve 210-km-long coasts of which 85 km have been implemented. The annual average for construction costs of this program showed LE 42 million. During 2004/05, works at a cost of LE 38.8 million have been implemented.

 

Industry sector is deemed a pivotal sector in the Egyptian economy due to its distinguished role in developing foreign trade, improving the balance of payments, boosting the Gross Domestic Product and providing the citizen's needs. Industry sector enjoys certain factors that qualify it to realize developmental high rates. Currently, industry contributes to about 20% of the Gross Domestic Product, and the sector comprises about 26,000 establishments.

 

Due to the economic significance of the industry sector, the volume of investments implemented in the sector during the period (1981/82-2004/05) rose to exceed LE 160 billion. A sum of more than LE 33 billion was allocated for the industry sector under the plan of 2006/07.

 

The domestic product for the transformation industries (at current prices) rose from LE 2.7 billion in 1981/82 to LE 2.7 billion in 1981/82 to reach 97.8 in 2005/06 (expected), at a growth rate of 5.6% higher than that of 2004/05.

 

Value of industrial exports increased form US Dollar 514.5 million in 1981/82 to reach about US Dollar 18 billion in 2005.

Workforce

Number of employees in the industry and mining sector rose from 1388,000 in 1981/82 to about 2.4 million in 2005/06.

 

Industry sector witnessed a remarkable development during the period 1981-2006. A number of projects and programmers under this sector were implemented during (1981/82-2004/05) thus pushing forward progress of the industrial sector. In the past few years, industry sector took a number of steps to boost industrial products, and open new foreign markets. Both the industry sector and the Ministry of Foreign Trade were merged in one ministry, and the industry sector succeeded in achieving the following:

 

- Number of industrial zones rose from 20 to 90, while the number of operating factories rose to 3222 industrial establishments in 2005.

 

- The year 2004/05 witnessed issuing approvals to establish a number of 2109 industrial establishments that will operate gradually during the coming years at total investments estimate at about LE 7.2 billion. It is decided to provide about 46,000 job opportunities at annual wages of LE 374 million and production at a value of LE 16.6 billion.

 

12- Industrial investment maps for materials and intermediary goods were prepared. In addition, suggesting new projects of each investments estimate at about LE 9 billion that provide about 6,000 job opportunities, the product of which reach more than LE 7 billion.

 

- In the framework of implementing the national programe for small-scale enterprises, a file for industrial development for Port Said Governorate, Al-Menia Governorate, and Beni-Sueif Governorate has been issued.

 

- An industrial database comprising 11261 industrial establishments and 3318 industrial products were prepared.

 

- 1719 new Egyptian standards were issued.

 

- The Industrial Modernization Programme (IMP) was implemented within the framework of the Egyptian-European Union Association at a total cost of 427 million Euro. The European Union contributes with a donation that amounts to about Euro 250 million at a ratio of 59% of the total amount of the programme. Number of factories benefited from the modernization programme during the past three years amounted to 430 establishments. During 2004/05 the programme has been amended to start modernizing 3400 industrial establishments of which 400 are grand establishments, 1000 are medium establishments and 2000 are small establishments.

 

- During the year 2005/06, a number of about 1355 projects of nutritional industries, spinning, clothes, chemical industries and metal industries have been established at investments of about LE 6.6 billion.

 

Over the past twenty-five years, sustainable efforts have been made to enhance the basis of Egyptian industry and pushing the Egyptian product to occupy a becoming position in the foreign markets. This is through boosting its competition capability via applying measures of quality due to world standards. These efforts contributed to increase production capacity at a rate of 25% in a number of fundamental promising industries. By comparing year 1981/82 to year 2005/06 (expected) we may notice the following achievements:

 

- Production of refined sugar rose from about 629,000 tons to about 1645,000 tons.

 

- Nitrogenous fertilizers production rose from about 511,000 tons to about 10810,000 tons.

Production of reinforced iron rose from about 354.4,000 tons in 1981/02 to 4954.9,000 tons.

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A- Petroleum and its products are the most important primary sources of energy in Egypt. While meeting about 90 percent of our needs, this sector constitutes a mainstay of the Egyptian economy as being, an important source of foreign currency.

 

The period under review witnessed 648 petroleum and gas discoveries. In addition, it witnessed the exportation of Natural gas through pipelines for the first time as well as the production of Natural Gas from deep water and the production and exporting of petrochemicals products for the first time in Egypt.

 

The foreign investments in the prospect field and export gas projects are estimated by $ 42.5 billion. The foreign investments in gas liquefaction export projects reached about $ 2.4 billion during the past three years.

 

The value of Grass Domestic Product (GDP) of petroleum, natural gas and other productions (at current prices) reached about LE 3.7 billion in 1981/82. The value is increased to reach about 84.5 billion (expected) in 2005/06.

 

The State policy in the latest years has directed to rationalize crude oil production and exportation to preserve this rich natural wealth and witnessed extension in production and exportation of natural gas.

 

Revenues from petroleum exports rose from US Dollar 3422 million in 81/82 to US Dollar 68 billion in 2005/06.

 

Total exports of crude oil, petroleum products, petrochemicals and national gas reached about 401 million ton.

 

Petroleum Sector is one of the promising sectors to provide more job opportunities. So, number of job opportunities increased from 32000 in 1981/82 to about 120,000 in 2005/06.

 

Produced quantities of crude oil, condensates, liquefied gas and natural gases rose from about 34.4 million ton in 1981/82 to about 73.67 million ton (expected) in 2005/06 including 36.67 million ton of crude oil, condensates and about 37 million ton of Natural gases.

Total domestic consumption of petroleum products and gases are about 770 million ton. Its international prices are estimated by US Dollar 141 billion. Most important Achievements in Petroleum Sector in 2005 against 1981/82.

- Natural gas was delivered to about 2.3 million households in addition to thousands factories.

 

- Increase the Butane-gas stations from 4 to 45 stations. The charging energy rose from 67 million cylinders annually to 348 million cylinders. In addition, the distribution centers rose from 311 to 3369 centers cars fuel and service station increased from about 1000 to about 2463 stations.

 

- Local refinery capacity leapt from 15 million tons in 1981 to 35 million ton in 2005/06. Egypt has 9 refinery laboratories distributed in Cairo, Alexandria, Suez and Tanta. The first refinery laboratory was established in Upper Egypt at Assuit Governorate.

 

- 307 agreements for prospect petroleum and natural gas were held.

 

Electricity sector witnessed many achievements over the past 25 years which contributed to developing performance and increasing the available, generated and used energy. Moreover, unified electrical grid supported by many power generated stations in addition to establishment of several powers transforms stations as well as replacing and renewing the existed stations.

 

The sector succeeded in providing the electrical energy for about 99% of Egypt and achieving average growth rate about 7% during the period (1981/82-2005/06)

Electricity sector achieved investments about LE 80 billion during the period 1981-2005. Implemented investments during the year 2005/06 reached about LE 5.813 billion.

 

The value of Gross Domestic Product  (GDP) of electricity sector (at current prices) rose from about 244 million in 1981/82 to about LE 13.7 billion in 2005/06 (expected) including about LE 11.9 billion implemented by public sector and about LE 1.8 billion by private sector.

 

The value of electricity total domestic product at current prices reached about LE 128 million in 1981/82 and increased to about LE 8.6 billion in 2005/06 including about LE 7.3 billion public sector participation and about LE 1.3 billion for private sector participation.

 

Number of manpower employed by electricity sector increased from about 63 thousand workers in 1981/82 to about 168.9 thousand workers in 2005/06.

 

Electricity sector has succeeded to develop its performance during the period 1981/82-2005/06 whereas the available used and generated energy increased and the energy needed for local needs provided and started to export.

 

A comparison between (81/82) and 2004/05 shows the following.

 

- Generated electric power increased from about 18 billion km/h to reach 107.5 billion kilo watts/hour.

- Average per capita share of consumed power increased from 414 kw/h to 1450 kw/h.

- Number of subscribers increased from 4.5 million subscribers to reach about 21, 5 million.

- Evolution of the number of lighted smell appendants and residential clusters from 50 60 in 1981 to 38826 in 2005.06.

- Building and expanding 27 thermal electric generation plant with total power of about 13760 Megawatt in addition to establishing 2 hydraulic plants and the third one is under construction. Also, 9 tension transforms stations 500k were established.

- The period witnessed the implementing of the project joining the unified electric grid in Egypt with the grids of Arab and African Countries and then with European countries. The implementation of the joining of the seven countries project including (Egypt, Jordan, Lebanon, Libya, Syria, Iraq and Turkey). The net exchange between Egypt and joining countries (Jordan, Libya and Syria reached about 766 million kw/h with total value of about US Dollar 57.5 million uses of Electricity.

Egypt owns all the means that enables it to occupy an advanced rank on the international tourist map. Tourism has achieved a remarkable progress throughout the past 25 years. It has become a major industry absorbing a high percent-age of the labour force, and providing more new work opportunities every year, besides its role as a main source of the national income. Tourism has achieved high average growth rate of 29% per annum during the period 1981/82-2005/2006.

 

Tourism revenues increased from about US Dollar 392.8 million in 1981/82 to about US Dollar 7200 million in 2005/2006.

 

Work opportunities in the tourism sector increased from 83.000 in 1981/82 to more than 2 million in 2005/2006.

 

The implemented investments exceeded LE 40 billion during the past 25 years. The tourism sector has succeeded during that period in attracting varieties of investments (Egyptian, Arab and foreign). Direct foreign investment's share was 17% of total investments, through companies established under the investment guarantees and incentives law. Investment in new tourist destinations like the Northern coast has witnessed a big attention of Arab and European investors. Hence, reflecting the increasing confidence in the future of tourism industry in Egypt.

Gross Domestic Product (GDP) of restaurants and hotels, (at current prices), rose from LE 236 million in 1981/82 to about LE 18869.6 million in 2005/06, LE 18649,3 of which by the private sector, and LE 220.3 million by the public sector.

Gross Domestic Production of restaurants and hotels, (at current prices), rose from LE 493 million in 1981/82 to about LE 36578.9 million in 2005/2006, LE 437 million of which by the public sector, and LE 36141.9 million by the private sector.

 

Tourist movement has escalated during the period (1981/82-2005/2006), except for some periods affected by certain international, regional and local events, in which there was a decrease in the number of tourists.

 

The sector has achieved a remarkable progress comparing between 1981/82 and 2005/2006, as follows:

 

- Number of tourists rose from 1.4 million to about 8.6 million.

- Number of tourist nights increased from 9.6 million to 85.3 million.

- Hotel capacity increased from 18.8 thousand rooms to 175 thousand rooms.

- Number of hotels increased from 263 to 1339.

- Number of tourist establishments, restaurants and cafeterias increased from 420 to 1185.

- Number of tourist companies increased from 331 to 1388.

 

Suez Canal is considered one of the most important waterways and it is also an economic asset of Egypt where its income contributes in supporting the national economy. During the period (1981/2006) many major maintenance and renewal projects have been implemented, in addition to upgrading and deepening the canal to allow the passage of the biggest containers and ships.

 

Revenues from Suez Canal have shown a growing increase during the past 25 years. The revenues rose from US Dollar 908.9 million in 1981/82 to US Dollar 3900 million in 2005/06.  

Suez Canal's contribution of GDP at current prices rose from about LE 643 million in 1981/82 to about LE 22.4 billion 2005/06.  

 

Suez Canal's contribution to GDP at current prices rose from about LE 669 million in 1981/82 to about LE 24 billion in 2006/06

 

Suez Canal sector achieved investments that hit LE 2.8 billion during the past 25 years. These investments were oriented to upgrade, deepening and maintain the canal. These projects contributed to achieving the following:

 

- Revamping and deepening the canal draft from 52 feet to about 62 feet, expected to reach 66 feet at the end of the 2002/07 five-year-plan allowing the transit of ships loaded up to about 240,000 tons.

 

- Expanding the water sector from 2500 m² to about 6750 m².

 

- Total net tonnage of ships transmitting Suez Canal rose from 334 million tons to 700 million tons.

 

- The number of ships transmitting Suez Canal reached 18400 in 2005/06.

1 socio-Economic Development Plan 2001/02

2 socio-Economic Development Plan 2005/06

*  Egypt Achievements, Decision and Support Centre, Cabinet, April 2006

* 2/years of Achievements, SIS

** Ministry of Electricity Report, gune 2006

1 Socio-Economic Development Plan 99/2000

2 Socio-Economic Development Plan 2005/06