The chemical and petrochemical sector combined represents 12% of total industrial production and is valued at marginally over US$2bn, accounting for about 3% of total Egyptian gross domestic product (GDP). The chemical industry in Egypt has been facilitated in its development by the country’s strong oil industry sector and abundant availability of minerals which is able to provide raw materials, feed stocks and manufacturing infrastructure. The chemicals industry is undergoing extensive reforms and realignment of local production. The market volume reported for all types of chemicals was US$ 8 bn in 2005. The country has a huge demand for organic chemicals. Key chemical industry sectors include: Fertilizers, Petrochemicals & Other chemicals.
A reasonable average growth rate of about 5% can be expected in the chemicals sector over the next four years (2005 -2009).
Egypt has a great potential for developing a strong healthy chemical industry. As a matter of fact the chemical sector is the most promising sector for Foreign Direct Investments (FDI) in Egypt for the coming 20 years.
Egypt has huge potential for expanding its chemicals exports. By the end of 2006, the Egyptian government forecasts chemical and pharmaceutical exports to the tune of US$ 1.06 bn. Specialty chemicals and fertilizers are likely to be the key growth segments. During 2005-2009, the average growth rate is forecast to be about 5% in the chemicals sector.The country’s chemicals products output is forecast to reach EGP 26.91 bn (US$ 4.68 bn) by 2009, up from an estimated EGP 23.28 bn (US$ 4.06 bn) in 2005.
Egypt’s Main Strength in the Chemical Sector:
Abundant basic raw materials (Natural gas, Phosphates, Kaolin, Gypsum, Ilmenite …etc).
Relatively long experience in this field, major industries were established back in the late 1940’s and early 1950’s.
Highly qualified manpower.