Hany El Habibi

Chairman

Sahara Group

Egypt Always Open for Business

November 4th, 2010

Norwich, UK

Overview on the Egyptian Economy

-Economic Activity, y/y % chg.

- Monetary Indicators

-Egyptian Economy Indicators

-External Sector Performance

-Financial Sector Performance

-Fiscal Performance

-External Debt

A quick overview on the Egyptian Textile & Apparel Industry

Account for 25% Egypt’s total industrial work force

29 public & 2500 private textile enterprises

Value of output estimated at US$ 12 BN

US$ 8 BN Investment

10% of total exports

Comprised 25% of all manufactured exports

EUROMED - EU-Egypt FTAQIZ – USA-Egypt FTA

COMESA- Egypt-African Countries FTAEgypt - Arab Countries Regional FTA

Aghadir – Jordan, Egypt, Tunis, Morocco

Industry Size

Importance to the

Egyptian Economy

Free Trade Agreements applying in

Egypt:

Egyptian Cotton Fiber

Spinning & Weaving

Dyeing & Finishing

RMG&

Home Textiles

Vertically Integrated Industry

The Egyptian Cotton

- Egyptian Cotton History starts since 1818

- Egyptian cottons are recognized world-wide as being of higher quality than all other world cottons.

- The Egyptian Cotton is hand-picked cotton.

- Main importers are India, Pakistan and China

Egyptian cotton in the last 58 years

0.0

100.0

200.0

300.0

400.0

500.0

600.0

1951

/195

219

52/1

953

1953

/195

419

54/1

955

1955

/195

619

56/1

957

1957

/195

819

58/1

959

1959

/196

019

60/1

961

1961

/196

219

62/1

963

1963

/196

419

64/1

965

1965

/196

619

66/1

967

1967

/196

819

68/1

969

1969

/197

019

70/1

971

1971

/197

219

72/1

973

1973

/197

419

74/1

975

1975

/197

619

76/1

977

1977

/197

819

78/1

979

1979

/198

019

80/1

981

1981

/198

219

82/1

983

1983

/198

419

84/1

985

1985

/198

619

86/1

987

1987

/198

819

88/1

989

1989

/199

019

90/1

991

1991

/199

219

92/1

993

1993

/199

419

94/1

995

1995

/199

619

96/1

997

1997

/199

819

98/1

999

1999

/200

020

00/2

001

2001

/200

220

02/2

003

2003

/200

420

04/2

005

2005

/200

620

06/2

007

2007

/200

820

08/2

009

2009

/201

020

10/2

011

000'Tons

Stock Production Exports Local consumption of Egyptian Cotton

Local consumption of cotton in the past 30 years

0

50

100

150

200

250

300

350

1990/1

991

1991/1

992

1992/1

993

1993/1

994

1994/1

995

1995/1

996

1996/1

997

1997/1

998

1998/1

999

1999/2

000

2000/2

001

2001/2

002

2002/2

003

2003/2

004

2004/2

005

2005/2

006

2006/2

007

2007/2

008

2008/2

009

2009/2

010

Local consumption of Egyptian Cotton Consumption from Imports Total Consumption

Production of ELS Cotton Worldwide

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010

.000 Tons

Egypt US China India Sudan Others

Main Importers of Egyptian and Pima Cotton 2007/2010

0

10

20

30

40

50

60

70

"000 Tons

China

Pakist

anIn

dia

Indo

nesia

Japa

n

Taiwan

Peru

Thaila

nd

Korea

Turke

y

Germ

any

Other

s

2007/2008 2008/2009 2009/2010*

Comparison of Egyptian Cotton and US Pima Cotton Exports in the period of 2003 - 2010

020406080

100120140160180200

2004 2005 2006 2007 2008 2009 2010*

'000 Tons

Egyptian Cotton Pima Cotton

Comparison of Egyptian - U.S Pima Cotton Prices from Dec. 08 - Oct. 10

80100120140160180200220240

December

January

February

March AprilMay

JuneJuly

August

September

October

November

December

January

February

March AprilMay

JuneJuly

August

September

October

Giza 86 Giza 88 Pima

C/LB

Egyptian Cotton Trademark

1 2 3

654

THIS IS The Egyptian Cotton Trademark

Main Yarn Exporters to EU during 2004-2009

0

20

40

60

80

100

120

'000 Tons

India

Turke

y

Pakist

an

Uzbek

istan

ChinaEg

ypt

Syria

Others

2004 2005 2006 2007 2008 2009

Comparison of Egypt cotton yarn exports to the EU by yarn count ranges in the period 2003 - 2009

0

20

40

60

80

100

120

140

160

'000 Tons

Less than NE8 NE8-NE25 NE25-NE30 NE30-NE47 NE47-NE55 NE55-NE70 Above NE70

2004 2005 2006 2007 2008 2009

Comparison of China and Mediterranean Countries Apparel export growth

to the EU in the period 2003 – 2008

Egyptian T&C Exports to EU

Exports of Knitted Apparel to EUEgyptian Home Textile Exports to the EU

Exports of Cotton Yarn and Fabrics to EU

0

20

40

60

80

100

120

2003 2004 2005 2006 2007 2008 2009

Millions Euro

Suits/Trousers/Shorts Shirts Underwear T-Shirts Pullovers Others

Exports of Woven Apparel to EU

0102030405060708090

100

2002 2003 2004 2005 2006 2007 2008 2009

Millions Euro

Cotton Yarn Fabrics

0

20

40

60

80

100

120

140

160

2003 2004 2005 2006 2007 2008 2009

Millions Euro

Suits/Trousers/Shorts Shirts Underwera Others

010,00020,000

30,00040,00050,00060,000

70,00080,00090,000

2003 2004 2005 2006 2007 2008 2009

'000 Euro

Carpets Towels Bed linen Table linen Others

Egypt’s Exports of Textile and Apparel to EU during 2003 - 2009

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009

'000 Euro

Yarn Fabrics Knitted Apparel Woven Apparel Home Textiles

Egypt’s Exports of Textile and Apparel to U.S during 2003 - 2009

Egypt’s Exports of Knitted Apparel to USA

Egypt’s Exports of Woven Apparel to USA Egypt’s Exports of Home Textiles to USA

Egypt’s Exports of Cotton, Yarns and fabrics to USA

0

5

10

15

20

25

30

35

2003 2004 2005 2006 2007 2008 2009

Millions USD

Cotton Yarns Fabrics

Egypt’s Exports of Textile and Apparel to USA during 2003 - 2009

0

50

100

150

200

250

300

350

400

450

500

2003 2004 2005 2006 2007 2008 2009

Millions

Woven Apparel Knitted Apparel Home Textiles

Egypt’s Exports of Woven Fabrics to UK during 2003 - 2009

0

500,000

1,000,000

1,500,000

2,000,000

2003 2004 2005 2006 2007 2008 2009

Euro

Woven Fabrics

0

20,000

40,000

60,000

80,000

100,000

120,000

2003 2004 2005 2006 2007 2008 2009

'000 Euro

Knitted Apparel Woven Apparel Home Textiles

Egypt’s Exports of Textile and Apparel to UK during 2003 - 2009

Labor Cost Comparison 2009

Egyptian Power & Energy Cost

Egypt’s Water, Sewage & Natural Gas Tariffs

0

0.01

0.02

0.03

0.04

0.05

0.06

2008 2009 2010

USD/KW

Electricity $ (Kw/H) for Extra High Voltage (Above 75 MV)

Electricity $ (KW/H) For High Volatage ( From 20 MW to 75 MW)

Electricity $ (KW/H) for Medium Voltage ( From 500 KW to 20 MW)

2009/2010 2010/2011 2011/2012 2012/2013 2013/2014

Water Tariff of consumption $ / Square

Meter* 0.178 0.214 0.258 0.311 0.374

Sewage Tariff of consumption $ / Square Meter* 0.124 0.15 0.181 0.218 0.262Natural Gas $ /million British thermal unit (Btu) Apparel and Textile Industry: 2 USD/MBTU

Source: Egypt: Prime Minister Decree No. 1914/2007,www.eia.doe.gov Fiscal Year: Starts first of July and Ends 31 of June

About Sahara Group

PROVIDING AN END TO END SOLUTION FOR THE EGYPTIAN TEXTILE INDUSTRY

saharagroup.com

Consultation EGYTEX Trade Fair egytex.com

Marketing Promotion

NORTH CAROLINA STATE UNIVERSITY FASHION INSTITUTE – NEW YORK

Information Technology

Networking International

BUYERS

E-commerce

Organizational ChartOrganizational Chart

Training

Strategy Services

Marketing Intelligence

Sourcing

Brand & Retail

Management

InformationManagement

WERNER INTERNATIONAL

DIRECTORY

SOURCE

NEWS

INDUSTRYREPORTS

JOBS

RESEARCHES

NEWSLETTER

INDUSTRIALExport

Promotion

SECTORIALExport

Promotion

B2BServices

In-ward Matchmaking

Missions

Technical Assistance

Innovation

Quality Management

Production

Out-ward Matchmaking

Missions

NETWORKING

Sahara Group

CEDITH/ETDA/EJBTextile Institute – Manchester, UK

FORUMSFORUMSConferences

Workshops

EGYTEX Exhibition

Institutional Support

Networking

Sahara Group – Projects’ Highlights

Highlight on Egytex2011 inner activities

Invitation to - Egytex2011 The 10th International Apparel & Textile Sourcing Trade Fair

B2B Meetings’ Service During the Egytex2011 opening hours

Factory Tours

Interactive Forums discussing the challenges in exports

Fashion ShowOn the Gala Farewell Evening

URL: www.egytex.com

Thank You !

Sahara GroupTel: 202 26708995 202 22755958

E-mail: hany@saharagroup.comBlock H - Zone No. 6

Public Free Zone, Nasr City, Cairo, Egypt