Egypts

Trade
Map
Find out
which export
sectors have
the potential
for growth in
Egypt.

Prepared by: Ahmed Selim

Egypts Trade Flows

Which export sectors
have the potential for
growth in Egypt?
The Atlas of Economic Complexity is a rich
interactive map about trade flows and a joint
research project by Harvards Center of International Development and MITs Economics department. Together they used World Bank data
and produced an interactive map that shows
comprehensive trade flows. The trade flows can
be displayed by country, by product group or

sectors, by product and by year. This rich dataset can be used to give a simple insight about
what export sectors in Egypt have the potential
for growth and with which trade partners. It is
important to note here that the data deals with
exports, not production.
This report brings you the most impotant insights on Egypts export trends.

Insight #1
Rank Sectors according to
growth rate over
2007-2011
Exports are classified into fifteen product groups of sectors according to HS4 classification by the
World Customs Organization (WCO).

The following table shows Egyptian exports in 2007 and 2011 in billions of USD.

The following chart shows the percentage growth

over the 5 years from 2007-2011 by sector.

Stone and glass is by far the fastest growing

sector at 343%. Next come animal and animal products, 148%, and chemicals and allied industries, 147%. Foodstuffs and wood

and wood products come in fourth and fifth

places at 114 and 111%, respectively. Only
the transportation sector shrunk during those
five years.

Insight #2
Identify products that have a
potential for growth in each sector
Each sector comprises of related products.
The growth in some sectors is fueled by the
growth in exports of a single product. Other
sectors are well diversified. In those sectors,
Egyptian exports increased for a wide range
of products. Therefore, it is important to
look into each sector and see which products
fueled the growth.

For a product to have the potential for growth,

exports must exceed a $50m threshold in
2011. Products that exceed this threshold are
ranked according to the 5-year growth, export volume in 2011, and Egypts share of global exports in 2011, all normalized and given
equal weights. The index by which the products are ranked is the sum of the normalized
values for the three criteria and adjusted so it
remains positive. The list contains 114 products.

Insight #3
Identify fastest growing
trade partner and
global importer
For each product, the fastest growing trade
partner is identified as well as the fastest
growing importer worldwide. The idea is that,
given that we know the products in which we
have a strong competitive advantage, which
markets around the globe are able to import

more of our products. However, this step is

beyond the scope of this report.
First, here are some highlights about some
sectors. They are followed by a table that
shows the top 50 products.

I. Stone and Glass

The stone and glass sector expanded largely due to an increase in gold exports from
$110m to $2.09b between 2007 and 2011,
as well as interior decorative glassware from
$9.38m to $207m, those two products made
up more than 88% of the sectors growth. This
may be a good sign because the growth in gold
exports went to different trade partners. In
2007, Switzerland received 80% of our exports, but in 2011, its share decreased to just

11%. South Africa accounted for 45% in 2011,

Canada 16%, Lebanon 22%, and UAE 5%.
Interior decorative glassware exports mainly
go to Asia. The UAE and China are increasing
their share of Egyptian glassware exports. An
important note is that as of 2011, Egypt accounted for 2% of the worlds interior decorative glassware exports. China is the largest
exporter with 31% of the worlds exports of
this product coming from china.

II. Animal and Animal Products

This sector is summarized in one word; cheese. in this sector. Cheese exports mainly go to
Growth in cheese exports from $137m to Arab countries. Saudi Arabia is largest trading
$443m makes up more than 93% of the growth partner. Exports to Iraq and Libya are growing
faster than to any other country. Growth in
the animal products sector is due to growth
in one product, cheese. The sector is not as
diversified as other sectors.

III. Chemicals and Allied Industries

The chemicals and allied industries sector
grew by 147% from $1.68b in 2007 to 4.15
billion in 2011. The dominant product is still
nitrogenous fertilizers, which accounts for
35% of the exports in this sector, although its
share is declining to ammonia and acylic alcohols. Exports of nitrogenous fertilizers grew
from $762m to $1.46b, which makes up more
than 28% of the growth in this sector. Here we
have a sector with a wide range of products.
Moreover, the main product goes to a wide
range of countries. In 2007, most of it went to
Western Europe and North America. France,
Brazil, Belgium Luxembourg are the fastest
growing markets for our exports, France is the
largest, receiving 20%. The increase in ammo-

nia exports went to different trade partners.

Turkey received 60% of our ammonia exports
in 2007, however, its share declined to 22% in
2011. Exports went to a variety of countries
including, US, china, Jordan, the Philippines,
Morocco, France and Australia. Exports of this
product are still relatively low at $429m in
2011.
Egypt is the source of 5% of the worlds nitrogenous fertilizers exports, and 4% of ammonia exports in 2011. The global markets
for both products are not dominated by a single country, thus, we can conclude that this
sector is promising. There is room for more
expansion.

IV. Foodstuffs
Exports of foodstuffs grew by 114% from
$707m to $1.51b. The sector is well diversified. There isnt a single product that Egypt
depends on. The largest increases are in processed tobacco, confectionary sugar, raw sugar,

pasta, and starch residue, while the largest

expanding markets for processed tobacco exports are Iran, Libya and sub-Saharan Africa.
Egypt is the source of 3% of the worlds exports of processed tobacco.

V. Wood and Wood Products

Despite the small size of this sector, it grew Toilet paper is the main product and its share
by 111% over the five years of interest, from is increasing. Exports largely go to Arab coun$292m to $616m.
tries and Africa.

VI. Vegetable Products

Exports of vegetable products jumped from
$1.87b to $3.26b. An important note is that a
sizable chunk of this sector was rice exports.
The share of rice decreased, while citrus,

onions, seed oils increased. Russia is an increasing market for Egyptian citrus. Five percent of the worlds citrus exports come from
Egypt. Syrian imports of Egyptian seed oils
sky rocketed from a shy $1.67m to $112m in
four years. Saudi Arabia on the other hand is
buying more and more Egyptian onions. Four
percent of onion exports in the world come
from Egypt.

VII. Textiles
The textiles sector is an important employer each two exported products of quilted textiles
in Egypt. However, one interesting highlight is made in Egypt. This sector is very promisthat is not publicly emphasized is that one in ing, and it needs a closer look.

VIII. Machinery and Electrical

This important sector increased by 68% from
$1.1b to $1.85 b. It is mainly dominated by
insulated wire. Exports rose from $398m to
$1.05b for this product alone. Our largest recipient market is UK, which surpassed Saudi

Arabia. The fastest growing markets for our

exports, on the other hand, are Germany,
France, the Czech Republic, Libya and Syria.
While 18% of the exports of insulated wire
come from china, only 1% comes from Egypt.

IX. Footwear and Headgear

None of the products in this sector meet the
$50M in exports cut off point. The most im-

portant product is leather footwear. In 2011,

Egypt exported $16.5M in leather footwear.

Sector codes:
1. Stone and glass
2. Animal and animal products
3. Chemicals and allied industries
4. Foodstuffs
5. Wood and wood products
6. Vegetable products
7. Textiles

8. Machinery and electrical

9. Plastics and rubbers
10. Mineral products
11. Miscellaneous
12. Metals
13. Raw hides, skins, leather, and furs
14. Footwear and headgear
15. Transportation

Egypts Trade Map

is prepared by Ahmed Selim
Ahmed Selim is an economics MA student at the Univ. of Alberta, Canada. He holds a BA in
Business (2007), MIU, Egypt and is interested in development econ. and business clusters.
Selim is a contributor to Egypt Business Directory.

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