Round Table

On the honor of H.E Mr. Mihai Stuparu

The Romanian Ambassador in Cairo

EBA has held a round table in cooperation with Romania on the 8th of February 2017 at its premises. The meeting was chaired by Eng. Hassan El-Shafei the chairman of Egypt Romania Business Council and attended by H.E Mr. Mihai Stuparu the Romanian Ambassador in Cairo and Mr. Mihai Burgel The economic council of the Romanian Embassy in Cairo. As well as a number of businessmen and media representatives.

Eng. Hassan El-Shafei

The Chairman of Egypt Romania Business Council

Started by welcoming H.E the Ambassador of Romania in Egypt wishing him a fruitful stay.

  • He added that the council is very keen to further enhance the bilateral relations
  • There is a will to further develop between Romania and Egypt
  • Egypt can be a gateway for Romania to enter North African, Middle Eastern and African markets, on the other hand Romania can be a gateway to Egypt for the European markets.
  • The relations can be taken to a new level where the relations will not only be bilateral, it will be trilateral cooperation will be studied
  • Egypt is considered the number 1 trade partner to Romania in both Africa and Middle East

H.E Mr. Mihai Stuparu

The Romanian Ambassador in Cairo

  • The Ambassador stated that the two countries “Egypt and Romania” have celebrated 110 years of diplomatic relations last year
  • Currently, at the governmental level the two sides are preparing the works of the Joint Committee for economic cooperation which will run from April 4 to 6, 2017, in Bucharest, after 7 years of discontinuity.
  • We invite representatives of the Egyptian business community, particularly Egyptian Businessmen Association to participate in forums and business seminars organized during this high level event.
  • The Ambassador added that Prahova chamber of commerce and industry has stated its interest to cooperate with EBA and will be presented during the joint committee in addition to Bucharest chamber of commerce and industry

Mr. Mihai Burgel

The economic council of the Romanian Embassy in Cairo

  • Egypt plays an important role in Romania's strategy of developing relations with Africa and Middle East countries.
  • Egypt is the main economic partner of Romania in this geographical area as an outcome of the long standing political and economic relations created in 110 years that have passed since the establishment of diplomatic relations.
  • He presented a brief but clear picture of Romanian’s economic developments in 2016 and also, information of the opportunities offered by the Romanian economic environment:

Romania's economic outlook in 2016 and the forecast for 2017

  1. Romania has been the second best-performing economy in the European Union in 2016, with a GDP growth rate of 4.6%, and its performances may continue to improve this year to 5.2%, according to the governmental prognosis.
  1. The budget deficit was 2.6% in 2016 and forecast for 2017 shows a level of 3%.
  2. Romanian annual inflation went down in December 2016 to negative - 1.4% compared to December 2015;
  1. Romania’s attractiveness for investors should also be boosted by fiscal improvements, such as a new reduction of VAT from 20% to 19%, has entered into force at 1st of January 2017.

I would like to mention that the tourism received a strong boost with the reduction starting with 2014 of VAT rate to the level of 9% for half board / full board / all-inclusive accommodation services and the reduction of VAT for food stuff and non-alcoholic beverages from 24% to 9%, beginning with 1st of June 2015.

When considering Romania as a possible location for developing their businesses, the foreign investors might benefit from competitive tax policy, which includes 16% flat tax.

  1. The sectors that show the biggest growth potential are energy, transport, IT, banking, constructions, agriculture, and tourism.
  1. Knowing the particular concerns of the Egyptian Government for the development of automotive industry in Egypt, I want to emphasize the particularly high contribution of this sector in Romanian’s economy as a result of the investments achieved during the last 15 years and contributing to the creation GDP with 13%.
  1. The value of Romanian automotive industry output (vehicles industry and components for vehicles) was in 2016 more than 20 billion Euro (vehicles 7 billion Euro and components 13 billion Euro). A number of 210.000 people are employed in automotive industry in more than 600 companies.

In 2016, the Romanian export of vehicles was 3.5 billion Euro and components more than 9 billion Euro.

  1. Turnover in Romania’s software and IT exceeds 3 billion Euro, out of which 2 billion go to export. This sector rose by 21% compared to the previous year and could record an annual increase of 15% in the next five years.

The export of IT industry recorded a level of 2.5 billion in 2016 and could reach 4.0 billion in 2019.

Romania is ranked 1st in the EU for maximum speed of internet connectivity and 2nd for high speed broadband adoption

  1. Value of the Agriculture production was of about 5.5 billion Euro in 2016, compared with 2.6 billion Euro in 2010. The production of cereals was in 2016 at a level of 20.5 million tons, out of which 8 million is wheat.
  1. At the end of 2016, final FDI stock came in at EUR 68.5 billion, while FDI net inflows saw a 22% increase in 2016 at the end of 2016, compared to previous year.
  1. For 2016 the export is estimated at the level of 57.5 billion Euro (4.1% more than 2015) and import was 66.8 billion Euro, CIF value (6.4% more than 2015);
  1. Investments to Romania
  • On the occasion of the present event I would like to announce that the Romanian Government launched on 18th of May this year the website in English, dedicated to foreign investors ( ).
  • This website is a tool aimed at answering the questions regarding the topics such as Romanian’s economic outlook, taxes, labor force, Government support, as well as lifestyle, infrastructure, living cost.

Anyhow, I want to point out only some advantages for the investors, but you can find more information on the website Invest Romania:

-World Bank ease of doing business rank – 36, ahead of Bulgaria, Croatia, Hungary, Italy, Turkey, Serbia or Greece;

-Romania has a very competitive labor force ranking 2 in European Union;

-Lowest gas price and 5th lowest electricity price in Europe;

-Romania’s maximum broadband ranks first in the EU

Bilateral trade exchanges between Romania and EgyptMillion USD

2011 / 2012 / 2013 / 2014 / 2015 / 2015
Jan. – Nov. / 2016
Jan. – Nov.
TOTAL / 424.7 / 537.6 / 685.1 / 896.8 / 867.0 / 770,4 / 600,0
EXPORT / 381.2 / 491.7 / 617.3 / 794.2 / 785.7 / 698,2 / 507,3
IMPORT / 43.5 / 45.9 / 67.8 / 102.6 / 81.3 / 72,2 / 92,7

The main Romanian products exported to Egypt in first 11 months of 2016 (million USD):

  • New gas discoveries while 2019 will increase the power of Egypt to explore back to Romania.

Wheat 230.0 ; Animal fats and oil - 5.2 ; Foodstuff - 1.0 ; Cement - 4.7 ; Fuel and lubricants - 100 ; Cement – 3.0; Chemicals – 6.0 ; Plastic materials – 4.8 ; Tires and rubber items - 1.8 ; Wood and wood products – 75.0 ; Steel and metal products - 42.0; Industrial and electrical equipment - 19.0 ; Cars and spare parts – 17.0 ; Railway products - 0.2 ; Optical instruments - 3.6 ; Furniture – 0.6.

The main Egyptian products exported to Romania in the first 11 months of 2016 (million USD)

Vegetable – 7.2 ; Fruits - 4.0 ; Processed vegetable and fruits, foodstuff – 8.8 ; Petroleum products – 1.0 ; Different chemicals, medicine, fertilizers – 39.0; Plastic items – 11.3 ; Textile products (yarns, carpets, ready-made garments – 4.8 ; Ceramics and glass products – 11.0 ; Industrial and electrical equipment – 3.0; Steel products – 1.5 ; Furniture – 0.6.

  • In a brief historical perspective, we must notice that, during recent years, the balance of our bilateral trade was in favor of the Romanian side. Over the past 5 years statistical figures show a steady growth of our bilateral trade, the level reached in 2014 being almost 900 million USD, 867 million UDS in 2015, and 600 million USD in the first 11 months of 2016.
  • The level of Egyptian exports to Romania in recent years ranged to around 100 million U.S. dollars starting with 2014, ranging around 100 million USD. Nevertheless, we are confident that there are growth opportunities which should not be wasted.

Egyptian investment to Romania

  • According to 2015 figures, the Romanian official records show that a number of 1.705 companies with Egyptian capital have been listed, with an overall capitalization of approximately 40 million U.S. dollars. These companies work in areas such as production and marketing of food, timber, pharmaceuticals, property development, etc.

Bilateral Economic Cooperation

  • Regarding the development of new economic projects located either in Egypt, or in Middle East and Africa, I consider that there are certain areas of mutual interest and prospective that should be used for the benefit of our countries:

Petroleum, gas, chemical and petrochemical industries, respectively:

-Operation, extracting, transporting and storing oil and products;

-Transportation, transit, import / export and distribution of gas

-Setting up and modernization of chemical and petrochemical plants

Manufacturing industries and machinery construction:

-Setting up of new production capacities in Egypt in the building materials industry (cement, gypsum factories);

-Joint production and marketing of tractors / agricultural machinery and equipment;

-Joint production of vehicles and necessary spare parts (trucks, buses, off-road vehicles);

-Joint production of electrical equipment;

-Joint production of machine tools / accessories for metal and wood processing;

Energy and electricity:

-Erection, repairs and modernization of power plants, including nuclear plants;

-Erection, upgrading and maintenance of transformer stations / substations and transmission lines;

-Use of new sources of non-conventional (renewable) energy;

Transportation

-Production and upgrading of locomotives and railway coaches/waggons;

-Erection and Modernization of workshops for repairs and maintenance of rolling stock;

-Implementation of modern freight RO-LA;

-Modernization of railway signaling systems and management in rail transport;

-Development of transport infrastructure in Egypt:

  • River transport of goods (construction of river ports, barges);
  • Rail transportation (construction of new railways);
  • Road transportation (revamping / construction of highway);

Mr. Ahmed Bahgat

Managing Director of Liquifert

  • He presented his success story in a joint venture with a Romanian company to produce fertilizers.
  • Theyhave started the production since 2008, they are now producing 100 thousand to 150 thousand tons per year and exporting to a lot of countries.

During the discussion some points were raised:

  1. Inviting the Romanian side to invest in Egypt as a gateway to Africa.
  2. Using the Romanian experience in producing agriculture tractors
  3. Although the regular conventional vessels takes 4 days between the two countries, the bilateral trade is below expectations
  4. There is a better chance for Romanian investors after the floatationof the Egyptian pound
  5. A decision was taken to form a delegation to visit Bucharest with the framework of the joint committee in April
  6. An appropriate and active counterpart will be recommended from the Embassy in order to proceed with the logistical arrangements