Egypt Case Studies

some. Egyptian Circumstance Studies

Azza El-Shinnawy and Heba Handoussa

INTRODUCTION

This chapter shows three cases of recent foreign expenditure in Egypt. In the case of the Egyptian Business for Cellular Services (MobiNil), an international range takes over a state-run mobile phone service, and modernises its operations in a rapidly growing and transforming marketplace. The local spouse subsequently turns into a regional participant in Africa and the Central East. Glaxo Smith Kline, a leading pharmaceutical firm, grows in Egypt through multiple acquisitions, even though the parent firm itself is definitely subject to M& A in a global level. The leading-brand ketchup producer Heinz has built a development facility intended for the Middle East jointly with a Kuwaiti international specialising in being the area partner intended for foreign pret a manger chains through the entire Arab countries.

THE EGYPTIAN COMPANY PERTAINING TO MOBILE COMPANIES (MOBINIL)

Advantages Mobile telephone is capturing an increasing share of global telecommunications services, accounting for twenty three per cent of worldwide telecommunications earnings (up by 3 per cent in 1990). Mobile telephone is one of the large growth market segments with the Egyptian telecoms sector, having outpaced the expansion of fixed-line telephony, which will currently stands at six. 5 mil lines, developing at a compound twelve-monthly growth charge (CAGR) of approximately 14. six per cent through the period 1995/2000, compared with the staggering CAGR of 169 per cent for mobile telephony during the period 1997/2002 (American Chamber of Commerce in Egypt 2001, p. 14). Since the opening of the sector to exclusive investment more than a decade ago, the Egypt mobile telecoms sector has become host to two of the planet's largest mobile operators, namely France Telecom and Vodafone. The two businesses, in partnership with their 88

Silk Case Studies

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Egypt counterparts, have been operating like a duopoly, in what is identified to be a industry of exceptional growth potential relative to Africa and the remaining Middle East region. Egypt has the third-largest number of portable subscribers in the area, outnumbered just by S. africa and Morocco. Penetration prices, which at the moment stand by 5. 5 per cent of the population, will be forecast to reach 15. your five per cent by simply 2008 (American Chamber of Commerce in Egypt 2001). This case examine explores FDI in the mobile phone telecommunications sector in Egypt, by throwing light around the first exclusive operator, particularly the Egypt Company intended for Mobile Companies (ECMS), well-known in the Egyptian market by the brand name ‘MobiNil'. The Market The global wireless communications industry has been through remarkable progress since its first years of operation during the overdue 1980s. The most widely used program for mobile phone communications networks is the Global System for Mobiles (GSM), which is used by roughly 62 per cent of global mobile telephone. In the Middle East region, a lot more than 90 percent of mobile telecommunications is dependent on GSM 900 networks (American Step of Business in Egypt 2001, p. 6). The center East place accounts for a small reveal, 2 . 7 per cent, on the planet GSM market. By 06\, the world GSM industry is forecast to service 1 ) 4 billion subscribers, that the Middle East region is usually expected to retain a relatively the same share of 2. 8 percent (www.gsmworld.com). Inside the global telecoms market, 3 sectors are required to lead foreseeable future growth: wireless, data and, to a smaller extent, fixed-line telephony. Compared to other appearing markets, the Egyptian cellular telephony sector was liberalised early, which usually allowed the private sector to invest in portable communication systems, while range telephony currently remains a government monopoly. During the period 1998/2001, the Egyptian mobile telephony market has knowledgeable high growth in terms of the quantity of subscribers, outpacing world expansion rates and those consist of Middle East and North Africa (MENA) countries. The liberalised status of...

Recommendations: for Egypt Case Studies AIDMO (2000), Feasibility Examine on Pharmaceutic Industry, unpublished. American Step of Business in Egypt (2001), The Egyptian Pharmaceutical Industry, Business Studies Series, Egypt. American Chamber of Commerce in Egypt (2002), Telecommunications in Egypt, Organization Studies Series, Egypt. American Chamber of Commerce in Egypt, site (www.amcham.org.eg) reached in 2003. Economist Intelligence Unit (2000), Egypt Country Commerce, Greater london: EIU. EFG-Hermes Research (2000), The Silk Mobile Phone Company, Annual Assessment. EFG-Hermes Analysis (2002), Egypt Telecom, MobiNil Research Revise. January. Egypt Company to get Mobile Services (2002), Mobinil, Earnings Release Report, Q4. Euromoney (2000), Egypt: Regional Leader and Global Player: A Market to get the 21st Century, Euromoney Catalogs. France Telecommunications (2002), company website (www.francetelecom.com) accessed in 2002. Basic Authority for Free Zones and Investment (GAFI) (2001-2002), Gross annual Report, Cairo: GAFI. Gilada, N. (1999), ‘Fast Foodstuff Franchising in Egypt', statement prepared to the Foreign Commercial and ALL OF US Department of State. GSK (2002), Organization Profile, 2002 and Monetary Report to get 2001 (www.gsk.com). GSM Community (2002), corporate and business website (www.gsmworld.com) accessed in 2002. Heinz (2002), Heinz Annual Record (www.heinz.com). Howells, J. and I. Neary (1995), Intervention and Technological Innovation, Authorities and the Pharmaceutical Industry in the united kingdom and Japan.

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Start of Bank Studies (2003), Kuwait Stock market Listed Financial institutions and Businesses: Yearly Financial Data and Ratios of Individual Corporations (www.kibs.org/kse/kkfcfd.htm). JP Morgan (2002), Equity Research, MobiNiL, Benefits Report, 04. Ministry of Economy (1996), Egypt Monetary Profile, record published by Ministry of Egyptian Ministry of Overall economy, Cairo: Egypt. Ministry of Health and Population (2002), Egypt Health Sector Analysis and National Vital Drug List, Cairo: Ministry of Health and Population. MobiNil (2003), corporate website (www.mobinil.com) accessed in 2002. Nathan Associates (1995), Price and Market Liberalization in Egypt, report published to USAID and Ministry of Overall economy and Foreign Trade Government of Egypt, Cairo: Egypt. Orascom Telecom (2002), company website (www.orascomtelecom.com) accessed in 2002 PhARMA (2002), Sector Report, Washington D. C.: PhARMA. Pharmaceutical drugs Executive (2001), Pharmaceuticals Exec. PriceWaterhouseCoopers (1999), ‘Pharmaceutical Sector Insights', Section 2, 1998/9. Prime Research (1997), Industry Report within the Egyptian Pharmaceutical drugs Industry, Nov 1997, Primary Securities. Southworth (1996), ‘Generic Pharmaceuticals', An FT Administration Report published for the Financial Occasions, England: Pharmaceutical drugs and Health care Publishing. Wescoe, C. (1985), Factors in Pharmaceutical Expense.

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