some. Egyptian Circumstance Studies
Azza El-Shinnawy and Heba Handoussa
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
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 вЂMobiNil'. 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...
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Egyptian Case Studies IMS (2002), World Review 1999, London: IMS.
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