--- (W.H.S.) - WHITE HOUSE SECURITIES ---

EGYPTIAN ECONOMIC INDICATORS :
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MARKET SUMMARY :

*The Egyptian capital market remains at it’s infancy stage with relatively few companies listed on the bourses and a small turnover in relation to the business conducted .

*Investment banking opportunities are augmented by the wide range of corporate entities which are listed for privatization by the government over the next few years.

THE ECONOMY :

*The Egyptian economy has been managed effectively over the past 5 years, easily out- performing other developing countries. This manifests itself in the following:

–Inflation rate is controlled at 7% p.a.

–Annual GDP growth is well above 5% p.a.

–Current account deficit of 3 % of GDP

–General reserves of about US$20billion covering 18 months worth of imports

*The strength of the economy is enhanced by the government’s explicit policy of encouraging foreign and domestic private sector investments in Egypt.

*New edicts have gone a long way to reassuring investors’ misgivings about repatriation of capital and offering tax breaks while minimizing bureaucracy.

ECONOMIC POLICY :

*Egypt has completed its IMF stand-by accord

*While the country will not enter into a new formal accord with the IMF close cooperation will continue

*Privatization proceeds have reached LE9bn and the government has promised faster progress

*The first Industrial Barometer survey has revealed a high level of business confidence

ECONOMIC INDICATORS :

-GDP at market price ( LE bn ) 255.8

-Real GDP Growth ( % ) 5.9

-Consumer Price Inflation ( % ) 4.6

-Population ( MM ) 62.0

-Export FOB ( $bn ) 5.53

-Import FOB ( $bn ) 14.16

-Current A/C Balance ( $bn ) -0.71

-Reserves ( $bn ) 18.67

-Total External Debt ( $bn ) 28.6

DEVELOPMENT :

*Egypt will be affected by the slow down in the world economic growth in 1999

*To counteract this world recession, the government plans to

1- Enhance the privatization process

2- Encourage private sector involvement in infrastructure projects

3- Improve the investment climate to induce foreign direct investments in Egypt.

Hypothesis :

- It is assumed that the Privatization Program in Egypt will continue for the foreseeable future , albeit at a slower pace .

- The White house securities will continue to invest in it's staff members while seeking to enhance it's capabilities by selectively employing specialized personnel as the need arises .