Industries: textiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement, metals, light manufactures
Egypt (officially the "Arab Republic of Egypt") is primarily a north-African nation, but also controls the Sinai Peninsula, part of the Middle East and western-Asia. Thus, Egypt controls the only land bridge between Africa and remainder of Eastern Hemisphere. It also controls the Suez Canal, a sea link between Indian Ocean and Mediterranean Sea. Its size, and juxtaposition to Israel, gives it a major role in Middle Eastern geopolitics. Egypt is mostly a vast desert plateau interrupted by Nile valley and delta.
Economy
Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. In the last 30 years, the government has reformed the highly centralized economy it inherited from President Gamel Abdel NASSER. In 2005, Prime Minister Ahmed Nazif's government reduced personal and corporate tax rates, reduced energy subsidies, and privatized several enterprises. The stock market boomed, and GDP grew about 5% per year in 2005-06, and topped 7% in 2007. Despite these achievements, the government has failed to raise living standards for the average Egyptian, and has had to continue providing subsidies for basic necessities. The subsidies have contributed to a sizeable budget deficit - roughly 7.5% of GDP in 2007 - and represent a significant drain on the economy. Foreign direct investment has increased significantly in the past two years, but the Nazif government will need to continue its aggressive pursuit of reforms in order to sustain the spike in investment and growth and begin to improve economic conditions for the broader population. Egypt's export sectors - particularly natural gas - have bright prospects.
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