Country Dashboard: Egypt



The Economy

Between 2007 and 2017 GDP grew by an average of 6.6%. This displays a period of strong economic growth in the country over recent years, where GDP grew at a rate 6.8% in 2017.  

Industrial production (as measured by IPI) has followed a similar trend to the wider economy over the course of the last decade. There was a slight decline in growth in 2011, however this rate has since recovered, posting a rate of 3.5% in 2017.

GDP Deflation rates have generally been high in Egypt, posting a rate of almost 23% in 2017.

The Gas Business

The largest industrial gas company in Egypt is Air Liquide, which commands a share of 55% of the gases market. Air Liquide are the only multinational company active in the industrial gases market in the country, with the rest of the marketplace being serviced by a range of smaller independent companies. These companies are mainly distributor businesses, with a number of these companies being previously state-owned operations.

The majority of industrial gases are supplied to customers through packaged gas means, with approximately 43% of total revenue being generated from these sales. Bulk and onsite sales were relatively similar in 2017, both accounting for around 26%.

The main revenue generating industrial gas in Egypt is oxygen which accounted for roughly $76 million in revenue. Carbon dioxide sales are relatively prevalent in the Egyptian market, with this gas accounting for a 17% share of total gas sales. The sale of nitrogen accounted for 14% of total sales, with argon and hydrogen sales being more marginal.

The main end-use sector for industrial gases in Egypt is the general manufacturing sector, which accounted for 30% of total revenue. Sales to the metallurgical sector contributed a further 19% of total sales, while healthcare clients generated approximately $17 million in revenue. The rest of the market is relatively fragmented, with food, chemicals and refining clients accounting for 12%, 11% and 9% of total revenue.

The Future

Within the 2018-2022 timeframe, our forecast models predict growth from 4.1% p.a. in a low scenario to 5.7% p.a. in a high scenario. Accordingly, the industry in Egypt is expected to achieve revenues of between $170 million and $190 million by 2022.



GDP, IPI and GDP Deflator 2017

  • GDP (%)
  • IPI (%)
  • GDP Deflation (%)
Year:,GDP (%),IPI (%),GDP Deflation (%) 2000,10.71,7.8,4.93 2001,7.45,3.6,1.87 2002,6.58,4.1,3.19 2003,8.51,1.6,6.78 2004,10.34,2.7,11.67 2005,13.25,4.4,6.21 2006,10.77,5.9,7.35 2007,10.21,7.5,12.59 2008,6.69,8,12.20 2009,0.09,4.1,11.19 2010,5.96,5,10.11 2011,7.07,-0.9,11.65 2012,7.31,1.5,19.50 2013,7.36,4.3,8.71 2014,7.14,5.7,11.25 2015,7.04,5.5,9.93 2016,6.95,0.6,6.25 2017,6.81,3.5,22.93
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Between 2007 and 2017 GDP grew by an average of 6.6%. This displays a period of strong economic growth in the country over recent years, where GDP grew at a rate 6.8% in 2017.

Industrial production (as measured by IPI) has followed a similar trend to the wider economy over the course of the last decade. There was a slight decline in growth in 2011, however this rate has since recovered, posting a rate of 3.5% in 2017.

GDP Deflation rates have generally been high in Egypt, posting a rate of almost 23% in 2017.


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Commercial Gas Market 2017

  • GDP (%)
  • IPI (%)
  • Gas Market (%)
Year:,GDP (%),IPI (%),Gas Market (%) 2000,10.71,7.8,10 2001,7.45,3.6,14.21 2002,6.58,4.1,18.23 2003,8.51,1.6,12.16 2004,10.34,2.7,2.29 2005,13.25,4.4,16.40 2006,10.77,5.9,12.97 2007,10.21,7.5,13.86 2008,6.69,8,20.47 2009,0.09,4.1,13.75 2010,5.96,5,7.21 2011,7.07,-0.9,14.84 2012,7.31,1.5,9.06 2013,7.36,4.3,8.13 2014,7.14,5.7,14.31 2015,7.04,5.5,14.39 2016,6.95,0.6,13.81 2017,6.81,3.5,21.23
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The commercial gas market has followed a similar trend to the wider Egyptian economy over the course of the last decade. The gas market has experienced a strong average growth rate of 13.7% p.a. from the period of 2007-2017.

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Market Share by Gas Company 2017

Legend:
  • Air Liquide
  • Auf Factories
  • IGC
  • El Khaligiaa
  • EIAG
  • Others
Air Liquide,96.67 Auf Factories,19.33 IGC,12.27 El Khaligiaa,10.53 EIAG,7.07 Others,31.60
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The largest industrial gas company in Egypt is Air Liquide, which commands a share of 55% of the gases market. Air Liquide are the only multinational company active in the industrial gases market in the country, with the rest of the marketplace being serviced by a range of smaller independent companies. These companies are mainly distributor businesses, with a number of these companies being previously state-owned operations.


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Market Share by Supply Mode 2017

Legend:
  • OSP
  • Bulk
  • Packaged
  • Other
OSP,33 Bulk,33 Packaged,56 Other,7
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The majority of industrial gases are supplied to customers through packaged gas means, with approximately 43% of total revenue being generated from these sales. Bulk and onsite sales were relatively similar in 2017, both accounting for around 26%.

We estimate that a further $66 million in revenue could be generated if captive plants were converted into onsite projects.


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Commercial Gases Value 2017

Legend:
  • Oxygen
  • Nitrogen
  • Argon
  • Carbon Dioxide
  • Hydrogen
  • Helium
  • Other
Oxygen,75.70 Nitrogen,24.19 Argon,9.34 Carbon Dioxide,29.70 Hydrogen,3.29 Helium,1.42 Other,32.34
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The main revenue generating industrial gas in Egypt is oxygen, which accounted for roughly $76 million in revenue. Merchant oxygen is largely delivered to clients in the general manufacturing and healthcare sectors.  

Carbon dioxide sales are relatively prevalent in the Egyptian market, with this gas accounting for a 17% share of total gas sales. The sale of nitrogen accounted for 14% of total sales, with argon and hydrogen sales being more marginal. This is because almost all hydrogen in Egypt is produced on a captive basis for refining & energy clients.


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Market Share by End-User 2017

Legend:
  • Chemicals
  • Refining
  • Metallurgy
  • Manufacturing
  • Food
  • Electronics
  • Healthcare
  • Other
Chemicals,14 Refining,12 Metallurgy,24 Manufacturing,39 Food,15 Electronics,1 Healthcare,17 Other,7
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The main end-use sector for industrial gases in Egypt is the general manufacturing sector, which accounted for 30% of total revenue. Sales to the metallurgical sector contributed a further 19% of total sales, while healthcare clients generated approximately $17 million in revenue. The rest of the market is relatively fragmented, with food, chemicals and refining clients accounting for 12%, 11% and 9% of total revenue.


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Gas Market Growth and Forecast 2017

  • Macro Economic Forecast
  • Gas Intensity Forecast
Year:,Macro Economic Forecast,Gas Intensity Forecast 2000,21.32,21.32 2001,24.35,24.35 2002,28.79,28.79 2003,32.29,32.29 2004,33.03,33.03 2005,38.44,38.44 2006,43.43,43.43 2007,49.45,49.45 2008,59.57,59.57 2009,67.76,67.76 2010,72.64,72.64 2011,83.42,83.42 2012,90.98,90.98 2013,98.37,98.37 2014,112.45,112.45 2015,128.63,128.63 2016,133.84,135.76 2017,139.28,143.59 2018,145.02,151.91 2019,150.95,160.62 2020,157.15,169.81 2021,163.61,179.48 2022,170.35,189.67
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Within the 2018-2022 timeframe, our forecast models predict growth from 4.1% p.a. in a low scenario to 5.7% p.a. in a high scenario. Accordingly, the industry in Egypt is expected to achieve revenues of between $170 million and $190 million by 2022.



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Gas Production Facilities


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