Egypt’s manufacturing sector: seizing on an advantageous product space position

Abstract

This policy report on Egypt’s industrial sector is the third in a series of reports aimed at identifying strategic options Arab countries have in undertaking structural transformation. Using the product space methodology, this report analyzes existing capabilities of selected economies by identifying products they currently export and determining which path they should follow to produce more sophisticated and strategic products. A study of Egypt’s product space reveals the country should develop the machinery and chemicals & allied industry since they would increase the country’s product complexity index. To meet this specific goal and to enhance production in other sectors, Egypt should focus on providing support and public inputs—such as infrastructure and regulation—to existing industries with the aim of improving their productivity and ability to jump to nearby opportunities.