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Country Highlights
EGYPT
In the Arab world, Egypt ranks only after Saudi Arabia in terms of size of economy, largely attributable to its population size. Credit rating agencies including Moody’s, S&P and Fitch have maintained Egypt’s rating with a stable outlook even during the Covid-19 pandemic.
Oil has dominated Egypt’s energy industry even as natural gas, hydro-power, and solar and wind power all contribute to its energy production, but that is set to change with the construction of a nuclear power plant targeted to be operational by 2030, capable of meeting the demand for up to half of its current total power consumption, as cited by news sources. Green mobility in the transportation industry will benefit from this since the electrification of vehicles depends on how available and affordable electricity is.
Egypt Vision 2030 is a long-term strategic plan to achieve the principles and goals of sustainable development in all fields – consisting of eight main national goals aligned with the United Nations Sustainable Development Goals (SDGs) and the Sustainable Development Strategy for Africa 2063.
Suez Canal Economic Zone (SCZone)
Major international trade routes and access to African and Middle Eastern markets supported with accessibility to 6 sea ports (West Port Said, East Port Said, Alarish Port, Adabyia Port, Sokhna Port and Altor Port) and 2 airports (Cairo International Airport and Port Said Airport). 4 industrial zones with strong cost competitiveness for manufacturing:
• East Port Said Industrial Zone, West Qantara Industrial Zone, East Ismailia Industrial Zone and Sokhna Industrial Zone.
• Global hub for maritime transport and logistic services.
SOUTH AFRICA
South Africa has the most developed and diversified economy on the African continent. While the mining sector remains central in the economy, business is increasingly geared towards services and manufacturing industries.
The emergence of several initiatives, including the designation of the Atlantis SEZ as a Greentech hub and the founding of several renewable company head offices in the city is leading the renewable energy and cleantech industry development in South Africa.
Cape Town’s economic growth or real GDP has grown at higher rates than the national average, due to competitive advantage over the rest of the country in certain sectors and industries.
These include manufacturing sub-sectors such as electronic and electrical products, metal, steel and beverages. Some positive current growth prospects for Cape Town include:
• Continued rise in new company registrations
• Several new large investment projects
• A steadily growing DigiTech sector
• Rapidly expanding B2B and B2C e-Commerce
• Increased exports and improved trade balance
The Atlantis Special Economic Zone (ASEZ) is an initiative under the South African government’s Special Economic Zone Programme. It offers 70 fully serviced sites with access to well established road networks and trade ports.
Atlantis Special Economic Zone (ASEZ)
• ASEZ consists of 125 ha special economic zone with 94ha of greenfield land, located adjacent to an existing industrial area, benefiting from existing utility infrastructure, such as water, electricity and fibre connectivity to the boundary of the site.
• Specialised local incentives including: access to national manufacturing performance enhancing and other government incentives, discounted development charges, and electricity tariff reduction, etc.
• Export competitiveness through networks, incentives and infrastructure – 2 sea ports: Cape Town (40km) and Saldanha Bay (100km).
THAILAND
Eastern Economic Corridor (EEC)
In an ambitious bid to transform Thailand’s landscape into a hub of high-tech industries, innovation, logistics and a regional trade and investment gateway, the Eastern Economic Corridor (EEC) stands as a shining testament to the nation’s commitment to progress and economic revitalization. Emerging at the heart of the Thailand 4.0 development strategy – an innovative blueprint aimed at restructuring and reinvigorating the nation’s economy, the EEC is rapidly gaining recognition for its transformative potential across the Greater Mekong sub-region. The EEC’s strategic location, coupled with its comprehensive development plan, positions it as a key driver of economic integration and growth in the region.
Phase 1
The initial phase of the EEC Investment Target (2018-2022) is a resounding success, demonstrating Thailand’s commitment to turning vision into reality. With approximately USD 19 billion invested in four Public-Private Partnership (PPP) Infrastructure Projects, the groundwork for transformation has been laid. A game-changing development is the High-Speed Rail Linking Airports (Don Muang, Suvarnabhumi and U-Tapao) which connects Bangkok to the EEC.
It links five provinces (Bangkok, Samutprakarn, Chachoengsao, Chonburi and Rayong) and three international airports, through nine high-speed train stations facilitating travel duration between Bangkok and the EEC within an hour. One of the crown jewels of the EEC is the U-Tapao International Airport located in Rayong Province – the third international airport of Thailand with a capacity for 60 million passengers per annum to serve as a vital gateway to the EEC’s growing economic landscape, set to commence operations in 2025.
Phase 2
Thailand is setting its sights on Phase 2 of the EEC Investment Target (2022-2026). With a focus on the “S-Curve” industries, Thailand aims to harness the potential of Next-generation Automotive, Intelligent Electronics, High-value and Medical Tourism, Advanced Agriculture and Biotechnology, along with Food for the Future. Furthermore, the EEC is expanding its horizons with the addition of seven new S-Curve industries for domestic and international investors, comprising of Automation and Robotics, Medical and Comprehensive Healthcare, Aviation and Logistics, Biofuels and Biochemicals, Education and Human Resource Development, Defense Industry, and Digital Infrastructure.
The Eastern Economic Corridor is more than just a development project; it is a testament to Thailand’s unwavering commitment to progress and prosperity. Investors looking to participate in the growth story of Southeast Asia should undoubtedly consider the EEC as a prime destination for their investments. As Thailand charts its course towards a brighter economic future, the EEC stands as a beacon of opportunity and is poised to play a pivotal role in re-shaping the economic landscape of the Greater Mekong sub-region and beyond.
SPAIN
Spain is a key supplier to Europe given its natural access to markets in the north of Africa and Latin America. It has 46 international ports and the longest coastline of any country in Europe, and it also offers advanced transport and logistics infrastructures.
3 in 4 top 100 companies in Forbes Global 2000 operate in Spain. The “participation exemption” scheme benefits international companies. Dividends and capital gains obtained from the transfer of shares of non- resident subsidiaries in Spain are exempt from taxation. Spain has a special tax regime for holding companies (“Spanish Holding Companies”-ETVE) that allows dividends and capital gains from the transfer of shares from subsidiaries to be exempt from taxation.
Innovation is gaining strength in the Spanish economy as a whole. According to data from the National Institute of Statistics (INE), Spain has recorded three consecutive years of investment growth in Research, Development and Innovation (RDI), at a higher rate of growth than nominal GDP.
Spain has a vibrant start-up community with support in the form of incubators, accelerators, ecosystem of private fundraising options, public financing options, grants and loans. ‘Rising Up in Spain’, launched by the Spanish Institute for Foreign Trade (ICEX) (Spanish: Instituto Español de Comercio Exterior) – an agency of the Spanish Ministry of Industry, Tourism and Trade (Ministerio de Industria, Turismo y Comercio), is a programme for foreign entrepreneurs starting up in Spain.
Spain’s exports grew 23% in 2022 to a record €389 billion, though the increase did not prevent the trade deficit from doubling to €68 billion because of a rise of prices and volumes of energy imports. Exports of goods and services represented almost 42% of Spain’s gross domestic product (GDP) and were a key driver of the economy’s 5.5% growth in 2022.
Spain is a key supplier to Europe given its natural access to markets in the north of Africa and Latin America. It has 46 international ports and the longest coastline of any country in Europe, and it also offers advanced transport and logistics infrastructures.
3 in 4 top 100 companies in Forbes Global 2000 operate in Spain. The “participation exemption” scheme benefits international companies. Dividends and capital gains obtained from the transfer of shares of non-resident subsidiaries in Spain are exempt from taxation. Spain has a special tax regime for holding companies (“Spanish Holding Companies” – ETVE) that allows dividends and capital gains from the transfer of shares from subsidiaries to be exempt from taxation.
Innovation is gaining strength in the Spanish economy as a whole. According to data from the National Institute of Statistics (INE), Spain has recorded three consecutive years of investment growth in Research, Development and Innovation (RDI), at a higher rate of growth than nominal GDP. Spain has a vibrant start-up community with support in the form of incubators, accelerators, ecosystem of private fundraising options, public financing options, grants and loans. ‘Rising Up in Spain’, launched by ICEX Spain Trade and Investments, is a programme for foreign entrepreneurs starting up in Spain.
The chemical industry supplies products that are used in 98% of the productive processes in its economy. This is one of the industrial sectors predicted to experience the fastest growth worldwide. The increase in production that will be needed to satisfy international demand is estimated at 4.5% year-on-year until 2030.
SAUDI ARABIA
Circular Carbon Economy National Program
The sovereign wealth fund of the Kingdom of Saudi Arabia, the Public Investment Fund (PIF), has developed a green framework for financing drawn from the concept of the Circular Carbon Economy (CCE) which was launched during the Kingdom’s Presidency of the G20 in 2020. The CCE was endorsed and adopted by G20 member countries in support of the 4Rs of greenhouse gases (GHGs) emissions reduction principles – Reduce, Reuse, Recycle and Remove.
Subsequently, the Kingdom has launched the “Circular Carbon Economy National Program” to draw a comprehensive roadmap, which includes technological localization and advancement through the implementation of the CCE concept. The program is a result of joint efforts by different stakeholders who worked on developing and implementing mechanisms covering all technical, administrative, engineering, and normative aspects in order to achieve the strategic objectives – such as sustainable social and economic growth, promoting integrated climate‐change solutions and ensuring global leadership in the field of the CCE.
Based on the CCE approach, green finance projects are generally classified based on the management of emissions as depicted below:
i. Emission Reduction (Avoidance): Contribute to climate action by avoiding the release of GHGs into the atmosphere.
ii. Emission Reuse or Recycle: Abatement from a point source by capturing emissions and performing any of the below actions:
a. reusing them without changing their chemistry
b. recycling them, or products containing GHGs, into similar or different products with different chemical characteristics
c. storing them
iii. Emission Removal: Process for carbon removal from the atmosphere whether through nature‐based solutions (e.g., planting trees) or carbon removal technology (e.g., direct air capture)
Human Capability Development Program
The Human Capability Development Program is one of the Vision Realization Programs (VRPs) of Vision 2030. It aims to develop citizens’ capabilities, prepare them for the future, and support them to seize opportunities.
The program focuses on instilling values, developing basic and future skills, and enhancing knowledge in various fields to attain these goals by the end of 2025:
• 4 out of 10 highly skilled jobs for Saudi citizens
• early childhood education in kindergartens for 4 out of 10 children
• for 6 Saudi universities to be ranked within the top 200 universities globally
• be ranked 45th or higher on the World Bank’s Human Capital Index
Developing its human capital is key for a skilled labour force in 9 target growth industries: i) chemicals, ii) information technology, iii) energy and water, iv) industrial and manufacturing, v) healthcare and life sciences, vi) mining and minerals, vii) transport and logistics, viii) tourism, culture and entertainment, and ix) real estate.
Private institutions for higher learning, vocational skills training, edtech products and solutions, education service providers, curriculum and academic content publishers are incentivised to establish in Saudi Arabia. The most popular partnership model is a management and franchise model or “manchise” in which the operator has operational and education management control while the investor provides the working capital for construction and operational costs.
Saudi Green Initiative
The first wave of over 60 programs and projects that contribute to the overarching targets for the Saudi Green Initiative – a Vision 2030 project, represents more than SAR 700 billion of investment, for the green economy. The initiatives span a range of sectors involving global and national contributions.
The Green Initiative Foundation, a non-profit organization, was established to support the implementation of Saudi Green Initiative and the Middle East Green Initiative objectives.
Other Vision 2030 projects include NEOM, ROSHN, SAUDI MADE, Green Riyadh, King Salman Park, The Red Sea project, Qiddiya, and more.
