Air tickets 15%

Clothes 8%

Entertainment 10%

17%Electronics

EGYPT'S DIGITAL

PRESENTSECONOMY...

A WORLD OF REAL POSSIBILITIES

April

2015

AN INFOGRAPHIC PRODUCED BY THE ALEXBANK RESEARCH TEAM

THE DIGITAL REVOLUTION HAS DRAMATICALLY CHANGED THE SHAPE OF THE GLOBAL ECONOMY, EGYPT IS ON THE BRINK OF THIS TRANSITION DUE TO TWO FACTORS:

Egypt is the largest Arab market with

MILLION

with a strong passion for technology and modernization

1 Governmental Measures 21993 The Internet is introduced to Egypt before

any other Arab country

The Egyptian Ministry of Communications &Information Technology is established in

The Central Bank Of Egypt licenses electronic banking operations

1999

2000 Broadband internet access is introduced commercially as ADSL

2002

2011 The 25th of January revolution magnifies theimportance of the internet as an alternative political and social platform

KEY FACTS

Million internet Users

55%internet penetrationrate

Million Mobile Subscribers

=111%

mobile penetrationrate

E-COMMERCE IN EGYPT

E-commerce refers to trading in products or services using computer networks, such as the Internet. In Egypt ,e-commerce emerged with the evolution of smartphones and internet literacy

WITH less than

20% of Egyptian brands having any type of online presence

Although KSA has one of the lowest internet penetration rates,25% of users are online consumers

in UAE, 46% of total internet users are online consumers

Egypt has the highest number of the internet users in Arab world but only 8% are online consumers

18-24 25-31 32-3839-45 46-60 60+

40%

2% 6% 7%

15%

30%

EGYPTIAN BUYERS BY AGE GROUP

TOP 4 TRADED GOODS & SERVICES

TOP ONLINE TRANSACTION WEBSITES E-Commerce sector is still in its early stages due to several reasons:

Lack of knowledge of how to deal with e-commerceLack of legal recognition of electronic contractsFear of disclosure of financial transactionsLack of familiarity with foreign languages

E-PAYMENT IN EGYPT

Due to thefact that 10% 20%

Cash On Delivery Credit Cards80%

Cards

Mobile Consumers can now use their mobile phone to pay for transactions in several ways:

Egypt has the 2nd highest credit and debit card issuance market in the Middle East ...

2.5Million Credit Cards grew by 40% since

2010 14.5Million Debit Cards grew by over 36% since

2010

Mobile-phone Based Money Transfer

in the world in terms of best places to invest in internet based commerce12th

The fact that the overall penetration rate of e-commerce is still low at DESPITE 3.4%

Egypt iscurrently ranked

Bill Presentment Electronic bill payment & presentment networks enables people to pay for mobile bills, ADSL , utilities bills through nationwide retailers i.e.

Using a service provider P.O.S

A customer may also pay through ATM machines and bank direct debit as service providers have partnership agreements with major banks

Market key Players ...

E- payment is a subset of an e-commerce transaction that allows electronic payment for buying and selling goods or services offered through the Internet.

ONLYof Egyptian people have bank accounts, Egypt remains a

CASH BASED ECONOMY

SMS premium Mobile phone users can make donations or vote by texting a keyword to a specific SMS short code at a more expensive rates

Several telecom companies and banks have launched mobile payment solutions, trying to convert Egypt to a cashless society

=

E- BANKING IN EGYPTThe majority of the banks in MENA and particularly in Egypt are developing initiatives to cope with the revolution in E-services, by upgrading their online tools to reduce branch visits and reduce their operational costs & enable customers to save time

IN EG

YPT

40 bankswork in the market 33 banks

have qualified websites 19 licensed

banks to carry out E-Banking 7 banks

provide MobileBanking 3banks have

partnership with Mobile network operators

How do Egyptians use their E-Banking?

36%of Egyptians who have E-Banking, use it to pay bills 31%

use it for money transfer 16%

use it for balance checking

EGYPTS E-COMMERCE FUTURE...

worldwide17th among Arab countries on Facebook &1st of internet users on

the social media channel. 22%

Million Facebook Users

as Egyptis ranked 19

have smart phones

and only

41%of them haveinternet connection

64%

EGYPT & SOCIAL MEDIA

among Arab countries on twitter with2nd of internet users on

the social media channel. 1.3%

Million Twitter Users

as Egyptis ranked 1.1

of internet users onthe social media channel. 1.5%

Million LinkedIn Users

with1.6

Due to ...

Egypt’s online purchases are expected to more than

TRIPLEby 2016According to Euromonitor

Unprecedented growth on smartphones

Government support for technology

Greater increase in credit / debit cards usage

Demand for branded products

Large percentage of Egyptians under 30 years

According to Ipsos

According to Central Bank of Egypt & Elborsanews.com

According to Central Bank of Egypt

According to Payfort Report

According to Payfort Report

According to AIM internet

According to Global Enterpreneurship Library

According to Arab Social Media Report, MBRSG

According to Egyptian Ministry of Communications And Information Technoloy

According to CAPMAS, Jan 2015

How do people pay for online goods:

MOBILE & MOBILE INTERNET GROWTH

According to Egyptian Ministry of Communications And Information Technoloy

70.66 83.43

96.8 99.7 95.32

0

20

40

60

80

100

120

2010 2011 2012 2013 2014

Mobile Subscriptions

7.81 10.73 11.06

14.5

21.77

0

5

10

15

20

25

2010 2011 2012 2013 2014

Mobile Internet Users

* Million Subscriptions