Vendors such as Tarek Fattouh, who sells tapestries, face an uphill struggle . Tara Todras-Whitehill
Vendors such as Tarek Fattouh, who sells tapestries, face an uphill struggle . Tara Todras-Whitehill

Egypt entrepreneurs fear for future



CAIRO // As politicians and economists start drawing up plans to bring Egypt's economy back from the brink, the country's small business owners say they are unlikely to reap benefits any time soon.

The election of a new president, Mohammed Morsi,has put the country on a firmer footing on the path to establishing civil democratic rule.

But changes to the cabinet and delays on rewriting the constitution have kept the economic situation uncertain.

On the streets of Cairo, vendors and small business owners say they are facing an uphill struggle to make ends meet as prices of food and commodities increase. The worry is that the benefits will not trickle down to the neediest.

Tarek Fattouh, 47, has been in the tent-making business for 35 years, working near the Khan El Khalili market, a tourist hotspot. He says before the revolution that removed Hosni Mubarak last year he had five times more customers than today - now he has four or five a week, compared with 15 to 20 before the revolution.

"The work is not easy. [The tents are] handmade and can take up to two or three months to make one piece. If I go to an exhibition [abroad] I need to take at least 10 of these really hard-to-make pieces.

Mr Fattouh voted for Ahmed Shafiq, regarded by many as an experienced businessman who would offer a firm hand in helping the country return to stability.

With the election of Mr Morsi, however, Mr Fattouh is still hopeful but sorry his candidate lost. "Shafiq, well, he understands everything, he knows business and he knows the street.

"Not a lot of people know where we are, the street has to be closed for cars and we need better-quality streets", Mr Fattouh says, looking out at a road riddled with potholes.

Over the past year and a half, Egypt's economic growth has virtually ground to a halt, with real GDP growth forecast at 1.5 per cent this year. Official unemployment has increased to 12.4 per cent from 9 per cent before the revolution.

But the problem is especially acute for the estimated 20 per cent living below the poverty line.

Aliya, a widow and mother of four, depends on a fruit cart for her daily wage. The rising price of foodstuffs has made it more difficult to source the best produce and sell it at a competitive price, she says.

"A watermelon now costs 10 Egyptian pounds [Dh6.06] or 15 pounds, it was 3 or 4 pounds before the revolution", she says. "The poor people get the scraps and the good stuff gets exported".

Egypt's desperate economic state in the aftermath of the revolution has driven urban inflation to a little more than 8 per cent and the unemployment rate to 12.6 per cent, the highest in more than a decade.

The public is pinning its hopes on Mr Morsi's grassroots "renaissance" campaign, which he says will focus on the economy first. It envisions a more equal distribution of wealth by encouraging small and medium-sized business and increasing investments in health care and education.

Hisham Fahmy, the chief executive of the American Chamber of Commerce in Egypt, says it would be too optimistic to expect a quick recovery in the short term. Businesses have been forced to change strategies to cope with the political turmoil by storing more goods to protect against strikes or disruption at ports, and reassessing wages for employees, he says.

"But when you talk about "relaxed", that's a bit too optimistic, it's going to be a couple of years before that," Mr Fahmy adds

"For now, it's all about waiting for stability."

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A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says. 

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier. 

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Top financial tips for graduates

Araminta Robertson, of the Financially Mint blog, shares her financial advice for university leavers:

1. Build digital or technical skills: After graduation, people can find it extremely hard to find jobs. From programming to digital marketing, your early twenties are for building skills. Future employers will want people with tech skills.

2. Side hustle: At 16, I lived in a village and started teaching online, as well as doing work as a virtual assistant and marketer. There are six skills you can use online: translation; teaching; programming; digital marketing; design and writing. If you master two, you’ll always be able to make money.

3. Networking: Knowing how to make connections is extremely useful. Use LinkedIn to find people who have the job you want, connect and ask to meet for coffee. Ask how they did it and if they know anyone who can help you. I secured quite a few clients this way.

4. Pay yourself first: The minute you receive any income, put about 15 per cent aside into a savings account you won’t touch, to go towards your emergency fund or to start investing. I do 20 per cent. It helped me start saving immediately.

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Power: 134bhp

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Salah in numbers

€39 million: Liverpool agreed a fee, including add-ons, in the region of 39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.

13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.

57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.

7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.

3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.

40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.

30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.

8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

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BUNDESLIGA FIXTURES

Friday Stuttgart v Cologne (Kick-off 10.30pm UAE)

Saturday RB Leipzig v Hertha Berlin (5.30pm)

Mainz v Borussia Monchengladbach (5.30pm)

Bayern Munich v Eintracht Frankfurt (5.30pm)

Union Berlin v SC Freiburg (5.30pm)

Borussia Dortmund v Schalke (5.30pm)

Sunday Wolfsburg v Arminia (6.30pm)

Werder Bremen v Hoffenheim (9pm)

Bayer Leverkusen v Augsburg (11.30pm)