ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Egyptian Market: As a Frontier or Pre-Emerging Market

Updated on August 18, 2018

The nature of frontier or pre-emerging markets in terms of the lack of transparency and the high investment risk give them a competitive advantage over other emerging and already developed markets.

It is not possible to imagine the loss of this competitive advantage in favor of becoming an emerging market knowing that it is the main or the only factor to attract investors with a wide risk appetite, also that will make these markets in the context of competition with stable markets that have earned the confidence of international investors thanks to spatial-temporal and spatial conditions of their own often will not be repeated.

Taking the Egyptian market as an example, the Egyptian economy is severely controlled under the authority of the military institution as the only economic player due to the disappearance of the productive role of the public sector and the unfair advantage it enjoys over the private sector in terms of its ability to seizure the state-owned land and the access to unlimited energy resources free of charge! not to mention the advantage of information/intelligence which allows it to invest in the stock market and complete M&A deals, and even to enforce collecting protection rackets from business running or entering the market.

The military has successfully established itself (at least in the eyes of the western world) as a safe oasis in the midst of a region which is plagued by conflicts and various types of terrorism.

That was more than enough to ensure that the military had large inflows of financial aids from Western, Arab and other donor countries in the form of loans, weapons, and foods.

Combining the fighting of terrorism and developing the country by investing in infrastructure projects, roads and industrial zones, a delicious dish that is rich in flavors is served to satisfy the appetite of the hungry brave investors.

The whole situation foresees the creation of a dual character market. On one hand, the military directly controls through its own ownership of currency exchange offices and indirectly through its authority on the Central Bank of Egypt the movement/flow of foreign currency to and from the country, but makes it almost impossible to take out your profits in foreign currency without resorting to very twisting ways!

On the other hand, it promises the birth of a morally free market as there is no real control over the nature of the investment or source of funds as long as the shares are shared as agreed!

In this situation we find that there is an investor who aspires to achieve the highest interest/profit in the shortest possible time and does not mind the high degree of risk generated by the investment environment such as political fluctuations and waves of public anger and doesn’t mind sacrificing a large proportion of profit in exchange for a safe exit plan. This investor, of course, doesn't care about the real entity that invested the money or the nature of the investment itself.

The military institution is the other party responsible for completing these suspicious deals, relying on its secret channels and hidden pockets, which ensures that no regulatory body is aware of the nature of such actions. And of course, citizens who are unable to benefit from or fit into this pre-emerging market due to the nature of these suspicious and illegal investments.

This market model can be defended on the pretext that the investor with a high-risk appetite will go to invest through the sponsorship and financing of emerging companies and startups in that country, which will, of course, involve citizens in the privileges of the new market. The flows of foreign currencies and accelerator programs will be sufficient to market and develop these local startups into well-established companies. Although this model seems very promising, it is also unrealistic.

It is not logical for the investor to sacrifice the first profit model doing deals with the dominant power in our case it is the military institution. Knowing that this model can secure an unusual profit margin due to the nature of the investment itself, to choose the second model by investing in startups and emerging companies for several reasons:

The scarcity of the ideas that are nominated for growing as a multi-million companies as a result of the poverty of the local environment, the low level of education and the increasing number of graduates who aren't qualified in terms of technical and soft skills.

Even in the case of the availability of such pioneering and promising ideas, the investor will find himself immersed in a local environment which he doesn't know the nature of its governing laws and its social and political volatility. Not to mention the sterile banking system that wouldn't allow taking profits outside the borders in foreign currency. As a result, this investor doesn't have an exit plan!

Frontier or pre-emerging markets in the environment of economic globalization are markets based on investing in existing corruption and maintaining it at certain levels that can be managed by relying on unusual repressive policies to ensure that conditions do not spiral out of control.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)