Grimy and chaotic it may be, but Cairo is fast emerging as a key business hub, says Jenny Southan
The drive into downtown Cairo takes you slowly, in crawling traffic, through a cityscape of sand-coloured buildings, with the throbbing sun beating on flat rooftops encrusted with satellite dishes, and a horizon punctuated by minarets. The call to prayer comes five times a day, and as well as reminding you that you’re in an exotic land, is a helpful wake-up call in the early hours of the morning.
While much of the city is in a sorry state of repair, the pollution and desert dust coating everything in a layer of grime, there is a buzz about the place. Things are happening. Given that Egypt has plenty of land up for grabs and a supply of cheap labour, it’s no surprise that construction is happening everywhere – if you have used the airport’s recently opened Terminal 3, you will have seen this for yourself.
Cairo International is just over 20km north-east of downtown, and from the air, provided you are sitting in the right side of the plane, you can see the pyramids of Giza as you fly in. Since opening in the 1940s, the airport has seen considerable expansion and thanks to recent upgrades, is a smart, efficient gateway. “Arriving in Cairo used not to be attractive but now it’s on an international level,” says Axel Ludwig, general manager of the Kempinski Nile hotel, which opens next month near the British Embassy in Garden City.
Direct daily services from London Heathrow are operated by BA, Bmi and flag carrier Egyptair. In February the World Bank approved a loan of US$280 million to revamp Terminal 2 (now closed), which will increase its annual capacity from three to 7.5 million by 2013. A fourth runway is set to open late this year, while a third line is being added to Cairo Metro, the only established underground system in Africa. The line will not be fully operational until 2019, although the city will hopefully be linked to the airport by 2012, “God be willing”, as the locals say.
In the meantime, visitors should opt for the taxis that clog the roads – the white ones with a black stripe along the side tend to be newer and have meters, whereas the older black and white ones don’t, so negotiate a fare before getting in (try asking for half of what they suggest). Don’t expect seatbelts or to get a receipt.
Frank Naboulsi, vice-president and general manager of the Fairmont Nile City hotel, which opened last autumn (see review, link below), says Cairo offers opportunities for new companies. “They can use Egypt as a satellite to the Middle East because the country is located on the Horn of Africa, so is a central point for imports and exports,” he says. “It also offers a great chance for businesses to expand – Egypt has a large labour pool and is becoming more developed in terms of technology. We are ready to let the world know we are open for business.”
So how was the country affected by the global downturn? Jane Kinninmont, associate director for the Middle East and Africa at the Economist Group, says: “Egypt has escaped the direct effects of the financial crisis, mainly because its banks are fairly disconnected from the international financial system. The economy grew by 4.5 per cent last year, making it one of the fastest-growing countries in the Middle East and North Africa. As a result, it is attracting increasing attention from multinationals who were, until recently, focusing mostly on the Gulf.”
Head up to Mokattam Hills, east of downtown, and you will see a good example of this. Emaar Misr, a subsidiary of the Dubai-based Emaar Properties and one of the largest investors in Egyptian real estate, is developing a new district, Uptown Cairo – a 4 sq km “city within a city” comprising a business park, residential villages, malls, restaurants, resorts and a golf course. Work on the E£12 billion (£1.4 billion) project started in 2007, and by next year, Emaar is also expecting to open a five-star hotel, the Address Uptown Cairo, with 200 rooms and 300 apartments.
Back downtown on Corniche Road, on the eastern bank of the Nile, construction is under way on Qatari Diar’s US$1 billion Cairo Nile Corniche Towers, occupying a prime location near the World Trade Centre. The complex will include luxury flats, offices, shops and eateries, as well as a five-star St Regis hotel operated by Starwood. It is scheduled to open in 2014 with 292 rooms, 99 serviced apartments, 117 residences and 2,155 sqm of meeting space.
On the other side of the Nile, taking up 3 sq km of the capital’s western suburbs, is Smart Village, a communication and IT business park for companies including Microsoft, Ericsson, Intel, Vodafone and Arab Bank. The first of its kind in the country, it launched in 2003 and by 2014 is expecting to host more than 500 firms and 100,000 employees – about four times what it does now.
There have only been a few high-end hotel openings recently – the Kempinski and Fairmont properties joining the likes of the Grand Hyatt Cairo, the Four Seasons Cairo at Nile Plaza, two Intercontinentals and the Sofitel El Gezirah (for a review visit businesstraveller.com/tried-and-tested). But there are a number to watch out for – Hilton opens the 164-room Zamalek Residence in July, while Kempinski has announced a second property – the Royal Maxim Cairo – for late 2012. The now-closed Nile Hilton reopens as a Ritz-Carlton next year, while the Shepheard hotel will open its doors again in 2012 under the Rocco Forte banner. In December 2012, Le Méridien will open a US$91 million airport hotel with direct access to T3.
So what kinds of industries are drawing business travellers in? Kinninmont says: “There is a heavy focus on export, taking advantage of Egypt’s proximity to Europe and its membership of the COMESA [Common Market for Eastern and Southern Africa] trade area. Green energy is developing, especially solar and wind, and the IT skills base is quite strong. Infrastructure is also improving, mainly on the back of government investment.”
Tourism remains a key focus, and a prime lure for visitors. A must for newcomers is the Egyptian Museum downtown, which is bursting at the seams with Pharaonic antiquities and treasures from Tutankhamen’s tomb. A new facility, the Grand Egyptian Museum, is due to open by 2012 in Giza in the shadow of the pyramids.
One thing that is apparent when entering tourist hotspots such as museums, markets and hotels is the strong police presence and metal detectors in entrances. These serve as a reminder of terrorist attacks that have occurred in the past, but those in the know stress that, in general, Cairo is safe. Kinninmont says: “Some Islamist militant groups operate underground in Egypt and from time to time Western tourists have been targets. But there does not seem to be widespread public support for such attacks, which limits the ability of such groups to operate.
“There is extensive dissatisfaction with the government but this doesn’t translate into support for violence in the country – especially as many Egyptians depend on the tourism sector for their livelihood. More broadly, there will be a lot of public protests over the next 18 months or so, as Egypt prepares for a controversial presidential election, and these are sometimes broken up violently by police.”
That said, the biggest threat to the success of your business trip is probably an upset stomach, so say no to ice in your drinks, avoid the salad, and remember that a little Arabic goes a long way.
Click here to read a review of the Fairmont Nile City.
