2. Environmental Technologies and Services

A number of growing environmental sectors provide foreign companies with highly profitable investment opportunities in Egypt. Water treatment, waste management and many other branches are interesting for Egyptian companies and donors alike. Egypt's demand for environmental technologies continues to grow as production standards and cost reduction constraints increase.
 

2.1. Water treatment

The degradation of water quality is a major problem in Egypt, the most populous country in the Arab world. Population density and growth, industrial growth and the lack of sanitary systems all contribute to raising demand for drinking water and waste water management. In addition, Egypt depends on artificial irrigation and its diversified industry is in growing need of water management systems for the production process, cooling water and sewage plants. Industrial water needs are expected to rise from 3.6 BCM/year in 2000 to 5.5 BCM/year in 2017, bringing along a greater need for waste water treatment. Waste water flows nowadays reach 3.5 BCM/year, but only half this amount receives treatment.
The Egyptian water technologies market began its upsurge in 2004, thanks to the confidence which Egypt's reform-oriented government enjoys. Trust of bi- and multilateral donor agencies and developments funds in Egypt's environmental projects increased, making local financing components for water infrastructure projects easily accessible. The Kreditanstalt für Wiederaufbau greatly contributes to the financing, which makes German companies the leading beneficiaries of this development. The sewage plant in Kureimat, for example, is being built by a German firm. German companies can also benefit from creating consortiums with Egyptian firms active in the water sector.
 

2.2. Waste management

Waste management is another challenge which Egypt is currently tackling. With storing room for waste far insufficient, no recycling systems, improper transportation and the transmittance of diseases through rats and dogs, much of Egypt's waste is still being burned, affecting human health in an extremely negative way. After the privatization of the waste management sector five years ago, the Government of Egypt published plans for establishing a Solid Waste Management System. It continues conducting tests and explorations to identify potential landfills. Egypt's waste management industry is of increasing importance due to its growth potential and its reach in the 72 million inhabitants country.
The subsector of hazardous waste (produced in industry and the medical sector) seems best fit for foreign investment. Private and public companies' stuff needs to be trained in the handling of these substances. Furthermore, investment is needed in the subfield of recycling. Many companies have yet to comply with international environmental standards in order to export their products. Training in waste minimization, clean production and ecoefficiency can reduce production costs for these companies and make them more competitive in global markets. Consultancy is also a potentially growing branch, as few waste management consultants are established in Egypt. Foreign companies have lately benefited from joint ventures with their Egyptian counterparts. A truck engineer in Luxor, for example, was provided with technical expertise by a German company for the foundation of a garbage collection enterprise.
 

2.3. Air pollution reduction

Air pollution is yet another matter which worries Egypt's environmentalists as well as ordinary citizens. With 15 million inhabitants, the city of Cairo is by far the most polluted spot in the country. Sand, industrial sites, vehicles, burned garbage and industrial detritus contribute to the emission of fine particular matter (PM10) and carbon dioxides. This can potentially result in climate change, the salianation and inundation of the Nile and changes in rainfall patterns. Egypt is highly sensitive to these developments and strives to reduce carbon dioxide and greenhouse gas emissions. Especially entrepreneurs who wish to export are forced to comply with international and national emission standards. Articles 34 to 74 of law 1994/4, for instance, define thresholds for the air pollution that workers can be exposed to.
A growing number of companies and organizations are operating in the area of air protection in Egypt. There is, however, still need for equipment, testing and measurement systems, consultancy certifying and training. Only filtering and measurement equipment is produced locally so far. Once again, foreign firms can conclude contracts with local distributors for the delivery of equipment and technologies.
 

2.4. Environmental training and awareness

The major problem for Egypt's environmental protection program is a general lack of public awareness, although respecting environmental standards can provide Egyptian companies with easy access to foreign markets. Companies will be willing to change their production standards if they are aware of the economic gains from such reforms. We therefore witness a growing interest in technical workshops and trainings sessions about environmental standards and ways to attain them and environmental equipment and their handling.
 

2.5. Ecotourism

Another important growth sector in Egypt, although not directly linked to technology, is ecotourism. This form of sustainable tourism aims at safeguarding unique natural and water resources and enables tourists to escape from the stress and hustle of the modern world. Ecotourists enjoy the beauty and serenity of nature while trekking, hiking, camping, canoeing or fishing.
Egypt possess vary divers ecosystems – deserts, seas, oasis, rivers valleys and the Sinai mountains – and thus has a great potential for ecotourism. The WTO estimated in 2005 that nature based tourism represented 15% of tourism expenses worldwide, and it is a well-know fact that ecotourists are generous spenders. Foreign companies can significantly contribute to ecotourism development in Egypt by cooperating with local tour operators to offer travel packages. The provision of services and consultancy to Egyptian operators as well as the promotion and marketing of ecotourism also offer profitable business opportunities.
 

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