Egyptians eye U.S. market
By Jenny Heinzen York -- Furniture Today, August 22, 2005
Cairo, Egypt — This year's Furnex show here was marked by broad international attendance and a buzz about new government actions that manufacturers hope will smooth the way for Egyptian exporters to sell to America.
Furnex, in its second year, hosted 120 exhibitors — all from Egypt — at the June show and said that about 20% of them are ready and interested in exporting to the U.S. market.
Organizers hope to expand the show next year to include international exhibitors and to raise Egypt's profile on the world stage. Buyers from about 50 countries attended this year's show.
Governmental changes have sparked new interest around the country in developing the furniture industry, said Amr Abdel Latif, executive director of ExpoLink, the Egyptian exporters association.
"The current administration is taking action on economic reform," Abdel Latif said. "There is a private-sector synergy as many of the new political appointees come from a business background.
"Finally things are changing — the rules and regulations are being benchmarked against international practices. There is a strong commitment in terms of easing business in Egypt and attracting export-based foreign investment, specifically for the U.S," he said, noting that Egyptian and American governments are talking about a possible free-trade agreement.
"Furniture in Egypt is an inherited industry. Most of the companies are family-owned and generational," said Ahmed Aly Helmy, CEO of producer Meuble El Chark. "We have the know-how. And now that we have very broad-minded government officials, they have encouraged us to make a large step ahead."
Abdel Latif said Egypt offers a compelling story for importers looking for different sourcing countries.
In addition to producing quality furnishings, he said, the country has factors that can help make a business relationship smooth. These include favorable shipping lead times and costs, language (many Egyptians speak English), design capabilities and ample production capacity.
A container shipped from Egypt can travel from Alexandria to New York in 28 days, he said. Because it arrives on the East Coast — where the port system is less crowded than on the West Coast — port backups are minimized. Because the United States is considered a major trade partner to Egypt, there are no container shortages, and because Egypt is in a Qualified Industrial Zone, its shipments receive a duty-free entry into the United States, Abdel Latif said.
"We have added value, because products are cheaper to ship," said Adham Nadim, managing director of Egyptian manufacturer Nadim. But, he added, Egyptian sources looking to export can't rely on shipping advantages alone to lure new business.
"We come from a culture of higher-end quality and are now trying to find the formula to offer that quality at a competitive price, otherwise it will not pass," he said.
ExpoLink, the exporters association, is working to raise the profile of Egyptian home furnishings internationally. It has a presence at major international markets, including the Salon du Meuble and Maison et Objet in Paris, and shows in Milan, Italy; Birmingham, England; Valencia, Spain; and Dubai, United Arab Emirates. The group is seeking a space in High Point.
Another initiative for the development of the Egyptian furniture business has been the creation of technology centers around the country.
During the show, Rachid Mohamed Rachid, Egypt's minister of foreign trade and industry, and members of a Spanish delegation signed documents to set up a new furniture technology center. The center, to be financed by Spanish investments, will be in northern Egypt and will ensure that standards and specifications at manufacturers are in line with international practices.
There are plans for five such centers in the coming years, with cooperation from France, Italy and the United Kingdom. The centers will help define regional "furniture clusters" of manufacturers.
"I am confident this will be a very successful venture with private, government and industry support for furniture in Egypt," said Rachid.
He said furniture was chosen as an industry to promote because of Egypt's long history of furniture making — virtually since the dawn of civilization.
"For many centuries, Egyptians have produced furniture. It is still in the DNA of many people here. The manufacturers had been neglected (by government regulations), but we feel that we are going to help by giving some infrastructure around the industry and trade," he said.
"There are two directions now — the young people capable of generating new ideas, as well as the people who are able to dig into our history and bring new flavor into designs."
