A notable rise in the volume of non-oil exports may indicate that Egypt can reach LE200 billion in exports by 2013, Mona El-Fiqi reports During the second quarter of 2010, the volume of non-oil exports increased by 20 per cent to reach LE29 billion compared to LE24 billion during the same period of 2009, according to a recent report issued by the Ministry of Trade and Industry (MTI). Rachid Mohamed Rachid, minister of trade and industry, said the increase indicates the competitiveness of Egyptian products as well as the ability of targeted export sectors to raise exports and to achieve the national strategy objective of reaching LE200 billion in exports by 2013. At the beginning of 2010, the government announced that efforts would be exerted to raise the value of exports to reach LE200 billion over the next three years. El-Basha Idris, chairman of the Exporters Division at the Federation of Egyptian Chambers of Commerce, said that Egyptian exports could achieve the goal easily with the promotion of local industry. Idris explained that rising export volumes over the past few months, in spite of the global financial crisis, is the best evidence. The MTI report listed the products witnessing an increase in exports: pharmaceuticals, cotton, carpets, glass, ceramics, textiles, home appliances, fruits, cables and marble. According to the report, which analyses the performance of exports during the period April-June 2010, Saudi Arabia tops the 10 largest markets for Egyptian exports. Non-oil Egyptian exports to Saudi Arabia reached LE2.59 billion. In second ranking is the United States, with Egyptian exports reaching LE2.31 billion. The top 10 countries receiving Egyptian exports include Italy, Turkey, the UK, Sudan, Syria, France and the United Arab Emirates, the report said. Arab countries received a large share of the cake, with total exports to Arab countries reaching LE10.9 billion while the EU received Egyptian exports valued at LE7.7 billion. The volume of Egyptian non-oil exports began to surpass oil exports during the past few years, from 54 per cent of total exports during the third quarter of 2008/2009 to 62 per cent during the third quarter of 2009/ 2010. The main reason, according to a report issued by the Ministry of Economic Development, is a clear reduction of international oil prices following the global financial crisis, along with a shift in government priorities. Non-oil exports are flourishing due to new export supporting strategies. In the past month, the Export Development Fund (EDF) began to implement a new strategy to help support exports. The system targets 3,000 companies in different sectors while giving a chance to more industrial sectors to receive export support. According to the new programme, starting from 1 July, in the fiscal year of 2010/2011 financial support for exports will be provided according to their amount of value added, based on using local components. This step aims at deepening the local industry, injecting new investment, and providing more job opportunities. The programme defines 30 sectors that will benefit from the new export support system. It also aims at creating new generation of exporters among small and medium enterprises (SMEs) and providing more financial assistance to SMEs by adding 1,000 companies to the new system. To encourage investment in the southern governorates, Rachid announced that the system would provide extra resources -- estimated at 50 per cent -- to support exports from industrial firms in these governorates. According to Rachid, the new system is based on transferring the export support programme from financial assistance to upgrading the infrastructure, particularly logistics, services and transportation, in order to improve the ability of Egyptian exports to reach foreign markets at lower prices. Mohamed Ragui, executive manager of the EDF, said that in 2009/2010, about 2,000 companies from different sectors were included in 26 export support programmes. Ragui added that new branches of the EDF would be established in industrial zones such as 10 Ramadan, 6 October, Port Said and Alexandria to facilitate reaching investors. Commenting on the new export support system, Idris said it is much better than before. It provides 10 per cent as a maximum of the export value. Idris explained that this financial support helps exporters to reduce their products' prices to be competitive abroad. It also encourages exporters to use local components and is organised and controlled better. However, exporters continue to complain of problems facing the exports sector. Idris said that the shortage of energy, excessive bureaucracy, and poor transportation are some of the problems that need to be addressed.