Egypt has moved from being in a “crisis zone” only two years ago to an “investor haven” now, according to Bloomberg.

Tarek Selim ’92, ’95, economics professor and most recently a research fellow in emerging markets at the Massachusetts Institute of Technology, explains why the Egyptian economy is on the rise and what it can do to continue to improve.

What exactly does “floatation” mean?

In economic terms, the recent floatation of the Egyptian pound is called a "shock," which implies the economy takes several years to absorb it. Historically in similar countries, it takes up to five to seven years to fully absorb such a shock. The first three years after the shock are the most critical, and the next few years tend to be minor. Egypt’s economy has almost passed three of the critical years with inflationary pressures on the quality of life.

The floatation of the pound has been costly to the average citizen in terms of inflation. The wage rate did not increase in proportion to the increase in prices. This caused a decline in the quality of life and the people’s purchasing power of goods and services, which is a critical challenge moving forward.

Why did the Central Bank of Egypt (CBE) choose to float the Egyptian pound?

The floatation policy basically creates an incentive to export because the currency becomes cheaper relative to other currencies abroad. For example, suppose Egypt is producing a product costing EGP 100. If the exchange rate is $1 to EGP 1 and Egypt exports the product, then it will cost $100 to the receiver abroad. However, when the exchange rate changes dramatically to EGP 10 per dollar, the value of the same EGP 100 decreases to $10, so it should be cheaper to export. One of the major benefits after the flotation of the pound is export potential, and this is not yet realized. But I am optimistic. However, the potential to increase exports for Egypt has many constraints, including scale, infrastructure, and bureaucracy.

What if the CBE had not decided to float the Egyptian pound?

The country’s reserves would have been depleted fast, rather than increasing the way they are right now. Egypt doesn't have the resources to sustain such a depletion, so I think the “shock” was needed. However, complementary policies should have been put into place to make sure that quality of life was not affected in a very drastic way. This includes wage adjustments, anti-monopoly policies, scale incentives, and less bureaucracy. Right now, this should be one of the government’s priorities.

Can you explain why the floatation of the Egyptian pound put Egypt in a “crisis zone?”

The Egyptian economy has gone through a lot in the past couple of years. Especially after the revolution — all the turbulence, all the uncertainty. Uncertainty is a risk factor, especially for international investors who are looking for emerging markets. Countries are competing in the world market, quite similar to companies in domestic markets, hence a competitive advantage for Egypt must be strategized. The local market is the global market now.

Why do you think Egypt is becoming an “investor haven?”

The term “investor haven” might be an over-statement. If I'm an investor and I consider my options, the first thing I look for is the rate of return — which is the yield. Egypt has one of the highest yields on consumption-driven investments due to its market size. Also, Egypt’s yield on certificates on investment, which are considered a safe investment, is around 18 percent. The second thing is the risk factor. Egypt’s risk ratings have been improving, and the currency risk factor has been stable. The exchange rate has been stabilized over the past year, contrary to expectations. In the past one or two years, a lot of people expected the currency to devalue and continue to devalue. I think now it has stabilized, but there is a risk of such stabilization not to be maintained. Although there has been a stable political environment, yet an improvement in the economic returns of critical sectors, such as tourism and the Suez canal, in addition to a needed surge in manufacturing scale exports, are of high importance. Natural gas is helping the economy move forward, which is very good but not sufficient in the long run.

What can Egypt do to keep improving investor confidence?

Egypt has a lot of natural resources in addition to energy, like cement, marble, granite, aluminum and fertilizers. There are a lot of industries that could actually flourish and expand into the international market, and I think this should be our next step economically. It's not really the number or amount of investments alone; it’s the quality of investments that we should focus on. Egypt is in need of labor-intensive investments –– investments that absorb a lot of labor. When investments absorb more labor, this solves the unemployment problem. Also, local innovation is needed, such as in digital manufacturing. In the latest World Economic Forum’s Global Competitiveness Index, Egypt has jumped 15 ranks upwards, yet its level is still low at 100th place out of around 140 countries. Egypt can do better. There is huge, yet unrealized, potential. Quality of the labor force, government bureaucracy, education-work matching, and huge public debt are major challenges to improve the country’s competitiveness.

Are there any additional factors that make Egypt an investor haven?

Egypt is a consumption-driven economy, and local investors tend to be family businesses. That's why the sectors that are low-risk and high-return tend to be food, clothing and real estate. In Egypt, 90 percent of our income is spent, when the world average is around 77 percent. This, by itself, is an indicator to attract investments in certain sectors. Social economic behavior has consumption ripple effects. Once you start investments in Egypt, the supply in your investments will be enough to attract as much demand as possible. What is needed is local innovation, better governance, scale enhancement for export-led investments, and successful Egyptian brand penetration into the world market.

Is it likely that Egypt will stay an investor haven?  

Egypt has huge but unrealized potential, and we need to plan for realizing such potential. Having investments is important, but not sufficient. We need to complement it with other things — labor-intensiveness, local innovation, human capital mapping, technology transfers, competitiveness and bold strategies to enhance the overall efficiency for each of the different sectors. Policies play an important role. In the past, the priority was more on the infrastructure, physical capital and mega projects. Now, the focus should be on human capital and quality and scale of investments, which I think is the right shift of policy that will result in long-term economic success.

According to the World Cancer Research Fund International, breast cancer is the most common cancer among women worldwide and the second most common cancer in general. The good news is: It is a highly treatable disease. 

This is why AUC's Office of Medical Services is collaborating with the Student Union and the Office of Athletics to promote and host the University's first health fair: Breast Cancer Awareness. The event will take place from October 14 to 18 in Bartlett Plaza at AUC New Cairo and will include free and discounted services and checkups by prominent medical laboratories and companies and a weekly gynecologist visit to campus throughout the month. Booths will be open from 11 am - 2 pm with a daily lecture from 1 - 2 pm.

Dr. Mohamed Amin, head of AUC's Office of Medical Services, explained that the office is hoping to make the Breast Cancer Awareness event the first of many themed health fairs. "The idea of engaging awareness for breast cancer coincides with the Breast Cancer Awareness Month [October], or Pink Month," he said. "AUC is focusing on internationalization, and we want the initiative to coordinate with other international events."

The Office of Medical Services is collaborating with the Baheya Foundation for the Treatment of Breast Cancer, a charity hospital in Egypt that specializes in early detection and treatment for women diagnosed with breast cancer. Baheya will be kicking off the event with a two-hour promotional lecture, discussing how to examine yourself, ways to protect against breast cancer and signs that you should visit a gynecologist. 

The fair will give attendees information about breast cancer, making them conscious of risk factors and aware of resources such as Baheya. "Breast cancer is now considered curable," Amin explained. "If you discover it early, you can cure it early, so engaging awareness will benefit the whole community, including students, parents, staff and faculty."

With different activities every day, the fair will include multiple fun events including zumba and hip-hop dancing. There will also be an ice cream stand and a a pink decoration craft. Other vendors will be supporting the event as well, including multiple labs and medical companies that will offer free and discounted services during the week. There will also be a gynecologist visiting the clinic once a week during the month of October to answer questions and offer medical advice. 

"Sometimes when students hear about cancer they are afraid to talk about it, but if we make it a fun event, people will be willing to learn and will realize there is a high cure rate," Amin said. "They will learn how to protect themselves."

In what promises to be the first beautified water tower in Egypt, AUC has partnered with TAMEER, a real estate and development company, to transform the water tower outside campus into a work of art, with approval from the municipality. And instead of hiring a designer, AUC students will be the designers. A competition for the best student team design for the water tower will commence on October 17.

Toward the south edge of AUC's New Cairo campus, the dusty-colored water tower juts out, visible as you run around the gym's outdoor track and when you sit in the gardens behind the library. It almost fades into its sandy surroundings, ungarnished like the open land spreading behind it. Decorating this water tower is in line with international best practice, since decorated waters towers are a worldwide phenomenon, with some notable favorites such as the Gaffney Peachoid in the United States. "Once [the student design] is executed, people should no longer see a water tower," said Antoine El Khoury, managing director of TAMEER. "There is a difference between painting the tower and turning it into a piece of art so that when people see it, they are inspired."

The decorated water tower will serve as a monument for AUC and a landmark for the whole New Cairo neighborhood. "The community will feel that something has happened," explained Nagla Samir, associate professor in the Department of the Arts and one of the faculty members on the water tower beautification committee. "The AUC Tahrir Square campus was the hub of cultural life downtown, and now we have the chance to do the same thing in New Cairo."

A Reservoir of Talent

This beautification project requires more than just imagination. It requires mathematical calculations and engineering footprints. It requires a communication visibility plan and budget considerations. Due to the wide scope of this challenge, AUC students will compete in teams, working with a faculty mentor to create a viable design plan for the water tower.  

The competition is inherently structured to foster collaboration between AUC disciplines. The competing teams will be academically diverse, including students from a variety of fields such as engineering, business, graphic design, architecture and marketing. Drawing from the assorted knowledge and know-how of their groups, participants will be able to conceive creative and realistic designs for the water tower. "We want to offer the students the opportunity to be involved in a comprehensive business experience," said El Khoury.  

AUC students are well-equipped for this challenge. "AUC is a reservoir of talent!" exclaimed Samir. "We have the students, the faculty and the different departments. We want to bring in everybody and encourage students to engage in interdisciplinary collaborations. You don't have to be a designer or an artist or an architect to come and play with us." 

This competition highlights AUC's dedication to providing students with diverse educational spaces. The interdisciplinary nature of the challenge will allow students to simulate real-life work situations, where projects would necessitate coordination between different specialists and fields. Teams will also have to balance their creative vision for the project with practical constraints, such as cost and time frame for production. "The competition will allow students to use their academic knowledge in a real-life application and brings an interdisciplinary element to their learning," said Maha Guindi, executive director of AUC's Career Center and representative on the water tower beautification committee.

"Such competitions increase student awareness of market trends, advance their career readiness and differentiate them among other candidates in the job market," Guindi added.

Such projects also give students practical experience, beyond the academic setting. "This project moves away from the classroom’s theoretical atmosphere to real-world application,” explained Magda Mostafa, associate professor and associate chair of the Department of Architecture and one of the faculty members on the water tower beautification committee. "We want them to learn to operate under a strict budget, under brand identity and other criteria. All this will prepare them for the real working world." 

Once the competition goes live, students teams will participate in mentored workshops, led by faculty members “task-forcing the process,” as Samir put it. In addition to Samir and Mostafa, these faculty members will include Bahia Shebab, associate professor of practice in the Department of the Arts, and John Hoey, associate professor of practice in the Department of the Arts. The steering committee for the project is currently recruiting more faculty members for mentorship positions as well. Mentors will focus on sharing their expertise with students from other disciplines, providing guidance and training for students in fields outside their realm of study. These technical workshops will cover topics ranging from graphic and urban design to budgeting and project management. 

After teams present their final designs, three finalists will be selected. The selection jury will be made up of independent representatives of TAMEER, members of the AUC community and urban designers representing the New Cairo local authority. Once three finalists are chosen, the board of directors at TAMEER will pick the winning team. 

Two teams will receive a financial award, and the winning team will be offered an educational trip to Beirut. The cultural trip will function as a mini-internship with Solidere, the company behind the post-war urban regeneration of Beirut Central District. Through presentations, field tours and case studies with Solidere’s urban design team, the winning students will have the opportunity to discover all the planning, and design, as well as sociological and cultural aspects of Beirut’s transformation.

Once the team is back in Cairo, their experience will be shared with the AUC community. This exposure is a chance for students to continue learning about the world of architecture and design, in addition to getting career advice and guidance from professionals. "The trip to Beirut is intended to encourage students to explore art and architecture in a different country,” said Soha Hassan, experiential learning manager at the Career Center. “The winning team will get the chance to learn about how the culture of the country is translated into its equivalent artistic and architectural forms.”

Working with Solidere will not be the participants’ only exposure to a real development company. TAMEER will also be active throughout the competition.

"We want the students to engage in a corporate social responsibility initiative and experience that business is not only about numbers, but that behind business, there are people, and those people have values," explained El Khoury.

Urban Acupuncture 

Today, more community service-based initiatives have artistic applications. AUC's decision to use art as a way to give back to its home settlement is testament to the University's commitment to serving as a center and resource for the New Cairo community. 

"A lot of what we do at AUC is teach students to serve communities and the beautification of urban space,” affirmed Mostafa, discussing how architecture impacts people’s lives. “We call this urban acupuncture, where small projects lead to big change. 

Echoing the same sentiment and describing how art-based community service can be impactful, Samir noted, "Art is perceivable beyond complications. It’s very flexible in content, and it’s so inviting by its very nature. Art has always been playing this role. By giving a message without clearly setting boundaries, it creates an open space.”

AUC's very architecture reflects the interdisciplinary and collaborative nature of this project. Just as the entire campus is not designed by one architect, the beautification of the water tower will be the fruit of many labors, drawing on the creativity and capabilities of faculty, students and outside companies. The 2018-2019 academic year is the perfect time to give back, as AUC looks forward to its centennial year and simultaneously celebrates its 10-year anniversary of the New Cairo campus. 

For now, the beautified water tower is just an idea on the horizon, but one can already imagine the tower shimmering in the heat of the early morning –– a striking and compelling feature of the New Cairo skyline. Samir imagines students planning on meeting at the water tower and the community using it as a public marker. 

"There is a chance that whatever they do, if they give it enough attention and enough care, that this could go into history. It could become a timeless landmark," Samir said, smiling. 

#ColorCairo 

AUC recently celebrated its reaffirmation of accreditation by the Middle States Commission on Higher Education through the 2026 -2027 academic year. Reaffirmation of accreditation signifies that AUC adheres to the highest educational standards, equivalent to those of other highly ranked institutions worldwide.  AUC is currently the only MSCHE-accredited University in Egypt. Out of 523 institutions worldwide accredited by MSCHE, only 17, including AUC, are outside of the United States, including four in the Middle East. The University received the top level of MSCHE's reaffirmation of accreditation, without any requirements and noting a number of significant accomplishments. Universities accredited by MSCHE include Columbia University, Cornell University and New York University.

"We seek the highest international benchmarks," explained AUC President Francis Ricciardone at the opening of the celebration. "Egypt doesn't need to look abroad for excellence in education," he exclaimed.

More than 100 staff and faculty members were involved in preparing AUC for the reaffirmation of accreditation process. In celebration of the accreditation, a panel was held featuring Minister of Higher Education and Scientif Research Khaled Abdel Ghaffar, NAQAEE President Youhansen Eid, AUC President Francis Ricciardone, AUC Counselor Ashraf Hatem, and AUC Provost Ehab Abdel-Rahman. The celebration was also attended by presidents of public and private universities, cultural attaches, members of the Specialized Presidential Council for Education and Research, members of the advisory council of Egypt’s scientists and experts, and a number of experts of higher education at Egyptian universities.

Minister Abdel Ghaffar shared what this accomplishment means for the University and Egypt as a whole. "This accreditation proves [AUC's] persistence of excellence and distinction," he said. "The American University in Cairo has been a successful component of Egypt’s educational system for nearly 100 years –– one that we are proud of. When we want to highlight the quality of education in Egypt to our foreign visitors, we invite them to visit AUC, given the significance of its international accreditations.

He added, "We have cooperated together with determination to engage many Egyptian universities to share this experience for the prosperity of higher education."

Ghaffar then discussed the ministry's new Vision 2030 plan, a ministry proposal that aims to overhaul the current education system. "We see that access to education is one of the demands of our youth," he said. "Their desire is that this should be to international standards and that universities should be internationally engaged and accredited. The Vision 2030 pillars are interlinked: Education, research and innovation are some of the main pillars of this vision. That is why Egypt is about to adopt a serious reform policy whose results will affect the growing confidence of the world that we are moving forward on high ground with persistence and determination."

MSCHE is one of seven U.S.-based regional accreditors that accredit entire institutions, not individual programs, units or locations. It is an institutional accrediting agency recognized by the U.S. Secretary of Education and the Council for Higher Education Accreditation. 

Working in diverse fields, from banking and trade to business management and telecommunications, 13 AUC alumnae are named by Forbes Middle East among The Middle East's Most Influential Women of 2018. Focusing on women in executive business and finance positions, as well as women in government departments, this annual list considers the title, scope and impact of the women's work, as well as the revenues of the companies they lead. AUC alumnae continually impress, making important contributions in a variety of sectors and fields within Egypt and abroad. 

Read about these women, their jobs and how they got to where they are today:

#3

LOBNA HELAL '83, '89

Deputy Governor, of Central Bank of Egypt 

Graduating from AUC with a Bachelor of Arts in political science and a Master of Arts in economics, Lobna Helal is the first woman ever appointed deputy governor of the Central Bank of Egypt. 

#16

 ELHAM MAHFOUZ '84

Chief Executive Officer, Commercial Bank of Kuwait 

Graduating from AUC with a Bachelor of Arts in business administration, Elham Mahfouz first worked as a credit manager and deputy chief executive officer at the Commercial Bank of Kuwait before becoming its CEO. 

#20

DALIA EL BAZ '95

Deputy Chair, National Bank of Egypt 

Graduating from AUC with a Bachelor of Arts in business administration, Dalia El Baz has been a member of the National Bank of Egypt's executive committee since 2016. She supervised the deployment of the new core banking systems and the centralization of banking operations. El Baz started her banking career at Barclays Bank Egypt.

#23

SAHAR EL DAMATI '76, '79

Managing Director, Union Capital

After graduating from AUC with a Bachelor of Arts in economics and Master of Arts in business administration, Sahar El Damati worked in a number of organizations in the banking sector such as the International Monetary Fund (IMF), commercial International Bank (CIB) and the World Bank. She went on to be head of the Credit and Portfolio Management department at the Social development fund, deputy managing director, chief risk officer and board member of HSBC Bank followed by deputy chairman and board member at Banque Misr. She is currently holding the position of managing director of Union Capital credit funds, an Egypt-based private equity firm focused on small and medium enterprises.

#24

RAWAN AHMED AL SAID '88

Chief Executive Officer, Takaful Oman 
Chairperson, National Bank of Oman

Graduating from AUC with a Bachelor of Arts in economics, Rawan Ahmed has been the chairperson of the National Bank of Oman since 2005. She is also on the board of five other companies. Before her time at the National Bank of Oman, she held the position of non-executive director at ONIC Holding and deputy chief executive officer of the State General Reserve Fund of Oman.

#31

MERVAT ZOHDY SOLTAN '83, '89

Chief Executive Officer, Export Development Bank of Egypt

Graduating from AUC with a Bachelor of Arts in business administration, Mervat Soltan worked as the vice president of Deutsche Bank Cairo, as the director of HSBC and as the general manager at Ahli United Bank Egypt before her time at the Export Development Bank of Egypt. 

#45

RASHA EL-AZHARY '97 

Chief Financial Officer, Vodafone Egypt

Graduating from AUC with a Bachelor of Arts in economics and a Master of Business Administration, Rasha El Azhary previously served as the development director for Vodafone Qatar, leading the launch of fiber and LTE services. She joined Vodafone in 2003 after working as a senior associate at EFG Hermes. 

#46

HANIA MOHAMED SADEK '82, '90

Chief Executive Officer and Executive Director, HSBC Egypt

Graduating from AUC with a Bachelor of Arts in economics and a Master of Arts in economics, Hania Sadek has more than 30 years of banking experience. She has worked as the head of the IT Department, head of the Internal Audit Department and head of Operations and Systems at HSBC. 

#47

MARWA EL AYOUTI '98

Chief Financial Officer, Orange Egypt

Graduating from AUC with a Bachelor of Arts in economics and a Master of Business Administration from the Maastricht School of Management, Marwa El Ayouti got her start working at Vodafone, taking on her position at Orange Egypt this past April.

#66

HALLA SHAKER SAKR '84

Managing Director, Attijariwafa Bank Egypt

Graduating from AUC with a Bachelor of Arts in business administration, Halla Shaker went on to serve as the deputy chief officer of HSBC Egypt before taking on her current position as managing director of Attijariwafa Bank Egypt.

#86

SHAHIRA MAGDI ZEID '83

Co-Founder, Maridive Group
Vice Chair, MZ Investments

Shahira Magdi Zeid graduated from AUC with a Bachelor of Arts in business administration. She co-founded the Maridive Group, the largest company providing off-shore marine and oil support services in Egypt. She also is the Vice Chair for MZ investments, a company that provides financial and investment advice to both insitutional and private investors. 

#89

RANA ADAWI '93

Managing Director, Acumen Asset Management

Graduating from AUC with a Bachelor of Arts in economics, Rana Adawi co-founded Acumen Holding. Bringing more than 22 years of experience in the financial services industry, her previous roles include head of research in Fleming CIIC Securities.  

#96

SOHA EL TURKY '94, '98 

Chief Financial Officer. Banque du Caire

Graduating from AUC with a Bachelor of Arts in business administration and a Master of Business Administration, Soha El Turky has experience spanning corporate and retail banking. Before taking on her position at Banque du Caire, she worked as the chief financial officer for Abu Dhabi Islamic Bank and as the chief financial officer at Citibank.

Hailing from all over the globe and holding citizenships from over nine countries, this year's 43 new faculty members bring a diverse set of skills, interests and knowledge to AUC’s growing community.

The incoming faculty members have spent the first month of classes settling in and planning their next steps, whether it be writing their next book, working on education reformation or collaborating with colleagues to foster sustainable ecological practices.

Ibrahim Karkouti, assistant professor in the Graduate School of Education, is a self-described “lifelong learner.” After teaching in Qatar, he found himself drawn to AUC, in part because of his mission to serve humanity through education. He noted,

“I found myself morally obligated to take part in the Graduate School of Education at AUC because it is home for many programs that try to reform educational systems in the Middle East and North Africa region.” 

Karkouti’s current research focuses on diversity issues in higher education, the use of technology in the classroom and the types of social support K-12 teachers need to embrace in order to implement reform. He is looking forward to reaching out to underserved communities in Egypt and is hoping his time here will be “transformative.” “I am confident that my experience at AUC will help me define what life really means,” he affirmed.

Not every new faculty member is stepping on campus for the first time. Yasmine Saleh, associate professor of practice in the Department of Psychology is an AUC alumna. After years in the business world, she changed careers and pursued graduate studies in clinical psychology, earning her doctoral degree in 2011. Her doctoral thesis merged her multiple interests in emerging adults, young women’s development and Egypt. After working as a clinical psychologist in Massachusetts, she has been in private practice in Cairo since 2013, the year she first taught at AUC. “I got into teaching when I discovered how much I loved it at AUC,” said Saleh. “I began linking what I was teaching to practical work.”

Saleh has been collaborating with a colleague at AUC’s Department of Psychology, as a consultant with the United Nations Children's Fund, the Ministry of Social Solidarity and the National Council for Childhood and Motherhood in a joint program to build capacity among Egyptian child-protection social workers.

During her time at AUC, Saleh plans to challenge her knowledge of how to deliver primarily “Western” concepts to make them more applicable for students to use in the practical world. In her downtime, Saleh hopes to travel and explore. “I find joy in getting to know how we are all more alike than different,” said Saleh.

Some faculty members did not expect to find themselves in Cairo at all, like Thomas Wolsey, assistant professor in the Graduate School of Education. “I enjoyed my work as a consultant and working on my small ranch in California, but when the opportunity to work in Cairo came up, I knew I had to jump,” he said.

Wolsey said he is eager to find opportunities to channel AUC’s efforts to foster sustainable ecological practices in building and agriculture. He plans to expand those efforts as much as possible and is pleased to report that he has already found two colleagues who want to collaborate with him on research.

Aside from the opportunity to cruise down the Nile on a felucca, Wolsey is most excited to learn from AUC’s diverse community. He said:

“Who else can say they work in one of the birthplaces of civilization while teaching and learning from colleagues and students who are looking to the next decade and the next century?” 

Meet AUC's new faculty members: