Egypt's Performance on the Resource Governance Index
Egypt ranks 38th out of 58 countries. With similar performance on all four components of the RGI, Egypt's overall "weak" score of 43 suggests there has been only incremental progress toward greater transparency in this crucial economic sector.
(out of 58)
(out of 100)
|48||Institutional & Legal Setting||40|
|38||Safeguards & Quality Controls||48|
Institutional & Legal Setting (Rank: 48th/58, Score: 40/100) learn more
Egypt's "failing" score of 40 reflects incomplete disclosure requirements despite a detailed legal framework governing the petroleum sector.
The Petroleum Ministry oversees the oil and gas sector, but state-owned companies grant extraction rights. Agreements follow a model joint venture contract approved by parliament and published as a law. Companies pay a share of production, income taxes, and bonuses to a state-owned company, which transfers these revenues to the Finance Ministry. The process of awarding contracts is designed to be competitive and includes rounds of auctions, but it is unclear how winning bids are ultimately selected.
Environmental impact assessments are required. There is no freedom of information law, although the 2012 Constitution includes a provision referring to access to information as a right.
Reporting Practices (Rank: 35th/58, Score: 44/100) learn more
Government data on most aspects of the petroleum sector is incomplete, resulting in a "weak" score of 44.
While text of a model contract is publicly available, final contracts are not published in full. Egypt's official gazette, al-Garida al-Rasmiyya, is seldom available to the public, making it difficult to find decrees authorizing exploration and extraction. Environmental impact assessments are not published, limiting public scrutiny prior to extraction.
The Finance Ministry follows substantial reporting policies, but publishes little information specifically on hydrocarbon revenues, and has not reported anything since the revolution. Previous annual reports included data on foreign investment in the industry and the cost of petroleum subsidies. The Petroleum Ministry publishes data on production volumes, but almost no information on resource revenues. Its last report covered 2008-2009. Annual Central Bank reports include the value of petroleum exports and foreign investment.
Safeguards & Quality Controls (Rank: 38th/58, Score: 48/100) learn more
Egypt's "weak" score of 48 is due to a lack of effective government monitoring and insufficient auditing requirements.
While Parliament must approve all contracts, there is little legislative oversight of the petroleum sector and no mechanism to appeal licensing decisions. The national audit agency has the authority to review extractive revenues, but there is no evidence that it actually does, and auditors do not regularly report to lawmakers. Government officials must provide information about their financial interests.
Enabling Environment (Rank: 25th/58, Score: 40/100) learn more
Egypt received a "failing" score of 40, performing especially poorly on rankings of democracy and government accountability.
State-Owned Companies (Rank: 34th/45, Score: 31/100) learn more
Three main companies, all government-owned, are involved in hydrocarbon extraction. The largest is the Egypt General Petroleum Company (EGPS), followed by the Egypt Natural Gas Holding Company (EGAS) and the Ganoub el-Wadi Petroleum Holding Company (GANOPE). Their reporting practices vary. EGAS and GANOPE publish annual reports containing some information on revenue generation; EGPS does not. None publish a breakdown of taxes paid to the government. EGPS does publish information about bidding rounds, including relevant legislation and commercial terms for auctions. It is unclear whether the companies' reports include data from all subsidiaries, and their accounting procedures do not appear to meet international standards.View full questionnaire for Egypt
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INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
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Key Economic Indicators
|GDP (constant 2011 international $ billion)||127.4||101.6||229.5|
|GDP per capita, PPP (constant 2005 international $)||4,141||4,491||5,547|
|Oil and gas revenues (% total government revenue)||17||10|
|Extractive exports (% total exports)||46||54||38|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. Oil and gas revenues 2011 data from 2010.|