1. International Business Management
Sudan Profile
Professor Dr.:
Ashraf Emam
prepared by:
1- Khaled Nazeer
2-
3-
Amin El Khodary
Amir El Naghy
Cohort :
4
4- Ahmed Galal
Group: Cairo
Date: November 2012

2. Sudan Overview
National Name: Jamhuryat as-Sudan
President: Lt. Gen. Omar Hassan Ahmad al-Bashir (1989)
Current government officials:
Total area: 1,156,673 sq mi (1,861,484 sq km)
Population: 34,206,710
Note: includes the population of South Sudan (8,260,490),
demographic data includes south sudan (July 2011 Est.) (Growth
rate: 2.1%)
Birth rate: 33.2/1000
Infant mortality rate: 78.1/1000
life expectancy: 52.5
Density per sq mi: 46
Capital (2003 est.): Khartoum, 5,717,300 (metro. area), 1,397,900
(city proper)
Largest cities: Omdurman, 2,103,900; Port Sudan, 450,400
Monetary unit: Sudanese pound
Geography
Sudan, in northeast Africa, measures about one-fourth the size of the United States. Its
neighbors are Chad and the Central African Republic on the west, Egypt and Libya on the north,
Ethiopia and Eritrea on the east, and South Sudan, Kenya, Uganda, and Democratic Republic of
the Congo on the south. The Red Sea washes about 500 mi of the eastern coast. It is traversed
from north to south by the Nile, all of whose great tributaries are partly or entirely within its
borders

3. Sudan Overview Cont.
Government
Islamic, Military government.
History Brief
In 1999, however, Bashir ousted Turabi and placed him under house arrest. (He was
freed in Oct. 2003.) Since then Bashir has made overtures to the West, and in Sept.
2001, the UN lifted its six-year-old sanctions. The U.S., however, still officially
considers Sudan a terrorist state.
A cease-fire was declared between the Sudanese government and the Sudan
People's Liberation Army (SPLA) in July 2002. During peace talks, which continued
through 2003, the government agreed to a power-sharing government for six years,
to be followed by a referendum on self-determination for the south. Fighting on both
sides continued throughout the peace negotiations.
In a historic seven-day secessionist referendum that began in southern Sudan on
January 9, 2011, 98.8% of voters chose independence from the north. The
referendum was a provision of the 2005 Comprehensive Peace Agreement, which
ended a 22-year civil war that killed 2.5 million people and displaced 4 million.
President Bashir accepted the results and said he would not seek reelection when his
term expires in 2015.

4. Sudan Political Profile
What is now northern Sudan was in ancient times the kingdom of Nubia, which came under
Egyptian rule after 2600 B.C. An Egyptian and Nubian civilization called Kush flourished until
A.D. 350. Missionaries converted the region to Christianity in the 6th century, but an influx of Muslim
Arabs, who had already conquered Egypt, eventually controlled the area and replaced Christianity with
Islam. During the 1500s a people called the Funj conquered much of Sudan, and several other black
African groups settled in the south, including the Dinka, Shilluk, Nuer, and Azande. Egyptians again
conquered Sudan in 1874, and after Britain occupied Egypt in 1882, it took over Sudan in 1898, ruling the
country in conjunction with Egypt. It was known as the Anglo-Egyptian Sudan between 1898 and 1955.
The 20th century saw the growth of Sudanese nationalism, and in 1953 Egypt and Britain granted Sudan
self-government. Independence was proclaimed on Jan. 1, 1956. Since independence, Sudan has been
ruled by a series of unstable parliamentary governments and military regimes. Under Maj. Gen. Gaafar
Mohamed Nimeiri, Sudan instituted fundamentalist Islamic law in 1983. This exacerbated the rift between
the Arab north, the seat of the government, and the black African animists and Christians in the south.
Differences in language, religion, ethnicity, and political power erupted in an unending civil war between
government forces, strongly influenced by the National Islamic Front (NIF) and the southern rebels,
whose most influential faction is the Sudan People's Liberation Army (SPLA). Human rights violations,
religious persecution, and allegations that Sudan had been a safe haven for terrorists isolated the country
from most of the international community. In 1995, the UN imposed sanctions against it.
On Aug. 20, 1998, the United States launched cruise missiles that destroyed a pharmaceutical
manufacturing facility in Khartoum which allegedly manufactured chemical weapons. The U.S. contended
that the Sudanese factory was financed by Islamic militant Osama bin Laden.

5. Sudan Social Profile
Ethnic groups
Arabs 70%, others being Arabized ethnic groups of Nubians,
Copts, and Beja. Others (Fur, Nuba, Fallata).
Languages: Arabic, Nubian language, Beja language
Population: 34,206,710
Note: includes the population of South Sudan (8,260,490);demographic data includes South
Sudan (July 2011 est.)
Age structure
0-14 years: 42.1% (male 9,696,726/female 9,286,894)
15-64 years: 55.2% (male 12,282,082/female 12,571,424)
65 years and over: 2.7% (male 613,817/female 596,559) (2011 est.)
Population growth rate: 1.884% (2011 est.)
Birth rate: 31.7 births/1,000 population (2011 est.)
Death rate: 8.33 deaths/1,000 population (July 2011 est.)
Net migration rate:-4.52 migrant(s)/1,000 population (2011 est.

6. Sudan Social Profile Cont.
Literacy
Definition: age 15 and over can read and write
Total population: 61.1%
Male: 71.8%
Female: 50.5% (2003 est.)
Maternal mortality rate
750 deaths/100,000 live births (2008)
Children under the age of 5 years underweight
31.7% (2006)
Health expenditures
7.3% of GDP (2009)
Physicians density
0.28 physicians/1,000 population (2008)
Hospital bed density 0.7 beds/1,000 population (2008)

7. Sudan Economic Profile
sudan is an extremely poor country that has had to deal with social conflict,
civil war, and the July 2011 secession of South Sudan - the region of the country that had
been responsible for about three-fourths of the former Sudan's total oil production. The oil
sector had driven much of Sudan''s GDP growth since it began exporting oil in 1999. For
nearly a decade, the economy boomed on the back of increases in oil production, high oil
prices, and significant inflows of foreign direct investment. Following South Sudan''s
secession, Sudan has struggled to maintain economic stability, because oil earnings now
provide a far lower share of the country''s need for hard currency and for budget revenues.
Sudan is attempting to generate new sources of revenues, such as from gold mining, while
carrying out an austerity program to reduce expenditures. Services and utilities have played
an increasingly important role in the economy. Agricultural production continues to employ
80% of the work force and contributes a third of GDP. Sudan introduced a new currency,
still called the Sudanese pound, following South Sudan''s secession, but the value of the
currency has fallen since its introduction and shortages of foreign exchange continue.
Sudan also faces rising inflation, which has led to a number of small scale protests in
Khartoum in recent months. Ongoing conflicts in Southern Kordofan, Darfur, and the Blue
Nile states, lack of basic infrastructure in large areas, and reliance by much of the
population on subsistence agriculture ensure that much of the population will remain at or
below the poverty line for years to come.

8. Sudan Economic Profile Cont.
Sudan Structure of Goss Domestic Product (GDP)
GDP - real growth rate
-4.5% (2011 est.)

9. Sudan Economic Profile Cont.
GDP (purchasing power parity)
$97.21 billion (2011 est.)
$97.41 billion (2010 est.)
$91.49 billion (2009 est.)
note: data are in 2011 US dollars
GDP (official exchange rate)
$63.3 billion (2011 est.)
GDP - real growth rate
-0.2% (2011 est.)
6.5% (2010 est.)
4.6% (2009 est.)
GDP - per capita (PPP)
$3,000 (2011 est.)
$2,400 (2010 est.)
$2,300 (2009 est.)
note: data are in 2011 US dollars
GDP - composition by sector
agriculture: 25%
industry: 29.3%
services: 45.7% (2011 est.)

10. Sudan Economic Profile Cont.
Population below poverty line
40% (2004 est.)
Labor force
11.92 million (2007 est.)
Labor force - by occupation
agriculture: 80%
industry: 7%
services: 13% (1998 est.)
Unemployment rate
18.7% (2002 est.)
Household income or consumption by
percentage share
lowest 10%: NA%
highest 10%: NA%
Investment (gross fixed)
24.6% of GDP (2011 est.)
Budget
revenues: $8.991 billion
expenditures: $11.89 billion (2011 est.)

11. Sudan Economic Profile Cont.
Taxes and other revenues
14.6% of GDP (2011 est.)
Budget surplus (+) or deficit (-)
-3.6% of GDP (2011 est.)
Public debt
100.8% of GDP (2011 est.)
90.8% of GDP (2010 est.)
Inflation rate (consumer prices)
15.8% (2011 est.)
13% (2010 est.)
Stock of money
$6.256 billion (31 December 2008)
$5.549 billion (31 December 2007)
Stock of narrow money
$6.694 billion (31 December 2011 est.)
$7.875 billion (31 December 2010 est.)
Stock of broad money
$19.36 billion (31 December 2011 est.)
$14.53 billion (31 December 2010 est.)
Stock of quasi money
$4.264 billion (31 December 2008)
$4.068 billion (31 December 2007)
Stock of domestic credit
$11 billion (31 December 2011 est.)
$12.99 billion (31 December 2010 est.)

12. Sudan Economic Profile Cont.
Market value of publicly traded shares
$NA
Agriculture - products
cotton, groundnuts (peanuts), sorghum, millet, wheat, gum
arabic, sugarcane, cassava (tapioca), mangoes, papaya, bananas,
sweet potatoes, sesame; sheep and other livestock
Industries
oil, cotton ginning, textiles, cement, edible oils, sugar, soap
distilling, shoes, petroleum refining, pharmaceuticals, armaments,
automobile/light truck assembly
Industrial production growth rate
3.5% (2010 est.)
Electricity - production
4.323 billion kWh (2008 est.)
Electricity - production by source
fossil fuel: 52.1%
hydro: 47.9%
nuclear: 0%
other: 0% (2001)
Electricity - consumption
3.787 billion kWh (2008 est.)

13. Sudan Economic Profile Cont.
Oil - production
514,300 bbl/day (2010 est.)
Oil - consumption
98,000 bbl/day (2010 est.)
Oil - exports
383,900 bbl/day (2009 est.)
Oil - imports
11,820 bbl/day (2009 est.)
Oil - proved reserves
5 billion bbl (1 January 2011 est.)
Natural gas - production
0 cu m (2009 est.)
Natural gas - consumption
0 cu m (2009 est.)
Natural gas - exports
0 cu m (2009 est.)
Natural gas - imports
0 cu m (2009 est.)
Natural gas - proved reserves
84.95 billion cu m (1 January 2011 est.)

14. Sudan Economic Profile Cont.
Current Account Balance
-$5.003 billion (2011 est.)
-$3.868 billion (2010 est.)
Exports
$7.705 billion (2011 est.)
$11.4 billion (2010 est.)
Exports - commodities
oil and petroleum products; cotton, sesame, livestock,
groundnuts, gum arabic, sugar
Exports - partners
China 68.3%, Japan 12.6%, India 5.8% (2009)
Imports
$8.427 billion (2011 est.)
$8.839 billion (2010 est.)
Imports - commodities
foodstuffs, manufactured goods, refinery and transport
equipment, medicines and chemicals, textiles, wheat
Imports - partners
China 21.7%, Egypt 8%, Saudi Arabia 7.7%, India 6.1%, UAE 5.7%
(2009)

15. Sudan Economic Profile Cont.
Reserves of foreign exchange and gold
$1.651 billion (31 December 2011 est.)
$2.063 billion (31 December 2010 est.)
Debt - external
$39.71 billion (31 December 2011 est.)
$37.7 billion (31 December 2010 est.)
Exchange rates
Sudanese pounds (SDG) per US dollar -
2.8 (2011 est.)
2.31 (2010 est.)
2.3 (2009)
2.1 (2008)
2.06 (2007)
Fiscal year
calendar year

16. South Sudan Economic Profile Cont.
Industry and infrastructure in landlocked South Sudan are severely
underdeveloped and poverty is widespread, following several decades of civil war
with the north. Subsistence agriculture provides a living for the vast majority of
the population. Property rights are tentative and price signals are missing because
markets are not well organized. South Sudan has little infrastructure - just 60 km
of paved roads. Electricity is produced mostly by costly diesel generators and
running water is scarce. The government spends large sums of money to maintain
a big army; delays in paying salaries have resulted in riots by unruly soldiers.
Ethnic conflicts have resulted in a large number of civilian deaths and
displacement. South Sudan depends largely on imports of goods, services, and
capital from the north. Despite these disadvantages, South Sudan does have
abundant natural resources. South Sudan produces nearly three-fourths of the
former Sudan's total oil output of nearly a half million barrels per day. The
government of South Sudan derives nearly 98% of its budget revenues from oil.
Oil is exported through two pipelines that run to refineries and shipping facilities
at Port Sudan on the Red Sea, and the 2005 oil sharing agreement with Khartoum
called for a 50-50 sharing of oil revenues between the two entities.

17. Sudan Int’l Trade Profile
Sudan has long had an adverse foreign trade balance. Foreign
trade has been negatively influenced by the civil war and
international isolation. In August 1999, Sudan started exporting oil.
Nearly 70 percent of the oil production is exported. In 1999-2000,
the country experienced its first trade surplus. That surplus rose to
US$500 million in 2000 on exports of US$1.7 billion and imports of
US$1.2 billion.
Foodstuffs are the most important import into Sudan. But steel
and alloy products were the main industrial items having been
imported to Sudan. Their imports accounted for US$76.6 million.
Spare parts import accounted for US$88.3 million, audio and video
devices for US$43.1 million, refrigerators for US$112.2 million,
personal cars for US$30.2 million, lorries and trucks for US$38.7
million, and buses for US$6.8 million.

18. Sudan Import & Export Profile
In 2010, Sudan has a current account deficit of US$5.79 billion.
Crude oil and petroleum were the key export commodities of the
nation, followed by cotton and sesame. Other chief Sudan Export
items are:
Livestock
Gum Arabic
Groundnuts
Sugar
A rise in imports is a key factor responsible for Sudan’s trade
deficit. According to the CIA, Sudan’s imports rise from $8.25
billion in 2009 to $8.48 billion in 2010. Some chief Import
commodities of Sudan are:
Manufactured goods
Transport equipment
Medicines
Chemicals

19. Sudan Relationship with Egypt Profile
In Relationship between Egypt & Sudan , as following news below :-
Egyptian Bank to Fund in Sudan with 500 million dollars,
Egypt and the Sudan agree to resume participation in EN_COM(Eastern
Nile Technical Regional Office ).
Egypt and Sudan are bilateral relations between Egypt and Sudan.

20. Our Recommendation
General Investment Scope by Sector:-
Agriculture sector:
Growing grain, Cane cultivation.
Industry sector:
Livestock farms.
Poultry farms.
Slaughter and freezing healthy.
Dairy Products.
Packaging grain.
Sugar Industry.
Motorcycle and bicycle
Pharmaceutical industries
Service sector:
Hospitals
Software
Training & Education
Electronic government program
Pharmaceutical

21. Our Recommendation
Team Recommended the sector (Agriculture):-
The Reason behind choosing This Investment according to the following point
below:-
As per our study about this country from different areas like (Economic – Social –
Political – Trade Investment{Import & Export} and Finally the relation between
Sudan with behind countries and specially Egypt).
In Economic Side, we notice Sudan has struggled to maintain economic stability,
because oil earnings now provide a far lower share of the country's need for
hard currency and for budget revenues. Sudan is attempting to generate new
sources of revenues, such as from gold mining, while carrying out an austerity
program to reduce expenditures. Services and utilities have played an
increasingly important role in the economy. Agricultural production continues to
employ 80% of the work force and contributes a third of GDP. Sudan introduced
a new currency, still called the Sudanese pound, following South Sudan’s
secession.

22. In Trade Investment (Import & Export), Agricultural products in total account for
about 95 percent of the country's exports. In 1998 there was an estimated 16.9 million
hectares (41.8 million acres) of arable land and approximately 1.9 million hectares (4.7
million acres) set aside for irrigation, primarily in the north of the country along the
banks of the Nile and other rivers. Cash crops (as of 1999) grown under irrigation in
these areas include cotton and cottonseed, which is of primary importance to the
economy with 172,000 tons and 131,000 tons produced annually respectively, sesame
(220,000 tons), sugarcane (5,950,000 tons), peanuts (980,000 tons), dates (176,000
tons), citrus fruits, yams (136,000 tons), tomatoes (240,000 tons), mangoes, coffee, and
tobacco. The main subsistence crops produced in Sudan are sorghum (3,045,000 tons),
millet (1,499,000 tons), wheat (168,000 tons), cowpeas, beans, pulses, corn (65,000),
and barley.] Cotton is the principal export crop and an integral part of the country's
economy and Sudan is the world's third largest producer of sesame after India and
China.
In Relationship between Egypt & Sudan , as following news below :-
Egyptian Bank to Fund in Sudan with 500 million dollars,
Egypt and the Sudan agree to resume participation in EN_COM
Egypt and Sudan are bilateral relations between Egypt and Sudan.
Kindly note that we covered more detailed about event news A,B and C in above text.

23. General recommendation:
Egypt must avail organizational cover to the investment process in Sudan,
especially in the presence of the international restriction by
international sanctions and chases International Court of Justice should the Egyptian state
to provide protection to investors and businessmen wanting to invest in Sudan through
the establishment of Association for investors in Sudan is working to create an
environment to invest in Sudan.
Also must share in insurance policies to cover the risks of investing in Sudan to encourage
businessmen to invest, especially with Sudan, which is a natural extension of the depth of
Egyptian.
As part of the integration and also to create the appropriate environment for the
development of business should expand in the establishment of scientific institutes of the
Egyptian universities to create culture and thought, as is the case in Khartoum branch of
Cairo University.
As State must take policies that help convergence and the development of relations and
development through a range of activities such as sports activities and technical and
cultural exchanges and allow works of art Sudanese presence on the map of works of art
in Egypt is also recommended cultural exchange through book fairs and cultural seminars.

24. As the State Egyptian cooperation with Sudan, north and south in the areas
of health, especially the health of women and children because of its great
impact on the development of relations between the two countries and
especially that Sudan suffers from a high in infant mortality and women of
childbearing age and recommend the appointment of expanding medical cooperation
to include all areas and assign a percentage of Egyptian doctors to work in Sudan with
appropriate financial compensation also recommend creating a hospital specializing in
the treatment of chronic diseases experienced by many of the citizens of Sudan
As part of the integration and also to create the appropriate environment for the
development of business should expand in the establishment of scientific institutes of
the Egyptian universities to create culture and thought, as is the case in Khartoum
branch of Cairo University.
From our standpoint, investors should exercise extreme caution in the case of long-
term investment and recommend short-term investments (two years or less) or quick
transactions, but in the case of long-term investment must take political and economic
changes and inflation into account when making feasibility studies, and must provide
appropriate protection from by the Egyptian government and the associations
proposed investors.
http://www.upi.com/Top_News/Special/2012/07/16/Sudan-inflation-rate-hits-37-
percent/UPI-11711342448467/#axzz2CxpBkqHR
http://www.sudantribune.com/spip.php?article43868