This study is mainly to evaluate economically and financially the whole marble industry in Egypt. An industrial analysis on the marble industry is done which includes: summary on the international market of marble, sector and enterprises' structure, nature of competition, pricing, and differentiated marble and granite products in the local market. Also, a cluster analysis on the marble cluster is done that comprise: the marble cluster map, the marble cluster diamond, the five forces that shape industry competition, and competitive analysis. A financial valuation is conducted on the marble supply chain divided to the extraction and processing using an investment appraisal approach. The financial valuation includes: revenue cost analysis, estimation of capital investments, cash flow analysis, net present value, CAPM model, and profitability ratios. Afterwards, an economic valuation is done for the marble extraction and processing that incorporates economic cost and benefit analysis, economic investment requirements, industrial positive and negative externalities, natural resource depletion and sustainability using Hotelling's rent, net economic present value, and economic contributions. Based on the results, the main recommendations are: imposition of a Pigouvian tax of 36% on the marble quarries, removal of export duty on marble raw materials, and linking between marble extraction and processing rather than focusing on exporting extraction.
MA in Economics
Library of Congress Subject Heading 1
Marble industry and trade -- Egypt.
Library of Congress Subject Heading 2
Industrial organization (Economic theory)
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(2012).Economic and financial valuation of the marble industry in Egypt [Master's Thesis, the American University in Cairo]. AUC Knowledge Fountain.
Haggag, Farah Ahmed. Economic and financial valuation of the marble industry in Egypt. 2012. American University in Cairo, Master's Thesis. AUC Knowledge Fountain.
First and foremost, I offer my sincerest appreciation to my thesis supervisor Dr. Tarek Selim, Associate Professor of Economics, School of Business at The American University in Cairo (AUC), who supported me with his great knowledge and continuous guidance throughout my thesis. I consider it an honor to work with Dr. Tarek Selim for his major academic support in the fields of microeconomics and environmental economics. I thank Dr. Adel Beshai, Professor of Economics, School of Business at The American University in Cairo (AUC), for his great support in the intertiol trade theories and alysis of intertiol market of the marble industry. I am grateful Dr. Samir Makary, Professor of Economics, School of Business at The American University in Cairo (AUC), for his significant assistance in the investment appraisal and cost benefit alysis approaches. I thank Dr. Mahmoud El Garf, President of the Executive Organization for Industrial and Mineral Projects, Dr. Osama Mashaly, Head of Marble and Granite Unit, tiol Research Center, and Mr. Mabrouk Mabrouk, Head of Marble and Granite Unit, Chamber of Building Materials, for their kindness in the provision of data and studies for the Egyptian marble industry. Also, I appreciate Mr. Mohamed Hassan, Fincial Alyst, for his great support in the fincial alysis approaches. Most importantly, I provide my gratefulness and appreciation for Mr. Ahmed Haggag, Chairman of Al Hassa Marble Company, for his kind and continuous support in the provision of information on the marble industry in Egypt and worldwide. I owe my deepest gratitude to my family and fiancÃƒÆ’Ã‚Â©e who encouraged and motivated me through my journey in the masters' program.