Business in Egypt. Egyptian Economy. Foreign Trade Invest

Course contents (Muslims Countries)

Summary

Egypt has developed from the earliest of times as a multi-cultural community, a blending of the traditions of Africa and the Middle East, with the influences of Europe across the Mediterranean Sea. Egyptian society is tolerant and welcoming with a democratically elected government.

Egypt's 72 million population, growing at the rate of 2% per annum, represents a large domestic market for any investor. Almost six out of every 10 Egyptians are under 25. They are enthusiastic, educated, forward looking and open to new opportunities. They receive a well-rounded education and increasing numbers are acquiring degrees and specialized skills and training to take advantage of the new careers that are opening up.

The Egyptian economy has improved as reflected by a real growth rate of 4.9 per cent in GDP during the FY 2004/05 (up from 4.2 per cent in 2003/04). GDP reached EGP 558 billion, up from EGP 485 billion.

Fiscal year is expected to record Egypt’s largest ever balance of payments (BOP) surplus. During the first three quarters of 2004/05, BOP has been on an upward curve, recording an overall balance of USD 2,681.6 million in Q3 2004/05, compared with a deficit of USD 410.6 million recorded in the same quarter for the previous year.

Over the centuries, Egypt has produced highly qualified workers, adaptable to the needs of the times, knowledgeable and creative. Today’s 21 million workers have mastered a wide variety if skills. About 58 per cent of the total population is under the age of 25, while 41 per cent is between 15 and 39.

Their culture and respect for history is deep-rooted in the linkages Egypt has forged with Europe, Asia and the Arab world. In the fourth century BC the great Library at Alexandria became the world’s first university, recognized as the world’s intellectual and commercial capital. Today more than 800,000 people visit The Bibliotheca Alexandrina (The new Library of Alexandria) a place of learning, dialogue and tolerance that reflects Egypt’s continuing contribution to the expansion of knowledge.

Egypt stands at an enviable strategic location bridging the three continents of Asia, Africa and Europe – the gateway to some of the world’s largest markets by way of preferential and regional trade agreements. Egypt is the centre of a region of 800 million people and a hub for the world’s maritime traffic with commercial ports on the Mediterranean and Red Seas. Egypt’s airports are being upgraded to meet the increasing flow of passengers and cargoes and a modern road network cross-crosses Egypt linking the Middle East, Africa and, through neighboring countries, to Europe.

The reduction of customs duties has opened Egypt’s markets to more foreign trade and stimulated domestic producers. Business procedures have been streamlined. Corporate and personal taxes have been cut dramatically and now are lower than in most countries. State assets in all sectors of business are being transferred into the private sector. Companies are being restructured.

The cost of doing business in Egypt is extremely favorable, particularly labor and land costs. Electricity and gas are priced extremely competitively. The movement of goods is being speeded up with an improved transport system. The ports are being modernized.

Investment Environment in Egypt

The Ministry of Investment was created in 2004 by Presidential Decree as the primary government body that provides an environment that is conducive to investment in Egypt, enhancing the competitiveness of economic activities, encouraging and increasing the opportunities for local and foreign investment.

The Ministry of Investment is assisted directly and indirectly through affiliated organizations and in cooperation with other ministries and organizations. The Ministry of Investment oversees the General Authority for Free Zones and Investment (GAFI), the General Authority for Economic Zone North West Gulf of Suez (SEZONE), the Capital Market Authority (CMA), the Egyptian Insurance Supervisory Authority (EISA), the Mortgage Finance Authority (MFA) as well as the holding companies and affiliated companies in public business sector.

The Ministry of Investment implements definitive policies to promote and develop investment by:
1. Creating the suitable organizational and legislative environment for investment
2. Promotion
3. Performance progress measurement

Info about: Scholarships EGYPT مصر EGYPT Foreign Trade

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Business in Egypt, Egyptian Economy, Foreign Trade, Invest, Doing Business, population, Strategic location, Asia, Africa, Europe, Foreign Direct Investment, FDI, workers, Master, International Business