Why Egypt ?

Political environment

Egypt is now building its new political structure to fulfill the dreams of all Egyptians who called for change, dignity, freedom of speech and social justice during the January 25th, 2011 revolution.

The 25th of January Revolution has taught everyone an important lesson. It is that rulers are no longer the main actors, but the people now are. The great January revolution has brought Egypt away from the authoritarianism and hegemony of a weary regime, into a new one with life in its veins; its pulse reflecting the dreams of its simplest citizens.

The biggest and most important challenge is not only in rebuilding the economy and reforming healthcare and education, but in rebuilding the system of values of the Egyptian society inspired by the principles of the January 25 Revolution

Egypt has started its transformation to a stable, democratic and modern economy, leading to greater economic growth and prosperity for all to enjoy.

Egypt’s [post-revolution] political process was received with acclaim from all parties involved, as well as international praise. Its credibility was never challenged, starting with the 19 March referendum, going through the parliamentary and presidential elections and the constitution referendum.

Tahrir Square is now one of the most popular international land marks where an open political dialogue between the Egyptians and the government had begun.


New Economy

The Egyptian Economy’s resilience is capable of overcoming its economic challenges as it did in the 2008 financial crisis, and long-term investors will see many opportunities.

Egypt has started its transformation to a stable, democratic and modern economy, where the dividends of growth and prosperity will be shared by all who participated in its achievement.

   Egypt’s GDP fell from 5.1% in 2009/2010 to 1.8% in 2010/2011 but it recorded 2.2% in 2011/2012 and is expected to reach 3.8% by 2013/2014. Among the nation’s fastest growing sectors are construction, communication & information technology, tourism, manufacturing and transportation & logistics.

A large, Trained, Competitively Priced Labor Force

At about 27 million, Egypt’s labor pool is the largest in the region. For decades, Egypt has had a reputation as a net regional exporter of educated, skilled labor. However, as domestic demand for skilled labor rises, young people are increasingly choosing to pursue opportunities at home. Complementing world-class universities and technical schools, a new national industrial training program is training workers to fill some 500,000 new jobs in manufacturing.

  Each year, around 300,000 Egyptians obtain university degrees, of whom 20,000 are trained engineers and 15,000 have degrees in science and technology. In addition, about 22,500 graduate with European language skills.

Skills-intensive and service-based sectors such as CIT, financial services and tourism are among Egypt’s economic leaders. Wages in these sectors are very competitive and more stable than wage levels in competitor countries.


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Large consumer market

Egypt has emerged as a consumer market of significant importance in the region, as witnessed by the arrival of dozens of global brands and the sharp expansion of retail sales in the past two years. This is partly due to the sheer size of Egypt’s population that put it as the most populated country in Africa and the Middle East, as well as Per capita income that reached EGP 18695 in 2011/2012 from EGP 8555 in 2005/2006. The fact that 50% of Egyptian are between the ages 15-44 has also impacted spending and investment trends.

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Developed Infrastructure

Egypt boasts a world class infrastructure base. Three independent mobile (cellular) phone networks cover nearly 100% of the country’s inhabited land. Wire line broadband is readily available in urban centers. The country’s 15 commercial ports serve the nation’s exporters and importers alike, while an expanding, upgrading airport network caters to both passengers and cargo traffic, Egypt’s Air Cargo Airport, currently has three cargo terminals, dealing with textiles, vegetables and many industrial products. Also the country has a well-established network of railways and roads.

Egypt also provides competitively prices and reliable supplies of power, water and gas. Egypt possesses abundance in natural resources that can easily meet the needs of agricultural, industrial and mining activities.


Competitive tax rates

 Corporate taxes top out at only 20% in Egypt.

 Personal taxes have been divided into three sections,

First section:           5001    < 20000 the tax will be 10%

Second section:      20001 < 40000 the tax will be 15%

Third section:         more than 40000 the tax will be 20%


The nation’s newly overhauled tax code is easy to navigate, and the country has moved to random-sample auditing. The nation’s largest corporate taxpayers are served by a special, highly trained unit at the Tax Authority.

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Preferential access to Key Global Markets

Egypt has access to large key markets through various multilateral and bilateral trade agreements with the USA, European, Middle Eastern and African countries; which secures benefits to Egyptian-based producers supplying these markets.


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Proximity to global Markets

Key global markets in Europe, the Middle East, Africa and the Indian Subcontinent are all readily accessible from Egypt. Closer to the European and North American markets than other major exporters including India, China and the Philippines, Egypt is also located on key international logistics routes.

Egypt enjoys the existence of the Suez Canal, which is considered to be the shortest link between the east and the west due to its unique geographic location. Approximately 8% of the world’s maritime shipping passes through the Suez Canal each year.

Vessels transiting through the canal from east to west or from west to east make significant savings in distance, time and operating costs.

Moreover, the maritime transport is the cheapest means of transport, with more than 80 % of world trade volume transported via waterways (seaborne trade).






Diversified Economy

    Egypt’s economy is among the most diverse in the Middle East and North Africa, helping ensure long-term growth prospects for all sectors. In 2012/2013 the Industrial Sector accounts for 15.6% of GDP while CIT, tourism and financial services accounts for 9.4% from GDP and retail accounts for 11% and 14.5 % for agriculture.

Reformist Investment Climate

  After 25th revolution Government has embraced an intensive 3 dimensional promotion strategy based on business reform, FDI attraction, and investor care, As follows:

For efficiency and simplification:

·      Reduction of the time required for registering foreign representation offices to 72 hours instead of 40 days has been made.

·      Paying subscription fees to the Chamber of Industry and the Federation of Egyptian Industries is available at the one stop shop.

·      The launch of the second phase of electronic companies’ establishment on GAFI official web site.

·      And, Increasing GAFI’s processing centers in governorates.

For the licenses

·      Lifting the required preliminary industrial license when establishing at GAFI.

·      Lifting the security approval requirement for media companies.

·      Issuance of the imports/exports certificates for specific activities for one to five years.


For SMEs: the Establishment of “Bedaya Center” to help develop and assist SMEs in gaining access to bank financing.

For the reduction of the industrial business cost through the decision of the ministry of industry to reduce the value of Letters of Guarantee required acquiring land from industrial zones.

Finally and most importantly for investor care:

·         Establishment of the “Contracts Committee” to resolve any conflict that might arise between the investors and different governmental bodies over previously signed business contracts.

·         And, Modification of the Investment law no. (8) Year 1997 to allow the reconciliation between the investor and the government in the cases of proven fraud.

There are five investor protection schemes which GAFI is currently endorsing:

the 25th of Jan. Revolution 

  1. Investor Care Department: established within GAFI to support and guide investors to resolve any conflicts they might face with the different governmental authorities.

  2. Disputes Settlement Center:  established in 2009 for the reconciliation and disputes resolution between business partners.

  3. The Investment Disputes Resolutions Committee: which GAFI hosts it’s the technical secretariat.

the 25th of Jan. Revolution 

  1. The “Contracts Committee” which GAFI is a member of, to resolve any conflict that might arise between the investors and different governmental bodies over previously signed business contracts.

  2. Modification of the Investment law No. (8) Year 1997 to allow the reconciliation between the investor and the government in the cases of proven fraud. 



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