Doing Business in Egypt

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Egypt was once the largest recipient of FDI from the Southern Mediterranean region. More than half of the country’s FDI came from the oil and gas sector. The country’s attractiveness as a destination for FDI was severely affected by the instability during the transition period. In 2011, net FDI flows to Egypt were negative for the first time (UNCTAD data).

The Investment Law No. 8 of 1997 governs foreign investment in Egypt. 8 of 1997. Companies Law 159/1981 is applicable to those sectors that are not covered by this law. The General Authority for Investment is the principal authority for registration, facilitation, and promotion of investments. Companies that are established in special economic zones or free zones have received various incentives.

Egypt was the first Arab country that signed the OECD Declaration on International Investment (2007). This declaration aims to provide national treatment for foreign investors and promote responsible international business conduct. Egypt has exceptions from national treatment in several sectors, including constructions, maritime, air transport, courier services and commercial agency services. Fixed line telecommunications are covered by public monopolies. They also operate in electricity production and distribution. Gas distribution. Railway transportation is available. The foreign workforce in a company can not exceed 10% of its total employees.

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Egypt is making constant efforts to improve its business environment. GAFI has created a one-stop shop for investors, which was one of Egypt’s major achievements.

President Morsi was forced to resign and Adly Mansour, interim president, was sworn into office on July 4, 2013. On June 8, 2014, presidential elections were held. Abdel Fattah El-Sisi won almost 97% of votes and was sworn in as president on June 8. El-Sisi served as the head of Egypt’s Armed Forces, First Deputy Prime Minister, and Minister of Defense under previous governments. The second step in a three-step transition was the presidential elections. Voting on a new constitution was the first step. It took place in 2014. The third step of the transition, parliamentary election, is set to take place between October and December 2015.

Egypt has made significant progress in a number important indicators of human development, but the country’s economic growth has been slow, although it is sufficient to absorb the rapidly increasing population and labor force. The average per capita income has increased by around 2% annually since 1980, resulting in an increase of poverty and child mortality.

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The Government of Egypt initiated reforms in 2014 to reduce subsidies for energy, increase the tax base, reduce deficit, and improve allocative efficiency.

The economic situation in Egypt looks like this. It is in third place among the developing countries.