2023: Doing Business In Egypt

Doing Business In Egypt

1. What is the current business climate in your jurisdiction including major political, economic and/or legal activities on the horizon in your country that could have a big impact on businesses?

The Egyptian economy is driven by several key industries and sectors that play vital roles in its growth and development. Agriculture holds a significant position, and the communication and information technology sector has become a global outsourcing destination, ranking 14th worldwide in the Global Services Location Index. Egypt's telecommunications and information technology sector continues to make advancements, with the introduction of 4G mobile services and the soon-to-be-introduced E-SIMs. Energy plays a crucial role as Egypt aims to become a regional energy hub. However, the government is taking steps to diversify the economy and reduce its dependence on oil, such as investing in infrastructure and renewable energy.

The current GDP of Egypt is USD 476.75 billion (2022.), the growth rate for Egypt in 2022 was 6.6%, which was higher than the global average of 3.6%; it has been progressively growing with an average of 4.24% growth from 2013 to 2022 (source World Bank). Additionally, the strategic location of Egypt has led to commercial ties and economic partnerships, especially with the United States.

2. From what countries do you see the most inbound investment? What about outbound?

Egypt's efforts to attract foreign direct investment are evident in various mega projects, including industrial and logistics zones, new administrative capital development, agricultural land reclamation, petrochemical plants, transportation network upgrades, and mineral resource extraction. The diverse sectors, including agriculture, technology, energy, industry, and international partnerships, collectively drive Egypt's economy and contribute to its growth and resilience.

The five key partners that Egypt can look to for inbound investment are the Kingdom of Saudi Arabia (KSA), United Arab Emirates (UAE), China, Kuwait, and Qatar.

3. In what industries/sectors are you seeing the most opportunity for foreign investment?

The key industries and sectors currently driving the Egyptian economy include agriculture, communication, and information technology, and the industrial sector is a cornerstone of the Egyptian economy, contributing to growth, exports, and employment. Industries like food processing, textiles, leather, furniture, pharmaceuticals, and automotive and auto components also play key roles. The country's efforts to attract foreign investment are evident, and there are opportunities in various projects, including industrial and logistics zones, new administrative capital development, agricultural land reclamation, petrochemical plants, transportation network upgrades, and mineral resource extraction

4. What advantages and pitfalls should others know about doing business in your country?

Egypt’s Vision 2030 is an ambitious long-term political, economic, and social vision and in the Egyptian workplace, gender diversity and inclusion (DEI) considerations are gaining importance. International blue-chip organizations have all succeeded in Egypt by making long-term investments, forming partnerships with local stakeholders, engaging with the community, and adapting their operations to the Egyptian market. These shared methods have contributed to their achievements in the country.

5. What is one cultural fact or custom about your country that others should know when doing business there?

Effective communication and relationship-building in the Egyptian business culture require an understanding of its unique characteristics. Communication is often indirect, high-context, and rooted in personal connections. Establishing and maintaining relationships is paramount, with a strong emphasis on liking and trust. Managers should invest time in getting to know their colleagues on a personal level, as relationships hold greater importance than strict timelines.

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