1 Doing Business with Egypt Greece October 2014 Egypt, Investment for Development

Indicators Monthly Inflation Rate % at the end of August 2014 Net International Reserves (USD billion) at the end of Sept 2014 Net Foreign Direct Investments during the FY 2012/13 reached (3.8 billion USD) and (4.1 billion USD) the FY 2013/14: Unemployment Rate 13.4% during Jul-Sept. FY2013/14 Total exports (FY2012/2013 ) 26.0 USD billion, and recorded 18.7 USD billion during the 9 months of the FY 2013/14 Total imports (FY 2012/2013) 57.5 USD billion, and recorded 43.9 USD during the 9 months of the FY 2013/14

3 Foreign Direct Investment in Egypt USD Billion Source : CBE

From January 1970 till August 2014: Total Greek participation in the issued capital is USD Million Total number of companies with Greek capital operating in Egypt is 140 companies Greek Investment in Egypt Source : GAFI Greek Investment Development in EgyptGreek Investment by Sector

5 Sample of The largest international Companies working in Egypt

The process of registering foreign company subsidiaries to only three days of processing time. The time to open foreign representation offices; 3 days while simplifying administrative steps related to establishing a business. Enhancing import and export flexibility through import and export certificates that are available for 3-5 year periods. Paying subscription fees to chamber of industry and the federation of Egyptian industries at the one stop shop Increasing GAFI’s processing centers. Lifting the security approval requirement for media companies. As well as lifting licensing requirements for print publications. An initiative to provide resources for a credit risk guarantee program to help develop SMEs and help them gain access to bank financing. Support and Incentives for Investments

7 There are five investor protection schemes which GAFI is currently endorsing: Investor protection 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 its the technical secretariat. 4.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. 5.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.

Ambitious sectorial strategies ICT: DIGITAL Egypt 2013 INDUSTRY: Textiles One of the highest-growth potential IT markets in the Middle East. has an annual sustained growth rate of 11.53% during q1 of the FY 2013/14 contributes 2.7 % to real GDP. 30% of industrial output 14.2% of Non- Petroleum exports in first three quarters of 2011/ % of local employment in 2010 Egypt is home to the only fully vertically integrated textiles industry in the Middle East. 8  Egypt offers easy access to markets in the Arabian Gulf, the Levant, North Africa and Sub-Saharan Africa as well as Europe.

20% of total power generation by % of which will be generated by wind energy To boost US$110bn of investment into the power sector by 2027 The leader producer: as Egypt produces almost 57% of the region’s total wind energy Objectives: one of the oldest and most-established in the Middle East The nation’s banks, brokerages, investment banks and private equity houses are among the most vibrant in the region. Smart village the premiere technology park in the middle east. FINANCE RENEWABLE ENERGY Ambitious sectorial strategies 9

Unique geographic location combined with an expanding infrastructure bas 8% of the world’s maritime shipping passing through the Suez Canal. Accounting for 6.2% of GDP during q1 of the FY 2013/14. The government is planning investments of EGP 37.8 Bn. in the transportation sector during the FY 2013/14 Accounting for 2.2% of total GDP during q1 of the FY 2013/14. Achieved growth rate of 10.2 during (Jul‐Mar) 2012/2013. TOURISM LOGISTICS 10

Egypt represents one of the largest markets in the region, agriculture contributes to around 18.1% of Egypt's GDP in q1 2013/2014. Food production industry in Egypt is better developed than that in many neighboring states, creating strong export opportunities companies operating in the Agribusiness space in Egypt With total capital reaching EGP 50 billion and manpower of 5 million Egypt has a long history as an exporter of well-educated labor. Egypt has a diverse base of educational system that guarantees both a large pool of people who can teach and conduct training programs. Education AGRICULTURE Ambitious sectorial strategies 11

Egypt is the largest market in the Arab world With a population of 84mn. Booming retail sub-sectors include autos as sales forecast to increase by 126% between 2012 and 2016, over-the-counter (OTC) pharmaceuticals, with sales expected to grow by 96.6% from by 2016, and consumer electronics sales are forecast to increase by 50.8% in Wages in the wholesale and retail sector average US$ weekly. Real Estate RETAIL Ambitious sectorial strategies Total investments directed to the real estate sector in the FY 2011/12 reached 17% of the total implemented investments. housing needs expected to climb to 8 million in new urban cities are planned of which 5 under construction 12

Special Economic Zone in Egypt  The ZONE is strategically located on the main international ocean trade routes, promises to be a key benchmark in the evolution of Egypt.  5% flat tax rate on personal income tax and 10% tax on all activities within the zone  Zero Import Duties.  Zero Export duties when exporting out of Egypt.  Zero Export duties on domestic components when sold in Egypt.  Integrated custom and tax administration, licensing, and dispute settlement  The ZONE is strategically located on the main international ocean trade routes, promises to be a key benchmark in the evolution of Egypt.  5% flat tax rate on personal income tax and 10% tax on all activities within the zone  Zero Import Duties.  Zero Export duties when exporting out of Egypt.  Zero Export duties on domestic components when sold in Egypt.  Integrated custom and tax administration, licensing, and dispute settlement Incentive benefits in SE Zone 13

A business environment favourable to investment 5 main investor protection schemes endorsed by GAFI 52 Double Tax Avoidance Agreements 111 Investment Protection Agreements Member of OECD Investment Committee Member of MIGA (Multilateral Investment Guarantee Agency) 5 main investor protection schemes endorsed by GAFI 52 Double Tax Avoidance Agreements 111 Investment Protection Agreements Member of OECD Investment Committee Member of MIGA (Multilateral Investment Guarantee Agency) A stimulus package introduced by The Ministry of Industry to facilitate investments in the industrial sector Lifting the security approval requirement for media companies. The issuance of the new financial tool “SUKUK”. processing reforms related to the technical operations at GAFI`s one stop shop A stimulus package introduced by The Ministry of Industry to facilitate investments in the industrial sector Lifting the security approval requirement for media companies. The issuance of the new financial tool “SUKUK”. processing reforms related to the technical operations at GAFI`s one stop shop Investor Protection Legal Reforms 14 incentives for taxpayers on the full or partial payment of their deferred income/sales taxes An Incentive Tax System We are optimistic that Egypt's program`s objectives of promoting social justice, fostering recovery, and maintaining macro economic stability and generating jobs will bring positive results for the Egyptian people. John Lipsky, Acting managing director of the IMF, June 2011

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