1. Doing Business in
Egypt

2. Rundown
Why Egypt
Egypt’s Integration in the World
Economy
Economic Outlook
Investment Incentives
Investment Opportunities
Egypt and Serbia

3. Why Egypt Unique geographic location
At crossroads/gateway to Africa, Asia, Europe & Middle East

4. Why Egypt Political stability & one of most promising emerging markets
Stable friendly business environment private sector led economy & competitive incentives offering favorable climate for investors & joint venture partners
Diversified expanding economy, local market of 80 million & accessibility to vast markets of one billion in different trade blocks (COMESA, EU, Arab region…)

5. Why Egypt Competitive advantages
Raw materials, land, large pool of competitively priced labor force (skilled & semi-skilled), maritime, airfreight rates, electricity, tele-tariffs…
Advancing infrastructure
Telecommunications, IT, electricity, roads, ports, banking & capital market…

6. Egypt’s Integration in the World Economy
Adoption of bilateral, regional & multilateral approach to trade & investment liberalization:
WTO (member since June 30th 1995)

7. Egypt’s Integration in the World Economy
Free-Trade blocks
COMESA: largest economic grouping in Africa with 400 million people
EU: Free and Preferential Trade Agreements
Arab World: Free Trade Area Agreement
USA: Trade & Investment Agreement
Qualified industrial zone
Free Trade Agreement with Turkey
Free Trade Agreement with EFTA countries

8. Economic Outlook
Early nineties, Egypt launched multi-phased economic reform program focused on macroeconomic adjustments & stabilization, privatization & trade liberalization, market driven economy
Successful program applauded by international institutions: IMF “as an achievement that has few parallels”

9. Economic Outlook prices (current prices) (L.E Billion )
Gross Domestic Product (GDP) at market
prices (current prices) (L.E Billion )
Exchange rate 1USD=5.45 Egyptian Pounds

10. Real growth rate of Gross Domestic Product
Economic Outlook
Real growth rate of Gross Domestic Product
(GDP) at market prices and constant prices (%)

11. Economic Outlook GDP – composition by sector: agriculture: 13.2%
industry: 38.7%
services: 48.1% (2008 est.)

12. Per capita income (current prices)
Economic Outlook
Per capita income (current prices)
(Egyptian Pounds)
Exchange Rate 1USD=5.45 Egyptian Pounds

13. Economic Outlook EGYPT IMPORTS FROM THE WORLD
from 2005 to Jan. Sep. 2009
Total imports:
2008: million USD
Jan-June 2009: million USD

14. Economic Outlook EGYPT EXPORTS TO THE WORLD
from 2005 to Jan. Sep. 2009
Total exports:
2008: million USD
Jan-June 2009: million USD

15. Investment Incentives
Types of Investment in Egypt:
1. Free Zones investment system
2. Inland investment system
Types of Free Zones in Egypt:
1. Public
2. Private
Egypt Free Zones: 10 Free Zones

16. Investment Incentives
• Enterprises wholly owned by foreigners
• Guarantees against nationalization or
expropriation
• Output not subject to price control
• Repatriation of capital and profits

17. Investment Incentives
Tax exemptions as follows:
*  5-year exemption of the projects set up in the
Old Valley
* 10-year exemption of the projects established in
the industrial zones of new communities or remote
areas.
*  20-year exemption of the projects set up in the
New Valley (hka, East Owainat, Paris, Kharga,
East Farafra and Siwa).
*  Life exemption of the projects established in free
zones.

18. Investment Incentives
Free Zones objectives:
1. Increase Egyptian exports
2. Attract foreign capital, achieve accrued
capital
3. Introduce new technology specially in
the industrial field
4. Provide employment opportunities,
generate a substantial skill surge
Investment Incentives

19. Investment Opportunities
The Projects Tendered for Investment
Engineering and Electronics Sector
Metal Projects Sector
Spinning & Textile Sector
Food Projects Sector
Chemical & Pharmaceuticals Projects
Sector

20. Investment Opportunities
Automobile Assembly
Highly profitable – Passenger cars, buses, mini-buses: GM, Peugeot, Mercedes Benz, BMW, Suzuki, Hyundai…
Construction Materials
Fast growing - steel, reinforced iron, cement, ceramics…

21. Additional Opportunities
Juices, leather, chemicals, glass, paper, vessel & ship building & maintenance, granite, marble…
Mining
Varied & abundant mineral deposits: iron ore, phosphate rocks, coal…

22. Agriculture
Emerging key regional exporter of primary & secondary food produces
Ambitious projects expanding Arable land & creating new communities
Opportunities
Mega projects: land reclamation in Toshka, Sinai & East Owaynat
Transportation services, advanced screening, wrapping, packing & storage techniques
Fisheries, fish farming in different lakes: Lake Nasser, Karoon, Burolns, etc…

23. Tourism
Favorable tourist destination for its variety of attractions & wonders, weather, cultural activities
& museums, safari, therapeutic, religious, golf, conferences & exhibitions, shopping, etc…
Opportunities
Development of new resorts for beach & leisure tourism: Marinas, Scuba diving centres, golf, etc…

24. Egypt and Serbia Distinguished political relations
Presidential and ministerial visits
Reviving of relations so as to reach Golden age during 50’s and 60’s.

25. Egypt and Serbia
Egypt is a favourable tourist destination for Serbian citizens (22.2 thousands tourists in 2009)
Easy access to Egyptian visa
Charter flights
Attempts to start direct flights between two countries

26. Egypt and Serbia
There are a number of agreements that aim to foster economic and trade relations and attract investments from both sides which are as follows:
1. Agreement for Long-term Commercial and
Economic Cooperation, signed on June 26th 1957
2. Agreement on Establishing the Joint Committee
for Economic Cooperation, signed on March 21st
1961
3. Agreement on the reciprocal promotion and
protection of investment, signed on May 24th 2005
4. Agreement on the Avoidance of Double Taxation
with respect to taxes on income, signed on July
31st 2005

27. Egypt and Serbia Trade Balances between Egypt and Serbia Year
Egyptian Exports from Serbia
millions of USD
Egyptian Imports from Serbia
Trade Balance
1990
41.7
93.3
135
1991
32.4 71
103.4
1996
9.2
20.6
29.8
1997
4.9
36.9
41.8
1998
3.2
25.3
28.5
1999
1.7
13.1
14.8

28. Year
Egyptian Exports from Serbia
millions of USD
Egyptian Imports from Serbia
Trade Balance
2000
2.6
14.6
17.2
2001 3
11.5
14.5
2002
3.4
9.1
12.5
2003
2.7
7.1
9.8
2004
3.6
19.2
22.8
2005
4.9
21.3
26.2

29. Egypt and Serbia Year Egyptian Exports to Serbia millions of USD
Egyptian Imports from Serbia
Trade Balance
2006
9.1 26
35.1
2007
13.1 20
33.1
14.2
36.5
50.7
2009
Until June 30th
4.7
13.9
18.6

30. Egypt and Serbia Most important exports to Serbia in 2009
rice, soap, paper, beans oranges, strawberries, herbs, ceramic tiles, salt, polyethylene, aluminum, dried onion, cotton, granite, mint, iron and steel powder, conserved olives, artificial cement, conserved tomatoes, textiles, etc.
Most important imports from Serbia in 2009
processed beech woods, tractors, tires, brass plates, copper pipes, motor parts, brass wires, breathing apparatus, protection masks, hydraulic generators, air filters, rubber products, rubber belts and strips for transports, etc.
Egypt and Serbia

31. Egypt