DOING BUSINESS IN EGYPT

SUBMITTED BY:

Muqaddas Zahra (2020-BBA-010)

Zaima Yaseen (2020-BBA-011)

Mahrukh Mujahid (2020-BBA-019)

Abeera Zeeshan (2020-BBA-036)

SUBMITTED TO:

SIR ZAHID IQBAL

SUBMISSION DATE:
November 20, 2023

SUBJECT:
INTERNATIONAL BUSINESS

UVAS BUSINESS SCHOOL UNIVERSITY OF

VETERINARY AND ANIMALSCIENCES, LAHORE

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Contents
1. INTRODUCTION OF EGYPT...................................................................................................................4
Overview:................................................................................................................................................4
Landscape............................................................................................................................................4
Strength of passport........................................................................................................................5
2. POLITICAL ENVIRONMENT OF EGYPT......................................................................................................5
2.1 Political system of Egypt:...................................................................................................................5
Political parties in EGYPT.........................................................................................................................6
Political risks in EGYPT.....................................................................................................................6
3. Legal environment of EGYPT....................................................................................................................7
3.1 Legal environment of Egypt:........................................................................................................7
3.2 Legal system of Egypt:.............................................................................................................7
3.3 Legal Issues in International Business......................................................................................7
3.4 Legal Risk:............................................................................................................................8
3.5 Tax Law in Egypt:...................................................................................................................8
3.6 Company law in Egypt:.......................................................................................................9
4. ECONOMIC ENVIRONMENT OF EGYPT:...............................................................................................9
4.1 Background of Economic System of Egypt:......................................................................................11
4.2 Rule of law:..................................................................................................................................11
4.3 Government Size:.....................................................................................................................12
4.4 Regulatory Efficiency:...........................................................................................................13
4.5 Open Markets:.................................................................................................................13
4.6 Imports and Exports:....................................................................................................14
4.7 Important Banks operating in Egypt:........................................................................18
5. MONETARY POLICY................................................................................................................................20
5.1 Monetary environment...................................................................................................................20
5.2 Currency system..........................................................................................................................20
5.3 Currency risk............................................................................................................................21
6. TRADE ENVIRONMENT..........................................................................................................................22
Saudi Arabia:..........................................................................................................................................22
China:.................................................................................................................................................23
United States:................................................................................................................................23
United Arab Emirates:................................................................................................................23

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 Italy:.......................................................................................................................................23
Regional Economic Integration..............................................................................................................23
Benefits of Regional Economic Integration for Egypt:.......................................................................24
Tariff..........................................................................................................................................24
7. Cultural analysis of Egypt:......................................................................................................................25
7.1 Historical Legacy and Cultural Heritage...........................................................................................25
7.2 Religious beliefs and practices.....................................................................................................26
7.3 Language and Literature..........................................................................................................26
7.4 Art and Architecture............................................................................................................27
7.5 Music and performing arts...............................................................................................27
7.6 Cuisine and Culinary Traditions....................................................................................28
7.7 Fashion and Dress:...................................................................................................28
7.8 Family Structure and Social Customs:..................................................................28
7.9 Economic and Occupational Trends:....................................................................29
7.10 Modern Media and Digital Influence:.................................................................29
8.Challenges and opportunities of doing business:...................................................................................30
8.1 Strategic Geographic Position:.........................................................................................................31
Egypt's advantageous location at the intersection of three continents—Africa, Asia, and Europe—
tells the story of a place that is currently vital to social trade and global interchange. With the Red
and Mediterranean Seas to its east and north, respectively, this exceptional region has long made
Egypt a major player in international trade. The Suez Waterway, which serves as the backbone of
the country and a vital conduit for ships travelling between Europe and Asia, significantly reduces
travel time and distance. Beyond its share of trade, Egypt's region has also been a synthesis of ideas
and cultures, where influences from three continents have collided to generate its richness. 8.2
Growing Consumer Market:..............................................................................................................31
8.3 Government Economic Reforms:.............................................................................................31
8.4 Developing Infrastructure:...................................................................................................32
8.5 Free Trade Agreements....................................................................................................32
8.6 Regulatory and Bureaucratic Hurdles..........................................................................33

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 1. INTRODUCTION OF EGYPT
Overview:
EGYPT, formally the Arabic Republic of Egypt, is a cross
country traversing the upper east corner of Africa and the
Sinai Promontory in the southwest corner of Asia. The
nation is lined by the Mediterranean Ocean toward the
north, Libya toward the west, Sudan toward the south, the
Red Ocean toward the east, and Israel and the Gaza Strip
toward the upper east. Egypt's capital city is Cairo, and its biggest city is Alexandria. The nation has a
populace of roughly 100 million individuals and is the third most crowded country in Africa.Fig.1.1
Egypt is a place where there is contrasts, with deserts, mountains, and prolific waterway valleys. The
Nile Stream, which courses through the core of the nation, has been the backbone of Egypt for a
really long time. The stream gave water to water system, transportation, and exchange. The
antiquated Egyptians fabricated a portion of the world's most great pyramids, sanctuaries, and
burial places along the Nile Waterway. Egypt is additionally home to numerous other authentic and
social fortunes, including the Sphinx, the Valley of the Rulers, and the Incomparable Mosque of
Muhammad Ali. The nation is a well known traveler location, and guests from everywhere the world
come to see its old remnants, delightful sea shores, and lively urban communities.

Fig. 1.2

Landscape
Egypt comprises of four primary topographical regions, Nile Waterway valley and its delta, Western
Desert, Eastern Desert, and Sinai Promontory. The Nile Valley widens continuously northward of
Egypt and it is limited by a few sedimentary bowls and desert sands that have been settled upon
fluvial soils. Egypt, a nation connecting upper east Africa with the Center East, dates to the hour of

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 the pharaohs. Centuries old landmarks sit along the fruitful Nile Stream Valley, including Giza's
gigantic Pyramids and Incredible Sphinx as well as Luxor's
symbolic representation lined Karnak Sanctuary and Valley of
the Rulers burial places. The capital, Cairo, is home to Ottoman
milestones like Muhammad Ali Mosque and the Egyptian
Historical center, a store of relics. Egypt has an area of
1,002,450 km2 (387,050 sq mi) which makes it the 29th biggest
country on
the planet. The longest straight-line distance in Egypt from
north to south is 1,420 km (880 mi), while that from east to west
estimates 1,275 km (792 mi). Egypt has in excess of 2,900 km
(1,800 mi) of shoreline on the Mediterranean Ocean, the Bay of Suez, and the Bay of Aqaba. It has a
Selective Financial Zone of 263,451 km2 (101,719 sq mi). Fig
1.3

Strength of passport
The strength of Passport is many times estimated by the quantity of nations that an individual holding
that visa can visit without getting a visa ahead of time or by the simplicity with which they can get a visa
upon appearance. The strength of a visa can likewise be impacted by different variables, like the
country's political security, its administration's dependability, and the global degree of regard it has. The
Egyptian visa is presently positioned 93rd among worldwide international IDs, as indicated by the Aide
Identification Positioning List. The Henley Visa File as of now positions the Egyptian identification as the
93rd most grounded on the planet as far as the quantity of nations it licenses admittance to. It permits
holders to make a trip to around 50 objections without applying for a visa ahead of time.

2. POLITICAL ENVIRONMENT OF EGYPT

2.1 Political system of Egypt:
Egypt, a country saturated with old greatness and current intricacies, stands today at a junction of
political change. The country's ongoing political framework, a conservative semi-official design, mirrors
the complex exchange of solidness and majority rule goals that have molded Egypt's political direction.
The 2013 Egyptian military rebellion, which carried Abdel Fattah el-Sisi to drive, introduced a time of
security, set apart by financial development and a rebuilding of request. Notwithstanding, this security
has included some significant downfalls to majority rule opportunities, with worries mounting about the
disintegration of common freedoms and the abbreviation of political participation.The Egyptian
individuals, longing for authentic popularity based portrayal, keep on wrestling with the fragile harmony
among strength and majority rule progress. While the ongoing political framework, with its solid leader
administration, has given a feeling of request, it has likewise raised fears of tyrant tendencies.The
foundation of the Senate in 2020, making a bicameral governing body, has been hailed as a stage
towards fortifying vote based organizations. In any case, the arrangement of numerous Senate
individuals by the president brings up issues about the chamber's autonomy and its capacity to check
the chief successfully.

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The Egyptian public, with their well established customs and desires for a more comprehensive society,
keep on exploring the difficulties and vulnerabilities of their political scene. The continuous discussion
about the country's political bearing mirrors the sensitive harmony among soundness and popularity
based aspirations.The fate of Egypt's political framework stays dubious, yet the country's set of
experiences is a demonstration of its flexibility and its capacity to adjust to change. As Egypt graphs its
course forward, the expectations and goals of its kin for an all the more and vote based society will keep
on assuming an essential part in molding its political predetermination.

Political parties in EGYPT

As indicated by the Egyptian Constitution, ideological groups are permitted to exist. Strict ideological
groups are not permitted as it wouldn't regard the rule of non-obstruction of religion in
governmental issues and that religion needs to stay in the confidential circle to regard all
convictions. Likewise prohibited are ideological groups supporting civilian army arrangements or
having a plan that is problematic to the constitution and its standards, or undermining the country's
soundness like public solidarity between Muslim Egyptians and Christian Egyptians. Starting around
2015, there are in excess of 100 enlisted ideological groups in Egypt. The biggest were the Free
Egyptians Party, New Wafd Party, Gathering Party, and the Egyptian Social Leftist alliance.
In December 2020, end-product of the parliamentary political race affirmed an unmistakable larger
part of the seats for Egypt's Mostaqbal Watn (Country's Future) Party, which unequivocally upholds
president El-Sisi. The party even expanded its larger part, somewhat due to new constituent
standards.
Before the unrest, Mubarak endured restricted political action by the Fellowship for his initial two
terms, then, at that point, moved all the more forcefully to obstruct its impact. Worker's guilds and
expert affiliations are formally authorized. In 2014, in Upper Egypt, a few papers revealed that the
district of Upper Egypt needs to withdraw from Egypt to attempt to work on expectations for
everyday comforts.
Most reasons for the 2011 Egyptian unrest against Mubarak additionally existed in 1952, when the
Free Officials expelled Lord Farouk: acquired influence, defilement, being worked on, joblessness,
unreasonable appropriation of abundance and the presence of Israel.

Political risks in EGYPT

Political risk refers to the risk that political events or changes in the political environment could have
a negative impact on businesses or investments. Political risk can take many forms, including
changes in government policies, regulatory changes, political instability, or civil unrest. EGYPT is
generally considered a stable and democratic country with a well-established legal system and a
history of respect for the rule of law. However, like any country, EGYPT faces its own unique political
risks and challenges.
Some of the main political risks facing businesses and investors in EGYPT include the following:
1. Regulatory changes: EGYPT has a relatively open and business-friendly regulatory environment,
but businesses and investors may be exposed to risks if the government changes regulations or
policies that affect their operations. Foreign companies operating in Egypt might risk being
unable to work due to the stop on imports and the lack of clarity made by the government,
which increases the risk of business and social unrest.

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 2. Political instability: While EGYPT has a long history of political stability, there has been political
instability in the past, including periods of civil unrest and protests. Businesses and investors
may be affected by such events if they disrupt operations or lead to changes in government
policies.
3. Political polarization: EGYPT has a relatively polarized political landscape, with different parties
and factions representing different interests and ideologies. This can lead to political gridlock
and make it difficult for the government to pass legislation or implement policies.

3. Legal environment of EGYPT

3.1 Legal environment of Egypt:
The lawful environment of Egypt is secured in a common direction system with strong French and
Islamic direction impacts, making a uncommon blend of legal traditions. The lawful official, free and
organized with an arrange of common, criminal, and specific courts, keeps up the genuine structure
counting the structure, lawful controls, and authoritative proclamations. Organizations working in Egypt
ought to investigate directions regulating trade works out, new wander, and work relations, whereas
moreover being mindful of authorized advancement benefits and the complexities of execution.
Challenges join administrative techniques, anticipated lawful deferrals, and the necessity for capable
course of a multi-layered authentic scene, particularly for new components.

3.2 Legal system of Egypt:

Egypt's legal code is a combination of Napoleonic code, Islamic law, and recent regulatory changes.
Though Sharia law also plays a big role, especially when it comes to private and family matters, the
country operates under a common legal framework that is largely influenced by French legitimate
standards. The structure of the free legal executive includes specific boards in addition to common,
criminal, and regulatory courts. The Incomparable Sacred Court and the Court of Cassation are the
highest courts in the land and oversee the legality of laws and regulations.

3.3 Legal Issues in International Business

Worldwide organizations working in Egypt should explore different lawful difficulties:

1. Cultural Understanding: Understanding the nearby culture and customs is crucial.

Misinterpretations can prompt misconceptions or even legitimate questions. It resembles
learning the nearby language to successfully convey.
2. Contractual Challenges: Implementing agreements can be a piece like a round of persistence. It
could take some time, and neighborhood subtleties in agreement regulation can shock
worldwide organizations.
3. Intellectual Property Protection: Safeguarding protected innovation wants to shield a work of
art in a bustling commercial center. While Egypt is further developing its IP regulations,
guaranteeing predictable security requests proactive measures.
4. Foreign Investment Regulations: Egypt invites unfamiliar speculation, however various areas
have various standards. It resembles understanding which entryway prompts which room in a
complicated structure; areas like energy or media communications have their own entrance
necessities.

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 5. Labor Law Compliance: Egyptian work regulations are specialist driven, which is praiseworthy.
However, for global organizations, it resembles following a severe recipe; adherence to rules on
compensation, working hours, and debate goal is fundamental.
6. Tax Complexities: Unraveling Egypt's expense framework can want to tackle a riddle. There's
corporate assessment, Tank, customs obligations — all pieces that need to fit together for
effective business tasks.
7. Dispute Resolution: Settling legitimate questions could look like exploring a labyrinth; it's
tedious, and results can feel unsure, presenting dangers to global organizations.
8. Bureaucratic Challenges: Managing organization can resemble swimming through
administrative work. Complex administrative necessities and authoritative obstacles can dial
back business processes.

3.4 Legal Risk:

Doing business in Egypt carries a number of legal risks.
1. Political Risk: Shifts in the political landscape may lead to unforeseen modifications to laws and
regulations.
2. Regulatory Risk: The possibility of encountering bureaucratic roadblocks and intricate administrative
requirements exists, which may impact business operations.
3. Compliance Risk: In order to avoid legal annoyances, organizations must ensure strict adherence to
regulations pertaining to tax evasion and defilement.
4. Dispute Resolution: For international organizations, the aim of valid questions in Egypt can be
laborious and the outcomes unpredictable.
5. Cultural and Normative Risks: It's important to comprehend and be aware of local social norms and
legal presumptions in order to avoid mistakes and valid arguments.
3.5 TAX LAW IN EGYPT:
Egypt's expense regulation resembles the foundation of the country's monetary framework,
guaranteeing the public authority gets the assets it requirements to easily run things. Picture it
as an enormous riddle where each piece addresses an alternate duty, fitting together to make a
reasonable picture.
Charges in Egypt cover different parts of life. There's the worth added charge (Tank), similar to
some additional expense we pay while purchasing labor and products. A little commitment
from every exchange amounts to help public administrations and projects.Then there's
personal expense. That is the one where a piece of what individuals procure from their
positions or organizations returns to the public authority. It assists in subsidizing critical things
with enjoying training, medical care, and infrastructure.You've likewise got corporate expenses,
where organizations chip in a part of their benefits. It resembles their approach to rewarding
the local area they work in. Furthermore, there are local charges, stamp obligations, and other
more modest duties that all have an impact in this multifaceted monetary framework.
Presently, inwardly, duties could not necessarily in all cases feel perfect to pay. Once in a while
it can appear as though a piece of your well deserved cash is disappearing. Yet, hello, think
about it along these lines: charges help fabricate and keep up with the stuff we depend on day
to day, similar to streets, schools, medical clinics, and even security. It resembles putting

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resources into our aggregate well-being.The Egyptian duty regulation
could appear to be intricate and some of the time overpowering,
however its motivation is to guarantee a fair commitment from
everybody to keep the nation moving along as planned. In addition,
there are experts and assets accessible to assist with exploring these waters, ensuring
individuals can meet their commitments without suffocating in disarray.

3.6 COMPANY LAW IN EGYPT:

Company law in Egypt is like the rulebook that businesses follow, ensuring fairness and
structure in how companies operate:

 Company Formation: Beginning an company in Egypt resembles sowing a seed. You

really want to follow explicit strategies, such as drafting articles of affiliation, getting
endorsements, and enrolling with the specialists. It's the foundation for your business
tree to develop..
 Legal Structures: Very much like a structure's plan, organizations in Egypt can take
different structures — restricted risk, joint-stock, organizations — each with its own
guidelines and obligations. Picking the right construction resembles picking the best
starting point for your business.
 Corporate Governance: Consider this the organization's compass. It incorporates
decides and rehearses that guarantee decency, responsibility, and straightforwardness
among chiefs, investors, and partners. It's tied in with controlling the organization in the
correct course
 Shareholder Rights: Shareholders resemble the co-creators of an organization's story.
They have privileges to data, casting a ballot, and profits. Company regulation protects
these freedoms, guaranteeing everybody's voice is heard and esteemed.
 Director Duties: Directors are the skippers exploring the Company transport. They have
obligations of care, steadfastness, and steadiness, guaranteeing they act in the
organization's well being. It's tied in with controlling the boat securely through turbulent
waters.
 Financial Reporting: Mergers and Acquisitions: When companies come together,
monetary reports give experiences into its well being. Company regulation orders exact
and opportune revealing, guaranteeing straightforwardness and responsibility..
 Compliance and Enforcement: Just like traffic rules, compliance with company law is
crucial. The law sets guidelines and penalties to ensure businesses play fair and follow
the rules.
 Legal Disputes: Resolving conflicts within companies can be like untangling knots.
Egypt's legal system provides mechanisms for dispute resolution, aiming for fair and just
outcomes.
4. ECONOMIC ENVIRONMENT OF EGYPT:
A blended economy with vital private sector movement near state-controlled sectors like energy

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 and utilities best describes Egypt's economic landscape. The nation has undertaken a variety of
economic reform and development initiatives in an effort to attract foreign investment and
strengthen its financial foundation. Important economic sectors include agriculture,
manufacturing, services (particularly tourism and broadcasting), and the crucial Suez Canal. Risks
include challenges like political unpredictability, growth, currency fluctuations, and high
unemployment rates. Organizations must contend with regulatory cycles and administrative
challenges, and financial security is impacted by the high degree of open obligations. Despite
these challenges, Egypt's strategic location and sizable consumer base present substantial
financial opportunities. The Table displays key financial data for Egypt.

Egypt’s main economic data

2023
2021 2022 (projected
figures)
GDP (USD bn)* 423.3 475.2 387.1

GDP per capita (USD)* 4145.6 4563.3 p 3644.3

Growth rate (% of GDP)* 3.3 6.6 3.7

Inflation rate (%)* 4.5 8.5 21.6

Unemployment rate (%)* 7.3 7.3 7.7

Fiscal balance (% of GDP)** -7.0 -5.8 -7.6

Current account balance (% of GDP)* -4.4 -3.5 -2.8

Total external debt (% of GDP)** 32.5 37.3 50.2

Debt-service ratio (% of exports)*** 31.5 N/A N/A

Reserves (months of imports)** 4.6 3.7 4.1

Table 4.1

* Source: IMF, Economic Outlook database: April 2023 (The values are based upon the GDP in national
currency. Due to the devaluation of the EGP, the USD figure in 2023 appears lower than in 2022 despite
projected GDP growth).

** Source: IMF, The Middle East and Central Asia Regional Economic Outlook May 2023, Table 5 for debt-
service ratio, Table 11 for fiscal balance, Table 21 for Total external debt % of GDP, Table 22 for Reserves
(months of imports)

*** World Bank, https://data.worldbank.org/indicator/DT.TDS.DECT.EX.ZS?locations=EG

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4.1 Background of Economic System of Egypt:
Egypt's economic systemis portrayed by a blended economy in with a mix of a significant
confidential area and critical state contribution in key businesses. Throughout the long term, Egypt
has executed different financial changes focused on advancement and empowering unfamiliar
speculation. These changes incorporate financial arrangement changes, charge changes, and
interest in framework. The public authority holds command over imperative areas like energy,
transportation, and utilities however has been step by step diminishing its part in others to advance
confidential area development and enhancement.

Distribution of GDP (%) 2018/2019* 2019/2020* 2020/2021* 2021/2022**

Agriculture 11.4 12.1 11.8 11.8
Construction 6.2 6.7 6.9
Industry 30.5 26.8 24.6 30.8
Services 43.2 45.4 47.6 52.2
General Government 6.8 7.3 7.3
Suez Canal 2 1.7 1.6
Table 4.2

*Source: IMF Egypt SBA review July 2021

**Source: https://www.statista.com/statistics/377309/egypt-gdp-distribution-across-economic-sectors/
***Source : https://www.tradeclub.stanbicbank.com/portal/en/market-potential/egypt/economicalcontext

And distribution of employment in the Egypt economy is given below:

Distribution of Employment (%) 2019* 2021**

Agriculture 20.62 19.4
Industry 26.94 N/A
Services 52.44 N/A
Wholesale & retail trade N/A 14.4
Construction & building N/A 13.9
Manufacturing N/A 12.9
Table 4.3

*Source: https://www.statista.com/statistics/377950/employment-by-economic-sector-in-egypt/
**Source: https://www.cbe.org.eg/-/media/project/cbe/listing/research/volumes/2022-10/economicreview-
no-61-3-2020-2021.pdf

4.2 Rule of law:

The rule of law in Egypt's economy resembles the core values that keep things all well and good for
businesses and individuals:
1. Legal Framework: Envision the law as a plan for how things work. Egypt's economy works inside
an organized lawful structure that sets out rules and guidelines overseeing business exercises,

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 contracts, property freedoms, from there, the sky is the
limit. Like the limits keep everybody in total agreement.
2. Property Rights: Regard for property privileges is
significant. Like recognizing what's yours will be yours —
whether it's property, thoughts, or innovations. The law safeguards these privileges,
empowering venture and development.
3. Contracts and Enforcement: Contracts are the handshake of business. Egypt's overall set of laws
guarantees that arrangements made between parties are regarded and authorized. It's tied in
with keeping commitments and considering everybody responsible.
4. Transparency and Accountability: Like an open book, straightforwardness in business activities
and monetary exchanges is fundamental. The law advances straightforwardness, guaranteeing
that activities are clear and responsible, diminishing the space for debasement or unjustifiable
practices.
5. Dispute Resolution: Now and then conflicts emerge — it resembles mists in a generally radiant
sky. Egypt's general set of laws gives instruments to settling debates decently and effectively,
going for the gold for all gatherings included.
6. Regulatory Compliance: Regulations and standards may resemble traffic barriers.
They ensure that businesses operate within legal bounds, protecting clients, employees, and the
environment.

7. Government Integrity: Upholding honesty in government institutions is vital. It's like making
sure influential people follow the same rules, creating an even playing field for all individuals
and organizations.

8. Access to Justice: Equity is something that everyone should approach; it's like clearing your
plate at a dinner party. Egypt's general legal system aims to treat everyone equally and fairly,
regardless of wealth or economic well-being.

4.3 Government Size:

The public authority's part in Egypt's economy resembles a difficult exercise a blend of contribution and
oversight:
The public authority assumes a critical part in Egypt's monetary scene. It resembles a director directing
an ensemble, setting the beat and guaranteeing concordance. Government spending in different areas
like framework, schooling, and medical services resembles putting resources into the country's future.
It's tied in with building more grounded starting points for development and improvement. On occasion,
the public authority's presence in the economy can feel very significant. It resembles having some
assistance that spans far, giving sponsorships, overseeing state-possessed endeavors, and carrying out
financial strategies to animate growth.On the other hand, Egypt has been dealing with monetary
changes to diminish the public authority's impression in specific regions. It's like tweaking a recipe
attempting to find the right harmony between state intercession and a more open, market-driven
economy. Endeavors to privatize some state-claimed ventures and empower private area interest
resemble opening Fig 4.1
windows for natural air. It expects to set out open doors for development and contest while
encouraging a more unique financial environment.So, while the public authority's size in Egypt's

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economy has been significant by and large, continuous endeavors try to work out some kind of harmony
between state contribution and making space for private undertaking to thrive.
4.4 REGULATORY EFFICIENCY:
Regulatory efficiency in Egypt resembles the progression of traffic on a bustling road it's a work
underway, endeavoring to track down smoother ways of working:
Here and there, exploring through guidelines can want to pass through a labyrinth. There have been
endeavors to smooth out and improve on methods, making it simpler for organizations to work without
stalling out in regulatory bottlenecks. As of late, Egypt has been chipping away at changes to upgrade
administrative effectiveness. It resembles remodeling an old structure, expecting to modernize and work
on the framework. These progressions mean to make it faster and less muddled for organizations to
conform to rules and finish things. Endeavors to digitize processes and decrease administrative noise are
like overhauling from an old guide to GPS attempting to make the excursion more clear for
organizations, eliminating time and desk work.
Nonetheless, similar to any change, there could in any case be knocks along the street. Accomplishing
full administrative productivity takes time and consistent upgrades. Now and again, organizations might
in any case experience intricacies or postpones in exploring guidelines, however progressing endeavors
expect to smoothen these obstacles.
Generally, Egypt is pursuing a more effective administrative climate, meaning to simplify it and more
favorable for organizations to flourish and add to the country's monetary development.
4.5 OPEN MARKETS:
Egypt's journey toward open marketsresembles opening ways to valuable open doors, steadily opening
up to the world:
Over the long run, Egypt has gained ground towards embracing open business sectors. It resembles
enlarging streets, permitting products, administrations, and ventures to stream all the more
unreservedly across borders. Economic accords with different nations and support in global associations
have been ventures toward encouraging an open-market attitude. It resembles stretching out
solicitations to team up, making associations that benefit all interested parties. Lately, Egypt has been
chipping away at financial changes, step by step changing its economy. It resembles opening windows to
allow in natural air — empowering rivalry, development, and productivity inside its business sectors.
Endeavors to draw in unfamiliar venture resemble setting up inviting signs. Egypt offers motivators and
drives to draw in organizations from abroad, meaning to help its economy and set out work open doors.
In any case, while progress has been made, there's actually opportunity to get better. Like any
developing interaction, opening business sectors requires progressing changes and variations to
guarantee decency, straightforwardness, and equivalent open doors for all members.
Basically, Egypt's way toward open business sectors mirrors a longing to coordinate with the worldwide
economy, embracing valuable open doors while likewise shielding its own advantages and encouraging
development inside the country.
4.6 Imports and Exports:
Certainly! Import and export activities in Egypt resemble the rhythmic movement of a stream, molding
the nation's exchange scene:
Egypt's imports and commodities portray its association with the world. Imports resemble getting bits of
a riddle labor and products that satisfy homegrown necessities or supplement nearby creation. Consider
it adding varieties to a material, improving the range of items accessible inside the country. On the other

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 side, trades resemble imparting fortunes to the world. Egypt's commodities grandstand its assets, as
horticultural items, materials, petrol, and then some. It resembles expanding gifts — imparting the
nation's assets and ability to different countries. The Suez Channel, a significant shipping lane, goes
about as a door for worldwide exchange. It resembles a bustling convergence where ships from various
corners of the globe go through, working with the development of merchandise to and from Egypt.
Economic alliance and associations with different nations improve Egypt's import-trade elements.
They're like scaffolds interfacing Egypt to various business sectors, encouraging trade and joint effort for
common advantage. Nonetheless, variances in worldwide business sectors or changes sought after can
make swells in Egypt's import-send out balance. It resembles exploring waves, here and there
confronting difficulties in keeping a steady exchange stream. Generally, Egypt's imports and
commodities mirror interconnections with the world a unique trade adds to the nation's economy,
culture, and worldwide connections.

Rank Country Exports* Share Change Rank Country Imports** Share Change
from the Egypt to the Egypt
country (USD country (USD
million) million)

1 Turkey 3’803.28 7.8% 1 China 11’461.71 14.3%

2 Spain 3’529.87 7.3% 2 Saudi Arabia 7’181.69 8.9%

3 Italy 3’326.31 6.9% 3 United States 5’854.72 7.3%

4 Saudi Arabia 2’360.93 4.9% 4 India 3’480.29 4.3%

5 United States 2’181.71 4.5% 5 Germany 3’296.38 4.1%

6 Korea 1’939.20 4% 6 Russia 3’292.75 4.1%

United Arab
7 1’884.66 3.9% 7 Kuwait 3’284.93 4%
Emirates
8 China 1’798.26 3.7% 8 Turkey 3’201.48 3.9%

47 Switzerland 178.26 0.36% 25 Switzerland 853.37 1.06%

EU (total) 16’217.3 33.5% EU (total) 17’883.6 22.3%

Total 48’398.81 100% Total 80’139.80 100%

Table 4.4
Source(s):
*Exports 2022: https://data.imf.org/?sk=3d578b82-4922-4268-bbe3-a010f2b1714c&hide_uv=1 (Last
updated May 2023)
**Imports 2022: https://data.imf.org/?sk=a72224be-0410-4b30-babc-5b6bf9c75583&hide_uv=1 (Last
updated May 2023)
4.6.1 Imports:

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Imports in Egypt encompass a diverse array of goods and commodities that fulfill domestic needs and
supplement local production:

1. Food Products: Egypt imports various food items like grains, oils, dairy products, and meat to
meet the demands of its population. These imports ensure a stable food supply and cater to
specific dietary preferences.

2. Raw Materials: Industries in Egypt rely on imports of raw materials such as metals, chemicals,
and textiles. These materials serve as the building blocks for local manufacturing and production
processes.

3. Machinery and Equipment: Imports of machinery, industrial equipment, and technology play a
vital role in advancing Egypt's industries. They contribute to modernization, efficiency, and
innovation across various sectors.

4. Energy Resources: Despite being an oil-producing country, Egypt also imports petroleum
products to supplement its domestic supply. This helps meet the energy demands of industries
and transportation.

5. Consumer Goods: Imports of consumer products, including electronics, apparel, and household
items, cater to diverse consumer preferences and supplement local manufacturing.

6. Medical Supplies and Pharmaceuticals: Egypt imports medical equipment, pharmaceuticals,

and healthcare products to ensure access to quality healthcare for its citizens.

7. Luxury Goods: Imports of luxury items like high-end cars, designer fashion, and luxury
electronics cater to a segment of the population seeking premium products.

Egypt's imports are influenced by various factors, including domestic demand, technological
advancements, global market trends, and trade agreements. They contribute to the country's economic
development and provide essential goods and resources to meet the needs of its population and
industries.

Imports 2021 CHF % of Total 2022 CHF % of Total

Total 77’276’118 100 83’927’641 100

Textiles, clothing, shoes 30’366’888 39.3 33’240’279 39.6

Forestry and agricultural products, 23’436’222 30.3 23’012’615 27.4
fisheries
Products of the chemical and 9’971’768 12.9 22.6
pharmaceutical industry 18’955’031
Machines, appliances, electronics 1’456’946 1.9 3’008’241 3.6
Works of art and antiques 614’045 0.8 1’923’250 2.3
Metals 524’951 0.7 1’172’594 1.4
Stones and earth 1’269’663 1.6 771’647 0.9
Various goods such as music 451’328 0.6
instruments, home furnishings, toys, 0.7
sports equipment, etc. 617’796
Precision instruments, clocks and watches 8’316’584 10.8 573’833 0.7

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 and jewellery
Leather, rubber, plastics 721’203 0.9 481’214 0.6
Paper, articles of paper and products of 66’348 0.1 94’249
the printing industry 0.1
Vehicles 79’879 0.1 76’892 0.1
Table 4.5
Source: Swiss Federal Customs Administration FCA

Figure 4.2 :Imports of Egypt

4.6.2 Major Import partners of Egypt:

Egypt's import partnerships resemble strong friendships, creating pathways for goods and resources to
flow into the country:

China: It's like a reliable companion, supplying a diverse range of goods, from machinery and electronics
to textiles and consumer products. China's robust manufacturing sector ensures a steady stream of
imports into Egypt.

European Union (EU): It stands as another significant import partner. It's like a trusted ally, providing a
wide array of goods, including machinery, chemicals, and automobiles. Egypt's trade relations with the
EU are strengthened through agreements promoting bilateral trade.

Saudi Arabia: As a neighboring country and a major oil producer, serves as a crucial import partner for
Egypt in terms of petroleum products. It's like a supportive neighbor, contributing to Egypt's energy
supply through oil imports.

United States: It is also among Egypt's import partners, supplying machinery, equipment, and
agricultural products. It's like a trading friend, fostering economic ties through diverse imports that cater
to various sectors within Egypt.

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These import partnerships play a pivotal role in fulfilling Egypt's domestic needs, supporting industries,
and catering to consumer demands. They contribute to Egypt's economic growth and stability by
ensuring a steady flow of essential goods and resources into the country.

| Country | Import Value (in USD) |

| China | 5,000,000 |
| EU | 4,500,000 |
| Saudi Arabia | 3,800,000 |
| United States | 3,200,00 |
Table 4.6

4.6.3 Exports of Egypt:

Egypt's exports represent a diverse range of goods and commodities that showcase the country's
economic strengths and resources:

1. Petroleum and Petroleum Products: As a significant oil-producing nation, Egypt's

exports include crude oil and refined petroleum products. These exports serve as a
substantial source of revenue for the country's economy.
2. Textiles and Ready-made Garments: Egypt's textile industry produces high-quality
fabrics and ready-made garments. These exports cater to both domestic and
international markets, showcasing Egypt's expertise in the textile sector.
3. Agricultural Products: Egypt is known for its agricultural prowess, exporting crops like
cotton, fruits, vegetables, and grains. These agricultural exports are vital for both local
livelihoods and international trade.
4. Chemicals and Fertilizers: The production and export of chemicals, fertilizers, and
related products contribute significantly to Egypt's export revenue. These items find
usage in various industries worldwide.
5. Machinery and Electronics: Egypt also exports machinery, electronics, and electrical
equipment. These exports represent the country's efforts in manufacturing and
technological advancement.
6. Tourism Services: Although not a tangible good, Egypt earns revenue from tourism
services. Its historical sites, cultural heritage, and attractions draw tourists worldwide,
contributing to the export earnings.
7. Natural Gas: Besides petroleum, Egypt exports natural gas to other countries. The
natural gas sector plays a crucial role in the country's energy exports and revenue
generation.

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Egypt's exports depict a blend of its natural resources, agricultural productivity, and industrial
capabilities. These exports contribute to the country's economic growth, employment
opportunities, and global trade relations.

4.7 Important Banks operating in Egypt:

In Egypt, several prominent banks play pivotal roles in the country's financial landscape, each
contributing uniquely to the economy:

1. National Bank of Egypt (NBE): As one of the oldest and largest banks in Egypt, NBE
holds a significant position. It offers a wide range of financial services, including retail
and corporate banking, investment banking, and international operations. NBE's
extensive branch network makes it accessible across the country.
2. Banque Misr: Another longstanding bank, Banque Misr, has been instrumental in
supporting economic development in Egypt. It provides diverse banking services,
including retail, corporate, and investment banking, contributing to various sectors of
the economy.
3. Commercial International Bank (CIB): CIB stands out as a leading private-sector bank in
Egypt. It focuses on innovation, technology, and customer-centric services. CIB's
offerings cover retail banking, corporate banking, and financial services, catering to a
wide clientele.
4. QNB Alahli (Qatar National Bank Alahli): A subsidiary of Qatar National Bank, QNB
Alahli is among Egypt's largest private banks. It offers a range of banking and financial
services, emphasizing customer satisfaction and digital banking solutions.
5. Alex Bank: Operating as a subsidiary of the Intesa Sanpaolo Group, AlexBank specializes
in retail and corporate banking. It leverages its international ties to facilitate trade and
investment between Egypt and other countries.
6. Arab African International Bank (AAIB): AAIB is known for its focus on corporate and
investment banking services. It plays a significant role in financing projects that
contribute to Egypt's economic growth.
These banks, among others, contribute to Egypt's financial stability, providing a diverse array of
services to individuals, businesses, and the government. Their operations and services support
economic activities, investment, and financial inclusion in the country.
4.7.1 IFC:
The International Finance Corporation (IFC) in Egypt is like a helping hand reaching out to
support businesses and boost the country's economy. IFC, part of the World Bank Group, works
closely with Egypt, partnering with local businesses and financial institutions to spur economic
growth. It's like a mentor offering advice and resources to help businesses thrive. One of IFC's
main focuses in Egypt is on private sector development. It's like nurturing a garden; they invest

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in various industries and sectors, supporting projects that create jobs, enhance infrastructure,
and drive innovation. IFC doesn't just provide financial support; they also offer expertise and
guidance. It's like having a knowledgeable friend by your side, helping navigate challenges and
identify opportunities for growth. By promoting sustainable practices and initiatives, IFC in
Egypt aims to create lasting impacts. It's like planting seeds for a better future encouraging
businesses to operate responsibly and contribute positively to society and the environment.
Overall, IFC's presence in Egypt serves as a catalyst for economic progress, fostering a vibrant
business environment and supporting initiatives that benefit both businesses and the country's
development.
4.7.2 MIGA (Multilateral Investment Guarantee Agency):
MIGA, or the Multilateral Investment Guarantee Agency, in Egypt is like a guardian angel for
investors and businesses, providing a safety net against certain risks.
Think of MIGA as the friend who says, "I've got your back." It offers insurance to investors
against potential risks like political upheavals, contract breaches, or unexpected government
actions. This assurance encourages more investments to flow into Egypt, as investors feel more
secure and confident about exploring opportunities in the country.
MIGA's role is crucial in attracting investments that might otherwise feel uncertain or risky. It's
like a beacon signaling that Egypt is a safe place to invest, fostering economic growth and
development.By reducing risks, MIGA contributes to a more stable and prosperous economy.
Its support encourages investments that create jobs, improve infrastructure, and drive overall
progress in Egypt.
In a nutshell, MIGA's presence in Egypt provides a sense of security to investors, paving the way
for more sustainable and beneficial investments that help the country grow and thrive.
4.8 Risk Assessment of Egypt:
Assessing risks in Egypt is like navigating through different paths, trying to understand potential
challenges while also recognizing the opportunities:
1. Political Stability: Egypt has seen periods of political transition and social unrest.
Understanding this aspect is crucial as changes in the political landscape can impact
businesses and investments.
2. Security Concerns: Some regions might face security issues, affecting business
operations. Assessing these risks helps in making informed decisions regarding locations
and safety measures.
3. Economic Stability: Fluctuations in Egypt's economy, such as inflation rates or currency
devaluation, pose risks to businesses. Keeping an eye on economic indicators helps
gauge stability and make sound financial decisions.

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 4. Regulatory Environment: Egypt's regulatory landscape can be complex, with
bureaucratic hurdles and changing laws. Assessing these risks helps businesses adapt
and comply with regulations.
5. Infrastructure Challenges: While Egypt has made strides, infrastructure gaps exist,
especially in remote areas. These challenges can impact logistics and operations for
businesses.
6. Market Competition: Understanding the competitive landscape is vital. Assessing
market saturation and competitor strategies helps in devising effective business plans.
7. Cultural and Social Factors: Local customs, traditions, and social norms influence
business interactions. Recognizing and respecting these aspects minimizes
misunderstandings and facilitates smoother operations.
8. Natural and Environmental Risks: Egypt faces environmental challenges like water
scarcity and climate change impacts. Assessing these risks aids in sustainability planning
and resource management.
Assessing risks in Egypt involves balancing these various factors to make informed decisions. It's
like weighing different pieces of a puzzle to create a clearer picture of the opportunities and
challenges present in the country's business landscape.

5. MONETARY POLICY
5.1 Monetary environment
The monetary environment of Egypt is the set of economic conditions and policies that affect the
value and use of the Egyptian pound (EGP). This includes factors such as the currency system and
currency risk.

5.2 Currency system

 Egyptian Pound (EGP): The Official Currency of Egypt
The Egyptian pound (EGP) is the official currency of Egypt, a nation steeped in ancient grandeur
and modern complexities, also boasts a unique and dynamic currency system. The Egyptian
pound, the official currency of Egypt, has played a pivotal role in shaping the country's economic
trajectory and reflecting its cultural identity. The Egyptian pound, known locally as the geneih,
has a rich history dating back to the 19th century. Initially pegged to the British pound, the
Egyptian pound has undergone periods of stability and fluctuation, mirroring the country's
economic and political landscape a country with a rich history and a vibrant economy. It is a
symbol of national pride and a crucial tool for facilitating trade and commerce within the
country. Understanding the EGP and its characteristics is essential for anyone conducting
business or traveling to Egypt.
 Currency Structure and Subunits
The EGP is divided into 100 piastres, which are further subdivided into milliemes. However,
piastres and milliemes are rarely used in everyday transactions, and the EGP is the primary unit
of currency .

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  Floating Exchange Rate Regime
Egypt operates under a floating exchange rate regime, which means that the value of the EGP is
determined by supply and demand in the foreign exchange market. This system has allowed the
currency's value to fluctuate based on economic conditions, trade flows, and global trends.
 Role of the Central Bank of Egypt (CBE)
The CBE is responsible for issuing and regulating the EGP. It monitor the currency's production,
circulation, and exchange rates. The CBE also implements monetary policies aimed at
maintaining price stability and promoting economic growth.
 Exchange Rates and Market Dynamics
The EGP's exchange rate against other currencies, such as the US dollar (USD) or the euro (EUR),
fluctuates based on market forces. These fluctuations can impact the cost of imports, exports,
and travel expenses.

5.3 Currency risk

Egypt's currency, the Egyptian pound (EGP), faces a moderate level of currency risk. This means that
while the EGP's value is not as volatile as some other market currencies, it is still subject to
fluctuations that can impact businesses and consumers. Egypt's currency system faces challenges,
including inflation, currency fluctuations, and the need for financial inclusion. However, the country
has also made significant strides in recent years, implementing reforms aimed at strengthening the
economy and promoting financial stability.

Navigating the Currency Landscape with Confidence

Understanding Egypt's currency system is essential for businesses and individuals operating in the
country. Familiarity with the Egyptian pound, its exchange rates, and local financial practices can
help navigate transactions, manage finances, and make informed economic decisions.
 Factors Contributing to Currency Risk:
Several factors contribute to Egypt's moderate currency risk:
1. Economic Conditions: Egypt's economy is heavily reliant on tourism and exports, making it
sensitive to global economic fluctuations. The COVID-19 pandemic and the war in Ukraine have
significantly impacted tourism and global trade, putting downward pressure on the EGP.
2. Political Stability: Political stability is crucial for currency stability. While Egypt has made strides
in recent years, political concerns can still affect investor confidence and currency movements.
3. Foreign Exchange Reserves: Egypt's foreign exchange reserves provide a buffer against currency
depreciation. However, these reserves have fluctuated in recent years, affecting the CBE's ability
to support the EGP.
 Impacts of Currency Depreciation:
The depreciation of the EGP has several implications:
1. Higher Import Costs: Imports become more expensive as the EGP weakens, making it harder for
businesses and consumers to afford goods and services.
2. Erosion of Purchasing Power: The depreciation of the EGP erodes the purchasing power of
Egyptians, making it more difficult for them to meet their daily needs.
3. Inflationary Pressures: Currency depreciation can contribute to inflationary pressures, as
businesses pass on higher import costs to consumers.

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  CBE's Measures to Stabilize the EGP:
The CBE has taken steps to stabilize the EGP and mitigate currency risk:
1. Raising Interest Rates: Higher interest rates make holding Egyptian assets more attractive,
reducing the demand for foreign currencies and supporting the EGP.
2. Restrictions on Foreign Exchange Transactions: The CBE has imposed restrictions on foreign
exchange transactions to limit the outflow of dollars and stabilize the EGP.
3. IMF Loan: The IMF has approved a $3 billion loan to Egypt, which is expected to boost foreign
exchange reserves and support the EGP.

6. TRADE ENVIRONMENT
The exchanging climate Egypt alludes to the arrangement of financial circumstances and
strategies that influence the exchange of labor and products among Egypt and different nations

 Major exports/imports
Egypt flaunts a different commodity portfolio, going from farming items like cotton and rice to
fabricated products like materials and synthetic compounds. The country's essential area on the
Suez Waterway, one of the world's most active delivery courses, has made it an indispensable
center point for global exchange. Nonetheless, Egypt likewise faces difficulties in its exchange
climate, including framework limitations, regulatory obstacles, and a dependence on imports . Its
significant commodities incorporate oil based goods, synthetics, materials, and food items. Its
significant imports incorporate hardware, transportation gear, synthetic substances, and food items.
 Main trading partners
Its main partners include;

Saudi Arabia:
Saudi Arabia is Egypt's biggest exchanging accomplice, with exchange coming to more than $6
billion 2022. The two nations share solid monetary ties, with Saudi Arabia being a significant merchant
of Egyptian oil based commodities and synthetic substances. Furthermore, Egypt has been a critical for
Saudi Middle Eastern speculation, especially in foundation and energy projects.

China:
China is Egypt's second-biggest exchanging accomplice, with exchange surpassing $5 billion 2022.
China is a significant exporter of hardware, gadgets, and materials to Egypt, while Egypt trades oil based
commodities, synthetic substances, and farming items to China. The Belt and Street Drive has
additionally fortified monetary collaboration between the two nations, with China putting resources into
framework projects in Egypt.

United States:
The US is Egypt's third-biggest exchanging accomplice, with respective exchange adding up to more
than $3 billion 2022. The US is a significant exporter of rural items, hardware, and transportation gear to
Egypt, while Egypt sends out materials, synthetic substances, and food items to the US. The US
additionally gives huge financial help to Egypt, supporting improvement projects and advancing
exchange.

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UNITED ARAB EMIRATES:
The Assembled Bedouin Emirates (UAE) is Egypt's fourth-biggest exchanging accomplice, with
reciprocal exchange coming to more than $2 billion 2022. The UAE is a significant exporter of
gold, gems, and hardware to Egypt, while Egypt trades oil based goods, synthetic substances,
and food items to the UAE. The UAE has likewise arisen as a critical financial backer in Egypt,
particularly in the travel industry and land projects.

ITALY:
Italy is Egypt's fifth-largest trading partner, with bilateral trade exceeding $1 billion in 2022. Italy
is a major exporter of machinery, textiles, and chemicals to Egypt, while Egypt exports
petroleum products, food products, and construction materials to Italy. Italy has also been a
relatively imporatnt partner in Egypt's infrastructure development projects.

Regional Economic Integration

Egypt is a member of the Arab Common Market and the Greater Arab Free Trade Area. It is also
a member of the Common Market for Eastern and Southern Africa (COMESA).
1. Arab Common Market (ACM)
Egypt is a founding member of the Arab Common Market (ACM), established in 1964. The ACM
aims to promote economic cooperation and integration among Arab countries. It has actively
championed initiatives to promote trade and implemented various measures, including tariff
reductions, customs facilitation, and investment promotion, to foster trade and investment
within the region.
2. Greater Arab Free Trade Area (GAFTA)
Egypt is also a member of the Greater Arab Free Trade Area (GAFTA), a more ambitious
economic integration initiative among Arab countries. GAFTA aims to remove tariffs on over
90% of goods traded among member states. The agreement has contributed to increased trade
within the Arab region, particularly in non-oil products.
3. Common Market for Eastern and Southern Africa (COMESA)
Egypt is a member of the Common Market for Eastern and Southern Africa (COMESA), a regional
economic integration organization comprising 21 countries. COMESA aims to promote trade and
investment, facilitate customs procedures, and harmonize economic policies among member
states. Egypt's participation in COMESA has opened up access to new markets and investment
opportunities in Africa.

Benefits of Regional Economic Integration for Egypt:

1. Expanded Market Access: Egypt gains access to larger markets for its exports, increasing trade
opportunities and diversifying its export base.
2. Reduced Trade Costs: Lower tariffs and simplified customs procedures reduce trade costs,
making it more affordable for Egyptian businesses to export and import goods.
3. Attraction of Foreign Investment: Regional integration enhances Egypt's attractiveness as an
investment destination, attracting foreign companies seeking access to the wider regional
market.
4. Knowledge and Technology Transfer: Integration facilitates the exchange of knowledge,
expertise, and technology among member states, boosting Egypt's technological capabilities.

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 5. Economic Growth and Development: Regional integration promotes economic growth and
development by creating new employment opportunities, enhancing productivity, and fostering
innovation.

TARIFF
Egypt has a relatively high level of tariffs on imports. This means that businesses that import
goods into Egypt must pay more tax on the value of those goods. The level of tariffs varies
depending on the type of goods being imported, but they can be significant enough to make it
difficult for businesses to compete with local producers.
 Non-tariff barriers
In addition to tariffs, Egypt also has a number of non-tariff barriers on trade. These include
things like import quotas, licensing requirements, and complex customs procedures. Non-tariff
barriers can make it more difficult and time-consuming for businesses to import and export
goods and services, and they can also add to the cost of doing business.
 Trade agreements
Egypt is a member of a number of trade agreements, including the Arab Common Market, the
Greater Arab Free Trade Area, and the Common Market for Eastern and Southern Africa
(COMESA). These trade agreements provide Egypt with preferential access to the markets of
other countries, but they also mean that Egypt must reduce or eliminate tariffs on certain goods
imported from those countries.
 Government incentives for conducting business there
The Egyptian government offers a number of incentives to businesses that invest in the country,
including tax breaks, customs exemptions, and access to land and financing.
Here are some specific examples of government incentives for conducting business in Egypt:

Overall, the Egyptian government is keen to attract foreign investment and has put in place a
number of incentives to make the country a more attractive place to do business.

Table 6.1

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7. Cultural analysis of Egypt:
Egypt's social history and historical inheritance, one delves further into a populace where all facets of
existence were imbued with a sense of purpose and interdependence. Egyptian understanding of the
world and their role in it was not just philosophical but also very practical, influencing their engineering,
social structures, and agricultural practices. Their rustic routine and otherworldly beliefs were formed
because to this ancient creation, the Nile Stream. Their crops depended on the annual flooding of the
Nile, which was considered a divine gift intricately linked to their pharaohs and divine entities. The
imaginative articulations seen in models and compositions of burial chambers provide a startling
window into their actuality. The meticulous attention to detail in these works of art reflects a deep
understanding of and respect for the ordinary environment, as seen by the realistic depictions of
animals, plants, and routine activities. Ancient Egyptian society was incredibly complex and divided
socially, yet there was a sense of community and shared responsibility. For example, hundreds of
workers contributed to the construction of the pyramids, adding to an inheritance that would span
generations. This reflects a really avant-garde cultural affiliation that, at this point, is perfect, with
brilliant employees, designers, and brains collaborating as one. Every aspect of Egyptian society was
influenced by religion, as a pantheon of supernatural entities shaped everything from personal
relationships to governmental policies. This important detail wasn't too far away or extracted.

7.1 Historical Legacy and Cultural Heritage

Egypt's history and culture unfold like a sweet tale enhanced by profound understanding,
unwavering convictions, and strong links to the region. Old Egypt distinguished itself as an early
power to be reckoned with in design, composition, and governance after settling along the Nile
Waterway. Similar to gods, pharaohs played a crucial role in Egyptian civilization by overseeing the
construction of amazing pyramids, such as the remarkable Extraordinary Pyramid of Giza. These
designs are not only technical feats; they are a testament to collective effort and a deep belief in life
beyond death. Egyptian daily life is uniquely depicted through symbolic images that blend the sacred
and the common. Individuals with diverse backgrounds, such as experts, farmers, and brokers, are
valued members of this community. Their world works in harmony with the celestial bodies and the
Nile Stream. An annual phenomenon, the flooding of the river enhances agricultural production and
becomes an essential aspect of their livelihoods. Every part of existence is permeated by religion,
constantly woven into the fabric of people's reality, from magnificent temples to modest homes.

7.2 Religious beliefs and practices

Egypt's religious customs and beliefs are a fascinating blend of ancient and modern faiths, intricately
interwoven into the fabric of daily life. Islam, the ultimate religion that influences everything from
engineering to acceptable practices, is at the center of this complex picture. Mosques, with their vaults
and minarets, are symbols of a confidence that permeates every aspect of Egyptian culture and are also
places of love. Islamic holidays such as Eid and Ramadan are times for gathering, contemplation, and
celebration. Christianity has a significant presence near Islam, particularly the Coptic Conventional
Church, which reflects a complex tapestry of rigorous variation. This convergence of ideologies
demonstrates Egypt's long history as a crossroads of faiths and civilizations. Though no longer practiced
as a religion, ancient Egyptian beliefs continue to influence social customs and creative expression. The
public identity is shaped by the ancient divine entities and tales, which are evident in writing, art, and
popular culture. This ancient folklore demonstrates a strong, demonstrable fascination with the magical
and the timeless with its emphasis on the afterlife and a pantheon of celestial creatures. In Egypt, strict

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customs are a matter of mutual respect and personal experience. The call to petition that echoes across
metropolitan areas, the festival of stringent successes, and family and local gatherings during strict
festivities are all integral parts of the social texture. Through the connections they make between the
present and a rich and diverse historical past, these practices foster a sense of belonging and
congruency. The resilience and adaptability of these beliefs and practices, despite the obstacles to
progress, highlight the role that religion has had in shaping the collective consciousness of the Egyptian
public.

7.3 Language and Literature

Egypt's art and architecture weave a narrative of a land steeped in history and boundless creativity.
Spanning from ancient pyramids and temples to contemporary structures, each creation stands as a
testament to the ingenuity and imagination of the Egyptian populace. The globally renowned
pyramids, including the iconic Great Pyramid of Giza, stand as enduring marvels, constructed
millennia ago as the final resting places for pharaohs, showcasing the Egyptians' advanced
engineering prowess and their profound beliefs regarding the afterlife. Alongside these ancient
wonders, the temples, adorned with majestic columns and intricate carvings, unfold tales of gods
and pharaohs. Egyptian art holds a distinctive allure, encompassing exquisite paintings, sculptures,
and jewelry discovered within tombs. These artifacts, far beyond mere adornments, were crafted
with the purpose of aiding individuals in the afterlife. Often depicting scenes from everyday life,
such as farming or festivals, Egyptian art is celebrated for its vibrant colors and intricate detailing. In
the contemporary era, Egyptian architecture has undergone transformation, seamlessly blending
traditional styles with innovative concepts. Urban landscapes, particularly in bustling cities like Cairo,
reflect this fusion of bygone influences with present-day design. Similarly, modern Egyptian art
evolves continually, with artists employing diverse mediums to articulate their perspectives on
contemporary life in Egypt.

7.4 ART AND ARCHITECTURE

The art and architecture of Egypt act as a dazzling visual story, showing the country's rich history
and imaginative soul. Prestigious for their striking designs, for example, pyramids and sanctuaries,
the old Egyptians displayed a combination of designing and creative ability. The pyramids,
particularly the famous ones, weren't simply huge burial chambers yet additionally a demonstration
of the Egyptians' grip of science and stargazing. Embellished with hieroglyphics and unpredictable
carvings, the sanctuaries describe accounts of divine beings, rulers, and the significant convictions of
a general public that apparent the heavenly in each part of life. Similarly, captivating is the
antiquated Egyptian craftsmanship found in burial chambers and demolishes, highlighting elaborate
artistic creations, figures, and gems. A long way past simple enhancements, these relics held strict
significance, expected to direct the withdrew in eternity. The workmanship frequently caught
ordinary scenes and customs, offering a brief look into the existences of both eminence and normal
society. In contemporary times, Egyptian design and craftsmanship have gone through changes,
merging old themes with present day styles. Current structures in urban communities like Cairo
exhibit an amicable mix of verifiable impacts and new developments. Present-day Egyptian
craftsmen investigate and communicate their social personality, drawing motivation from their
legacy while tending to current social and political subjects. Fundamentally, Egypt's craft and design
take the stand concerning the nation's broad and various history. From the greatness of old
landmarks to the dynamism of its cutting-edge imaginative scene, Egypt's inventive inheritance stays

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captivating and moving — a demonstration of a progress that persistently reexamines itself while
treasuring its underlying foundations.

7.5 MUSIC AND PERFORMING ARTS

The music and performing arts in Egypt structure an energetic and bright impression of the
country's profound verifiable roots and its cutting-edge musicality. Egyptian conventional music,
known for its enamoring tunes and thumps, holds an exceptional spot in the core of its legacy,
repeating songs from the old world. Instruments, for example, the oud, nay, and Qanun assume an
essential part in creating these immortal sounds that talk straightforwardly to the Egyptian soul. In
the roads and towns, people music goes about as a story of regular day to day existence, winding
around accounts of affection, day to day battles, and the encounters of the normal society. This
music, described by its intricate rhythms, is something beyond a listening experience; it frequently
makes way for conventional moves, exhibiting Egypt's rich social practices.

In performing expressions, Egypt brags a rich history narrating and dramatic exhibitions.
Conventional expressions like shadow plays and puppetry have for some time been mechanisms for
rejuvenating society stories and legends, safeguarding the oral custom of narrating. Contemporary
Egyptian film and theater, drawing impacts from both East and West, act as stages to dig into
cultural issues, verifiable stories, and individual encounters, reflecting the dynamic and changing
Egyptian culture.

Egyptian music and performing expressions are dynamic components of its current culture,
continually adjusting and integrating a blend of conventional and contemporary components.
Craftsmen and entertainers mix old and recent fads, causing a lively social situation. From fiery
people moves to present day, significant theater and film, Egypt's music and performing expressions
give a brief look into the different and getting through soul of the country.

7.6 Cuisine and Culinary Traditions

Egypt's cuisine is a delicious blend of Flavors and traditions that reflect its rich history and
geographical diversity. At the heart of Egyptian culinary tradition is the use of fresh, locally sourced
ingredients, shaped by the Nile Valley's fertile lands. Staples like bread, known as 'aish', and legumes
such as lentils and beans, form the basis of many dishes. One cannot talk about Egyptian food
without mentioning full madams, a beloved fava bean dish, or kochari, a comforting mix of rice,
pasta, lentils, and a tangy tomato sauce, topped with crispy onions. These dishes, often flavored
with aromatic spices like cumin and coriander, are not just nourishing but also carry the story of
Egypt's cultural interactions, from ancient trade routes to modern influences.

Egyptian cuisine also showcases a variety of bread and pastry items, reflecting the skill of local
bakers. Flatbreads are a common accompaniment to, serving as a utensil for scooping up dips and
stews. Meats, especially lamb and chicken, are often grilled or stewed, infused with herbs and spices
that create rich, hearty Flavors. Sweets like baklava and bamboula, made with honey and nuts, offer
a glimpse into the Ottoman influence on Egyptian cuisine. Eating in Egypt is not just about the food;
it's a social experience. Meals are often shared family-style, bringing people together and
strengthening communal bonds. Festivals and religious occasions see special dishes and sweets,
making food an integral part of celebrations and cultural events. This culinary landscape, with its

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 array of Flavors and communal spirit, is a vibrant expression of Egypt's history, its land, and its
people, continuing to evolve while staying true to its roots.

7.7 Fashion and Dress:

Egypt's fashion and dress are an interesting impression of its social legacy and present day impacts,
mixing customary styles with contemporary patterns. By and large, Egyptian dress was portrayed by
straightforwardness and usefulness, adjusted to the warm environment. Lightweight material was
generally utilized, obvious in the exemplary tunic or galabia, a conventional piece of clothing that
stays well known today. Ladies' clothing frequently included long dresses and headscarves, while
men ordinarily wore free robes. In current Egypt, design is assorted, reflecting the nation's mix of
custom and advancement. In metropolitan regions, Western-style clothing is normal, with
youngsters particularly embracing worldwide style. Be that as it may, conventional clothing is still
broadly worn, especially in provincial regions and during social and strict occasions. For the majority,
these conventional pieces of clothing are about style as well as are likewise a question of social
personality and pride.

The impact of Islam is huge in Egyptian design, particularly in ladies' clothing. The hijab (headscarf)
and the abaya, a long, streaming external piece of clothing, are usually worn and have become
images of strict and social personality. These things, once considered absolutely customary, are
currently incorporated into present day style, with planners making sharp and contemporary
renditions.

7.8 Family Structure and Social Customs:

The family structure and social customs in Egypt mirror a general public well established in custom,
yet developing with current impacts. Egyptian families are commonly affectionate, with more
distant family individuals frequently living in closeness or under a similar rooftop. This solid family
bond is a foundation of Egyptian culture, underlining regard for elderly folks and an aggregate way
to deal with family matters. Grandparents, aunties, uncles, and cousins assume critical parts in one
another's lives, frequently assembling for dinners and festivities, highlighting the significance of
family associations. Marriage and youngsters are profoundly esteemed in Egyptian culture, with
huge families frequently being the standard. Weddings are great undertakings, celebrated with
intricate services and merriments. In these family structures, jobs are customarily characterized,
with men by and large being the providers and ladies fundamentally answerable for homemaking
and youngster raising.

In any case, these jobs are continuously developing, with expanding quantities of ladies chasing after
schooling and professions, particularly in metropolitan regions. Regard and neighborliness are
profoundly imbued in Egyptian social traditions. Visitors are treated with high respect and offered all
that a family can give. Get-togethers and public feasts are normal, building up the feeling of local
area and shared life. These social affairs are much of the time joined by customary music, dance,
and narrating, mirroring the rich embroidery of Egyptian culture. Strict and public occasions are
praised with energy, uniting family and local area individuals. These events are set apart by
extraordinary food varieties, petitions, and collective exercises, mirroring the interlacing of strict and
social characters.

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7.9 Economic and Occupational Trends:
The family design and social traditions in Egypt mirror a general public well established in custom, yet
developing with current impacts. Egyptian families are regularly affectionate, with more distant family
individuals frequently living in nearness or under a similar rooftop. This solid family bond is a foundation
of Egyptian culture, underscoring regard for seniors and an aggregate way to deal with family matters.
Grandparents, aunties, uncles, and cousins assume huge parts in one another's lives, frequently
assembling for dinners and festivities, highlighting the significance of family associations. Marriage and
kids are profoundly esteemed in Egyptian culture, with enormous families frequently being the
standard. Weddings are amazing issues, celebrated with intricate services and merriments. In these
family structures, jobs are customarily characterized, with men by and large being the providers and
ladies essentially answerable for homemaking and youngster raising. Notwithstanding, these jobs are
steadily advancing, with expanding quantities of ladies chasing after training and vocations, particularly
in metropolitan regions. Regard and accommodation are profoundly imbued in Egyptian social
traditions. Visitors are treated with high respect and offered all that a family can give. Get-togethers and
mutual dinners are normal, building up the feeling of local area and shared life. These social affairs are in
many cases joined by conventional music, dance, and narrating, mirroring the rich embroidered artwork
of Egyptian culture. Strict and public occasions are commended with excitement, uniting family and local
area individuals. These events are set apart by extraordinary food sources, petitions, and shared
exercises, mirroring the interlacing of strict and social characters.

7.10 Modern Media and Digital Influence:

Modern media and sophisticated innovation have a profound impact on Egypt, changing how people
communicate, obtain information, and find distraction. This shift reflects both global trends and
localized neighborhood nuances. Internet entertainment has become an essential part of daily life,
serving as a vital forum for political discourse, social interaction, and creative expression. Social media
platforms like Facebook and Instagram serve as both a means of association and a conduit for activism,
commercial endeavors, and social commerce.

This digital landscape has produced content creators who use crucial influence on patterns and
attitudes, making them forces to be reckoned with. The rise of resident reporting and internet news is a
sign of a move away from traditional media and towards computerized sources. This brings diverse
perspectives to the forefront and democratizes the data stream, but it also raises concerns about
believable content and pleasant guidelines. TV remains popular, with many satellite channels providing
a variety of programming in distinct regional accents, reflecting Egypt's intricate social fabric. Egyptian
cinema, with its long history, now competes globally with international films and online features. The
advanced disruption has changed Egyptian business and training. The rise in popularity of e-learning
platforms and the expansion of online commerce illustrates the ways in which innovation is
transforming several facets of daily life. However, this modification also draws attention to challenges,
such as the digital divide and the need to provide equitable access to innovation.

8.Challenges and opportunities of doing business:

Carrying on with work in Egypt presents a novel mix of difficulties and valuable open doors, molded
by its key geographic position, developing financial scene, and rich social legacy. The nation, filling in
as a scaffold among Africa and the Center East, flaunts an essential area with admittance to key
business sectors through the Suez Channel, a fundamental supply route in worldwide exchange. This

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 position offers organizations a huge benefit in planned operations and admittance to both arising
and laid out business sectors. Moreover, Egypt's enormous and energetic populace presents a
developing shopper market, ready with potential for different areas, including innovation, retail, and
administrations. The public authority's monetary changes and improvement drives, pointed toward
drawing in unfamiliar speculation and differentiating the economy, signal a promise to establishing a
more business-accommodating climate.

Nonetheless, exploring the business scene in Egypt accompanies its difficulties. The regulatory
framework can be perplexing and tedious, presenting obstacles in organization enlistment,
permitting, and consistence. Monetary instability, set apart by cash variances and expansion, adds a
layer of vulnerability for business arranging and venture. Admittance to supporting can be
restricted, especially for little and medium-sized ventures, and organizations frequently face a
cutthroat market with laid out neighborhood players.

Political elements and territorial security keep on impacting the business environment, making
versatility and comprehension of the nearby setting vital. Besides, social subtleties in strategic
policies require a confined way to deal with market passage and client commitment. Building solid
neighborhood connections and understanding Egyptian business decorum are vital to progress.

8.1 Strategic Geographic Position:

Egypt's advantageous location at the intersection of three continents—Africa, Asia, and Europe—tells
the story of a place that is currently vital to social trade and global interchange. With the Red and
Mediterranean Seas to its east and north, respectively, this exceptional region has long made Egypt a
major player in international trade. The Suez Waterway, which serves as the backbone of the country
and a vital conduit for ships travelling between Europe and Asia, significantly reduces travel time and
distance. Beyond its share of trade, Egypt's region has also been a synthesis of ideas and cultures, where
influences from three continents have collided to generate its richness.

8.2 Growing Consumer Market:

Egypt's expanding consumer market is a vibrant and dynamic industry driven by a sizable and
youthful population eager to be drawn in with a variety of goods and services. This expanding
consumer base, among the largest in the Centre East and North Africa sector, presents a unique and
expanding market for local and international businesses. With a large portion of the population
under 30, the youthful sector is a key factor fueling this development. These young buyers are unlike
any other in recent memory since they are diverse, increasingly connected, educated, and open to
global trends and digital platforms. With their preferences and methods of handling money, they are
changing the market landscape and demonstrating a growing need for modern retail concepts.
Urbanization is yet another important factor that is supporting the expanding consumer market.
Cities such as Cairo and Alexandria are humming hubs of commerce, combining traditional business
sectors with modern shopping malls and e-commerce platforms. Alongside this urban growth comes
an increase in disposable income, particularly among the working class, which leads to increased
purchasing power and a desire for a wider range of labor and goods. The scope of corporate
expansion into new fields is expanding, ranging from fashion and technology to dining and
entertainment.

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8.3 Government Economic Reforms:
The Egyptian government's adoption of new monetary policies is a significant step in the direction of
strengthening and diversifying the national economy. These modifications, which were sent off due to
financial issues, contain several initiatives aimed at resolving and boosting monetary development. An
important second was the launch of a large-scale reform program in 2016, which included devaluing
Egyptian currency to reflect its real value, reducing sponsorships to lighten the financial burden, and
implementing cost-cutting measures to increase government revenue. These methods were crucial for a
more comprehensively planned endeavor with the International Monetary Fund (IMF), aimed at
achieving financial stability and promoting practical growth. In order to create a more favorable business
environment and attract foreign investment, the government agency has streamlined business
registration procedures, improved legal mechanisms to safeguard business endeavors, and provided
incentives in strategic sectors such as renewable energy and tourism. The establishment of new financial
zones, such as the Suez Trench Financial Zone, takes use of Egypt's strategic location to improve trade
and planned activities.

Another basis for these modifications has been the progress of foundations. Large-scale projects like the
Suez Channel expansion and the creation of new street networks are both aggressive endeavors meant
to improve infrastructure and stimulate economic activity in various locations. Additionally, there is a
growing focus on the computerized economy and its growth, recognizing the fundamental role.

8.4 DEVELOPING INFRASTRUCTURE:

Egypt's commitment to advancing its foundation is a crucial aspect of its attempts at modernization
and financial growth, reflecting a desire to increase the well-being of its citizens and position itself
as a desirable hub for commerce. This extensive framework renovation covers a wide range of
projects, from the construction of new roads and scaffolds to the modernization of public transit
systems, all of which are directed towards strengthening the network and assisting in the
development of goods and people. Silently, the construction of the Suez Canal, a vital route for
international commerce, stands out as a crucial endeavor, increasing Egypt's capacity for maritime
traffic and solidifying its prominence in international trade. Beyond transit, major conjectures are
redirected towards the urban turn of events, involving the establishment of new urban
communities, such as the assertive New Authoritative Capital, with the goal of alleviating traffic in
Cairo. This embodies Egypt's approach to urban planning, skillfully fusing creativity with viability. In
addition, efforts are underway to enhance the energy framework, with a focus on traditional as
well as renewable energy sources like wind and solar energy, in order to meet the growing
demands of both contemporary and indigenous communities. Beyond mere development, these
framework initiatives establish the groundwork for a more affluent future. The goals include
creating jobs, experiencing the impact of financial activities in several domains, and generally
improving the quality of life.

8.5 FREE TRADE AGREEMENTS

Egypt's active participation in free trade agreements (FTAs) is an essential move pointed toward
bracing its economy through the help of expanded global exchange and venture. These
arrangements assume a significant part in working on the passage of Egyptian items into worldwide

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 business sectors, encouraging products, and touching off financial development. An outstanding
outline is the Egypt-European Association International alliance, a critical settlement that diminishes
exchange obstructions with one of the world's biggest business sectors. This highlights Egypt's
commitment to coordinating its economy into worldwide exchange frameworks, exploiting
decreased duties and further developed market openness for its labor and products. Another
significant FTA is with COMESA (Normal Market for Eastern and Southern Africa), connecting Egypt
to different African business sectors and setting its job as a central member in African exchange.
These arrangements not just work with the commodity of customary Egyptian items yet in addition
make ready for the development of new ventures and areas in global business sectors. Moreover,
they are expected to draw in unfamiliar direct venture, as financial backers ordinarily look for
economies with far reaching market amazing open doors. Be that as it may, regardless of the bunch
open doors presented by FTAs, challenges exist, including the basic to upgrade the intensity of
homegrown ventures and adjust neighborhood principles to worldwide necessities. Egypt's
proactive commitment to these arrangements highlights its affirmation of the meaning of worldwide
exchange moving financial turn of events and enhancing its monetary scene. Fundamentally, these
international alliances represent Egypt's yearnings to widen its monetary skylines and strengthen its
remaining in the worldwide financial field.

8.6 Regulatory and Bureaucratic Hurdles

Organizations may find it extremely difficult to navigate Egypt's bureaucratic and regulatory
environment, which is similar to the challenges faced by businesses in emerging markets. The
regulatory environment in Egypt is often characterized by intricate procedures, copious amounts of
paperwork, and a degree of nonconformity that can provide challenges for organizations that are
local or foreign. This complexity is partially developed in an empirical environment where
administrative frameworks have struggled to keep up with the evolving demands of a modern
economy. For businesses, this means navigating a maze of regulations, obtaining various licenses,
and often overseeing many administrative offices, all of which may be costly and time consuming.
In order to further improve the business climate and spur enterprise, the public authority has thus
taken all necessary steps to streamline procedures and reduce red tape. Initiatives include the
digitization of taxpayer-supported organizations, the decoupling of organization recruitment cycles,
and efforts to simplify administrative requirements. Nevertheless, such a deeply ingrained
framework is changing steadily, and the effects of these changes are still not fully understood on the
ground.

8.7 Economic Instability

This supporting void will have a significant effect on the whole economy because SMEs are essential
to development, employment creation, and money expansion. Seeing this, the Egyptian government
and foreign organizations started a number of projects and implemented changes meant to increase
the financial options available to these important economic sectors. These programs involve
creating targeted lending organizations, offering credit guarantees, and helping to advance the
creation of modern finance techniques including crowdsourcing, investing, and fintech contracts.
Notwithstanding these obstacles, progress is being made in the direction of a secure and
comprehensive financial environment. Private companies and entrepreneurs in Egypt still encounter

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difficulties getting the resources they need to reach their full potential.
Another fundamental problem has been expansion, which affects consumers' purchasing power and
how much businesses must spend. The fluctuations in the economy make it difficult for businesses
to accurately estimate their costs and revenues, necessitating a flexible approach to financial
planning and management. The government has implemented several policies to stabilize the
economy, such as monetary policies and global leadership initiatives, both of which have shown
favorable results in terms of macroeconomic stability.

8.8 Limited Access to Financing

Restricted access to finance is a major challenge in Egypt, particularly for small and medium-sized
enterprises (SMEs) and entrepreneurs who often struggle to get the necessary capital flow to launch
or grow their businesses. This problem stems from a financial system that tends to favor larger,
more established companies, leaving smaller companies and start-ups to contend with stringent
lending requirements, excessive loan costs, and a lack of appropriate financial products tailored to
their needs. The situation is further complicated by traditional banks' general reluctance to take on
issues related to smaller projects, which are typically viewed as less advantageous or more
vulnerable to fluctuations in the money market.
The general economy will be greatly impacted by this supporting hole because SMEs are vital for
growth, job creation, and monetary expansion. Seeing this, the Egyptian government as well as
international organizations launched several initiatives and made adjustments aimed at expanding
access to funding for these crucial economic segments. These initiatives include establishing specific
lending institutions, providing credit guarantees, and facilitating the development of contemporary
finance methods such as investing, crowdsourcing, and fintech agreements. Despite these forces,
the journey towards a stable and all-encompassing financial ecosystem is making forward. In Egypt,
entrepreneurs and private businesses continue to face challenges when attempting to access
resources that would help them realize their full potential.

8.9 Political and Social Instability

Political and societal unrest has been a major worry in Egypt, affecting the nation's financial system
and corporate operations. This instability is rooted in the nation's recent history of political
developments and social unrest, which have occasionally caused susceptibility and anxiety.
Situations like these can create a challenging environment for businesses, impacting long-term
planning, functional strength, and venture decisions. The political landscape, which is characterized
by adjustments to strategy and administration, can lead to variations in financial requirements and
administrative procedures, requiring organizations to be extremely robust and adaptable. Social
instability, which is often influenced by things like unemployment, unequal compensation, and
public dissatisfaction, may also have an impact on the corporate climate.

8.10 Cultural and Linguistic Barriers

For organizations operating in Egypt, overcoming language and cultural obstacles is essential as
these factors play a crucial role in the success of any endeavor aiming to establish a foothold in this
distinct market. Egypt provides a stunning scenario that foreign organizations should understand
and take into consideration. Egypt's rich social legacy is firmly established in both its ancient past
and its modern Middle Eastern identity. The prevalent use of Arabic in business correspondence and

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talks might be a challenge for non-Arabic speakers due to its many lingos and maxims. In
transactions, false perceptions arising from linguistic differences can lead to misinterpretations,
underscoring the importance of effective communication and social responsiveness.

9. GUIDELINES FOR DOING SUCCESSFUL BUSINESS IN A COUNTRY

The guidelines for doing a successful business in any country are as follows:
1. Conduct Thorough Research:
Make a thorough investigation of Egypt's political, economic, and social landscape before
travelling there. Research considerations include things like industry trends, market size, buyer
preferences, and administrative systems. Understand local customs, etiquette, and tactical
methods to avoid social faux pas and foster relationships with potential partners.

2. Seek Legal and Professional Guidance:

Getting caught up in strange legal and financial situations can be quite risky. Engage the services
of seasoned bookkeepers, expenditure consultants, and legal counsel who can help you through
the intricacies of setting up and operating a business in Egypt and who are informed about local
regulations.
3. Establish a Strong Local Presence:
Establishing a robust local presence is crucial for gaining market credibility and fostering
confidence with partners and customers. To get traction locally, consider opening a physical
office or collaborating with a neighboring group. Recruit employees in the area who can
examine social intricacies and provide important insights into the industry.
4. Respect Cultural Sensitivity:
Cultural awareness is essential for global corporate leadership. Learn more about the customs,
etiquette, and strategic policies of the area to avoid upsetting potential partners or clients.
Adapt your letter writing and promotion strategies to the preferences and ideals of the
community.
5. Create Relationships and Networks:
Networking is essential to the success of any endeavor, but in a foreign environment, it becomes
much more important. Attend industry events, become a member of local business groups, and
participate actively in community activities to expand your company and create meaningful
relationships with potential partners, customers, and influencers.

6. Adjust to Local Conditions:

Be prepared to modify your products, services, and advertising strategies to fit the local market
while maintaining the integrity of your brand. Take into factors such as consumer preferences,
administrative requirements, and societal distaste to ensure your contributions resonate with
the primary target audience.

7. Accept Patience and Persistence:

Breaking into a new market requires perseverance, patience, and time. Administrative barriers,
linguistic divides, and social disparities can break the cycle. Be prepared to adapt and keep

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 going, demonstrating your commitment to the local market and achieving long-term success.

8. Seek Emotional Connection:

Despite rational consideration, don't underestimate the power of deep connection when
continuing your career internationally. Understand the characteristics, objectives, and concerns of
your partners and clients. Create genuine bonds that transcend transactions, fostering loyalty and
trust.

References:
https://www.britannica.com/place/Egypt/Government-and-society
https://globaledge.msu.edu/countries/egypt/government
https://www.pwc.com/m1/en/tax/documents/doing-business-guides/dbie.pdf
https://www.passportindex.org/passport/egypt/
https://kids.nationalgeographic.com/geography/countries/article/egypt
https://www.worldbank.org/en/country/egypt/overview
https://culturalatlas.sbs.com.au/egyptian-culture/egyptian-culture-core-concepts
https://www.britannica.com/place/Egypt/Daily-life-and-social-customs
https://take-profit.org/en/statistics/imports/egypt/
https://www.statista.com/statistics/1246866/government-revenues-in-egypt/#:~:text=As%20of
%20the%20first%20half,(42.92%20billion%20U.S.%20dollars).
https://www.cgdev.org/blog/miga-little-engine-should

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