TOURISM In EGYPT Most Vibrant &

Diverse in the world

LAWS & AMMENDMENTS

COMPETITIVE ADVANTAGES

Rich & varied Culture Heritage

Year Round Sunshine
Pristine Beaches
Popular Destination for Adventure
Activities

Promotion of Free Zones & SEZ

Qualified & Cheap Labour Force
73% of Investment Privatized- Obvious Sector
for FDI
Land Disposal & Real Estate Laws Amendments
March 2015

GOVERNMENT STRATEGIES & TARGETS

Development of Existing Tourism by tightening Quality Norms, Infrastructure Development

Broadening to Key sectors Business Travels, Conventions, Sports, Medical, Golf , Yachting

Dedicated Marketing Campaigns in Asia & Wider Middle East

Development Egypts North Coast most under tapped regions near Mediterranean Sea

Incentives for Investments in hotels & associated services like shopping , infrastructure etc.

Long Term Usufruct System used for Land use Easier management of Land rule

Tourism in Egypt

INFRASTRUCTURE Paving the way for development

QUICK CURRENT FACTS

90% of Africas Exports Through Egypt

Ports
Egypt Gateway between Africa, Europe
& Asia
World Bank Invest $1.2 Billion & $2
Billion over 4 years
EGP 11.9 Billion Dedicated to
infrastructure in Next Budget

PROJECTS UNDERTAKEN

New SUEZ Canal Project New 35KM

Long Second Shipping lane

Cairo Metro Project -1st Rapid Transit

System in Cairo- 2nd in Africa

Egypt- Saudi Red Sea Bridge project

Alexandria Cairo Rail Link Upgrade

Social Housing Programme 2,00,000

Dedicated Units in Aaswan Area / Yr

INVESTMENT BENEFITS & OPPORTUNITIES

Public Works Policy for Major Construction Projects

Free zones Import Export Exempted of Duties & taxes License obtained in 15 Days

The Grievance & Ministerial Committees for settling disputes on investments within 30
Days of submission

One Shop-Stop System Establishment of GAFI

Corporate Tax rate from 42% to 20%

In SEZ Labour Tax Rate 5%

Privatization of Airports, Railways & Roadways

Infrastructure in Egypt

Information communication technology HUB OF

THE MIDDLE EAST & AFRICAN COUNTRIES
Egypt Ranked 4th Worldwide in A.T. Kearneys 2011 Global Services Index
ICT Leader in the MENA Region
Vodafone, Mobinil & Etisalat
- Provide 3G & Mobile Services
- Paving Way for 4G
development

Telecom Egypt Fixed Line

services (9Mil users) &
Wireless/line Broadband (all
Urban Areas)

SAE-ME-WE2
-Worlds 1st Submarine
Cable Linking SEA, the
ME & EU

Development Strategies & Opportunities

More than 200,000 highly qualified and multilingual professionals working in the ICT sector
yet Sector penetration still low

Multinationals view Cost effective Product Development & call centres new High Tech
Industry Cluster -Smart Village & Maadi Tech Park in Greater Cairo

National ICT Strategy Support for SMEs

New economic systems, Increasing Technological education access in under developed

countries

Tax Benefits & trade benefits in free zone areas

Information Communication and Technology in Egypt

Indicator

2008

2009 2010

2011

2012

2013

2014

Growth
rate

12.8

12.6
7

13.5

12

13.3

13.9

14.5

% GDP

1.9

3.8

4.1

4.94

5.61

4.1

4.5

ICT statistics 2008-14

Indicator

2000

2010

14

Public

1756

4425.7

12

Private

1005

17256.2

16

10
8

Indicator

Communication 74

324

Information
technology

498

3078

IT Services

28

532

2
0
2008

2009

2010

Growth rate

2011
% of GDP

2012

2013

Column1

2014

2000

2010

ENERGY SECTOR NEW & IMPROVED MEANS OF ENERGISING

AFRICA
RECENT GROWTH FACTS
Largest Non- OPEC Oil producer in
Africa
2nd Largest Natural Gas Producer
Demand for Renewable Energy to
meet Domestic Needs

ASSISTANCE FROM NATURAL SOURCES

Horizontal irradiance = 2450 kWh/m2/yr
Direct Normal radiation =2800 kWh/m/yr
Wind Full Load = 3015 Hrs/Yr (Highest in
Arab countries)
Export /Import Duties Waived

GOVERNMENT PLAN OF ACTION

Dedicated Funds Investment Subsidies in energy Sector
NREA Dedicated Government Entity for supporting Research and FDI in Energy
Sector
Land Access 7600 km2 of land allocated to wind farms & under access of NREA

Egyptian electricity & transmission Company expediting 250 MW Wind Project

& 200MW Solar PV Project
Feed In tariffs Guarantee fixed price for energy producers
Common Protection against Expropriation without compensation

Energy Sector in Egypt

Key Projects Planned by Egypt Government

300 MW for small solar systems (less than 500 KW);
2,000 MW of medium- and large-size of solar plants;
2,000 MW of medium- and large-size of wind plants;
67 consortiums have qualified for PV projects with total capacity 2,880
MW and 27 consortiums have qualified for wind projects with total
capacity of 1,670 MW

Manufacturing , Agriculture Backbone of the

economy
Agriculture In Numbers

Quarter of the GDP

6000 Businesses
Workforce 6 Million people
Climate- Extra Growing Seasons
Significant Ground water Resources

Manufacturing Facts

Government Incentives

Auto industry -3rd Largest Car Producer in

Africa
Assembling BMW, Citroen, Daewoo, Jeep
Only Fully vertically integrated Textile
Industries in the ME
Target Annual Growth rate of 9%

Government Incentives

Land Reclamation Drilling wells,

Building Surrounding Infrastructure

New Industrial complexes New Textile

City Upper Egypt

Higher end of Food Chain- Packaging ,

Processing- Better Lucrative

Upcoming Plastic Industry

24 projects Evolving Petrochemical Hub

Larger Warehouses, storage facilities

Import Export remittance , private

leasing of warehouses

New Industrial Zone Leather City

Robeiky Proximity to leather
facilities/processing

High scope for Intra Regional Exports

Export Incentives , Enlarging scope of FTA

New Microfinance law access to

finance

1st Private Credit Bureau to improve credit

checks

Agriculture and Manufacturing in Egypt

Agricultural
Statistics

Manufacturing
Statistics

MINING Critical engine of growth for egypt

QUICK FACTS
Ongoing Projects US $ 13 Billion
Invitation to exploit for Ores of
Lead & Zinc, Kaolinitic sands,
carbonaceous shale, feldsparshighly untapped

AVAILABLE MINERAL RESOURCES

Tantalite 48 Million Tons (4th largest in the
world)
Coal - 50 Million tons
Gold 6.7 Million Ounces
All this in the Eastern Desserts

GOVERNMENT STRATEGIES TO ATTRACT FDI

Encouraging New explorations (56 Concessions in new Law- 2015 Investment of
US $ 12.2 Billion
Awarding the Mining companies with contracts to set up Refineries with joint
alliance
Opening up the sector & also oil & gas for private investment
Secure new LNG Import Contracts (Ports, FSRU, pipeline)

Strengthen Regional Energy Trade

Exemptions for import Export

Mining in Egypt

Doing Business in Egypt 2014

Alexandria

Damietta

Mansoura
Ismailia
Zagazig

Tanta

Cairo

Port Said

Giza

Suez

Four indicators benchmarked in

15 locations:
Starting a Business
Dealing with Construction Permits
Registering Property
Enforcing Contracts

Fayoum

Trading Across Borders measured

in 5 strategic ports:
Alexandria
Damietta
Port Said East
Port Said West
Sokhna (Suez)

Assiut
Sohag
Kharga

Aswan

Project carried out in

collaboration with the Ministry of
Investment and the Ministry of
Local Development of the Arab
Republic of Egypt

Key findings
1. The success of business start up one-stop shops proves that
there is no need to come to Cairo to start a business
2. Despite a nationally unified construction law, there are large
variations in requirements, time and cost across locations

3. Some court of first instance found successful ways to deal

with high case loads
4. In property registration, better coordination between the
real estate registry and surveying authority shortens
processing delays
5. Exporters and importers spend most time on paperwork
6. No need to reinvent the wheel: successful examples of good
regulatory practices can be found across Egypt

Success stories can be found across Egypt

City
Alexandria, Alexandria
Assuit, Assuit
Aswan, Aswan
Cairo, Cairo
Damietta, Damietta
Fayoum, Fayoum
Giza, Giza
Ismailia, Ismailia
Kharga, New Valley
Mansoura, Dakahlia
Port Said, Port Said
Sohag, Sohag
Suez, Suez
Tanta, Gharbia
Zagazig, Sharqia

Ease of dealing
Ease of starting
with construction
a business
permits

1
4
15
1
10
6
1
4
14
6
12
12
10
8
8

15
7
14
12
5
13
11
3
4
2
10
9
1
6
7

Ease of registering
property

Ease of enforcing
contracts

4
10
12
13
15

11
14
7
15
1
3
4
2
10
11
7
6
9
5
13

3
7
5
8
2
1
6
8
14
11

Starting a business: one-stop shops are

making it easier across cities

Starting a Business across

Egypt: as fast as in OECD
High Income Economies

*MENA is the Middle East and North Africa regional average

Dealing with construction permits: wide

variation in pre-construction approvals
and inspections

No need to reinvent the wheel:

successful examples of good practices
found across Egypt
Doing
Business
indicator

Dealing with
construction
permits

Best practices within Egypt

13 procedures

Suez

109 days

Ismailia

Egyptian best
practices compared
internationally

Egypts
performance
in DB2014

(global rank)

(represented by
Cairo, global rank)

39

149

56

105

103

156

104

128

58.9% of income per capita Suez

7 procedures
Registering
property

Enforcing
contracts

18 days

Alexandria, Fayoum, Giza,

Ismailia, Kharga, Mansoura, Port
Said, Sohag, Tanta, Zagazig
Sohag

0.7% of property value

Alexandria, Assuit, Aswan, Cairo,

Damietta, Fayoum, Giza, Ismailia,
Mansoura, Port Said, Suez

42 procedures

All cities

706 days

Ismalia

18.2% of claim value

Damietta and Fayoum

Ease of doing business

GROSS DOMESTIC PRODUCT

2010000

1510000

1010000

510000

10000

2005

2006

2007

2008

2009
GDP( US $ Millions)

2010
GDP(LC millions)

2011

2012

2013

2014

TRADE %OF GDP

Exports

Imports

Trade balance

50

40

30

20

10

0
2005

-10

-20

2006

2007

2008

2009

2010

2011

2012

2013

2014

GROWTH RATE & INFLATION

Inflation, consumer prices (annual %)

GDP growth (annual %)

20

18

16

14

12

10

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

TRADE AGREEMENTS
EU EGYPT Association Agreement

Operational in 2004, Establish Free Trade Area Also called Partnership Agreement
All goods from Egypt-EU immediately exempted from tariffs
Preferential access to the EU market of over 500 Million

EFTA- Egypt Free Trade Agreement

States Iceland, Liechtenstein, Norway and Switzerland with Egypt Into force from 2007
Industrial products including fish & Marine Industry & Agricultural Products
Custom duties on almost all industrial products eliminated

COMESA Common Market for Eastern & Southern Africa

Active in 1994 19 Members currently in the agreement

All commodities are exempted between member countries
US companies Exporting from Egypt have an edge importing to 19 Countries whose import
duty is 15%- Goods enter duty free

GAFTA Greater Arab Free Trade Area

Egypt entered in 1998 all 18 member countries exempted all custom duties & charges
between all Arab Countries
Liberalization of Services & Investments- eliminating Non Tariff Barriers

Egypt- Turkey Free Trade Agreement

All export & custom duties exempted on all the products

Egypt - competitiveness
Competiti
ve
Manufactu
ring Costs

Lucrative Returns
Await FDI Inflow
Egypts competitive
advantages make a
compelling case for
increasing FDI in
Egypt.

Access to
Export
Markets

Strategic
Location

Comparative Wages
Wages compared to Egypt in US$/ hr

Large
Domestic
Market

Governme
nt policy

Comparative Electricity Prices

1.6

Electricity prices compared to8

Egypt (Cents KWatt/ hr)

1.2

10

0.7
4
0.5

Egypt

India

Tunisia

Turkey

Egypt

Turkey

India

Tunisia

Investment policy framework

Category

Income Tax

Investment Zones

20% & 40.55% for oil and gas

companies

20% & 40.55% for oil and gas

companies

5% flat tax rate on personal

income tax

10 years Exemption for

Agriculture and animal production
activities.

10 years Exemption for

Agriculture and animal production
activities.

10% tax on all activities within the

zone

Custom procedures for

production input will be
administered in the zone
Equipment customs are paid in 510 years installments

None

2-32% depending on the product

Import Duties

Export Duties
and Sales Tax

Flat rate of 5% of the value of

imported machinery and
equipments

5-25% of value of all sale

transactions

Sales taxes are paid in 5-10

years installments

Exported good are tax exempted

Payroll Tax
Export
Minimum

Other
Incentives

Special Economic
Zones

Inland Investment

No duties when exported out of

Egypt
No duties on domestic
components when sold in Egypt
10% of value of non domestic
components when sold in Egypt

10-20% depending on salary level 10-20% depending on salary level 5% for all salary levels
None
Protection against expropriation
and compulsory pricing
Full right of profit and dividend
repatriation

None
Companies established within the
investment zones are to enjoy
incentives given to both inland
and upper Egypt investment
regimes.

Depending on zone boards

decision
Egyptian certificate of origin for
SEZ based exporters
Integrated custom and tax
administration, licensing, and
dispute settlement

Egypt Performance Indices

Gini co- Per Capita
efficient
Income

Years
2013 to 14
2012 to 13
2011 to 12
2010 to 11
2009 to 10

Purchase
Global
Trade
Unemploymen
Population
manager Competitiv Freedom
t rate
Index
e Index
Index

2645
2803
3049
3074
3154

30.8
in 2008

86.7
84.7
82.4
80.4
78.7

Logistics Corruption
Globalizati
Performan perception
on Index
ce Index
Index
57.2
58.1
59.35
59.92
61.33

2.97
2.98
2.61
2.53
2.37

37/100
32/100
32/100
2.9/10
3.1/10

13.37
12.99
12.37
10.38
9.21

Cost of
Living
Index
39.58
45.88
53.4
51.32
NA

nov 56.2
nov 55.9
NA
NA
NA

Open
Technolog
Governme
y Index
nt Index

0.42 (Rank
91 out of
102)

91/148
80/144
79/144
74/138

Business Investment
Country
Freedom Freedom
Risk Index
Index
Index

3.66
3.6
3.63
3.73
3.88

70
71.4
73.8
74
74

65.4
62.7
63.3
63.8
64.5

Digital
Access
index

Global
Peace
index

World
Press
Index

0.4
0.4
0.4
0.3
0.3

143-113
111
73
49
54

51.89
48.66
97.5
43.33
51.38

45
51.7
65
65
49

D4
D4
D4
D4
D4

Global
Social
happiness Progress
Index
Index
4.194
4.273
4.273
na
na

59.97
43.94
na
na
na