Egypt

1
Doing Business in
Egypt
2
Rundown

• Why Egypt

• Egypts Integration in the World
• Economy
• Economic Outlook
• Investment Incentives
• Investment Opportunities
• Egypt and Serbia

3
Why Egypt

• Unique geographic location
• At crossroads/gateway to Africa, Asia, Europe
  Middle East

4
Why Egypt

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

5
Why Egypt

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

6
Egypts Integration in the World Economy

• Adoption of bilateral, regional multilateral
  approach to trade investment liberalization
• WTO (member since June 30th 1995)

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Egypts Integration in the World Economy

• Free-Trade blocks
• COMESA largest economic grouping in Africa with
  400 million people
• EU Free and Preferential Trade Agreements
• Arab World Free Trade Area Agreement
• USA Trade Investment Agreement
• Qualified industrial zone
• Free Trade Agreement with Turkey
• Free Trade Agreement with EFTA countries

8
Economic Outlook

• Early nineties, Egypt launched multi-phased
  economic reform program focused on macroeconomic
  adjustments stabilization, privatization
  trade liberalization, market driven economy
• Successful program applauded by international
  institutions IMF as an achievement that has few
  parallels

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Economic Outlook

• Gross Domestic Product (GDP) at market
• prices (current prices) (L.E Billion )
• Exchange rate 1USD5.45 Egyptian Pounds

10
Economic Outlook

• Real growth rate of Gross Domestic Product
• (GDP) at market prices and constant prices ()

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Economic Outlook

• GDP composition by
• sector
• agriculture 13.2
• industry 38.7
• services 48.1 (2008 est.)

12
Economic Outlook
Per capita income (current prices) (Egyptian
Pounds) Exchange Rate 1USD5.45 Egyptian Pounds
13
Economic Outlook

• EGYPT IMPORTS FROM THE WORLD
• from 2005 to Jan. Sep. 2009
• Total imports
• 2008 52915.66 million USD
• Jan-June 2009 32692.70 million USD

14
Economic Outlook

• EGYPT EXPORTS TO THE WORLD
• from 2005 to Jan. Sep. 2009
• Total exports
• 2008 26209.60 million USD
• Jan-June 2009 16478.20 million USD

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Investment Incentives

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

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

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

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

• 
  

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Investment Opportunities

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

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Investment Opportunities

• Automobile Assembly
• Highly profitable Passenger cars, buses,
  mini-buses GM, Peugeot, Mercedes Benz, BMW,
  Suzuki, Hyundai
• Construction Materials
• Fast growing - steel, reinforced iron, cement,
  ceramics

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

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

23

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

24
Egypt and Serbia

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

25
Egypt and Serbia

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

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Egypt and Serbia
There are a number of agreements that aim to
foster economic and trade relations and attract
investments from both sides which are as
follows 1. Agreement for Long-term
Commercial and Economic Cooperation,
signed on June 26th 1957 2. Agreement on
Establishing the Joint Committee for
Economic Cooperation, signed on March 21st
1961 3. Agreement on the reciprocal
promotion and protection of
investment, signed on May 24th 2005 4.
Agreement on the Avoidance of Double Taxation
with respect to taxes on income, signed
on July 31st 2005
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Egypt and Serbia
Trade Balances between Egypt and
Serbia
Year Egyptian Exports from Serbia millions of USD Egyptian Imports from Serbia millions of USD Trade Balance millions of USD
1990 41.7 93.3 135
1991 32.4 71 103.4
1996 9.2 20.6 29.8
1997 4.9 36.9 41.8
1998 3.2 25.3 28.5
1999 1.7 13.1 14.8
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Year Egyptian Exports from Serbia millions of USD Egyptian Imports from Serbia millions of USD Trade Balance millions of USD
2000 2.6 14.6 17.2
2001 3 11.5 14.5
2002 3.4 9.1 12.5
2003 2.7 7.1 9.8
2004 3.6 19.2 22.8
2005 4.9 21.3 26.2
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Egypt and Serbia
Year Egyptian Exports to Serbia millions of USD Egyptian Imports from Serbia millions of USD Trade Balance millions of USD
2006 9.1 26 35.1
2007 13.1 20 33.1
14.2 14.2 36.5 50.7
2009 Until June 30th 4.7 13.9 18.6
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Egypt and Serbia

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

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Egypt