This document provides information about doing business in Egypt. It highlights Egypt's unique geographic location and political stability. Egypt has a growing economy and is integrating further into the world economy through various trade agreements. The document outlines Egypt's economic outlook in recent years as well as investment incentives available. It identifies various investment opportunities across sectors such as agriculture, tourism, manufacturing and more. The document also discusses Egypt's relationship with Serbia and potential for increased economic cooperation between the two countries.

1. Egypt
Doing Business in

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

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

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

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

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

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

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

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

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

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

13. Economic OutlookEconomic 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 OutlookEconomic 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

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

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

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

18. Investment IncentivesInvestment 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

19. Investment OpportunitiesInvestment 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

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

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

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

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

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

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

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

27. Egypt and SerbiaEgypt 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

28. 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

29. Egypt and SerbiaEgypt 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

30. Egypt and SerbiaEgypt 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.

31. Egypt