Why Invest In Egypt?
- The Egyptian Economy’s resilience is capable of overcoming its economic challenges as it did in the 2008 financial crisis, and long-term investors will see many opportunities.
- Egypt has started its transformation to a stable, democratic and modern economy, where the dividends of growth and prosperity will be shared by all who participated in its achievement.
- The Egyptian economy’s ability to post positive real economic growth rates amid the global economic downturn as well as during the political unrest that prevailed in 2011-2013 indicates how resilient economic activity in Egypt.
A Large, Trained, Competitively Priced Labor Force
At about 28 million, Egypt’s labor pool is the largest in the region. For decades, Egypt has had a reputation as a net regional exporter of educated, skilled labor. However, as domestic demand for skilled labor rises, and the increase of youth searching for job opportunities. a national industrial training program is provided for labors through world-class universities
Large Consumer Market
Egypt has emerged as a consumer market of significant importance in the region, as witnessed by the arrival of dozens of global brands and the sharp expansion of retail sales in the past two years. This is partly due to the sheer size of Egypt’s population that put it as the most populated country in Africa and the Middle East
- Egypt boasts a world class infrastructure base. Three independent mobile (cellular) phone networks cover nearly 100% of the country’s inhabited land. Wire line broadband is readily available in urban centers. The country’s 15 commercial ports serve the nation’s exporters and importers alike, while an expanding, upgrading airport network caters to both passengers and cargo traffic, Egypt’s Air Cargo Airport, currently has three cargo terminals, dealing with textiles, vegetables and many industrial products. Also the country has a well-established network of railways and roads.
The road network has reached 108,784 KM, Railway network 9,570 KM and 20 Airports.
- Egypt also provides competitively prices and reliable supplies of power, water and gas. Egypt possesses an abundance in natural resources that can easily meet the needs of agricultural, industrial and mining activities.
Competitive Tax Rates
- Corporate taxes top out at only 22.5% in Egypt.
The nation’s newly overhauled tax code is easy to navigate, and the country has moved to random-sample auditing. The nation’s largest corporate taxpayers are served by a special, highly trained unit at the Tax Authority.
Proximity To Global Markets
- Key global markets in Europe, the Middle East, Africa and the Indian Subcontinent are all readily accessible from Egypt. Closer to the European and North American markets than other major exporters including India, China and the Philippines, Egypt is also located on key international logistics routes.
- Egypt enjoys the existence of the Suez Canal, which is considered to be the shortest link between the east and the west due to its unique geographic location. Approximately 8% of the world’s maritime shipping passes through the Suez Canal each year.
- Vessels transiting through the canal from east to west or from west to east make significant savings in distance, time and operating costs.
- Moreover, the maritime transport is the cheapest means of transport, with more than 80% of world trade volume transported via waterways (seaborne trade)
Egypt’s economy is among the most diverse in the Middle East and North Africa, Diversity is a key strength in the Egyptian economy where growth is driven by many sectors, helping ensure long-term growth prospects for all sectors.
Reformist Investment Climate
The reform plan aims at increasing tax base, streamlining spending on fuel and electricity subsidies, leveraging capital spending and allocating more resources to public services and social security.
After 25th revolution Government has embraced an intensive 3 dimensional promotion strategy based on business reform, FDI attraction, and investor care, As follows:
For efficiency and simplification:
- Reduction of the time required for registering foreign representation offices to 72 hours instead of 40 days has been made.
- Paying subscription fees to the Chamber of Industry and the Federation of Egyptian Industries is available at the one stop shop.
- The launch of the second phase of electronic companies establishment on GAFI official web site.
- And, Increasing GAFI’s processing centers in governorates.
For the licenses
- Lifting the required preliminary industrial license when establishing at GAFI.
Lifting the security approval requirement for media companies.
- Issuance of the imports/exports certificates for specific activities for one to five years.
- For SMEs: the Establishment of “Bedaya Center” to help develop and assist SMEs in gaining access to bank financing.
- For the reduction of the industrial business cost through the decision of the ministry of industry to reduce the value of Letters of Guarantee required to acquire land from industrial zones.
Finally and most importantly for investor care:
- Establishment of the “Contracts Committee” which GAFI is a member of, to resolve any conflict that might arise between the investors and different governmental bodies over previously signed business contracts.
And, Modification of the Investment law No. (8) year 1997 to allow the reconciliation between the investor and the government in the cases of proven fraud.
If you are planning to set up copamny in Egypt and you need any professional assistance, feel free to reach out to us at 3E Accounting Singapore!