Purchase OBG Publications

In conjunction with Helmy, Hamza & Partners, this chapter contains an overview of the legal framework in which local and foreign investors operate in Egypt, including the regulations governing different sectors, the rules for investment and expatriate employment, and recently introduced legislation on trade and financial services. This chapter contains a viewpoint from Mohamad Talaat, Managing Partner, Helmy, Hamza & Partners.

In conjunction with PwC, this chapter contains an introduction to Egypt’s taxation system, including a breakdown of rates imposed on corporate income, regulations governing capital gains and double taxation, and a list of goods and services exempted from value-added tax. This chapter contains a viewpoint from Maged Ezzeldeen, Country Senior Partner, PwC.

As the Egyptian population grows and the government continues to develop and promulgate legislation to achieve universal health coverage by 2030, there will be an increasing need for services and facilities, presenting widespread opportunities for the provision of goods, services and training in both urban and rural settings. With Egypt seeking to jumpstart its economy after the political turbulence of recent years, educational reform is to play a vital role in preparing a skilled and educated workforce. Although challenges persist – especially as institutions and personnel are struggling to meet the needs of a rapidly growing population – the increased demand has created opportunities for a variety of players to fill critical gaps.

After a difficult few years following the 2011 revolution, there is renewed hope for Egypt’s tourism sector, with 2017 bringing the industry back to growth. While there were positive signs for tourism in 2013 and 2014, before a relapse in 2015, the flotation of the currency in November 2016 has made the Egyptian market more competitive, and the government has also expended significant energy and capital to bring added resilience and revenue streams to the sector. A new assertive strategy to market the country both locally and internationally and upgraded security protocols are combining to give the industry a significant boost. Indeed, the state is helping to build a stronger tourism industry, less reliant on a handful of source markets and more attuned to the diverse revenue opportunities in underutilised segments. This chapter contains interviews with Gerald Lawless, Chairman, World Travel & Tourism Council (WTTC); and Ibrahim El Missiri, CEO, Somabay.

Agriculture remains an important part of the Egyptian economy, and a long-standing priority for the government has been to shift the agricultural balance of trade, with the country possessing the second-highest agricultural import expenditure as a share of export revenues in the region, at over 35%. To this end, improvements to irrigation systems and water management protocols have been planned and are coming to fruition. Meanwhile, the renowned Egyptian cotton industry, considered the international luxury standard for centuries, is experiencing a renaissance after several challenging years. With prices and global demand both on the rise, Egypt is hoping to ride the wave of this renewed popularity to a lucrative export market. This chapter contains an interview with Ashraf Mahmoud, Chairman and Managing Director, Al Nouran Group.

From urban transit to seaports and airports, the country’s transport network is poised for a significant upgrade. Although demand is unpredictable and subdued in certain segments, the emphasis on developing strong transport infrastructure should provide opportunities to investors and operators alike. In the third quarter of FY 2016/17 the transport and storage sector grew at a rate of 4.4%, just above that of the overall economy, which expanded by 4.3%. As economic growth picks up speed, there will be plenty of opportunities for growth in operations and services, and the government is seeking to ensure that the country has the necessary infrastructure to meet heightened demand. This chapter contains interviews with Safwat Musallam, Chairman, Egypt Air; and Ayman Khattab, President and CEO, General Electric (GE) North East Africa; and Vice-President, South Gulf and East Africa, Baker Hughes GE.