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With the elections over, Egypt’s economy is showing signs of an incipient recovery. After three years of stagnation the IMF anticipates GDP growth will reach 3.5% by 2015, although much of this may be making up for lost time. The new government has outlined an ambitious vision for the future development of the country, and taken the first steps towards solving a structural fiscal deficit. However, Egypt’s economy remains in a fragile state, and the reform that is essential to its long-term recovery is a challenging prospect for any government. The magnitude of this task is readily discernible in the nation’s balance sheet. While a process of fiscal reform had reduced Egypt’s budget deficit to 6.8% by the 2007/08 fiscal year, the political unrest that began in 2011 reversed the contraction, and by 2012/13 the nation was running a deficit of 13.7%. Egypt’s improving political situation, however, has brought with it a new sense of optimism about the economy. The potential for economic recovery over the coming year is real, but much depends on the new government’s ability to cement the putative stability achieved in 2014 and carry out its process of wholesale economic reform. This chapter contains interviews with Hany Kadry Dimian, Minister of Finance; Anis Aclimandos, Chairman, American Chamber of Commerce in Egypt; Hassan Fahmy, Chairman, General Authority for Investment and Free Zones; and Ahmed Heikal, Chairman and Founder, Qalaa Holdings.

The extraction of oil and gas has long played a central role in the Egyptian economy, accounting for 15.3% of the country’s GDP in the 2013/14 financial year. With exploration in the North African nation dating back to the 1880s, the government has a long history of working with private firms to develop and manage its resources. Over the course of 2014 Egypt’s energy sector has seen some welcome developments. The announcement of a debt-repayment programme for funds owed to international oil companies (IOCs) has restored confidence in the upstream segment and brought pledges of increased investment from larger operators such as the UK’s BP. In the meantime, exploration for new resources continues. However, considerable challenges remain to be overcome, and the power outages that Egyptian individuals and businesses faced in 2014 are likely to remain a part of daily life for some time to come. This chapter contains interviews with Sherif Ismail, Minister of Petroleum and Mineral Resources; Ross Clarkson, CEO, TransGlobe; and Ibrahim Sarhan, Chairman, e-finance.

Although the business environment for insurers is challenging, Brunei Darussalam’s small insurance industry continues to expand gradually. Increasingly high court awards to accident victims have affected the profitability of mandatory automotive and workers’ compensation lines, while the government’s local business development policies and support for sharia-compliant insurers are squeezing conventional players. The sector should get a boost from investment growth in industrial segments and planned government expenditure on infrastructure. However, it will continue to be difficult for the sector to accelerate significantly given the high level of economic security enjoyed by Bruneian citizens and the limited ability of local insurers to serve the economy’s dominant economic sector. This chapter contains an interview with Osman Jair, Chairman, Brunei Insurance and Takaful Association, and Managing Director, Insurance Islam TAIB.

In partnership with Dr Colin Ong Legal Services, this chapter outlines the parallel systems of statutory and sharia law which operate in Brunei Darussalam, highlighting how this legal framework affects businesses and investors. It also contains a viewpoint from Colin Ong, Managing Partner, Dr Colin Ong Legal Services, and President, Arbitration Association Brunei Darussalam.

In partnership with Deloitte, this chapter gives an overview of Brunei Darussalam’s tax environment as it applies to businesses and investors. It also features a tax viewpoint from Pengiran Moksin, President, Brunei Darussalam Institute of Certified Public Accountants, and Partner, Deloitte, on the tax environment.