Egypt

Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Source: AFDB Socio Economic Database

Trade Profile

Import Partners (Imported Value, thousands, USD)

Source: International Trade Centre COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

Source: International Trade Center COMTRADE Statistics.

Egypt Imports (Imported Value, Thousands, USD)

Source: International Trade Centre COMTRADE Statistics.

Egypt Exports (Exported Value, Thousands, USD)

Source: International Trade Centre COMTRADE Statistics.

Investment Profile

FDI Inflows (millions of USD)

FDI Outflows (millions of USD)

FDI Inward Stock (millions of USD)

Source: United Nations Conference on Trade and Development, World Investment Report 2021

FDI Outward Stock (millions of USD)

FDI Inflows Main Source Countries (in terms of number of projects)

UAE, United States, France, Saudi Arabia, UK, China, Germany, India, Spain, and Italy.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Sectors (in terms of number of projects)

Financial Services, Coal, Oil and Natural Gas, Food and Tobacco, Business Services, Textiles, Software and IT services, Communications, Transportation, Hotels & Tourism, and Real Estate.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Companies (in terms of number of projects)

Credit Agricole Egypt, BNP Paribas, Majid Al Futtaim Group (MAF Group), Dana Gas, Abu Dhabi Islamic Bank, Savola, HSBC Egypt, Albaraka Bank Egypt, IBM, and Arab Bank.

Source: Financial Times, fDi Markets, 2018

Doing Business

Overall Doing Business Ranking

Source: World Bank, Doing Business, 2020

Starting a Business

*GNI per capita used: USD 280
Source: World Bank, Doing Business, 2020

Population

Population Projections (millions)

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Paying Taxes

Paying Taxes

Source: World Bank, Doing Business, 2020

Trading Across Borders

Assumptions

• It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
• It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
• A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
• Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
• If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
• The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
• Time is measured in hours, and 1 day is 24 hours.
• Costs do not include tariffs.

Source: World Bank, Doing Business, 2020

Legal Framework

Investment Code – Law N. Law No. 72 of 2017
Key guarantees in terms of investment protection include:

• Companies may not be confiscated or nationalized.
• Companies and their assets cannot be sequestered, seized or expropriated by administrative order.
• Projects are allowed to repatriate their capital and profits.
• Projects may be entirely owned by foreigners. Furthermore, their boards of directors may be wholly composed of foreigners.

Source: General Authority for Investment and Free Zones (GAFI) Online Portal.

Investment Incentives

• General Incentives:
  • Investment projects established after the enforcement of the law will be granted an investment incentive in the form of a deduction (equal to 30% or 50% of the “investment costs,” with certain limitations) from the net taxable profits, in accordance with the investment map, which is geographically split into Sector A and Sector B. The sector determines the percentage deduction that will be granted.
  • A five year exemption period from stamp duty tax and notarisation and registration fees for the deeds of association of companies and establishments, credit facilities and mortgage contracts connected with the company’s activities. This exemption will apply from the date of recording the items in the commercial register .
  • A customs tax at a unified rate of 2% of the value is levied on the value of all imports (machines, equipment and instruments) imported by such projects.
  • Temporary imports (that will be reshipped out of Egypt) of molds and other similar production requirements will be exempt from customs duties.
• Free Trade Zones (FTZs) Incentives.
  Projects in public free zones will be subject to:

• • 1% of the value of goods on FOB basis for manufacturing and assembly projects.
  • 1% of the operating value of the industrial or supplementary operations carried out on the goods and materials operated in the free zones for third parties.
  • 2% of the value of goods (CIF) at the destination port, or customs valuation, whichever is greater, upon entrance to be used by the project, for storage projects
  • 2% of the value of purchases in cases of direct procurement involving the purchase and sale of goods
  • 1% of the value of the commission in cases of direct procurement, restricted to collection of brokerage commission
  • 1% of the total revenue made without deducting any corresponding burdens to gain such revenues for projects whose main activity do not require the entry or exit of goods. This fee shall be collected on a semi-annual basis based on the revenue statement submitted by the project for the relevant period
  • The final settlement of the due fees, according to the nature of the project activity, shall be effected, based on the financial statements and the supplementary clarifications approved by a legal accountant, after excluding the previously stated amounts
• Projects in public free zones will be subject to:
  

• • 1% of the total revenues for manufacturing and assembly projects when exporting goods based on the customs clearance
  • 2% of the total revenues of the project upon entry of goods to the country based on the sales invoice
  • 1% of the operating value of the industrial or supplementary operations carried out on the goods and materials operated in the free zones for third parties
  • 2% of revenues for storage projects when exporting goods as per the sale parties
  • 2% of revenues in cases of direct procurement
  • 2% of revenues without deducting any corresponding burdens to gain such revenues for projects whose main activity do not require the entry or exit of This fee shall be collected on a semi-annual basis based on the revenue statement submitted by the project for the relevant period.
  • The final settlement of the due fees, according to the nature of the project activity, shall be effected, based on the financial statements and the supplementary clarifications  approved by a legal accountant after excluding the previous amounts

Source: Source: Egypt General Authority for Investment and Free Zones – GAFI Online portal.