Doing business in Egypt has so many advantages. Especially nowadays…
Now we can say that this is best time to invest in
Egypt.
Here are the main reasons:
Geographically Strategic Location
Egypt's strategic geographical location makes it one of the most advisable countries to invest in, considering that it shares borders with the Gaza Strip and Israel to the northeast, Sudan to the south, and Libya to the West while also having water boundaries along the Mediterranean Sea and the Red Sea.
On the other hand, the Suez Canal, considered to be the shortest link between the east and the west, is under control of Egypt, which enables the country and consequently the investors to highly benefit from the line of trade in the region.
It is also important to bear in mind that according to official data, approximately 8% of the world's maritime shipping passes through the Suez Canal each year.
A Large and Young Population
With a total population of 93 million,
Egypt is the most populous country in the Arab World today. It is also the third most densely populated country in the whole continent of Africa, following Nigeria and Ethiopia.
In Egypt, 56,71% of the total population comprises of young people which is another fundamental aspect that both domestic and international investors place great importance to.
Large Consumer Market
Egypt has become a significantly important consumer market in the MENA (The Middle East and North Africa) region after a great amount of global brands hit Egyptian market. Moreover, there has been a sharp hike in retail sales in the past years, partly due to the big population size supported by the fact that of Egypt in terms of population and partly due to the fact that over 56% of Egyptians are between the age 15 and 44.
Egypt has access to the world's ‘key markets' such as America and European Union countries as well as Middle Eastern and African countries through multilateral and bilateral trade agreements in a wide range of areas, ensuring benefits to Egyptian-based manufacturers.
Low-cost and Qualified Workforce
At about 28 million, Egypt's labor pool is the largest in the region. As the domestic demand for qualified labor force increased more and more in the past years along with the number of educated youth in pursuit of job opportunities, Egypt commenced a national industrial training program provided through world-class universities; completely wiping off the country's reputation as a "regional exporter of skilled labor".
Currently, the minimum wage in
Egypt is 1200 EGP and the average monthly salary is about EUR 100.
Developed Infrastructure
Egypt has a world-class transport infrastructure with its ports and airport network, supporting both passenger transport and cargo traffic as well as its well-established railways and roads. The country has 15 commercial ports where export and import operations continue intensively and an Air Cargo Airport with three cargo terminals where textile, vegetable, and many industrial products are traded on a daily basis.
Today, Egypt's road network has reached to 108,784 km, railway network to 9,570 km and the number of the airports to 20.
Abundant in natural resources, Egypt effortlessly meets the needs of agricultural, industrial and mining activities, also providing competitive prices in power, water and gas.
Proximity to Global Markets
Egypt has the ability to access key global markets in Europe, the Middle East, Africa and the Indian Subcontinent. When compared to other major exporters such as India, China and the Philippines, Egypt's closer location to the European and North American markets provides a significant advantage to the country.
Egypt's location on key international logistics routes, one of them being the Suez Canal, saves in distance, time and operating costs for the vessels transitting through.
Government Policy for Foreign Companies
Egypt's recently adopted economic reform plan with the intention of fiscal sustainability and macroeconomic balance encourages investors by reducing economic risk. The main objectives of this bold and ambitious plan are increasing the tax base, streamlining spending on fuel and electricity subsidies, leveraging capital spending and allocating more resources to public services and social security.
Following the 25th revolution, an intensive three dimensional promotion strategy has been embraced by the Egyptian Government, which is based on business reform, investor care and FDI attraction.
A large number of countries have investment agreements with
Egypt including Germany, the United Kingdom, Italy, Greece, Sweden, Switzerland, France, Belgium, the Netherlands, Luxembourg, Finland, Romania, Malaysia, Indonesia, Thailand, Singapore, Japan, China, Sudan and Morocco.
If you have any questions about
doing business in Egypt, you can visit
www.fathalla-cpa.comor you can send an e-mail to
info@fathalla-cpa.com.
