EXPORT & IMPORT BUSINESS

Group Code : UMA1V2Subject Code :EKO1305MBATCH : 2015-2017SEMESTER : 1st

CONTENTS COUNTRY PROFILEBUSINESS POTENTIAL IN EGYPTECONOMICAL ENVIRONMENT

POLITICAL ENVIRONMENT

LEGAL ENVIRONMENT

CONCLUSION

COUNTRY PROFILE Egypt is a lower middle income country with a population of almost 90 million. It was the largest destination for all Foreign Direct Investment into Africa. Egypt has a GDP of USD 369 billion. Its growth rate for the first half of 2014/15 was 4%, compared with 2% in 2013/14 Egypt is a member of WTO, Common market for Eastern & Southern Africa (COMESA)

WHY EGYPT?

Young workforce newly-extended Suez Canal is the hub for world maritime traffic strategic geographical location – with proximity to Asian, African and Europe third largest economy in Africa a number of free trade agreements and arrangements 18% of the 90 million population are under 25

BUSINESS POTENTIAL EGYPT

• Egypt offers an excellent and growing market for retail

• The power supply programme 2010-2020 aims to add about 30,000 MW to installed capacity, almost doubling electricity generation.

• Egypt's main trading partners are the United States, Italy, Germany, and China

• The oil and gas sector accounts for 15% of national GDP in Egypt and 31% of Foreign Direct Investment (FDI).

• There are around 50 international petroleum companies currently operating in Egypt in exploration, digging and oil extraction.

•  MAJOR EXPORT :• Egypt's main export goods are fuel products 43% of exports in 2003 • Agricultural products make up about 15% of merchandise exports • Cotton about 6% of total exports) is the single most important agricultural export. • Iron and steel, chemicals, and textiles are the most important subcategories.

ECONOMICAL ENVIRONMENT OF EGYPT

• The official currency of Egypt is POUND (LE)

• Egypt has a territory of 1,001,450 square kilometres and a population of some 72 million

• Trade has played an important role in Egypt's economy, with exports of goods and services being a motor of the current economic recovery.

• The privatization programme has significantly increased the participation of foreign enterprises in sectors such as manufacturing and tourism.

• Sustained earnings from the Suez Canal and remittances from Egyptians working abroad are also expected to play their part.

• Despite its massive reform programs, Egypt’s currency is undervalued with low investment flow potential and high purchase price potential.

POLITICAL ENVIRONMENT OF EGYPT

Egypt’s economic environment was initially known to be hostile as the reigning leaders enjoyed imperial powers over the country’s political and economic structures.

Egypt is a republic with a democratic system that outlines the political system and defines its political authorities.

The politics of Egypt is based on republicanism, with a semi-presidential system of government.

The permanent headquarters for the League of Arab States (The Arab League) is located in Cairo

Egypt also passed a law permitting private firms to build and operate new airports.

And over the past few years, Egypt has concluded free trade agreements with a number of Arab countries, as well as an agreement with the Common Market of East and South Africa (COMESA)

LEGAL ENVIRONMENT OF EGYPT

Arabic is Egypt's official language and all documents have to be written in Arabic if they are to have legal value. A contract can be written in another language, however it has to be accompanied by an official translation in approved

Arabic.

There are a number of laws in Egypt that regulate business, the 2 main ones are:

• Companies law regulates the common business in Egypt• Investment guarantee and incentive • lawCapital Market Law

The legal system is highly influenced by the French law. It also has influences from the common law. In fact, Sharia is crucial for the questions of civil status. Intellectual Property - It is possible to obtain licenses for using patents and trademarks Agreements to use patents which involve payments outside the country must be authorized by the General Authority

for Investment (GAFI). As for copyrights, they are handled by authors' societies.

CONCLUSION

The objective of the Egyptian government is to achieve growth with equity by developing the private sector and reducing the government role in managing the economy.

This is to be achieved by improving the business environment, inter alia by means of action on trade, finance and taxation.

This initiative, jointly with the strategic location of Egypt and with a ready market, makes Egypt conducive for business.

The government has a major role in implementing and speeding the reform programs. It should also offer incentives to foreign investors.