Economy Overview | Remote Work Conditions | Local Business Environment | Legal and Regulatory Environment | Transport and Infrastructure

Economy Overview

Economic Landscape

Overview of the economy, focusing on its stability and growth

Egypt's economy, anchored by the Nile, has historically been agricultural. Today, it's diverse: tourism, Suez Canal revenues, agriculture, and industry play pivotal roles. Economic reforms initiated in 2016, backed by the IMF, have aimed at attracting foreign investment and achieving fiscal stability.

Key industries and sectors and their contribution to the GDP

 - Energy: Especially natural gas and renewable sources.

 - Tourism: Historical landmarks and Red Sea resorts are the main attractions.

 - Agriculture: Cotton, rice, and grains are the principal crops.

 - Manufacturing: Textiles, food processing, and automotive industries.

Job Market

Overview of the job market, including demand in different sectors

The job market in Egypt presents both opportunities and challenges. Sectors like telecommunications, IT, and energy are burgeoning. However, the unemployment rate, especially among youth, has been a concern.

Unemployment rate and workforce demographics

As of the last data, the unemployment rate hovers around 8-9%. The majority of the workforce is engaged in services, followed by agriculture and industry.

Investment Climate

Investment opportunities and trends

With its strategic location and demographic potential, Egypt offers ample investment opportunities in areas like renewable energy, real estate, and IT.

Government incentives for foreign investors

Egypt has been fostering a favorable environment for foreign investors. Incentives include tax breaks, streamlined licensing processes, and special economic zones.

Remote Work Conditions

Remote Work Culture

Prevalence of Remote Work in Egypt

Remote work, while not traditionally widespread, gained traction due to global trends and the COVID-19 pandemic. Tech startups and international companies increasingly offer remote roles.

Attitudes towards remote work from employers and the workforce

While some employers remain skeptical about productivity, many workers appreciate the flexibility remote work offers. This culture is expected to evolve with global trends.

Work-Life Balance

Expectations and norms around work hours and productivity

The standard workweek in Egypt is Sunday to Thursday, with Friday and Saturday being the weekend. Workdays typically span from 9 AM to 5 PM. During Ramadan, hours are shortened.

Support and infrastructure available for remote workers

Major cities like Cairo and Alexandria offer co-working spaces. The internet infrastructure is continually improving, supporting remote work needs.

Internet and Technology

Internet connectivity and reliability across different regions

Urban areas and tourist destinations have reliable internet connectivity. However, rural areas may experience slower speeds.

Availability of co-working spaces and their facilities

Co-working spaces have been sprouting in major cities, equipped with high-speed internet, meeting rooms, and communal areas.

Local Business Environment

Starting a Business

Procedures and requirements for starting a business

Egypt has streamlined the process of starting a business. While it varies depending on the business type, generally, it involves company registration, obtaining necessary licenses, and registering for taxes.

Costs associated with starting a business, including taxes and fees

The costs can vary based on the business's nature and scale. There's a registration fee, potential licensing fees, and initial capital requirements.

Business Culture

Overview of business etiquette and cultural norms

Business meetings often start with light conversation. Punctuality, while valued, might not always be strictly adhered to. Personal relationships and trust play a significant role.

Language and communication style in a professional setting

While Arabic is the official language, English is commonly used in business, especially with international partners.

Networking Opportunities

Availability of business networking events and groups

Cairo, being a business hub, hosts numerous conferences, trade fairs, and networking events across sectors.

Prominent industry conferences and trade shows

Events like Cairo ICT (Information and Communications Technology) and the Egypt Petroleum Show are major draws.

Table: Key Economic Indicators

Doing Business in Egypt - World Bank Report

Legal and Regulatory Environment

Business Laws and Regulations

Overview of Laws Governing Business Operations

The Egyptian legal system, being considered as a civil law system, is based upon a well-established system of codified laws. Egypt’s supreme law is its written constitution. With respect to transactions between natural persons or legal entities, the most important legislation is the Egyptian Civil Code of 1948 (the “ECC”), which remains the main source of legal rules applicable to contracts. Much of the ECC is based upon the French Civil Code and, to a lesser extent, upon various other European codes and upon Islamic (Shariah) law, especially in the context of personal status.

Despite the non-existence of an established system of legally (de jure) binding precedents, judicial decisions do have persuasive authority. Courts are morally and practically expected to uphold the principles and judgments of the Court of Cassation for civil, commercial, and criminal matters, and the Supreme Administrative Court for administrative and other public law matters.

It is worth noting that the classical dichotomy of public and private law has resulted in the crystallization of a separate set of legal rules applicable to transactions involving the State (or any of its institutions, subsidiaries, or state-owned enterprises) acting as a sovereign power. This entailed the establishment of the Egyptian Council of State (Conseil d'Etat) by virtue of Law No.112 of 1946 as amended by Law No. 9 of 1949, which consists of administrative courts vested with the power to decide over administrative disputes pertaining to administrative contracts and administrative decrees issued by government officials. These courts apply administrative legal rules, which are not entirely codified; hence, because often no applicable legislative rules exist, the scope of judicial discretion is ample in light of the established principles laid by the supreme courts.

Employment Laws

Overview of Labor Laws

Employment and labor relationships in Egypt are regulated by the Egyptian Labor Law No. 12/2003 and relevant Decrees (the “Labor Law”). The Labor Law was promulgated on 7 April 2003 consisting of 257 Articles included in six chapters. The Labor Law organizes all legal aspects related to the Egyptian labor environment.

The provisions of the Labor Law represent the minimum rights and benefits of the employees. The Labor Law invalidates any provision or agreement diminishes or deprives any employee from one of the rights determined by virtue of the law. Conversely, agreements that are more advantageous to employees shall remain valid.

Constitution of Employment Contracts

According to Article 32 of the Labor Law, all individual employment contracts must be written in Arabic, in three copies; one copy for the employer, one for the employee, and the third shall be submitted to the competent Social Insurance Office.

Pursuant to the Labor Law, the following information must be incorporated in any employment contract:

the name of the employer, the address of the work place;

the employee’s name, qualifications, occupation, address, proof of identity and social insurance number, if any;

the nature and description of the agreed job; and

the salary agreed upon between the parties and all other financial and real privileges.

Duties of Employers

Article 77 of the Labor Law states that, employers shall hold a file for each employee. Said file shall detail the employee’s name, occupation, level of skills, educational degree, address, military status, social status, date of appointment, salaries and its changes, applied penalties, leaves obtained, and finally the date of service termination and the reasons for said termination.

There are no restrictions to add any additional data such as: the employee’s age, sex (male, female), qualifications and certificates of experience.

Employers shall also deposit any investigation reports, any reports by the employee’s supervisor concerning his performance, and any other document related to the employee’s service in the aforementioned files.

Moreover, employers shall keep the above-mentioned files for at least one year after the termination of the labor relationship. Reasons justifying said one year commitment is to prevent any dispute that may arise related to the salaries, leaves, firing or dismissal reasons etc.

Foreign Employment

Article 28 of the Labor Law states that foreigners are not allowed to work in Egypt unless they obtain work permits from the Competent Manpower Authority.

As a rule, foreign workforce shall not exceed 10% of the total workforce in any establishment.

Foreign Employees’ Records

Employers who appoint foreign employees are obligated to make a record including the following:

• The foreigners’ names, surnames, nationalities and religions.
• Birth dates.
• Job titles and exact job descriptions.
• Qualifications.
• Dates and numbers of employment permits.
• Salaries.

Taxation

Taxpayers are obliged to calculate and file their income tax return for each fiscal year. Income tax returns must be filed within 4 months after the end of the fiscal year; therefore, if a company's fiscal year ends on December 31, tax returns must be filed by the end of April of the following year. Other returns, such as the VAT return, are filed monthly.

more details on https://gsl.org/en/taxes/tax-zones/egypt/

Transport and Infrastructure

Egypt ranked the second highest in the African infrastructure development index (AIDI), following only Seychelles. As of 2022, the country registered around 89.9 points in the AIDI. In recent years, the transportation sector infrastructure has undergone significant changes, including but not limited to roads, rail transportation, and the development of the Suez Canal. The government embarked on these projects in an attempt to modernize an outdated transportation network. For instance, the country scored 5.1 points in the road quality infrastructure index in 2019, up from 2.7 in 2013. Furthermore, Egyptian ports had the second largest container throughput on the African continent, with 7.32 million twenty-foot equivalent units (TEUs), following only Morocco.

Airports and International Travel

Major International Airports

1. Cairo International Airport

2. Capital International Airport (Egypt)

3. Sphinx International Airport

4. Luxor International Airport

5. Aswan International Airport

6. Hurghada International Airport

7. Sharm El Sheikh International Airport

8. Marsa Alam International Airport

9. Borg El Arab International Airport (Alexandria)

10. El Alamein International Airport

11. Abu Simbel International Airport

12. Assiut International Airport

13. Sohag International Airport

14. El Arish International Airport

15. Marsa Matruh International Airport

16. Port Said International Airport

17. Taba International Airport

18. El Kharga Local Airport

19. Tur Sinai Local Airport

Road Infrastructure:

Highways:

- Egypt has an extensive road network, including highways connecting major cities and regions.

- The road infrastructure is a crucial component for transportation of goods and passengers.

Cairo Ring Road:

- The Cairo Ring Road is a significant highway encircling the city of Cairo, helping manage traffic and facilitate smoother transportation.

Desert Roads:

- Some roads traverse through the desert regions, connecting remote areas and supporting economic activities.

Infrastructure Development:

- Infrastructure development projects, including road expansion and maintenance, are often part of government initiatives to enhance connectivity.

Rail Infrastructure:

Rail Network:

- Egypt has a well-established rail network connecting major cities and regions.

- The railway system plays a crucial role in transporting both passengers and freight

Cairo Metro:

- The Cairo Metro is a rapid transit system in the capital city, providing an efficient means of transportation within the metropolitan area.

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