Guidance

Doing business in Egypt: Egypt trade and export guide

Updated 25 August 2015

This guidance was withdrawn on 31 January 2020

Department for International Trade withdrew this publication because it was out of date.

See current information to:

• explore opportunities for exporting to Egypt in our country guide on great.gov.uk

1. Egypt export overview

Egypt is a lower middle income country with a population of almost 90 million. In 2013 it had an annual Gross Domestic Product (GDP) per capita of USD 3314. Since 2014, the economy has been on a path to recovery. It was the largest destination for all Foreign Direct Investment into Africa. Its stock market (EGX) was the best performing in the world in terms of returns.

Contact a Department for International Trade (DIT) Egypt export adviser for a free consultation if you’re interested in exporting to Egypt .

Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Egypt.

Egypt is highly import dependant and is likely to remain so for the foreseeable future. Significant investments in ports, airports, highways and railways are planned which will lead to more efficient movement of goods.

Many UK companies are already doing business in Egypt, including BP, Shell, BG Group, Vodafone, Barclays, HSBC, GSK, AstraZeneca and Unilever amongst many others.

Strengths of the Egyptian market include:

• a 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

2. Challenges doing business in Egypt

Egypt has some unique challenges, including:

• a crippling fiscal deficit
• political and social instability
• poverty has increased to 26.4%
• rising unemployment
• investment and tourism both falling
• excessive bureaucracy that makes it difficult to do business (ranks low on World Bank doing business)
• high-levels of corruption (ranks fairly low on the transparency index)
• a shortfall of foreign exchange
• restrictions on foreign property ownership
• lack of legal and contractual certainty
• slow and cumbersome customs procedures

You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act.

3. Growth potential

3.1 Economic growth

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 looking to get its economy back on track. Investment will increasingly become the main support for growth, as subsidy reform weighs on private and government spending.

Investment was reinforced with a high profile conference in Sharm el Sheikh in March 2015. During the conference, an estimated USD 36 billion of private sector deals were signed, with a further USD 12 billion of support pledged by regional allies.

Egypt has planned investment reforms, which include:

• fuel subsidy
• the introduction of a Value Added Tax (VAT) tax
• simplified bankruptcy proceedings
• companies’ law
• amendments to the capital markets law
• a new insurance law
• a land management framework

It is estimated that between USD 200 and 300 billion worth of projects are needed to solve the country’s electricity and housing shortages. This will also generate jobs for an expanding population through broader economic diversification.

3.2 Trade agreements

Egypt is a member of the following organisations:

• World Trade Organization (WTO)
• Common Market for Eastern and Southern Africa (COMESA)
• Egypt-EFTA Agreement
• EURO-Med Partnership
• Greater Arab Free Trade Area (GAFTA)

A list of Egypt’s bilateral and regional agreements is available from the Ministry of Trade and Industry.

4. UK and Egypt trade

Egypt was the UK’s 42nd largest export market for goods and 55th largest export market for services in 2013. Between 2001 and 2014, UK exports of goods to Egypt fell by around 9%. They were worth £1 billion in 2014.

Top UK exports of goods to Egypt include:

• metalliferous ores and metal scrap
• fruit and vegetables
• general industrial machinery and equipment
• medicinal and pharmaceutical products
• power generating machinery and equipment

5. Opportunities for UK businesses in Egypt

Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.

5.1 Education and training

Education and training is a major priority for the Egyptian government and reform is highly required in all levels and all industries.

There is a strong growth in private schooling and independent for-profit universities, some of which include foreign participation. Schools are being upgraded at the rate of 10% each year with modern facilities such as computers, multimedia laboratories and internet connectivity.

Approximately 11.9% of government spending is on education and is forecast to increase by 10%. Government education plans include:

• a 50% increase in number of Egyptians enrolled in university or technical education by 2021
• 120 additional universities and technical / vocational institutes
• another 2,200 private and 2,500 public schools over the next 5 years
• over 1,400 of the public schools to be completed using Public Private Partnership (PPP) approach

Egypt is open to foreign participation in all areas of the education and training sector. The British education system is highly respected in Egypt. Opportunities for UK companies include:

• technical and vocational training
• skills for employability
• school, curriculum and university development
• teacher training
• management and leadership training
• school equipment and Information and Communication Technology (ICT)
• vocational training
• English language skills
• qualifications certification
• school construction projects

Contact wafaa.saad@fco.gov.uk for more information on education opportunities.

5.2 Oil and gas

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

Egypt is making positive strides towards reforming its oil and gas sector. Repayment of debt owed to oil companies and commitments to be debt free by end-2016, have provided a boost to upstream investment.

There are around 50 international petroleum companies currently operating in Egypt in exploration, digging and oil extraction. There are approximately 143 rigs in operation. Major oil companies have committed billions in investment to Egypt’s upstream including:

• BP – USD 12 billion over 5 years
• Eni – USD 5 billion over 4 years
• BG – USD 4 billion over 4 years

Opportunities for UK companies include:

• exploration and field development
• operations and maintenance
• training and sustainable development

Contact amal.fahmy@fco.gov.uk for more information on the oil and gas opportunities.

5.3 Retail

Egypt offers an excellent and growing market for retail that is supported by:

• growing demographics
• a growing affluent middle class
• low penetration levels of modern retail shops
• a growing acceptance of 21st century retail concepts

The government is looking to develop an efficient retail environment, supporting various sectors of the growing economy. To this end, it sees itself as a main partner in the development of Egypt’s retail sector. It is keen to attract foreign investment to enhance competition and modernize the retail environment. More retail complexes are opening around the country and increasing numbers of new brands are entering the market.

At least 30 well known UK retail brands are currently trading successfully in Egypt. There are various opportunities in:

• clothing
• food
• consumer goods
• online retailing
• over-the-counter (OTC) pharmaceuticals
• franchising

Contact mary.riad@fco.gov.uk for more information on the retail opportunities.

5.4 Power

Egypt’s demand for electricity is growing rapidly and there is an urgent need to develop alternative power resources.

The power supply programme 2010-2020 aims to add about 30,000 MW to installed capacity, almost doubling electricity generation. This programme includes investment in a variety of projects and indicates an annual investment in excess of USD 3 billion.

Currently, 88% of total electricity capacity is dependent on oil or natural gas, while the share of wind and solar power represents only 3%. However, Egypt is considered to have a great wealth of renewable energy resources. It hopes to produce 12-20% of its electricity from renewable sources by 2020.

To achieve this target, the government introduced a new ‘feed in tariff’ scheme for wind and solar energy production with capacity of 50 MW or less. It also announced sovereign guarantees and interest subsidy loans, depending on production capacity.

In January 2015, the New and Renewable Energy Authority (NREA) selected 18 foreign investment bids with a value of USD 6 billion to build renewable power plants. The total capacity of 4,000 MW will be divided between solar and wind power projects.

To further diversify Egypt’s energy mix, coal imports for use by energy-intensive industries will be permitted, within limits.

There are opportunities for UK companies in the following projects:

• a wind farm with a total capacity of 500 Megawatt (MW) in Gulf of Suez
• installation of a 7.2 Gigawatt (GW) wind energy projects by 2020
• construction of a 3.5 GW solar power station by year 2027
• a nuclear power plant in Dabba with a capacity of 1,000 MW
• 3 power generation projects in Dayrout, Qena and Beni Suef
• a steam power plant in Ain El Sokhna

Contact Basim.sedki@fco.gov.uk for more information on the power and renewable energy opportunities.

5.5 Construction and infrastructure

The Suez Canal Zone (SCZone) project is estimated at £20 billion over 15 years. The project presents UK companies with significant opportunities in:

• ports and logistics development
• development of a 76,000 sq km industrial and logistics hub
• new industrial zones and urban areas
• new transport infrastructure
• power generation
• water desalination
• waste water treatment plants

Other opportunities in the construction and infrastructure sector include:

• power infrastructure – Egypt plans to invest USD 110 billion up to 2027
• waste water plant expansions
• water infrastructure PPPs projects
• tourism infrastructure – in April 2014, the government earmarked USD 136 million for the tourism infrastructure
• airport city at Cairo International Airport with an investment of USD 20 billion
• New Cairo Capital city – a £30 billion project

Contact radwa.sultan@fco.gov.uk for more information on the construction and infrastructure opportunities.

6. Start-up considerations

There are several ways you can do business in Egypt. The most common are:

• appoint a local partner, distributor or agent
• set up own branch office in Egypt
• form a joint stock or Limited Liability Company

You should seek legal advice as the tax and legal obligations of each business structure can differ.

7. Legal considerations

There are a number of laws in Egypt that regulate business. The main ones are:

• the companies law (No 159 of 1981), which regulates the common business in Egypt
• the investment guarantee and incentive law (No 8 of 1997)
• Capital Market Law No. 95 for 1992 (“Capital Market Law”)

7.1 Standards and technical regulations

The Ministry of Industry and Trade is the primary agency responsible for issuing decrees making standards mandatory.

The Egyptian Organisation for Standardisation and Quality (EOS) is the official body responsible for standardisation activities, quality and industrial metrology.

7.2 Intellectual Property (IP)

Egypt is signatory to the main Intellectual Property Conventions (Rome, Paris, Berne and Washington). Egypt passed a new IP law in June 2002, bringing practices in line with WTO Law 82 of 2002.

Patents are registered at the Egyptian Patent Office and trademarks at the Department of Trade Registry at the Ministry of Trade and Investment.

The Egyptian Center of Intellectual Property and Information Technology (ECIPT) can help provide information for IP related queries.

Trademark counterfeiting, copyright piracy and patent infringements remain a major problem in Egypt. Enforcement of IP law is not strong.

8. Tax and custom considerations

8.1 VAT

The VAT rate is currently 10%.

8.2 Corporate tax

The corporate tax rate in Egypt is currently 22.5%. Oil and exploration activities are taxed at a higher rate of 40.55%.

8.3 Individual tax

The maximum individual tax rate is 25%.

8.4 Indirect tax

The tax rate for goods ranges from 10% to 50% for goods. For services, the tax ranges from 5% to 10%.

8.5 Customs

The Egyptian Customs Authority as a part of the Ministry of Finance implements laws and regulates customs. The Ministry of Finance issues decrees dealing with custom tariffs for each imported product.

For goods sourced from the UK or the European Union (EU), the Egyptian Customs Authority accepts the EUR1 certificate of origin form and applies preferential import duties.

8.6 Documentation

The following documents are required for any shipment to be accepted through customs in Egypt:

• commercial invoice
• certificate of origin (should be authenticated by the Egyptian Consulate in the country of origin)
• packing list
• bill of lading
• pro-forma invoice and letter of credit

Egypt no longer requires import licences for most products, although licences are still required for animal products.

9. Business behaviour

English is widely spoken throughout Egypt.

Although it is common for written correspondence to be in English, Arabic is often preferred within some public sector organisations.

10. Entry requirements

If you are travelling to Sharm El Sheikh, Dahab, Nuweiba or Taba for up to 15 days, you will receive a free entry permission stamp upon arrival. You need a visa to travel anywhere else in Egypt.

A passport is required to travel, which must be valid for at least 6 months.

Visit visas for stays of up to a month can be obtained also on arrival at the airport by payment of USD25. Payment can also be made in other currencies. You can also get a visa from the Egyptian Consulate General in the UK.

10.1 Travel advice

If you’re travelling to Egypt to do business check the Foreign and Commonwealth (FCO) travel advice beforehand.

11. Contacts

Contact the Department for International Trade (DIT) team in Egypt for more information and advice on opportunities for doing business in Egypt.