What you need to know about Egypt before expanding your Business there

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What you need to know about Egypt before expanding your Business there
Being in the core of the Middle East, Egypt serves as a bridge between the European west and
the Arab east. It is one of the most populous Arab countries in the world and derives most of
its culture from Mediterranean, African and Arab influences. Egypt is becoming one of the
fastest developing countries in the world where investment is diversifying where there is a
justified air of confidence. It has the potential to be counted among the emerging markets
ready to offer good returns for foreign investment.
The Egyptian Economy
Although decreasing as a percentage of GDP, agriculture employs approximately 30 percent of
the population. There has been an enormous improvement in the economy, and the new
regulations have brought about much confidence within the business community. The existing
government revived a stalled economic reform program that was intended at decreasing the
size of the public sector and expanding the private sector, thereby resulting in a new market
for foreign business.
The Main Business opportunities
With natural gas production increasing rapidly, Egypt is a major oil and gas producer. It is
always good to have a clear and detailed idea of the market before expanding business
overseas. A recent study has shown that education & skills, ports & logistics, railways have a
lot of prospects.
What you must know about the Free Zone
The Investment Law also regulates the Egyptian Free Zones. To make the most of on Egypt's
strategic geographical location, and seeking to attract foreign investors, the government has
been establishing and promoting free zones. Most goods and materials imported to a Free
Zone project are not subject to import duties or customs regulations just as the goods and
materials exported from Egyptian Free Zones are also not subject to export duties or
regulations. Any company that is formed to operate in the free zone is exempt from all
Egyptian income taxes for an unlimited period. To encourage foreign investment, there are
attractive trading conditions and numerous free zones where the laws are relaxed or removed.
Overcoming the Challenges
Before incorporating a business in Egypt, it is best for investors to conduct a though market
research as there could be significant risks while expanding your business in Egypt. Seeking
counsel from a professional will ensure that you are taking the right steps towards the
fulfillment of your overseas expansion. You can avoid the pitfalls and get the right guidance on
local business practices, such as hiring employees, tax regulations, international accounting,
or expat tax advice.
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