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What You Need to Know About Egypt Before Expanding Your Business There

Egypt is becoming one of the fastest developing countries in the world where investment is diversifying where there is a justified air of confidence.
Brian Warren | 02.11.2011
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 beforeexpanding 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, orexpat tax advice.
About the author: Brian Warren

Brian Warren lives in the United States, he is a former journalist love to write on different aspects.