Doing Business in Egypt

While geographically part of Africa, Egypt is an integral socioeconomic part of the Middle East. Business in Egypt is personal. Egyptian and foreign business community members who have broad experience in the market, give the following suggestions:

Have Patience:

Unfamiliar paperwork processes, and bureaucratic procedures make business conduct somewhat slow in Egypt. Don't expect to breeze in for a week in Cairo and leave with a contract. It may take a year or more, but in the end, it is usually profitable.

Get Acquainted With Local Culture:

Egyptians are a proud people who trace their civilization back 5,000 years. Take time to learn the culture, and develop an appreciation for the Islamic faith. All private business leaders and most high level government officials have a good command of English. Learn as much Arabic as possible - it pleases Egyptians if you know key phrases in Arabic ... Good Morning (Sabah El Kheir), Good Evening (Messaa El Kheir), etc.

Be Personable:

When you visit with a business person, don't just walk in, shake hands and get down to business. If you have previously met with the person, chat about common friends, family, children, etc.

Do Your Homework:

The Egyptian market is a complex and highly competitive one. A good Egyptian agent will help you a great deal in directing you to success. Find yourself a good local representative.

Remain Flexible:

The Egyptian market, like anywhere in the Middle East, is a changing one. Don't always expect the terms of a contract to remain the same during its length. Explore different markets - be flexible to change from partnership to technology transfer or royalty provisions.

Send Your Best:

Your top experienced executive with knowledge of the area will do a better job with the Egyptian business community. Your young, enthusiastic representative may not be as effective with the local partner, particularly in a culture which venerates age and experience.

Business Rules:

When doing business in Egypt, be prepared to play it in the Egyptian tradition, or you may waste your time. A few foreign firms come to Egypt and give up after a short stay. But most foreign companies, once established with a base here, find the Egyptian market a worthwhile and profitable place to do business.

Travel Considerations

Visas
All visitors to Egypt are required to have a visa and a passport valid for six months. Visas can be arranged through Egyptian embassies worldwide. Visitors from the US, Canada, EU and GCC countries may be able to purchase a visa stamp upon arrival at many large airports. One-month visitor's visas can be extended.

Budget meal: US$ 2 - 4
Restaurant meal: US$ 6 - 8
Budget bed: US$ 3 - 8
Mid-range hotel: US$ 40 (double)

Egypt is terrific value. It is possible to spend as little as US$ 10 - 15 a day if you're prepared to stay in the cheapest hotels and hostels, eat local vendors' food, limit yourself to one historic site a day and travel on packed third-class trains. The major expense for the traveller in Egypt is transport and site entry - the latter has taken some severe jumps in recent years. Entry to the Egyptian Museum in Cairo will cost you around US$7 and the recently opened Tomb of Nefertari near Luxor is a hefty US$60.

Be aware that pickpockets operate around tourist sites, so avoid carrying money in your back pocket. Well-known brands of travellers' cheques will be honoured everywhere, although having travellers' cheques in US dollars, UK pounds or in Deutschmarks will prove the most hassle-free. American Express, Visa, MasterCard, JCB and Eurocards are accepted at various stores and hotels displaying the appropriate signage. Visa and MasterCard can be used to obtain cash advances at Banque Misr and Bank of Egypt branches.

A service charge of 12% applies in restaurants and hotels, and a sales tax of 5-7% is also levied. Additionally, you might find yourself paying a further 1-4% tax on upper-end accommodation, so it is possible to find that a 23% tax has been added to the price you've been quoted for a mid-range or top-end hotel room.

Bargaining is a part of life in Egypt and virtually everything is open to negotiation. This includes your room for the night, your lunchtime roadside snack and the felucca you ride down the Nile in. The few rules to observe in the bazars are these: never offer a price that you're not prepared to pay, get a feel for the real price before you begin haggling, take your time and enjoy the friendly sport of it (which might include a cup of tea from the vendor), and remember that you're never obliged to buy anything - you won't offend anyone.

Usual Holidays and Festivals

January 1 New Year's Day
*January 19-20 Ramadan Bairam (End of Ramadan Fasting Month)
*March 30 Kurban Bairam (Pilgrimage Feast)
April 19 Sham El Nessim (Welcoming Spring Day)
April 25 Sinai Liberation Day
*April 16 Islamic New Year
May 1 Labor Day
*June 26 Moulid El Nabi (Prophet's Birthday)
July 23 National Day
October 6 Armed Forces Day

* Depends on Lunar Calendar; a difference of a day may occur.
Sham El Nessim changes with Coptic calendar.

Some Useful Sources of Information

Markets and Sectors
http://tradeport.org/ts/countries/egypt/sectors.html

Market Access
http://www.tradeport.org/ts/countries/egypt/market.html

Investment Climate
http://www.tradeport.org/ts/countries/egypt/climate.html

Egypt's main Export Trade Information
http://www.arab.net/egypt/business/et_trade.html

Egypt State Information Service: provides a portrait of Egypt, its people, history and culture. Includes a Live real-media daily broadcast
http://www.sis.gov.eg/

Arabic Countries - Arab World - Politics, Population, Religion, Language
and other Info
http://www.arab.de/arabinfo/egypt.htm

Country Information about Egypt: Overview, News, Bibliography, Statistics, Demography, Labour Force, Health & Education, Economic Sectors, Communication
& Tourism, External Trade, Money & Finance, National Accounts, All Data (44K)
Maps, Photo Album, Charts etc.
http://www.sesrtcic.org/DIR-EGY/EGYHOME.HTM

Egypt has it all! A guided tour to Egypt
http://www.tourism.egnet.net/

ABC Country Book of Egypt - People, Government, Economy, Transportation
http://www.theodora.com/wfb/egypt/egypt.html

Egypt Profile - Egyptian Presidency
http://www.presidency.gov.eg/