Doing business in Egypt

Doing business in Egypt can be a challenge there is no doubt about that. The country has gotten a bad, and well deserved reputation for corrupt officials and excessive and often silly rules. However there have clearly been attempts to change the situation. The government have come to the realization that they need foreign companies to invest in Egypt if the economy is to grow. Certainly there is still a long way to go but they are definitely taking steps in the right direction.

Egypt sits right in the centre of the Middle East, although most people think of the Middle East as being the countries that are further to the east Egypt is in fact right dead in the centre. It also a major player in region, with eighty million people it is by far the largest of the Arab countries in terms of population. The country also plays an important part in the politics of the region. In recent years Egypt has been a moderating influence. Although the country is Muslim it is much more relaxed about this than in other countries in the area.

As the largest country in the Middle East it should come as no surprise that there is a great deal of opportunity to do business in Egypt. The country has a fairly large economy although on a per capita basis it is one of the poorest countries in the region. This is mainly because although they are a major petroleum producer they don't produce as much as some of their neighbours. This combined with the much larger population has resulted in a country that has lagged behind. The good news is that the country is attempting to diversify its economy and the stagnation of the last few decades has started to come to an end. That means there is good opportunity for companies who want to do business in Egypt.

The downside to doing business in Egypt is that it can be a real challenge. The government are actively pursuing foreign investment but in a lot of ways they are hamstrung by their own laws. There are a whole lot of rules that will have to be negotiated when you are doing business in Egypt. There is all kinds red tape, decisions by the government are often arbitrary and corruption is a very serious problem.

In addition to all of the bureacratic and regulatory problems that you will face if you do business in Egypt there are also a number of cultural issues. Things are done differently and this can often cause troubles for foreign companies who don't understand this or won't accommodate it. As a practical matter you will almost certainly need to partner with a local representative to help your company navigate all the rules and the cultural differences. However if you can get through all the headaches there is a world of opportunity in Egypt.