In it for the Money — Investing in Egypt
The last few years have dished out some punishment
to Egypt, but the Egyptian economy has somehow withstood the onslaught.
Not that the country has come out of it all laughing, though. Still
feeling the effects, Egypt’s government and institutions are looking
to attract foreign aid and investment to recover from the financial knocks.
to Egypt, but the Egyptian economy has somehow withstood the onslaught.
Not that the country has come out of it all laughing, though. Still
feeling the effects, Egypt’s government and institutions are looking
to attract foreign aid and investment to recover from the financial knocks.
No one can predict the future, which is why starting
a business or investing on the financial markets is never easy. You
can, however, making informed decisions before you do it. So if you’re
looking to invest in Egypt, here are a few things you should know.
a business or investing on the financial markets is never easy. You
can, however, making informed decisions before you do it. So if you’re
looking to invest in Egypt, here are a few things you should know.
Born free
The days of having to going into partnership with
an Egyptian national or Egyptian business are gone. Now you can own
every inch of the business if you wish to. Not only that, you don’t
have to have a single Egyptian national on your board of directors.
But don’t rule out becoming business partners with a national. They
can provide valuable local insight into business aspects.
an Egyptian national or Egyptian business are gone. Now you can own
every inch of the business if you wish to. Not only that, you don’t
have to have a single Egyptian national on your board of directors.
But don’t rule out becoming business partners with a national. They
can provide valuable local insight into business aspects.
In the zone
Free trade zones are the very first place you should
consider setting up your business. Specially designed to attract foreign
investment, they hold tasty incentives for foreign entrepreneurs who
are looking to Egypt for their next business venture. Even the locations
obey this purpose, since they lie close to sea ports and airports so
businesses can import and export goods and products easier.
consider setting up your business. Specially designed to attract foreign
investment, they hold tasty incentives for foreign entrepreneurs who
are looking to Egypt for their next business venture. Even the locations
obey this purpose, since they lie close to sea ports and airports so
businesses can import and export goods and products easier.
If any of the following appeal to you, you should
definitely consider Egypt:
definitely consider Egypt:
- Tax
and custom duty exemption for as long as the business operates in the
free trade zone - Import
and export regulation exemption - Choice
of selling a percentage of production domestically - Free
choice of legal status for your business - Exemption
from some labor provisions.
Bear in mind that if you start up a business in Egypt,
you’ll need to do some business banking. International banks offer
special business accounts which are particularly handy for making international
payments for goods or services.
you’ll need to do some business banking. International banks offer
special business accounts which are particularly handy for making international
payments for goods or services.
More than a fistful of dollars?
It’s not just through business that Egypt wants
to attract investors. The Central Bank of Egypt has resorted to a past
measure to attract investment on the financial markets, by reactivating
a former mechanism.
to attract investors. The Central Bank of Egypt has resorted to a past
measure to attract investment on the financial markets, by reactivating
a former mechanism.
Investment that flows in from abroad through commercial
banks will be sold to the Central Bank of Egypt and assigned to a Foreign
Investment Fund. When foreign investors sell off their assets in Egypt,
they’ll be able to claim the amount in dollars from the fund.
banks will be sold to the Central Bank of Egypt and assigned to a Foreign
Investment Fund. When foreign investors sell off their assets in Egypt,
they’ll be able to claim the amount in dollars from the fund.
Whereas before this scheme only covered shares, this
time it will cover bonds and treasury bills too. Into the bargain, foreign
investors will feel more confident about investing in Egypt, knowing
that their money is not being used to finance the Egyptian balance of
payments.
time it will cover bonds and treasury bills too. Into the bargain, foreign
investors will feel more confident about investing in Egypt, knowing
that their money is not being used to finance the Egyptian balance of
payments.
So in a bid to bounce back to full health, Egypt is
opening up to foreign investment and isn’t fussy about how this investment
takes place. If you prefer to invest on the financial markets, Egypt
will reward your investment in dollars. Opt to go into business in Egypt
and the country will reward you with tax-free profits. Either way, Egypt
will see you right.
opening up to foreign investment and isn’t fussy about how this investment
takes place. If you prefer to invest on the financial markets, Egypt
will reward your investment in dollars. Opt to go into business in Egypt
and the country will reward you with tax-free profits. Either way, Egypt
will see you right.
