Geographic Location:
The Arab Republic of Egypt is supremely located on the right upper corner of Africa and extends along the Red Sea. There; where SIDC industrial zone is located on the North West Coast of the Gulf of Suez.

Climate:
Egypt being a Mediterranean Country enjoys good weather almost all year long. Summer temperature ranges from 29°c to 37°c and Winter temperatures range from 12°c to 23°c. Rainfall is erratic and generally only lasting a few days rarely exceeding 5-10 inches a year.

Currency:
The monetary unit in Egypt is the Egyptian Pound, which is divided into 100 Piasters. Notes are issued in denominations of Pounds (L.E.) 1, 5, 10, 20, 50 and 100.

Local Time:
The Arab Republic of Egypt is 2 hours ahead of GMT, with a 1-hour daylight saving in Summer time.

Investment Environment:
International investment banks are betting on Egypt to emerge as a vibrant capital markets center. With Egypt's economic reforms billed as the most advanced in the region, the potential for expansion in capital markets has persuaded several investment houses to set up shop locally. These include ABN Amro, Flemings, ING Barings and HSBC.

Privatization:
Privatization is a key indicator of the Government's commitment to reform. Through at least 133 sales transactions of Law 203 Affiliated Companies, the Government is transferring management control or majority shareholding to private investors. Egypt's continuing privatization program for industrial and financial firms is currently being implemented jointly by:

1. The Ministry of Public Enterprise for state-owned industrial companies under Law
2. The Ministry of Economy and Foreign Trade for joint venture companies and financial institutions.

Privatization methods used by the Government to date have included public listings, sales to anchor investors, management contracts, leasings, employee buyouts and liquidations.

Investment Incentives:
The latest investment Law 8/1997 deals with investment guarantees and incentives. Its principal purpose is to boost production and foreign direct investment by streamlining procedures, removing bureaucratic barriers to business formation and providing tax incentives to priority sectors. The law gives more incentives for priority areas, such as infrastructure, auto parts, software, oil field services, tourism and manufacturing. Other key aspects of the law include:

1. Providing tax incentives for projects in targeted geographical development areas, such as SIDC industrial zone on the North East the Gulf Suez.
2. Encouraging small and medium scale enterprises.
3. Providing incentives for export activities.
4. Prohibiting nationalization, freezing or confiscation of enterprises.
5. Prohibiting government interference in pricing company products or determining their profits.
6. Prohibiting cancellation or suspension of all or part of a previously issued license to benefit from real estate, except in cases where the license conditions have been breached.
7. Allowing companies to own plants, machinery and land necessary for their business activities, regardless of the nationality or place of residence of the owners.

Taxation:
Egypt's main taxes include those on salaries, certain categories of non-salaried income, unified personal income, corporate profits, real estate, customs, sales, stamp duties, and social insurance contributions. Taxes are the largest contributor to Government revenue, comprising over 60 percent of the total over the past five years. The Minister of Finance recently asserted that the Government will implement tax reforms by improving collection rates, increasing the operational efficiency of the tax authority and setting executive regulations for customs and tariffs law.

Tax Exemptions:
Please Visit the
: : General Authority for Investement & Free Zones website

Infrastructure
Infrastructure was of high priority to the Egyptian government. For example, from the beginning of the structural reform program, a key part of infrastructure development in Egypt was to expand and improve electricity services in various governorates. As a result, during the past decade electricity coverage has expanded significantly throughout Egypt. Solid electrical services, critical for Egypt's developing industrial sectors, have been attained. Currently, electric consumption is 61 billion kilowatts per hour of which 39 percent is used by industry. To meet rising demand for electricity, about 3,953 megawatts have been added to Egypt's installed capacity over the past decade.

To establish a stronger infrastructure, Egypt continues to improve its railway and road networks, which are now quite developed. There is increasing demand for improvements in Egyptian ports, including their storage facilities and other services, and much of this will be accomplished through privatization of port facilities and new private-sector investment projects. For example, Law 22/1998 allows specialized ports to be established and operated through Build, Operate, and Transfer (BOT) schemes. Sokhna int'l port operates under such scheme. The private sector has been contracted to erect at least two airports, Ras Sedr and Allamain, under BOT schemes. They are also becoming more involved in other sectors such as potable water.

Navigable waterways in Egypt total 31 hundred kilometers. Egyptian seaports now account for between 85 and 90 percent by tonnage of its international trade. The Suez Canal continues to well position Egypt for world trade. Having completed the second phase of its deepening in 1994, the Suez Canal now accommodates super tankers and other large vessels.

Useful Egyptian Sites
: : The Egyptian Presidency
: : The Ministry of Tourism, Egypt
: : Ministry of Foreign Affairs
: : Ministry of Economy
: : Egypt State Information Service
: : Egyptian Cabinet
: : Egyptian Trading Directory