Research and consulting in Egypt

Country overview:

IOA has conducted in-depth research into Egypt’s economic, political, and societal landscapes, offering valuable consulting services on the country. While political stability in Africa’s most populous nation has been achieved, it has come at the expense of restricted human rights, according to IOA political analysts. The economy remains bolstered by key sectors such as agriculture, exports, and shipping, though global warming poses serious challenges, including water scarcity and agricultural strain. Terror attacks on the Red Sea in 2024 have diminished Suez Canal revenues and highlighted vulnerabilities in this crucial global shipping route.

Despite these difficulties, Egypt remains a significant market for industrialists and retailers, driven by its large and growing population. It is also a top destination for African tourism, with many visitors prioritising Egypt for its unique attractions. The country continues to leverage its rich cultural heritage, frequently expanding its offerings of antiquities and historical sites. These efforts reinforce its position as both a cultural treasure and an economic powerhouse within Africa.

Key opportunities in Egypt:

Egypt occupies a strategic location connecting Europe, the Middle East, and Africa, with the renovated Suez Canal serving as a vital trade route between East and West
Innovations in solar energy and advanced irrigation techniques are unlocking development potential in the predominantly desert landscape
A well-educated and sizable youth population, combined with a skilled labour force, creates favourable conditions for investment in business, industry, and other sectors

Key concerns/risks in Egypt:

The government’s restrictions on human rights in its campaign against Islamic extremism has significantly impacted the civil liberties of all Egyptians
Accelerating population growth is exacerbating widespread poverty across the country
IOA analysts note that the ongoing challenge of water security is being further aggravated by the effects of global warming

Find out about how IOA can help you with research and consulting services in Egypt

Tips on doing business in Egypt:

Starting a business:

Foreigners are allowed to own up to two properties in Egypt, with the exception of agricultural land, which is restricted to Egyptian citizens. Property ownership can pave the way to obtaining local residency, although this is not guaranteed automatically
Egypt offers five categories of legal entities for company incorporation, with the LLC being the most common choice for foreigners due to its limited liability structure and flexible acceptance of issued capital

Doing business:

In recent years, the Egyptian government has introduced significant market reforms. Among these is Law 160, which offers a range of tax incentives for strategic industries such as petroleum manufacturing, fertiliser production, iron and steel manufacturing, natural gas liquefaction and transportation, and other energy-intensive industries which are now subject to Egypt’s free trade zone regulations

Culture and society:

Bartering plays a significant role in Egyptian commercial culture, extending beyond everyday retail to corporate transactions. Written contracts are less central to business deals and are often not considered as binding as in other countries
Business culture in Egypt is highly hierarchical, placing strong emphasis on age and experience. This is particularly evident in interactions with the government and in sectors where government involvement is prominent, such as the hydrocarbon industry
Direct confrontation is generally avoided in Egyptian culture. Rather than issuing a firm “no,” parties often let negotiations lapse without resolution, allowing discussions to naturally cool off
(Read more at: https://culturalatlas.sbs.com.au/egyptian-culture/egyptian-culture-business-culture)