Egypt has recently been through a revolution as regards the political situation is concerned.This has led to a lot of monetary loss for the country which is struggling to find its feet.
Post the revolution, the Egyptian economy is improving itself. The Egyptian government aims to open up more of its economy to foreign investments in various sectors. Political instability, administrative inefficiency and lack of finance are the major factors that deter investors from foraying into the Egyptian market.
The main exports of Egypt are natural gas,cotton textiles, dry fruits, and citrus fruits. Apart from these, tourism is also a well-developed sector in Egypt. The Egypt business directory has a list of all companies of varied fields in Egypt.
The main cause of the revolution was the economic stagnation that was felt by the residents.Post the revolution and a new government, Egypt is still struggling to regain its past glory. At such times the investment in business can be both a risky and profitable proposition at the same time. The government wants to lure foreign investors with loads of subsidies and freebies but political instability remains one of the largest concerns. Nonetheless, investors looking at doing business in Egypt should be aware of a few things.
1. Choose your industry
Egyptians are reeling under an economic setback and as such foreign dollars will be morethan welcome. But like all businesses you need to analyze the market conditions beforeinvesting. Find out if you want to tie up with a manufacturer and sell their products in yourcountry or want to introduce a new product to the Egyptian market. For the former, you would need a list of Egyptian companies that will cater to you.
You can take the Egyptemail directory and contact the particular company. In the case of the latter option, you needto do a bit of research and decide if your product is suitable for the market.
Egyptians likemost Islamic countries are not too welcoming of western ideologies. Hence you need to bevery careful while starting your venture.
2. Egyptian Representation
Egypt is still plagued by administration inefficiency and such it may be a headache for aforeign investor to get started. The best way forward is to get an Egyptian representative.This will help you set up meetings with government officials, prepare the necessarypaperwork and also work your way around roadblocks if any.
There are lists of companies inEgypt who undertake representation work. It is, yet, better if you do a bit of research ontheir standing in the market before contacting them. Also, Egyptians conduct most of theirbusiness in Arabic and so it is better to have someone who knows the language.
3. Complete Legal formalities
Once you have settled in on your business option, you need to go about completing the legalformalities soon. Egyptian system is shrouded with corruption and inefficiency; yousomehow have to find a way around this. Though the government may provide you withsubsidies and attractive tax rebates, it is worth your money and time to look for legalrepresentation as well.
The Egypt company list for legal firms is a good option to look for lawfirms specializing in setting up businesses. One thing to note is that many of the contracts,paperwork will be in Arabic, make sure you insist on your English language copy.
Once you complete the formalities, you need to meet the officials . Of course, yourrepresentative is there, but it’s worth it to be present for important meetings. In fact, you cancarry your shortlisted companies in Egypt list to discuss with the officials. In most cases, theofficials should be able to guide you on the best companies to work with.
Should you go ahead with the Investment?
This is a million dollar question. Nobody likes to have a flop show but whether you willsucceed or not depends on a lot of factors. One of the major factors is political stability.
Egypt for the past 4-5 years has been reeling under a lot of political stability. Between 2011-2014, Egypt has seen ousting of 2 presidents. Since 2014 the situation is somewhat stableyet there is still an air of uncertainty. This can act as a deterrent for potential investors.
Besides this, the Egyptian system and scenario are not that evolved.Although the government is trying hard to get investors the fact remains that itsemployees and officials do not recognize the potential of the opportunity.
On the flip side, thegovernment offers numerable incentives and subsidies for foreign investors. Another aspectto look for is an availability of labor. Egypt has one of the highest percentages ofunemployment for graduates at an alarming 35%. This could mean that you have to hireEgyptian nationals with only a few foreign nationals. To an extent, it can signify thatyou have to make do with the quality of labor that is available.Among the positives is the use of internet technology. Almost 49% of the population isinternet savvy. The rate might be less than the rest of the countries but it is still goodconsidering that Egypt is an Islamic state. A lot of your transactions can be done throughemails. Many of the companies rely on email communication and you can also get a lot ofcontacts through Egypt email list.
Another important thing to note is that Egypt is still a conservative country with traditionalmindsets. You must be careful about your conduct during meetings and at social events aswell.
Egyptians have high beliefs in their customs and traditions and a potential businesspartner will expect you to follow them. As far as possible try and be aware of the customsand traditions so as not to offend anyone.
Investment in any proposition is based on an assurance of profit. Same is with Egypt,but, the only advice would be to do thorough research and analysis before diving intothe Egyptian market.