Egypt Country Profile
Snapshot of the Egypt Country Profile
The Egyptian revolution that took place 25 January 2011 was a response to several grievances of the Egyptian people, one of which was the pervasiveness of corruption. The full repercussions of the revolution are still to be felt, but several former ministers' from Mubarak's regime have already been arrested and sentenced for corruption and abuse of power. The transition from military to civil rule has also been completed, with parliamentary elections held in November 2012. The presidential elections were held in June 2012, at which time Mohamad Morsi, member of the Muslim Brotherhood, was elected the new President of Egypt. Prior to the revolution there was a key focus on market reforms and the establishment of free trade and industrial zones; Egypt had attracted an unprecedented amount of foreign direct investment and achieved high GDP growth in recent years. However, companies wishing to invest in the country should be aware that several sources identify pervasive corruption as a major obstacle to doing business. Observers agree that corruption in Egypt is pervasive and that the use of wasta ('mediation' or 'influence' in Arabic) is essential for doing business.
Positive developments in relation to corruption and investment:
- Egypt has dramatically improved its performance in a number of regulatory areas, including starting a company and trading across borders, areas in which Egypt performs impressively compared to regional averages.
- Although facilitation payments are often still required, Egypt has improved its performance in relation to issuing licences, permits and utility connections.
Risks of corruption:
- The revolution has created a power vacuum, and the future government will have to prevent this being filled with new corrupt individuals pursuing their own agenda.
- Companies are likely to encounter corruption in meetings with public officials. Officials in various government departments are known for bribery, embezzlement and tampering with official documents.
- Corruption and bribery are reportedly common when companies deal with public services, customs and taxes, public utilities, and procurement.
Egypt Corruption News
'Former Egypt finance minister Boutros-Ghali gets life sentence', 25 Apr. 2013
'Mubarak's last PM found not guilty on corruption charge', 7 Apr. 2013
- Trust Law:
'Egypt files new charges against Mubarak's last premier', 19 Feb. 2013
- Daily News Egypt:
'Where corruption thrives: Public universities in Egypt', 13 Feb. 2013
'Egyptian court orders release of one of Mubarak's closest aides', 13 Feb. 2013
'Arab Spring shows need to tackle graft in military - watchdog', 06 Feb. 2013
- BBC News:
'Court in Egypt orders retrial for Mubarak after appeal', 14 Jan. 2013
- Gulf News:
'Gift scam lands Mubarak loyalists in trouble', 08 Jan. 2013
Publication date: October 2012
Data verified by Global Advice Network