Egypt Country Profile

Snapshot of the Egypt Country Profile

With a key focus on market reforms and establishment of free-trade and industrial zones, Egypt has attracted an unprecedented high 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. However, corruption and bribery are reportedly still common when companies deal with public services, customs and taxes, public utilities, and procurement.
• Although facilitation payments are often still required, Egypt has improved its performance in relation to issuing licences, permits and utility connections.

Risks of corruption:

• 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 is particularly prevalent in public procurement.
• Companies should know that corruption is not uncommon when dealing with the customs administration, and excise laws are not always enforced uniformly and without discrimination.