Why Set Up Business in Egypt?
As home to one of the oldest cultures in the world, Egypt is still attested today by some of the world’s most famous monuments like the Giza pyramid complex and the Valley of the Kings. Egypt is located in the heart of Middle East and it’s a place where the Mediterranean, African and Arab cultures met.
With a population of 90 million, half of which are below the age of 30 and tech savvy, Egypt is rising as one of the fast-growing entrepreneurial hubs in the world. Egypt has the potential to become the emerging markets that poised to offer good returns for foreign investment due to its booming economy. Egypt is a major oil and gas producer, with natural gas production increasing rapidly. Agriculture in Egypt accounts for 40 percent of employment and 14 percent of GDP.
Furthermore, Egypt stands a better chance to attract more investors due to its participation in some trade agreements- Egypt-EFTA Agreement, EURO-Med Partnership and Greater Arab Free Trade Area (GAFTA) to name a few. Taxation regime in Egypt is comprehensive in terms of the types of taxes and areas covered. For example, companies in Egypt are liable for corporate tax at a flat rate of 22.5%, although there are different rates for the Suez Canal Authority, the Egyptian Petroleum Authority, the Central Bank of Egypt, and oil and gas exploratory as well as the production companies.
If you are thinking of doing business in Egypt, there are several ways you can consider. The most common are:
- appoint a local partner, distributor or agent
- register your own branch office
- setup a joint stock or Limited Liability Company
Lastly, let’s have a quick look at the strengths of the Egyptian market:
- a young workforce (50% of the population are under 30)
- Suez Canal as the hub for world maritime traffic
- culturally rich and welcoming location at the crossroads of Europe, Africa, and Asia
- substantial ongoing government investment and support
- sustainable low cost of doing business
Egypt is where Europe meets Africa meets Asia. In recent years, it has established itself as an outstanding location for investment and business process outsourcing. If you are considering a place for your overseas business, Egypt is rather a good option for you to expand your business portfolio.