The Only Way is Egypt

If you’re thinking of expanding your business internationally, Egypt is an attractive prospect, offering a stable business environment with a sound infrastructure, pleasant climate, favourable costs and a splendid geographical location.

You can even apply for a business loan in Egypt at HSBC, but first you need to consider why you should do business there. Here are a few reasons:

Location

Thanks to its location in the centre of the Middle East and North Africa (MENA) region, and home to more than 800 million people, Egypt is a bridge between Africa, Asia and Europe. It is a hub for international trade between Europe, the Middle East and the Far East, and hosts the Suez Canal which connects the Red Sea and the Mediterranean Sea, making it a major connection both to Egypt and the world.

Economic Diversity

The Egyptian economy is one of the most diverse in the Middle East and covers an area four times the size of the UK. The Egyptian Government has placed a lot of emphasis on economic reform, as well as on democratic reform, and the transition to a free-market economy greatly favours business. Labour costs are also low.

You may be wondering about banking in Egypt. Well, the Central Bank of Egypt supervises all foreign and local banks in Egypt, and during commercial deals all bank transactions all (letters of credit and transfers) are secured and guaranteed internationally.

Opportunities Aplenty

If you’re a British business, the UK Government has the construction, education and training, energy, Information and Computer Technology (ICT), oil and gas, and retail sectors as the ones that hold the most opportunities for British companies.

The education and training sector offers particular scope for business opportunities, due to a shift in focus from education to pass exams to providing the skills and competences for employment. English language skills and e-learning are especially good avenues for business.

The oil and gas sector has been identified as Egypt’s fastest growing sector, with opportunities in all of the following areas: onshore exploration, offshore exploration, HSE services, field development and machinery, and training and capacity building. Training boasts special opportunities because of the large numbers of young people in the country.

The ICT sector also holds numerous opportunities for business, accounting for 3.3% of Egypt’s gross domestic product (GDP), with the demand for ICT estimated to reach around $4.9 billion by 2013 and the software market to grow approximately 11% annually.

Getting Down to Business

Good businesspeople keep their cool and respect the business culture of wherever they go. Here are a few things you should do in Egyptian business meetings:

• Wait for the businessperson to offer their hand first before shaking hands
• Dress formally and, if you’re male, avoiding wearing jewellery visibly
• Learn polite greetings in Arabic, for Egyptians appreciate this

And some you shouldn’t:

• Rush the other person — business is slower in Egypt!
• Ask lots of questions about the other person’s family
• Cross your legs or bare the sole of your shoe. This is considered rude.

So as well as knowing why to expand your business into Egypt, you know some of the things to do and not do in the process. This will help you get your expansion off the ground smoothly from the negotiation stages.

Dedicated to your (Made in Egypt) profits,  Sara.

Sara Rosemont is a guest blogger at FUSE, and contributes to business blogs around the world.

photo credit: Marwa Morgan via photopin cc