Egypt’s GDP grew 7.1% in 2007 and accelerated to 7.5% in the first half of 2008. This is far better than average for the Middle Eastern and North African region and it is nearly two percentage points above the global average. Among the nation’s fastest-growing sectors are the ever-present tourism, communications and information technology, construction, manufacturing, and transportation.
This unprecedented high rate of growth is supported by economic stability cushioned by a decline in the country’s budget deficit to less than 7.5% of GDP in 2007 compared to 10.5% in 2003. By 2011, the deficit had been cut in half and has steadily been cut down by one percentage point each year.
Trained and Competitive Labour Force
Egypt is home to a reliable and large labour force, making it ideal for investors interested in construction, office work, and other opportunities that require quality talent. The country’s competitive advantage in human resources has gradually shifted toward becoming a provider of skill-intensive workers who are highly available to employers. Egypt property is cost-effective and simple to obtain, making the process of investing fast, simple, and less frustrating.
Many leading sectors of the economy are skill-intensive service sectors and these are largely made up of ICT, financial services, and tourism. Wage levels in such sectors are well below those of other areas of the world such as Europe, meaning that you can utilise qualified talent without reducing your returns. There are hundreds of thousands of workers available in the manufacturing sector alone.
Egypt’s population is enormous and its sheer size, as well as the doubling of per-capita income, has transformed Egypt into a consumer market of significance. The arrival of dozens of global consumer brands and the sharp expansion of retail sales in the past decade have caused the population to explode, and the fact that 56% of the population is between the age 15 and 60 has also impacted investment trends.
Egypt has a broad world-class infrastructure base. Three independent mobile phone networks cover close to 100% of the country’s inhabited areas. More than 8% of the world’s total shipping travels through the Suez Canal each year. Wi-Fi and other necessities are widely available in urban centres and residential areas, and the country’s 14 ports serve exporters and importers alike. Finally, its expanding and upgrading airport network is large enough to cater to both passenger and cargo traffic. With all of these, you can build a company, find a suitable home, or just look for a place to spend winter each year without losing any of the comforts and luxuries you enjoy at home.
Competitive Tax Rates
Corporate and personal tax rates in this beautiful country are competitive and it is easy to navigate your way through the newly overhauled tax code. These tax rates top out at 20% and the country moved to random-sample auditing. The nation’s largest corporate taxpayers are also served by a special highly-trained unit of the Tax Authority, making everything at once simpler and frustration-free as you handle taxes each year. Egypt is by far one of the best areas to invest this year.