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Egypt profile

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(Last updated: 23 Apr 2008)


 

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Egypt. This is regularly updated, and should be checked before planning travel.

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Country overview

Capital city: Cairo
Surface area: 1,001,000 sq km
Population: 72.1 million
Official language(s): Arabic
Government: Republic
Head of State: H.E. President Mr Mohamed Hosni Mubarak
Head of Government: H.E. Prime Minister Mr Ahmed Nazif
Australian exports to Egypt: A$337 million
Australian imports from Egypt: A$17 million
Egypt's principal export destinations: India, Italy, USA
Egypt's principal import sources: USA, Saudi Arabia, China
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Economic climate

Key economic indicators and statistics for 2007:

  • GDP – US$127.9 billion
  • GPD per capita – US$1,739
  • Real GDP growth – 7.1 per cent
  • Inflation – 11 per cent

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Political climate

Egypt has freedom of speech, and civil rights are reasonably well secured.


The Egyptian constitution defines the country as an ‘Arab Republic with a democratic, socialist system’. The presidency is the strongest political institution and has the power to appoint and remove ministers and senior officials, including judges, governors, senior army officers and heads of religious institutions. Egypt has a bi-cameral parliament, dominated by the ruling National Democratic Party. Egypt is divided into 26 governorates.


From 1992 to 1998 the Islamic militant organisation, Gama’a Islamiyya, carried out a campaign of violence aimed at overthrowing the government. This included several attacks against foreign tourists that resulted in a concerted and successful Egyptian Government counter-terrorist campaign.

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Trade relations and statistics

Egypt is a member of several international organisations, such as the United Nations, the World Bank, International Monetary Fund and the Arab League.

Egypt is also a member of several trade alliances as follows:

  • The Free Trade Agreement with the European Union (EU). The EU is Egypt’s main trading partner, representing approximately 40 per cent of its total foreign trade. The agreement will grant Egypt’s manufactured goods duty free access to EU markets and will phase out custom duties on EU products coming into Egypt within 12 years.
  • In January 1998, Egypt began implementing agreements reached with Arab League members in connection with the Arab Common Market treaty of the 1960’s. These agreements call for phasing out existing tariffs over a 10-year period.
  • Egypt joined the Common Market for Eastern and Southern Africa (COMESA) in June 1998, reducing tariffs with the COMESA partners by 90 per cent in 1999 and committed to eventual elimination of them entirely.
  • Egypt has expressed its interest in joining the revitalised Arab Maghreb Union.

Major Australian exports to Egypt (2006-07):

  • Coal – A$68 million
  • Copper – A$67 million
  • Vegetables – A$45 million
  • Butter – A$14 million

Major Australian imports from Egypt (2006-07):

  • Floor coverings – A$3 million
  • Bed, table, toilet and kitchen linen – A$2 million
  • Aluminium – A$2
  • Furniture – A$1 million

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)


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OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the ANCP website.

     

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