Thursday, 13 May 2010 201 0 Egypt PEST Analysis
Key FACTS about Egypt: •
Full name: Arab Republic of Egypt
•
Capital: Cairo
•
Population: 80.3 million
•
Area: 1 million sq km
•
Major language: Arabic
•
Major religions: Muslim 90 ! Coptic 9 " ot#er C#ristian 1
•
Currency: Egyptian $oun%
•
•
Main exports: $etroleum! petroleum pro%ucts! cotton! &e'tile! Metal pro%uct an% C#emicals. Geographical ocation: (ort#ern Africa! bor%ering t#e Me%iterranean Me%iterranean )ea! bet*een +ibya an% t#e ,a-a )trip! an% t#e Re% )ea nort# of )u%an! an% inclu%es t#e Asian )inai $eninsula
To ma!e an external scanning on Egypt" #e ha$e to !no# #hat characteri%es the political" economical" sociocultral sociocultral an& technological en$ironments in Egypt'
Economical En$ironment: ccupying t#e nort#east corner of t#e African continent! Egypt is bisecte% by t#e #ig#ly fertile (ile /alley! *#ere most economic acti/ity takes place. Egypts economy *as #ig#ly centrali-e% %uring t#e rule of former $resi%ent ,amal Ab%el (A))ER but #as opene% up consi%erably un%er former $resi%ent An*ar E+)A2A& an% current $resi%ent Mo#ame% osni M45ARA6. M45ARA6. Cairo Cairo from 700 to 7008 aggressi/e aggressi/ely ly pursue% pursue% economic economic reform reforms s to attract attract foreign in/estment an% facilitate ,2$ gro*t#! but is postponing furt#er economic reforms because of global economic turmoil. it# t#e installation of t#e 700 Egyptian parliament! t#e ,o/ernment of Egypt began a ne* reform mo/ement! follo*ing a stalle% economic reform program program begun in 1991! but moribun% since t#e mi%1990s.
:n t#e past year! t#e cabinet economic team #as simpli;e% an% re%uce% tari
7.? billion stimulus package fa/oring infrastructure pro@ects an% e'port subsi%ies! an% is consi%ering up to >3.3 billion in a%%itional stimulus spen%ing in 7010 to mitigate t#e slo*%o*n in economic gro*t#. :n )eptember 7009 Egypt *as ranke% among t#e *orl%s 10 most acti/e reformers for t#e fourt# time. e country mo/e% up to 10B from 11B among 183 economies *orl%*i%e in t#e o/erall ease of %oing business ranking. Accor%ing to t#e recently release% report by :C an% t#e orl% 5ank D 2oing 5usiness 7010 Reforming t#roug# 2iFcult &imes G! Egypt ma%e business startup less costly! e'pe%ite% t#e construction permit process! e'pan%e% t#e information a/ailable from t#e pri/ate cre%it bureau! an% create% commercial courts to spee% up contract %ispute settlements. 5eing a former global lea%ing reformer an% a regional lea%ing reformer in 7008H09! Egypt continue% to make it easier to %eal *it# construction permits by issuing e'ecuti/e articles for t#e 7008 construction la* an% eliminating most preappro/als for construction permits. Contract enforcement *as e'pe%ite% *it# t#e creation of commercial courts. Access to cre%it information #as e'pan%e% *it# t#e a%%ition of retailers to t#e %atabase of t#e pri/ate cre%it bureau. inally! company startup *as ease% by t#e remo/al of t#e minimum capital requirement.
acts an% ;gures on t#e Egyptian economy GDP (purchasing power parity): $470.4 billion (2009 est.) country coparison to the worl!: 27 $4"0.# billion (200 est.) $4#9.9 billion (2007 est.)
GDP (o%%icial e&change rate): $# billion (2009 est.)
GDP ' real growth rate: 4." (2009 est.) country coparison to the worl!: 29 7.2 (200 est.) 7.# (2007 est.)
GDP ' per capita (PPP): $*000 (2009 est.) country coparison to the worl!: #++ $"*00 (200 est.) $"*"00 (2007 est.)
GDP ' coposition by sector : agriculture: #+.# in!ustry: +7.7 ser,ices: 49.2 (2009 est.)
-abor %orce: 2". illion (2009 est.) country coparison to the worl!: 2#
-abor %orce ' by occupation: agriculture: +2 in!ustry: #7 ser,ices: "# (200# est.)
Population below po,erty line: 20 (200" est.)
/ousehol! incoe or consuption by percentage share: lowest #0: +.9 highest #0: 27. (200")
1u!get: re,enues: $4. billion e&pen!itures: $#.# billion (2009 est.)
Public !ebt: 79. o% GDP (2009 est.) country coparison to the worl!: #" ." o% GDP (200 est.) toc3 o% oney: $+#.72 billion (+# Deceber 200) country coparison to the worl!:
Distribution o% %aily incoe ' Gini in!e&: +4.4 (200#) country coparison to the worl!: 90 n%lation rate (consuer prices): #0.# (2009 est.) country coparison to the worl!: #9+ #.+ (200 est.) toc3 o% 5uasi oney: $##2.2 billion (+# Deceber 200) country coparison to the worl!: 2#
neployent rate: 9.7 (2009 est.) country coparison to the worl!: ##+ .7 (200 est.) n,estent (gross %i&e!): #7.9 o% GDP (2009 est.) country coparison to the worl!: #2#
oercial ban3 prie len!ing rate: ##.2 (+# Deceber 200) country coparison to the worl!:
entral ban3 !iscount rate: ##." (+# Deceber 200) country coparison to the worl!: 4 9 (+# Deceber 2007) toc3 o% !oestic cre!it: $#2." billion (+# Deceber 200) country coparison to the worl!:
7 #2."# (+# Deceber 2007)
27 $27. billion (+# Deceber 2007)
$#02. billion (+# Deceber 2007)
+" $##+.9 billion (+# Deceber 2007)
6ar3et ,alue o% publicly tra!e! shares: $".9 billion (+# Deceber 200) country coparison to the worl!: 4+ $#+9.+ billion (+# Deceber 2007) $9+.4 billion (+# Deceber 200) urrent account balance: $'+.+2 billion (2009 est.) country coparison to the worl!: #0 $'#.++# billion (200 est.)
griculture ' pro!ucts: cotton* rice* corn* wheat* beans* %ruits* ,egetables8 cattle* water bu%%alo* sheep* goats
n!ustries: te&tiles* %oo! processing* touris* cheicals* pharaceuticals* hy!rocarbons* construction* ceent* etals* light anu%actures
n!ustrial pro!uction growth rate: +.9 (2009 est.) country coparison to the worl!: +0
&ports: $22.9# billion (2009 est.) country coparison to the worl!: 4 $29." billion (200 est.)
ports: $4+.9 billion (2009 est.) country coparison to the worl!: 4 $".2 billion (200 est.)
Debt ' e&ternal: $2.4" billion (+# Deceber 2009 est.) country coparison to the worl!: 0 $+2.#2 billion (+# Deceber 200 est.)
toc3 o% !irect %oreign in,estent ' at hoe: $.4+ billion (+# Deceber 2009 est.) country coparison to the worl!: 44 $"9.#+ billion (+# Deceber 200 est.)
toc3 o% !irect %oreign in,estent ' abroa!: $#2.2+ billion (+# Deceber 2009 est.) country coparison to the worl!: 4+ $#2.0 billion (+# Deceber 200 est.)
eser,es o% %oreign e&change an! gol!: $+4.99 billion (+# Deceber 2009 est.) country coparison to the worl!: 27 $++." billion (+# Deceber 200 est.) &change rates: gyptian poun!s (GP) per !ollar ' ". (2009)* ".4 (200)* ".7 (2007)* ".72" (200)* ".7 (200")
)ource C:A t#e *orl% fact book 4)A
Egypt Risk Assessment Rating: B Risk Assessment
e economy gre* strongly in 700? %ri/en by %omestic %eman%. e go/ernments liberal approac# since 700 #as fostere% a climate of con;%ence con%uci/e to consumption an% in/estment. e economy #as also bene;te% from oil country boom /ia t#eir in/estments an% emigrant *orker remittances. :n t#is conte't! t#e business en/ironment is impro/ing *it# t#e Coface payment inci%ent in%e' remaining belo* t#e *orl% a/erage. #ile t#e gas sector #as continue% to %e/elop! manufacturing! construction! tourism! an% communications #a/e ac#ie/e% e'cellent performance. e outlook for 7008 is brig#t *it# gro*t# likely to reac# bet*een ?.0 an% ?.= per cent. . e e'ternal ;nancial situation remains #ealt#y ami% t#e goo% tren% on foreign currency earnings an% t#e increase in foreign %irect in/estment fuelle% by t#e pri/ati-ations. 2ebt ser/ice is lo* an% Egypt is buil%ing up foreign e'c#ange reser/es. o*e/er! t#e ;scal %e;cit an% public sector %ebt remain a source of concern. Controlling public spen%ing an% re%ucing t#e %ebt necessitates a spen%ing o/er#aul t#at *ill take time. Regional conIicts an% po/erty #a/e strengt#ene% :slamist opposition mo/ements. :n t#is conte't social climate is tense an% oFcials #a/e e'ercise% caution in pursuing reforms.
STRENGTHS
•
The business climate has benefited from an active reform program and a regional economic boom.
•
Egypt boasts diversified sources of foreign exchange (the Suez Canal, tourism, private transfers, and oil and gas exports).
•
oreign exchange reserves are high.
•
The country en!oys the political and financial support of "estern countries.
WEAKNESSES •
The interest on public debt and the cost of subsidies #eighs on public finances limiting the capacity for infrastructure development.
•
The ban$ing system is not yet capable of meeting the economy%s needs.
•
The tourism sector, #hose revenues are of fundamental importance to the current account balance and economic gro#th, remains vulnerable to the terrorist menace
$erformance statistics )ource e international Monetary un%
)ub@ect 2escriptor
4nits
,ross %omestic pro%uct! constant prices
(atio nal curren cy Annua l perce nt c#ang e (atio nal curren cy 4.). %ollar s
,ross %omestic pro%uct! constant prices
,ross %omestic pro%uct! current prices ,ross %omestic pro%uct! current prices
)ca le 5illi ons
5illi ons
5illi ons
,ross %omestic pro%uct! %eIator
:n%e'
,ross %omestic pro%uct per capita! constant prices
(atio nal curren cy
4ni ts
,ross %omestic pro%uct per capita! current prices
(atio nal curren cy
4ni ts
,ross %omestic pro%uct per capita! current prices
4.). %ollar s
4ni ts
,ross %omestic pro%uct base% on purc#asingpo*er parity J$$$K /aluation of country ,2$
Curre nt intern ationa l %ollar Curre nt intern ationa l %ollar $erce nt
5illi ons
,ross %omestic pro%uct base% on purc#asingpo*er parity J$$$K per capita ,2$ ,ross %omestic pro%uct base% on purc#asingpo*er parity J$$$K s#are of *orl% total :mplie% $$$ con/ersion rate
(atio nal curren cy per curren
4ni ts
700 0
700 1
700 7
700 3
700
700 =
700 B
700 ?
700 8
700 9
701 0
3=. ?0
3B?. 70
3?8. 90
391 .00
0? .00
7= .70
= .30
8B. =0
=71. 39
==. 89
=?0.
=.38
3.=7
3.19
3.1 9
.0 9
. ?
B.8
?.09
?.1?
.?0
.=0
30. 10
3=8. ?0
3?8. 90
1? .=0
8= .30
=38 .=0
B1? .?0
?. 80
89B. =0
1!03 8.B0
1!18 7.B7
99.1 B
9=. 0
8?.= 1
81. 38
?8. 80
89. ?9
10? .38
130. 3=
1B7. B7
18?. 9B
708. B
9=.8 8
9?.B 8
100. 00
10B .?8
119 .7
17B .B=
13= .9?
1=3. 09
1?1. 9=
190. 7B
70?. 37
=!B0 3.=7
=!B? =.?
=!? 0.91
=!8 09. 81
=!9 37. 9=
B!0 ?. 79
B!3 ?1. B?
B!B1 0.0=
B!93 3.37
?!11 B.81
?!79 1.09
=!3? 7.83
=!= .0=
=!? 0.91
B!7 03. =?
?!0 ?. 3
?!B 97. 8B
8!B B3. 39
10!1 19.= ?
11!9 71.=
13!= 0.3 B
1=!1 1=.? 1
1!=B B.7
1!? .8
1!37 =.8=
1!7 09. 7?
1!1 8. ?1
1!7 87. ??
1!= 0=. 9B
1!?? 1.00
7!1B 7.=
7!= 0.1
7!BB .1
7?. =7
7B7. 03
7?. ?B
789 .B3
309 .B=
333 .3=
3B? .?B
0=. 11
3. 3
?1. =1
=00. 7=
3!91 0.7=
!0 9.93
!1B 7.9B
!3 03. B7
!= 13. 88
!? B7. 17
=!1 =?. 9?
=!=0 .1?
=!89 B.B?
B!1 ?.17
B!39 3.9
0.=9
0.B0
0.B0
0.B 0
0.= 9
0.= 9
0.B 0
0.B7
0.B
0.BB
0.B?
1.3?
1.3?
1.38
1.
1.= ?
1.B 7
1.B 8
1.8
7.07
7.70
7.3B
:nIation! a/erage consumer prices :nIation! a/erage consumer prices
:nIation! en% of perio% consumer prices :nIation! en% of perio% consumer prices
$opulation
t intern ationa l %ollar :n%e'! 7000 L100 Annua l perce nt c#ang e :n%e'! 7000 L100 Annua l perce nt c#ang e $erso ns
Mill ion s
100. 00
107. 3
10. 97
108 .78
11? .0B
17? .3B
137 .?1
1?. 7=
1B. 8
191. 70
70?. 3B
7.8=
7.3
7.3
3.7 1
8.1 1
8.8 0
.7 0
10.9 =
11.? 0
1B.7
8.=
100. 00
107. 73
10=. 0
109 .7B
177 .0=
17? .?B
13? .01
18. ?3
1?8. ?=
19B. ==
717. 7?
7.=
7.73
7.?=
.0 1
11. ?1
.B 8
?.7
8.==
70.1 8
9.9B
8.00
B3.3 0
B.? 0
BB.0 0
B?. 30
B8. B0
?0. 00
?1. 30
?3.B 0
?=.7 0
?B.? 0
?8.7
Technological En$ironment: Egypts :& spen%ing is e'pecte% to increase from 4)>1.3bn in 7010 to 4)>7.1bn by 701 an% t#e Egyptian :& market gro*t# is forecaste% to remain belo* pre economic crisis le/els in 7010! but economic reco/ery! ten%ers %elaye% from 7009 an% #ig#er incomes booste% by pay raises for ci/il ser/ants an% ot#er groups s#oul% #elp to keep sales on an up*ar%s tra@ectory. . A number of policies #a/e been implemente% to attract foreign in/estment in :& outsourcing! inclu%ing local employment subsi%ies! lo*er corporate ta'es an% %e%uctions for training costs. e Egyptian minister of state for a%ministrati/e %e/elopment #as sai% t#at 700 go/ernment ser/ices *ill soon be a/ailable online t#roug# a ne* ego/ernment portal. e portal *ill o871mn in 7010 an% are forecast to reac# aroun% 4)>1.3bn in 701. Egypts :& market *ill stay #ar%*are %ominate%! *it# spen%ing on $Cs sustaine% by initiati/es like t#e Computer for E/ery )tu%ent an% $C for E/ery ome programs. ar%*are accounte% for an estimate% B7 of Egypts :& spen%ing last year. ouse#ol%s account for 707= of unit sales! *it# almost 11.=mn #ouse#ol%s sai% to possess a computer at present. .
/erall spen%ing on soft*are remains rat#er lo*! *#ic# reIects t#e relati/e immaturity of Egypts :& market. ne market %ri/er #as been a signi;cant fall in soft*are piracy! *it# t#e illegal soft*are usage rate! as measure% by t#e 5usiness )oft*are Association! falling a furt#er 1 to =9 in 7008. #ile large corporations #a/e long un%erstoo% t#e business case for %eploying tec#nology! small an% me%iumsi-e% enterprises is increasingly beginning to see suc# in/estments as important if t#ey are to a/oi% being o/ertaken by more tec#competent competitors. .
:n 7008! Egypt continue% liberali-ation of t#e telecoms market! *it# t#e a*ar% of a secon% national ;'e% license. is %e/elopment! *#ic# follo*e% t#e a*ar% of 3, licenses to t#ree mobile telecoms ser/ice pro/i%ers in 700?! is likely to %ri/e ne* opportunities for :& /en%ors. As *ell as generating a%%itional spen%ing on :& pro%ucts an% ser/ices from t#e telecoms sector! t#e sprea% of internet s#oul% pro/i%e a boost to t#e $C market o/er t#e ne't fe* years. . . . e Egyptian :& ser/ices market is %ominate% by %eman% from go/ernment! ;nance an% telecoms sectors! *#ic# account for more t#an 7= of Egypts total spen%ing. .
Sociocultural En$ironment: Egypts total population stoo% at 80.3 million. ut of t#is appro'imately 90 are Muslims *#ile t#e remaining are C#ristians. Most of t#e population in#abits t#e area near t#e (ile Ri/er an% almost #alf of Egypts population is urban! li/ing in t#e %ensely populate% cities suc# as Cairo an% Ale'an%ria.
ne of Egypts biggest socioeconomic problems is t#e #ig# unemployment rate *#ic# #as been gro*ing o/er t#e years. e unemployment rate! *#ic# #as a/erage% more t#an 10 o/er a %eca%e! increase% to o/er 17 in 700=0B. it# t#e population gro*ing at 1.8 per annum! t#e economic gro*t# of . is not enoug# to curb t#e unemployment rate. #ile t#e a/erage gro*t# in employe% population %uring t#e last ;/eyear perio% stoo% at 7.3! t#e rise in unemploye% population #as been muc# #ig#er %uring t#e same perio% a/eraging aroun% 8. e #ig# rates of unemployment an% population gro*t# couple% *it# meager *ages in most of t#e public sector companies contribute to t#e po/erty le/els! *it# close to 70 of Egypts population belo* t#e po/erty line. A big c#allenge for Egypt in t#e near future *ill be to create @obs! as t#e population *it#in t#e 70= agegroup constitutes aroun% B= of t#e total population.
e e%ucation in%icators of Egypt pro@ect a poor image of t#e e%ucation system. nly about =8 of t#e population is literate an% t#ere is a big %i
e #ealt#care system in Egypt is un%er%e/elope% *it# only aroun% 79 of t#e population co/ere% by go/ernmental #ealt# insurance. Egypts public #ealt#care system is un%erfun%e%! *it# t#e go/ernment committing only aroun% >1 billion in 700=0B for upgra%ing t#e #ealt#care sector! *#ic# represents a meager 7.? of t#e total state bu%get. e ministry of #ealt# is t#e largest institutional ;nancier pro/i%ing free #ealt#care ser/ices in Egypt but its reac# is limite%. Almost B= of t#e Egyptian people pay for t#eir o*n insurance t#roug# pri/ate an% ot#er #ealt# insurance organi-ations. e total spen%ing on #ealt#care in Egypt is only about of its ,2$.
Political En$ironment: Political structure
e Egyptian Constitution pro/i%es for a strong e'ecuti/e. Aut#ority is /este% in an electe% presi%ent *#o can appoint one or more /ice presi%ents! a prime minister! an% a cabinet. e presi%ents term runs for B years. Egypts legislati/e bo%y! t#e $eoples Assembly! #as = members popularly electe% an% 10 appointe% by t#e presi%ent. e constitution reser/es =0 of t#e assembly seats for N*orkers an% peasants.N e assembly sits for a =year term but can be %issol/e% earlier by t#e $resi%ent. ere also is a 7Bmember )#ura Jconsultati/eK Council! in *#ic# 88 members are appointe% an% 1? electe% for Byear terms. 5elo* t#e national le/el! aut#ority is e'ercise% by an% t#roug# go/ernors an% mayors appointe% by t#e central go/ernment an% by popularly electe% local councils.: n Marc# 700?!
Mubarak intro%uce% se/eral constitutional amen%ments t#at *oul% increase presi%ential po*ers an%! more signi;cantly! ban any political parties base% on religion! race! or et#nicity. e amen%ments *ere put to a popular referen%um an%! %espite lo* /oter turnout an% boycotts by opposition groups! passe% *it# ?=.9 appro/al. Main political parties e multiparty system *as restore% in 19?B by t#e t#en presi%ent )a%ate. o*e/er! in practice it is t#e ruling (ational 2emocratic $arty J(2$K *#ic# completely %ominates t#e political arena. e Muslim brot#ers! a brot#er#oo% create% in 1978 by assan El 5anna is t#e main opposition party of t#e country. ey *ere banne% but in spite of it! t#ey *ere able to *in 88 seats in t#e $eoples Assembly in t#e 700= elections. e ot#er opposition parties like af%! El,#a% or t#e (asserian $arty are minority parties an% *ere nearly *ipe% out in t#e 700= elections. En$ironmental la#s Accor%ing to t#e +a* H199 for t#e $rotection of t#e En/ironment! t#e Egyptian En/ironmental A
' $reparing t#e necessary plans for En/ironmental protection an% En/ironmental %e/elopment pro@ects! follo*ing up t#eir implementation! an% un%ertaking $ilot $ro@ects. ' e Agency is t#e (ational Aut#ority in c#arge of promoting en/ironmental relations bet*een Egypt an% ot#er )tates! as *ell as Regional an% :nternational rgani-ations.
Foreign tra&e
e Egyptian market is gra%ually opening up! especially after signing an agreement *it# t#e European ree &ra%e Association JE&AK in 700B! an% a free tra%e treaty *it# t#e 4nite% )tates. :ts t#ree primary e'port partners are t#e European 4nion! *#ic# represents more t#an a t#ir% of t#e tra%e! 4nite% )tates an% )yria. :ts t#ree primary import partners are t#e European 4nion! t#e 4nite% )tates an% C#ina. Egypt mainly e'ports mineral fuels an% oil! cotton! iron an% steel. :t imports mainly consumer electronic goo%s an% capital goo%s! nuclear reactors an% nuclearpo*ere% boilers! cereals! foo% pro%ucts an% c#emical pro%ucts. :mport /olume #as %ouble% an% is t*ice t#e e'port /olume! a fact *#ic# contribute% to t#e %eterioration of t#e countrys tra%e balance.
Tax *ate e stan%ar% rate of corporate income ta' is 0. e rate is 37 on pro;ts arising from e'port operations an% on pro;ts of an in%ustrial company as long as t#ey arise from its in%ustrial acti/ities. +ithhol&ing Tax Any business operating in Egypt must *it##ol% against any payments ma%e to any contractor or supplier of goo%s or ser/ices t#e follo*ing basic percentages Contracting an% supplying 1 )er/ices 3 Commissions 10 $rofessional fees Jun%er +E =00K 10 $rofessional fees Jo/er +E =00K 1= +easing of property or selling of goo%s for tra%ing or manufacturing 1 = Jto be a%%e% on t#e payees ta' liability account. Corporate Tax Exemptions an& ,e&uctions •
Almost all business e'penses are %e%uctible inclu%ing %epreciation! interest! royalties! rent! pro;t s#aring payments to employees! legal e'penses! pension an% Egyptian state social insurance contributions.
•
$ro;ts of companies locate% in t#e free -ones.
•
capital gains are applicable in some cases of asset replacement.
•
All ta' #oli%ays grante% un%er :n/estment +a* (o.8H199?.
•
Ooint stock companies employing more t#an =0 employees an% maintaining proper books of accounts are grante% a ta' #oli%ay for a ;/eyear perio%. Also! #otels an% tourist pro@ects are grante% a ta' #oli%ay for a ;/eyear perio% *#ic# can be e'ten%e% to ten years if t#e pro@ect is locate% in a remote area.
•
or @oint stock companies liste% in t#e stock market! a %e%uctible allo*ance is ma%e t#at is equal to interest income! *#ic# can be earne% on a bank %eposit Jcurrently 10.= percentK.
•
(inety percent of income generate% by companies from t#eir mo/able capitals *#ic# #a/e been sub@ect to t#e ne* ta' impose% by +a* 18? of 1993.
$ersonal :ncome &a' Taxable )ncome &a' +a* (o. 18? of 1993 %istinguis#es among t#e follo*ing categories of income of in%i/i%uals Jas *ell as partners in partners#ipsK •
)alaries an% *ages.
•
Commercial an% in%ustrial pro;ts
•
:ncome from immo/able property
•
:ncome from mo/able capital
•
(oncommercial pro;ts.
Taxation o( Foreigners oreigners t#at #a/e been *orking in t#e country for more t#an 183 %ays *it# t#eir annual salaries /arying from +E 1.00 to +E =0!000 are sub@ect to paying a 70 percent income ta'. o*e/er! if t#e employees annual income e'cee%s +E =0!000 t#en t#ey *ill be liable to pay 37 percent income ta'.
Social )nsurance Contribution *ates Employer- Employee./ ./ n basic mont#ly salary up to +.E. =00 H 7B 1 mont# n /ariable pay Jsuc# as pro%uction incenti/e bonusesKup to +.E. =00Hmont#
abor (orce an& la#s abor (orce ,o/ernment! arme% forces " public sector 3B Agriculture 3 $ri/ate sector 30
7
11
e Egyptian labor market is regulate% by t#e ne* uni;e% +abor +a* (o. 17 for 7003. e ne* +a* comprises 7=? articles t#at a%%ress all t#e legal aspects regulating t#e Egyptian labor market. e ne* la* aims at increasing t#e pri/ate sector in/ol/ement an% at t#e same time ac#ie/ing a balance bet*een employees an% employers rig#ts. Amongst t#e most important issues t#at t#e ne* la* a%%resses is t#e rig#t of an employer to ;re an employee an% t#e con%itions pertaining to t#is as *ell as granting employees t#e rig#t to carry out a peaceful strike accor%ing to controls an% proce%ures prescribe% in t#e ne* la*.
0000000000000000