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Egypt
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Table of Contents Best Prospects for U.S. Exporters |
Cairo and the Nile at sunset
The Egyptian Market – An Overview
In recent years, the land of the Pharos and cotton harvesting has been transformed into a major oil and gas producer, a business and manufacturing hub for surrounding countries, and a market thirsty for foreign products.
With a population of 77.5 million people, Egypt’s market is by far the largest in the Middle East and North Africa. Egypt’s economy has become much more diversified than in the past, not only is it is a major oil and gas producer, with natural gas production increasing rapidly, but the clothing and textile sector remains strong and continues to grow as well.
The Egyptian economy has picked up pace under a new, Western-oriented reformist government. The Egyptian pound has been floated, foreign exchange shortages and the black market have been eliminated, and tariffs have been reduced, with a simplified tariff structure introduced with lower tax rates. Egypt has pushed through customs reforms, proposed income and corporate tax reforms, reduced energy subsidies, and privatized enterprises. The financial sector continues to undergo reform. These measures have significantly lowered the market entry barriers for new to market companies.
Best Prospects for U.S. Exporters
Downtown Cairo During the Workweek
Local interest in purchasing American goods has risen steadily as Egyptians’ buying power has increased. American companies are successfully competing for major infrastructure projects in Egypt and new sectors, including franchising, have prospered.
The most promising investment sectors in Egypt are oil and gas, power generation and transmission, telecommunications and information-technology, consumer goods, and non-food franchises. All facets of the tourism industry provide increasing opportunities for exporters, including hotel equipment, environmental management services, airport and related infrastructure, U.S. building systems and equipment, and U.S. project management.
Read more about Egypt’s Best Prospects for Exporting
Entering and Succeeding in the Egyptian Market
An ancient pyramid in Giza and Cairo
Succeeding in Egypt is the same as succeeding in any market. Knowledge of the market, the competitors, the clientele, and the local laws and regulations is essential. The best way to obtain this knowledge in Egypt is to work with a local partner.
A local partner is also needed because foreign companies cannot bid directly on government tenders; they must act through local agents. Additionally, as the Egyptian market becomes more sophisticated, there is a growing demand for after-sales service, which is more easily provided by a local agent.
The U.S. Commercial Service in Egypt actively assists U.S. companies with partner/distributor/agent searches, identification of local business service providers, targeted market access and research studies and other business support.
Visit the U.S. Commercial Service in Egypt website to find more details services provided for this market.
Comprehensive information on doing business in Egypt is available free on-line through the Egypt Country Commercial Guide.
Downtown Cairo
Through its expert local commercial specialists, the U.S. Commercial Service in Egypt produces market research aimed at educating U.S. businesses about market sectors, specifically in light of new laws and increased opportunities. Recent market research for Egypt includes Medical Equipment and Supplies, Water Resources Equipment, Educational Services, and Food Processing and Packaging. Find Egypt’s market research at Export.gov
Lucent Technologies Egypt
As part of our mandate to create a level-playing field for U.S. companies in Egypt, the U.S. Commercial Service staff is dedicated to providing timely and effective U.S. Government advocacy support. Our advocacy assistance is varied and often involve U.S. companies that must compete against overseas companies supported by foreign governments or government-owned corporations. For example, last year, as a result of unrelenting efforts by the U.S. Commercial Service staff in Cairo that included in-depth counseling sessions with company executives, high-level advocacy from the Ambassador and several senior officials in Washington, Lucent Technologies Egypt and its business partner Tele Tech, successfully signed an agreement to install 100,000 wireless CDMA lines for government-owned telecom operator Telecom Egypt. The agreement is worth $20 million.
Wright Medical Technology
Wright Medical Technology, Inc. is a U.S. manufacturer of orthopedic implants, instruments, and biologics. The company was interested in selling their products to the local medical market and had specific questions regarding payment terms and distributors. A U.S. Commercial Service specialist provided answers to their questions and counseled the company on the local market, provided tailored market research and set meetings with potential distributors for their equipment. They were further advised to have their distributor utilize the USAID-sponsored Commodity Import Program in Egypt, which assists Egyptian companies with financing options for the purchase of U.S. exports. Through the assistance of the Commercial Service, Wright Medical Technology found a distributor for their goods and registered an initial sale of $568K.
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The Pyramids at Giza
The U.S. Commercial Service staff in Egypt is ready to help you succeed in the Egyptian marketplace. Contact us today and let us assist you in doing business in Egypt. Visit the U.S. Commercial Service Egypt web site today to learn more about our services!
U.S. Commercial Service Alexandria
American Center
U.S. Commercial Service
3 El Pharaana Street
Alexandria, Egypt
Ph: 011 +-20 (3) 486-5607
Fax: 011 + -20 (3) 486-9199
Email: Alexandria.Office.Box@mail.doc.gov
U.S. Commercial Service Cairo
American Embassy U.S. Commercial Service
5 Latin America Street
Garden City, Cairo
Ph: 011-20-2-797-2340
Fax: 022-20-2-795-8368
Email: Cairo.Office.Box@mail.doc.gov