Comparative International Management
Country Profile – Egypt
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Team
Agnieszka Gwizdz (Poland)
Manuel Vasconcelos (Portugal)
Ela Siudyla (Poland)
Andreas Schmidt (Germany)
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Impressions
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Impressions
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Impressions
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Overview - Arab Republic of Egypt
1. Location: Northern Africa,bordering the
Mediterranean Sea, between Libya and the Gaza
Strip
2. Total area - 1,001,450 sq,
3. population: 77 million
4. Capital: Cairo
5. Nile – the father of rivers
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> History –ancient and modern Egypt
1. 3200 B.C: beginings of unified
kingdom
2. From 341 B.C.: Persians, Greeks,
Romans, and Byzantines
3. 7th century: Arabs
4. 13th – 16th century : Mamluks
5. Till 19th century - allegiance to the
Ottoman Empire, governmant
controlled by UK since1882
6. 1922 – independence
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Tourism
 750 000 tourists monthly
 13 000 hotel rooms only in Cairo
 2.2 million people employed in industry
 11% of GDP
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Economy
1. Economy in numbers
•
GDP (purchasing power parity): $316.3 billion
•
GDP - real growth rate: 4.5%
•
GDP - per capita: - $4,200
•
GDP - composition by sector:
agriculture: 17.2%
industry: 33%, services: 49.8%
2. Oil – 50% of total exports
3. Other industries
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Today’s problems of Egypt
1. Terrorisim
2. Overpopulation
3. Environment degaradation
4. Health care
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Information about the culture
People
1. Modern Egyptians (Arabs, living in big cities like
Cairo and Alexandria)
2. Bedouin Arabs (nomadic tribal
peoples living in isolated
oases)
3. Nubian peoples (living along
the Nile)
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Information about the culture
Population (2005)




77 mio. inhabitants
Growth rate: 1.78%
population explosion
habitable land area
(only 4% of the
country)
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Information about the culture
Religion
Official religion: Islam
About 90% of the population are
Sunni Muslims
About 10% are Coptic Christians and
others
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Information about the culture
Language
 official language: Arabic
 The Egyptian dialect is distinct from all others arabic
coutries because of the dominance of the media
(television, cinema, radio and music)
 English and French widely understood by educated
classes
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Information about the culture
Arts
 ancient history, cosmopolitanism, strong Islamic
traditions, modern pan-Arab political and
intellectual
history and relative freedom
 cultural capital of Arab world
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Information about the culture
Media
 capital of Middle Eastern communications
 strong journalistic traditions and a relatively free press
 largest publishing industry in the Arab world
 newspapers are under governmental supervision
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Information about the culture
TV and Cinema
 The Arab TV and cinema is dominated by the
Egyptian film industry and its popular Arabic music

strong cinematic tradition since the

the only major motion picture industry
29.11.2005
Country profile - Egypt
1930s
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Doing business in Egypt
appointment
appearance
coffee and small talk
business card
communication
mannerism
Egyptian agent
gifts
meeting
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Appointment
Wait for your counterpart to initiate the greeting!
 punctuality is not so much a priority
 but arrive on time!
 Expect that your partnership will be late or an
appointment will be canceled
 Standard practice is to keep foreign businesspeople
waiting
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Coffee and small talk

usually meetings start with
coffee and small talk
 even if time is limited

sometimes the Egyptian businessman has time not
limited
 Be careful: The “coffee” conversation and drinks can
take too much time and you will fail your other tasks
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Communication with Egyptian
Speaking distance
 closer than in other parts of the world
Do not back up !!!
 in their perception you will be unfeeling person
 you will present your distance to them
Use simlpe words
like “hello”, “please” or “thank you”  you can expect to be better
respected
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Egyptian agent

allow him to explain the major points of your business in
Arabic

in a short meeting, a translation can be very useful
 your points will be made much more concisely
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Meeting
Business meetings are usually quite formal
You should expect…



interruptions by: phone calls, visits from your
partnership’s family, friends
Fridays are off of meetings, it’s a Muslim holy day
The working week takes a place from Saturday to
Wednesday
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Meeting
You should expect…

Business schedule:
In summer: 8 a.m. to 2 p.m.
In winter: 9 a.m. to 1 p.m. and 5 p.m. to 7 p.m.

Different dates on paperwork - it should include
the Gregorian (Western) and the Hijrah (Arabic)
- make sure of it
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Appearance – what Egyptian appreciate
 Conservative dress, suit with tie
 Polished shoes
 Hair-style, beard well cared
 Visible jewellery – avoid wearing by men
 Modesty dress all the time – wearing by women
Even if it is extremely hot – most of the part of body should by covered
Professional look it is important aspect
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Business Cards
 printed in English on one side and in Arabic on the reverse
 It is polite to make a nice comment about it or make a
question:
“when are you available
at your office?”
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Mannerisms – what Egyptian appreciate
 Call Egyptian by name
 Sit down with both feet on the floor – showing the bottom
of
shoes could be a signal of ignorance
 Keep your feet on floor till when Egyptian do not cross
their
legs when sitting
 Hand gestures are often considered rude
 Eye contact – look with honesty
Professional look it is important
29.11.2005
Countryaspect
profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Mannerisms - Difference between women and men
Eye contact with
men
women
- appreciated
- too much intimate
- avoid any hint of intimacy
Welcome with
men
women
29.11.2005
- hug to express warm welcome
- hold a hand, means friendship
- never expect that type of behavior
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Mannerisms - Left hand
… is considered unclean
… should avoid gesturing
… is acceptable to use if you have to lift something heavy
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Mannerisms - Right hand
Arabs greetings
men shake each other’s hands, placing left hand
on he right shoulder, exchanging kisses on each
cheek
Kisses are acceptable between that same sex in
public
Westernized Egyptian men
shake hands with other men
Some Egyptian men will shake a hands with
Western women
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Advices for dealing with Egyptian
Gifts
 are old customs
 are expected in a business meeting
 should have some meaning
Bring souvenirs with you
Don`t use Flowers
 They are traditionally used at funerals and weddings
Make sure you give or receive gifts with right hand
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Economic history
 1991: Association agreement signed with the EU. Beggining
of
trade and economy liberalisation
 Lack of deep economic reforms until 2003 limited foreignt
direct investment
 2003/4: Several measures to attract investment:
- Customs reform
- Privatizations
- Tax reform
- Reduced energy subsidies
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Incentives
 5 to 20 years of fiscal advantages
 Free trade zones and special economic
areas to encourage the creation of export hubs
 39 industrial zones spread through the country
 New legal framework concerning investment guarantees
(excluding any nationalisation or confiscation of assets)
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Incentives
 5% customs tax applied to imports of incoming
products/equipment required for the investment
 Freedom to establish prices and repatriate profits
 National companies opened to foreign investors
 General Authority for Free Zones and Investment:
provides
information and advice to local and foreign investors
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Business Opportunities
 Public works
1. Construction
2. Energy sector
3. Consulting and studies
 Demographic development
1. Health system
2. Distribution sector
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Business Opportunities
 Tourism
1. Rich cultural heritage
2. Security problems
 New technologies
 Downstream of agricultural production
 Privatisation programs
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Finance and banking system
 Progressive liberalisation has been taking place since
1991
 Public sector remains in a dominant position
(8 banks under state-control)
 Free floating of the egyptian pound against the dollar
 Foreigners are allowed to have all the kinds of financial
companies
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Transnational companies investing in Egypt
recently
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Weak points and threats
 11th September and middle east terrorist attacks
created some fear on investors
 Terrorist attacks on tourists made tourism decrease
 Financial system still too controled by the state
 Low GDP per capita and high unemployment rate
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Weak points and threats
 Language barriers
 Weak private sector
 Cultural differences
 Different consumer habits
 Communication problems
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
>> Investing in Egypt
Strong points and opportunities
 Low labor cost
 New gas and oil reserves discovered
 Strategic role in the region:
1.Cultural influence on the arab world
2.Geographical location
3.Large population
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
Main sources
 “How to negotiate” Sergey Frank – Financial Times
 Gesteland, Richard – Cross-Cultural Business Behavior –
Copenhagen
Business School Press, 1999
 Hofstede, Geert - Cultures and Organizations: Software of the Mind
–
McGraw-Hill, 1997
 www.cia.gov/cia/publications/factbook/geos/eg.html
 www.arab.net/egypt/index.html
 www.hejleh.com/countries/egypt.html
 www.animaweb.org/pays_egypte_pourquoiinvestir_en.php
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla
Thank you for your attention!
29.11.2005
Country profile - Egypt
Agnieszka Gwizdz
Manuel Vasconcelos
Ela Siudyla