Chamber of Commerce Country Factsheet Last update: 12.08.2021
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The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided by deserts to the east and west, allowed for the development of one of the world's great civilizations. A unified kingdom arose circa 3200 B.C., and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty fell to the Persians in 341 B.C., who in turn were replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the Arabic language in the 7th century and who ruled for the next six centuries. A local military caste, the Mamluks took control about 1250 and continued to govern after the conquest of Egypt by the Ottoman Turks in 1517. Completion of the Suez Canal in 1869 elevated Egypt as an important world transportation hub. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914. Partially independent from the UK in 1922, Egypt acquired full sovereignty from Britain in 1952. The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have reaffirmed the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society. The government has struggled to meet the demands of Egypt's population through economic reform and massive investment in communications and physical infrastructure.
Inspired by the 2010 Tunisian revolution, Egyptian opposition groups led demonstrations and labor strikes countrywide, culminating in President Hosni MUBARAK's ouster in 2011. Egypt's military assumed national leadership until a new parliament was in place in early 2012; later that same year, Mohammed MORSI won the presidential election. Following often violent protests throughout the spring of 2013 against MORSI's government and the Muslim Brotherhood, the Egyptian Armed Forces intervened and removed MORSI from power in July 2013 and replaced him with interim president Adly MANSOUR. In January 2014, voters approved a new constitution by referendum and in May 2014 elected former defense minister Abdelfattah ELSISI president. Egypt elected a new legislature in December 2015, the first parliament since 2012. ELSISI was reelected to a second four-year term in March 2018.
Source: The CIA World Factbook - Egypt
Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Agriculture, hydrocarbons, manufacturing, tourism, and other service sectors drove the country’s relatively diverse economic activity.
Despite Egypt’s mixed record for attracting foreign investment over the past two decades, poor living conditions and limited job opportunities have contributed to public discontent. These socioeconomic pressures were a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 has restricted economic growth and failed to alleviate persistent unemployment, especially among the young.
In late 2016, persistent dollar shortages and waning aid from its Gulf allies led Cairo to turn to the IMF for a 3-year, $12 billion loan program. To secure the deal, Cairo floated its currency, introduced new taxes, and cut energy subsidies - all of which pushed inflation above 30% for most of 2017, a high that had not been seen in a generation. Since the currency float, foreign investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar availability and central bank reserves. Cairo will need to make a sustained effort to implement a range of business reforms, however, to induce foreign and local investment in manufacturing and other labor-intensive sectors.
Source: CIA World Factbook - Egypt
Subject descriptor 2018 2019 2020 2021 2022 Gross domestic product, constant prices 5.314 5.516 5.868 5.955 5.967 Gross domestic product, current prices 249.559 302.256 353.003 376.542 397.346 Gross domestic product per capita, current prices 2,573.288 3,046.594 3,478.113 3,626.624 3,740.957 Inflation, average consumer prices 20.860 13.866 9.965 7.217 7.011 Volume of imports of goods and services -0.101 3.330 10.280 4.648 3.535 Volume of exports of goods and services 18.102 10.626 17.005 8.115 3.398 Unemployment rate 10.932 8.612 7.868 7.272 6.666 Current account balance -5.962 -9.301 -9.889 -8.755 -8.455 Current account balance -2.389 -3.077 -2.801 -2.325 -2.128
Source: IMF Statistics - Egypt
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
Air Services agreement
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact Points in Egypt
Luxembourg is represented by Ambassade Royale des Pays-Bas à Le Caire
Competent post for consular affairs Ambassade du Royaume de Belgique à Le Caire
Economic and Commercial Attaché (FIT):
Ms Haguer MAGDI
20, Kamel El Shennawi Street
P. O. Box 37 Garden City
Tel.: +20 22 792 38 57
Country risk as defined by Office du Ducroire for Egypt
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Other useful Links
- Présentation de l'Égypte
- World Bank Open Data - Egypt
- GDP evolution in Egypt
- Flanders Investment & Trade (FIT)
The Chamber of Commerce and the country