Under the leadership of Prime Minister Ahmed Nazif and his team, Egypt is experiencing some its most extensive economic reform in the past 50 years.  Red tape is being slashed, corruption is being curbed, foreign direct investment (FDI) is on the rise, and imports from the United States jumped almost 30 percent in 2006 -- despite the absence of a Free Trade Agreement (FTA) with the U.S.

In a speech at the National U.S.-Arab Chamber of Commerce, Egypt's Minister of Investment, H.E. Mahmoud Mohieldin, announced that real economic growth in Egypt is expected to exceed seven percent in 2007, higher than IMF forecast growth.  Trade in Egypt jumped 40 percent in 2006, he said, and investments rose 37.5 percent during the same period.  He noted that FDI in Egypt surpassed $6 billion in 2006, up from $2 billion in 2004, with 70 percent of this FDI coming from outside the Arab world.

The Egyptian economy is also undergoing extensive diversification.  A few years ago, 80 percent of FDI was restricted to the oil sector.  Today, 70 percent of FDI is in non-oil sectors.  Noted Mohieldin, "Egypt is minimizing the risks associated with doing business in the region by minimizing the costs to do business, reducing the country's risks, and maximizing an investor's returns."

Currently, Egypt has been trimming corporate income taxes, and reducing tariffs and other barriers to trade.  Egypt also leads the region in tapping private sector leaders to spearhead key government offices.  However, a third of Egypt's population remains in the agricultural sector and growth in overall consumer spending is undercut by subsidies for food, housing and energy.  Nevertheless, as the fifteenth most populous country in the world, Egypt is becoming increasingly attractive to U.S. exporters seeking dynamic consumption growth.  In the words of Minister Rachid: "Egypt is serious about change and we are open for business."

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Country Commercial Guide (pdf)
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Embassy in the U.S.
U.S. Embassy in Egypt