History: Egypt

Economic conditions have started to improve considerably after a period of stagnation from the adoption of more liberal economic policies by the Government, as well as increased revenues from tourism and a booming stock market. In its annual report, the IMF has rated Egypt as one of the top countries in the world undertaking economic reforms. Some major economic reforms taken by the new Government since 2003 include a dramatic slashing of customs and tariffs. A new taxation law implemented in 2005 decreased corporate taxes from 40% to the current 20%, resulting in a stated 100% increase in tax revenue by the year 2006.
Foreign Direct Investment (FDI) into Egypt has increased considerably in the past few years, exceeding $6 billion in 2006, due to the recent economic liberalization and privatization measures taken by minister of investment Mahmoud Mohieddin.
Although one of the main obstacles still facing the Egyptian economy is the trickle down of the wealth to the average population, many Egyptians criticize their Government for higher prices of basic goods while their standards of living or purchasing power remains relatively stagnant. Corruption is often cited by Egyptians as the main impediment to further economic growth. The Government promises major reconstruction of the country's infrastructure, using money paid for the newly acquired third mobile license ($3 billion) by Etisalat.
Egypt's most prominent multinational companies are the Orascom Group and Raya Contact Center. The IT sector has expanded rapidly in the past few years, with many start-ups selling outsourcing services to North America and Europe, operating with companies such as Microsoft, Oracle and other major corporations, as well as many small and medium enterprises. Some of these companies are the Xceed Contact Center, Raya, E Group Connections and C3. The sector has been stimulated by new Egyptian entrepreneurs with Government encouragement.