Egypt WT/TPR/S/150 
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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. Since Egypt's last TPR, in 1999, sectoral GDP shares have decreased slightly for most 
subsectors, while the contribution of petroleum production has increased strongly, mainly as a result 
of rising oil prices (Table IV.1).  Agriculture cont ributes just under 16% to GDP, but is important in 
terms of employment.  Egypt remains a net food im porter, although the agricultural trade deficit has 
been decreasing in recent years due to increasing exports.  The average tariff on agricultural goods 
was 5.8% in January 2005.  The prices of most agricultural goods are market determined.  No 
notifications have been submitted to the WTO Committee on Agriculture since 1999. 
Table IV.1 
Gross domestic product at factor costa, 1996/97 to 2003/04 
 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 20003/04 
Total GDP (LE million) 247,028 266,758 282, 578 315,667 332,544 354, 564 390,623 445,173 
 (per cent) 
Total commodity sector 48.2 48.0 48.2 49.9 49.9 51.3 51.2 51.8  
  Agriculture 17.0 17.1 17.3 16.7 16.6 16.5 16.7 15.8 
  Industry and mining 17.6 18.3 19.5 19.4 19.1 19.1 18.8 18.4 
  Petroleum and products 7.1 5.8 4.6 7.4 7.9 8.9 9.4 11.6 
  Electricityb 1.7 1.6 1.6 1.6 1.6 2.1 2.1 2.0 
  Construction and building  4.9 5.1 5.2 4.8 4.7 4.7 4.3 4.0 
Total production services 33.6 33.4 33.1 32.2 32.1 31.5 31.6 31.3  
  Transportationc 9.2 9.0 9.2 8.8 9.1 9.0 9.3 9.5 
  Commerce, finance, and 
insurance 22.8 23.1 22.6 21.8 21.5 20.7 20.3 19.4 
  Hotels and restaurants 1.6 1.2 1.3 1.6 1.6 1.8 2.0 2.3 
Total social services 18.3 18.6 18.7 17.9 18.0 17.2 17.2 16.9  
  Housing and real estate 1. 8 1.8 1.9 1.9 2.1 3.9 3.8 3.6 
  Government services (utilities) 0.4 0.4 0.4 0.4 0.4 9.9 10.2 10.2 
  Social insurance 0.1 0.1 0.1 0.1 0.1 .. ..  .. 
  Government social services 16.1 16.4 16.2 15.5 15.4 3.4 3.2 3.2 
.. Not available. 
a Does not include net indirect taxes. 
b Includes water utilities subsector. 
c Includes Suez Canal. 
Source: Information provided by the Ministries of Planning, and of Foreign Trade and Industry. 
2. Petroleum and natural gas contribute only ar ound 11.6% to GDP, but account for almost 40% 
of the value of commodity exports.  While Egypt's production levels of crude oil have declined, the 
natural gas sector has been expanding rapidly in rece nt years.  Foreign companies may engage in the 
exploration of petroleum and natural gas only thr ough joint-ventures with the state-owned Egyptian 
General Petroleum Corporation. 
3. The manufacturing sector comprises a broad range of activities;  the most important are 
metallurgy and metallurgical products, food processing,  and chemical products.  The contribution of 
this sector to GDP has oscillated around 19% duri ng the period under review.  The average tariff on 
manufactured products is 27.6% (January 2005). 
4. The services sector remains the backbone of Egyp t's economy, with a share of about 49% in 
GDP.  State participation remains important in various services subsectors including financial WT/TPR/S/150 Trade Policy Review 
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services, telecommunication, and air transport.  The tourism industry and fees for using the Suez 
Canal remain Egypt's most important sources of fore ign exchange.  Since Egypt's last Review, a new 
Telecommunications Law has been adopted;  it establishes that Telecom Egypt will relinquish its 
monopoly over domestic and intern ational fixed-line services by January 2006.  Under the GATS, 
Egypt has bound measures affecting commercial presence and presence of natural persons for a 
number of individual service categories, most notably in telecommunications services, construction and related engineering services, financial services,  tourism, and transport services.  Egypt accepted 
the Fourth and Fifth Protocols to the GATS, in June 2002 and November 1998, respectively.   
(2) A
GRICULTURE  
(i) Main features 
5. The contribution of agriculture to GDP declined from 17.3% in 1998/99 to 15.8% in 
2003/04.1  However, the sector retains a significant role in employment, accounting for about 34% of 
the active labour force.  On a per capita basis, Eg ypt’s area of cultivated land at 0.05 ha per head is 
among the lowest in the world.  Farms are small,  with an estimated 70% of holdings less than 
0.42 hectares.  Due to the low rain fall, agriculture is strongly dependent on irrigation from the Nile 
River.  The agricultural land-base amounts to abou t 3.3 million hectares, consisting of 3.0 million 
hectares lying within the Nile basin and delta, and about 80,000 hectares of oasis and rain-fed land.  
Of the total area in the Nile basin and delta, some 2.5 million hectares are "old" lands, and the 
remaining 0.72 million hectares are new reclaimed lands.  An elaborate crop rotation system is 
followed on the old lands.  Most agricultural land is used for the cultivation of wheat, rice, and maize 
(Table IV.2). 
Table IV.2 
Land use by crop, 2003-04 
(Million feddana) 
Crop Land area 
Wheat 2.5 
Maize 1.2 
Rice 1.5 
Sugar cane 0.323 
Sugar beet 0.131 
Cotton 0.750 
a 1 feddan is equivalent to 0.42 hectare. 
Source : Information provided by the Egyptian authorities. 
6. All agricultural land is privately owned.  R eclaimed new land, which was owned and operated 
by the Government through public enterpri ses, has been sold gradually.  Around 80%   of this new 
land is now operated by the private sector.  U nder Law 15/1963, foreigners may not purchase 
agricultural land (Chapter II(5)), although they ma y engage in long-term leasing contracts.  The 
authorities indicate that legislation is under discussion to  allow foreigners to acquire agricultural land.   
7. The main winter crops are wheat, berseem (E gyptian clover), and broad beans.  Among the 
summer crops, maize, rice and cotton are dominant.   Vegetable crops, such as tomato, potato, 
cucumber, and melon, are cultivated in three s easons.  For most agricultural goods, production has 
been increasing in recent years (Table IV.3).  In te rms of employment and export value, cotton is the 
                                                      
1 GDP data are based on information from the Egyptian Central Bank, and the Ministry of Foreign 
Trade and Industry.  Trade data are based on UNSD, Comtrade database. Egypt WT/TPR/S/150 
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most important crop in Egypt.  It is estimated th at cotton production employs up to one million farm 
workers.  
Table IV.3 
Agricultural output, 1997-03 
(Thousand tonnes) 
 1997 1998 1999 2000 2001 2002 2003 
Wheat 5,849 6,093 6,347 6,564 6,255 6,183 6,150 
Maize 5,806 6,337 6,143 6,474 6,842 6,500 6,400 
Cotton lint 342 230 233 225 330 285 280 
Sugar 1,170 1,242 1,350 1,459 1,476 1,500 1,500 
Rice, paddy 5,480 4,474 5,817 6,000 5,227 5,600 5,800 
Vegetablesa 12,489 12,503 13,982 15,012 14,074 14,115 14,115 
Fruitb 6,224 6,347 6,791 6,966 7,355 7,408 7,407 
a Including melons. 
b Excluding melons. 
Source :  FAO statistical database.  
8. The value of livestock production in Egypt am ounted to LE 34,606 million in 2003, of which 
95.2% was production on the old lands (LE 32,951 milli on) and the remainder on the new lands.  The 
current volume of production of red meat amounts to 560,000 tonnes annually.  According to the 
authorities, the objective is to increase an nual production to 880,000 tonnes by 2017. 
9. Egypt remains a net importer of agricultural pr oducts (food in particular), although the 
agricultural trade deficit has decr eased in recent years.  In 2003, Egypt exported agricultural goods 
(ISIC Rev.2 definition) for US$567.9 million, up from US$242.9 million in 1997.  The main 
agricultural exports are cotton (US$366 million in 2003), fruit and vegetables (U$199 million), and 
grains (US$151 million).  Agricultural imports  amounted to US$1,529.4 million, down from 
US$1,671.5 million in 1997.  Agricultural impor ts comprise grains (US$1,137 million in 2003), 
edible oils (US$422 million), live animals and meat (US$218 million), and fruit and vegetables 
(US$213 million).  Wheat is the single largest impor t product, at US$606.5 million in 2003, of which 
US$257.5 million from the United States.  
10. Egypt has not received any food aid since 2001. 
(ii) Policy developments 
11. Agricultural policies are formulated by the Mini stry of Agriculture and Land Reclamation.  
The Ministry has a long-term strategy for agriculture development for the period 1997/98 to 2016/17.  
The main aspects of this strategy are to:  increase the annual growth rate of agricultural production to 
4.1%;  encourage domestic and foreign investment in the agriculture sector, especially in the newly 
reclaimed areas;  develop animal production, particularly small ruminants, poultry, and fisheries;  and 
intensify agricultural research. 
12. The applied average tariff on agricultural goods (IS IC Rev.2 definition) was 5.8% in January 
2005.  Applied tariffs are relatively high on meat and edible meat offal (21.2%), and edible fruits and 
nuts (14.4%).  The highest agricultural tariff of 40% is charged on various fruits (apples, apricots, 
bananas, and pears).  Lower tariffs are charged on oi lseeds and oleaginous fruits, at an average rate of 
2.9%, and on cereals at 3.3%.  Egypt does not maintain tariff quotas. WT/TPR/S/150 Trade Policy Review 
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13. Bound rates on agricultural products remain well above applied duties for most products.  The 
average bound rate is 27.0% (92.2%  according to the WTO definition).  Bound rates are highest on 
animals and products thereof (45.0%), and fruit and vegetables (40.2%).  For two agricultural product 
groups, applied tariffs exceed bindings (Table III.3).2  Egypt left two agricultural tariff lines unbound. 
14. The Government has been actively encouraging private sector participation in agriculture.  
Investment in the sector is eligible for benefits provided by the Investment Guarantees and Incentives 
Law (8/1997).  A programme to encourage the use of local cotton was terminated in 2003 
(Chapter III(4)(i)).  Financial assistance to the agricu lture sector is provided in the form of subsidized 
electricity and water, the latter being provided almo st free of charge to farmers.  The Government 
subsidizes a number of food products for low-income  groups, most notably bread, sugar, and oil.  
Outlays amounted to LE 8.2 billion in 2004, up from LE 4.1 billion in 2003.  In May 2004, the Government reintroduced vouchers for basic foods tuffs following strong prices increases over the 
previous two years.  Subsidies for fertilizers a nd pesticides were removed in the mid 1990s.  Egypt's 
last notifications to the Committee on Agriculture , on domestic support and export subsidies, date 
from May 1999.
3  
15. The  General Authority of Supply Commodities  pl ays an important role in the importation of 
basic food products for low-income groups.  In 2004, the Authority imported 5,420,000 tonnes of wheat. 277,000 tonnes of oil, 60,000 tonnes of palm oil, 10,000 tonnes of tea, 75,000 tonnes of lentils, 
and 54,000 tonnes of beans.  The Authority has no monopolistic privileges;  its imports are subject to the normal customs duties. 
16. The Principal Bank for Development and Agricu ltural Credit is Egypt's main agricultural 
bank.  It offers credits for farmers and rural deve lopment projects.  The Bank's conditions for ordinary 
loans are market-based;  however, on behalf of the Government or international development 
agencies, it also offers small soft loans to vari ous target groups such as young people and women.  
For example, since 1992, the Bank has received LE 41.3 million from the Ministry of Finance and the Social Fund for Development for a loan pr ogramme for young people.  Funding agreements 
concluded with international development agencies (International Fund for Agricultural Development, 
African Development Bank, African Development Fund) amount to US$60 million. 
17. The Agricultural Research Cent er, affiliated to the Ministry of Agriculture and Land 
Reclamation, is Egypt's principal public agency for agricultural research and technology transfer.  The 
Center disposes of 16 research institutes, six ce ntral laboratories, and 16 experimental research 
stations. 
18. Depending on the type of product, compliance wi th SPS regulations is verified by the Food 
Control Agency, the Agricultu re Quarantine Body, and the Animal Quarantine Body 
(Chapter III(2)(viii)(c)).  In addition to SPS regula tions, a number of agricultural goods must fulfil 
quality controls upon importation (Chapter III(2)(viii)(b )).  Agricultural goods subject to mandatory 
quality control include live animals, meat, dairy products, vegetables, grains, and edible oils.  
Furthermore, radiation inspection is mandatory for foodstuffs, edible oils, live animals, seeds, animal 
fodders, milk substitutes, and tobacco.  A number of  raw or processed agricultural products, such as 
juices, citrus fruit, and various types of vegetabl e, are also subject to quality control when being 
exported. 
19. An import prohibition currently applies to edible poultry offal (including liver).  
                                                     
 
2 Applied rates exceed bound rates for fats and oils derived from milk, other than butter;  prepared or 
preserved chicken meat;  and prepared or preserved pork meat. 
3 WTO documents G/AG/EGY/1 and 2, 7 May 1999.   Egypt WT/TPR/S/150 
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20. In the ongoing agricultural negotiations, Egypt, as part of the G-20, has communicated its 
strong reservations against the use of the "blended formula".4  It is of the view that the use of this 
formula would fail to deliver substantial improveme nts in market access, especially for products 
protected by tariff peaks.  Moreover, its applicati on would lead to inequitable results on the different 
tariff structures of developed and developing countries. 
(3) FISHING  
21. Egypt's total catch amounted to 876,000 tonnes in 2003, including 445,000 tonnes of farmed 
fish (Table IV.4).  The bulk of the catch is for domestic consumption;  exports of fish and fishery 
products were only US$3 million in 2003.  Commercial fishing is c oncentrated on the Mediterranean 
Sea.  The applied average tariff on fishing products (IS IC Rev.2 definition) is 6.1%.  Imports of fish 
and fishery products amounted to US$98 million in 2003. 
Table IV.4 
Fisheries sector, 1999-04 
Year 1998 1999 2000 2001 2002 2003 2004 
Employment .. .. .. .. .. 252,953 .. 
Fishing vessels 50,966 39,797 45,065 44,910 44,191 46,307 .. 
Catch ('000 tonnes) 546 649 724 772 801 876 900 
Imports ('000 tonnes) 176.3 193.16 213.63 261.43 154.39 163.01 .. 
Exports ('000 tonnes) 2.14 0.69 0.96 1.22 2.56 3.13 .. 
.. Not available. 
Source : Information provided by the General Author ity for Fish Resources Development (GAFRD). 
22. The General Authority for Fish Resources Development (GAFRD), in the Ministry of 
Agriculture and Land Reclamation, is the state agen cy responsible for the management and control of 
the Egyptian fisheries.  The Government is becomi ng increasingly aware of the fundamental role that 
fisheries and related activities can play in Egypt's  economy.  Its main goals are to increase annual 
catch to 1,500,000 tonnes by 2017, to encourage exports of fish and fishery products, to expand fish-farming at various inland lakes, and to enlarg e and modernize offshore fishing in the Egyptian 
economic zone and inte rnational waters.   
23. Law 124/1983 and its Executive Regulations are the legal basis for the management of 
Egypt's fisheries resources.  The Law stipulates  mesh sizes for different fishing methods and 
minimum sizes for target species, especially for inla nd fisheries.  Seasonal fishing prohibitions have 
been imposed in a number of years in the Gulf of  Suez, the Mediterranean Sea, and various inland 
lakes. 
(4) M
INING , PETROLEUM , AND NATURAL GAS 
(i) Main features 
24. The contribution of petroleum and natural gas production to Egypt's GDP increased from 
4.6% in 1998/99 to 11.6% in 2003/04;  the increase has mainly been due to rising oil prices. Output 
has increasingly shifted from crude oil production to  natural gas (Table IV.5 ).  The contribution of 
other mining activities to GDP is only about 0.3%. 
                                                      
4 WTO document TN/AG/GEN/9, 7 May 2004.  WT/TPR/S/150 Trade Policy Review 
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Table IV.5 
Petroleum and gas production, 1996-00 
(Million tonnes) 
 1996 1997 1998 1999 2000 
Total production 55.45 54.26 54.00 54.56 55.29 
Crude oil 42.69 41.17 40.29 38.38 34.82 
Natural gas 10.37 10.47 11.01 13.19 16.46 
Liquefied petroleum gas 0.97 0.99 0.99 1.04 1.10 
Condensates 1.41 1.64 1.64 1.94 2.88 
Source:  Information provided by the Ministry of Petroleum. 
25. Exports of petroleum and natural gas constitute a major source of foreign exchange earnings.  
Petroleum exports, however, have been decreasing as domestic consumption increases and production 
at mature oilfields decreases.  Exports of petroleum amounted to US$2,451.1 million in 2003, 
accounting for 39.8% of Egypt's commodity exports.   Egypt's exports of other mineral products 
amounted to US$768.8 million in 2003 ;  phosphate, iron, and coal are Egypt's most important non-
fuel minerals.    
26. Egypt's current level of oil reserves is estimated  at 3.7 billion barrels.  About 75% of crude oil 
production comes from the Gulf of Suez and some 16% from the Western Desert;  the remainder is 
drawn from the Eastern Desert and the Sinai Peninsula.  Crude oil production averages around 
760,000 barrels a day.  Around 73.5% of o il production is refined domestically. 
27. As at October 2002, the Government's revised  estimate of proven natural gas reserves was 
1.7 trillion cubic meters;  probable reserves were es timated to be 3.4 trillion cubic meters.  Several 
major discoveries of natural gas have been made offshore from the Nile delta and the Western Desert since active exploration in these are as started in the early 1990s.  As a result, the natural gas subsector 
has been expanding rapidly, and increasingly replacing oil in domestic consumption, industrial usage, 
and power generation. 
28. The first stage of the Arab Gas Pipeline project  was inaugurated in July 2003, transporting 
Egyptian natural gas across 245 kilometres of th e Sinai peninsula and 15 kilometres undersea to 
Jordan's Red Sea port of Aqaba.  In January 2004, the Governments of Egypt, Jordan, Lebanon, and 
Syria signed an agreement to implement the second  stage of the project, a 393 kilometre section 
stretching from Aqaba to the Rihab power station clo se to Jordan's border with Syria.  The pipeline 
will then extend to the Syrian port of Banias where it will link into a Syrian-Lebanese pipeline 
currently under construction and the Zahrani power plant in Lebanon. 
(ii) Policy issues 
29. The Ministry of Petroleum is responsible for all issues relating to the exploration, 
exploitation, and distribution of petroleum and na tural gas in Egypt. The Ministry of Mineral 
Resources, through the Egyptian Geological Survey and Mining Authority (EGSMA), is responsible 
for regulating and controlling exploration, prospecti on, and exploitation of a ll other mineral deposits.  
The main laws governing the mining, petroleum,  and natural gas industries are the Mining and 
Petroleum Law (Law 66/1953), and Laws 151/1956 and 86/1965. 
30. Petroleum production is dominated by one st ate-owned company, the Egyptian General 
Petroleum Corporation (EGPC), formed as the Ge neral Petroleum Authority (GPA) in 1956.  The 
activities of EGPC, itself under the jurisdiction of the Ministry of Petroleum, include the supervision of all oil exploration and production in Egypt, as well as its own exploration and production activities. Egypt WT/TPR/S/150 
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31. The average applied tariff on petroleum produc ts is 6.1% (January 2005).  The average 
applied tariff on mining and quarrying products (ISIC Re v.2 definition) is 3.0%.  Imports of gasoil 
may only be carried out by the EGPC and the Egyptian Gas Holding Company (EGAS).  All other 
petroleum products may be imported by the private sector.  The Government grants tariff concessions 
on imports of capital goods for the construction of  oil wells for the duration of production.  
32. The Government's policy of encouraging foreig n investment in the petroleum sector is 
implemented in the context of a 1963 decision requiring all foreign oil companies to work with the EGPC on a 50-50% joint-venture basis;  for example, Egypt's largest oil producing company, the Gulf of Suez Petroleum Company (GUPCO), is a joint venture of EGPC and Amoco.  Production-sharing 
agreements (PSAs) are signed between the EGPC a nd foreign companies;  the first 42% of the oil 
produced is to be retained by the company to cove r its costs and as profits (30 percentage points as 
cost recovery and 12 as profits from production);  th e remainder is split between the foreign company 
and the EGPC in proportions ranging from 60/40 to 90/ 10 in favour of the EGPC.  PSAs of this nature 
can only take effect after approval by the Ministry  of Petroleum, the Council of Ministers, the 
People's Assembly, and the President.  There are cu rrently 26 joint-venture production companies, all 
of them foreign-owned.  
(5) E
LECTRICITY  
33. Over the past decade, electricity coverage has b een extended to all parts of Egypt.  Almost the 
entire population has access to electricity.  Installe d capacity was 18.1 GW in 2004, up from 12.3 GW 
in 1993 (Table IV.6).  About 86% of Egypt's generating capacity is thermal;  the remainder is 
hydroelectric, mostly from the Aswan High Dam.  To keep up with growing demand, the installation 
of an additional 13.4 GW by 2012 is foreseen, main ly through additional ther mal power plants.  The 
contribution of the electricity sector to GDP was 1.5% in 2003/04. 
Table IV.6  
Basic data on electricity, 1997-04 
(GWh) 
 1997 1998 1999 2000 2001 2002 2003 2004 
Generated electricity energy 59, 800 65,500 70,700 73,300 77,000 83,000 89,400 94,400 
Total installed capacity (GW) 13.3 13.3 14.0 14.6 15.3 16.6 17.7 18.1 
Exports of electric energy  0 0 0 016 160 256 869 914 
Source:  Information and Decision Support Center (2004), Energy and Electricity .  Available at:  http://www.eip.gov.eg/ 
 English/MainIssues/MainIssue.asp?issue_id=90.  
34. Egypt's electricity grid is connected to Jordan , Libya, and Syria (through Jordan).  There are 
plans for a transmission line between Egypt and Congo, through which Egypt would have access to 
the excess capacity generated by Congo's Inga Dam.   Electricity supply enters Egypt duty free.  Egypt 
is a net exporter of electricity;  in 2002/03 net exports amounted to 780 GWh. 
35. Policies for the electricity subsector are formulated  by the Ministry of Electricity and Energy.  
The state-owned Egyptian Electrical Holding Compan y (EEHC) is responsible for the generation, 
transmission, and distribution of electrical energy.  It  also owns and operates Egypt's electricity grid.  
According to the authorities, there are no plans to  privatize EEHC.  Subsidies to the electricity 
subsector amounted to LE 2.4 billion in 2004, up from LE 1.3 billion in 2000.  More than 95% of the 
payments went to residential consumers with a monthly consumption of less than 850 KWh.   
36. Until 1996, the generation, transmission and distribution of electricity were entirely in the 
hands of the State.  Law 100/1996 allowed the priv ate sector to build, own, operate, and transfer 
(BOOT) electrical power generation plants.  Accordi ngly, private companies sell electricity to EEHC WT/TPR/S/150 Trade Policy Review 
Page 60 
 
 
for twenty years and, at the end of the operating period, transfer the assets of the facility to EEHC.  
Since the adoption of the Law, private investment in  the electricity subsector has increased strongly, 
from LE 120 million to LE 5,030 million.  The share of private generating companies in total installed 
capacity was just under 8% in 2003.  
37. In sum, electricity generation has been liberali zed, while its transmission and distribution, as 
well as the management of the grid, remain under EEHC monopoly.  Electricity prices vary according to the type of end-user (private, commercial, pub lic) and have remained unchanged since 1992.  The 
price for household usage, for example, ranges from LE 0.05 to LE 0.25 per kWh. 
(6) M
ANUFACTURING  
(i) Main features and policy framework 
38. The contribution of the manufacturing sector (i ncluding mining, but excluding petroleum and 
natural gas) to Egypt's GDP has been around 19% since 1999.  The most important subsectors are metallurgy and metallurgical products, food pro cessing, and chemical products (Table IV.7). 
Table IV.7 
Manufacturing output by activity, 1996-04 
(LE million) 
Industry 1996 1997 1998 1999 2000 2001 2002 2003 2004 
Building materials 
industries 8,803 9,290 9,439 10,207 10,555 11,162 11,885 12,031 13,225 
Wood products 857 904 929 1,081 1,1177 1,258 1,308 1,420 1,434 
Paper products  4,016 4,154 4,250 1,509 4,986 5,439 5,778 6,019 6,496 
Chemical products 18,200 19,379 20,524 21,270 23,803 25,351 28,112 29,116 33,023 
Metallurgy 7,870 8,596 9,397 13,440 14,119 15,770 16,544 19,890 19,078 
Metallurgical products 37,317 42,365 46,061 50,114 52,843 55,280 58,177 59,911 62,650 
Spinning and weaving 
industries 17,551 18,000 18,453 18,457 19,687 20,212 21,575 21,915 23,151 
Mining and petroleum 
refining  228 229 229 215 222 222 222 226 371 
Food industries 31,405 35,495 39,329 39,459 41,034 43,176 44,908 46,015 52,466 
Other industries 240 351 797 778 5,461 6,368 7,042 7,552 8,073 
Total  126,487 138,763 147,408 159,531 173,887 184,238 195,551 204,095 219,966 
Source: Information provided by the Egyptian authorities. 
39. The average applied tariff on manufactured goods (ISIC Rev.2 definition) is 27.6%, but tariff 
dispersion between the subsectors is considerable (Cha rt IV.1).  About 3% of Egypt's industrial tariffs 
are unbound;  these include rubber and rubber articl es, machinery and mechanical appliances, and 
electrical equipment. Egypt has an escalatory tariff st ructure, thereby providing high effective rates of 
protection to the processing stages (Chart III.2).  Av erage tariffs are 4.8% on raw materials, 10.6% on 
semi-processed goods, and 28.2%  on fully processed goods.   
 Egypt WT/TPR/S/150 
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0.010.020.030.040.050.060.070.080.090.0100.0Chart IV.1
Tariff protection in the industrial sector, 2005
Per cent
31
32333435Manufacture of food products, beverages and tobacco
Textile, clothing and leather industriesWood and wood products industry, including furniturePaper and paper products; printing and publishingManufacture of chemicals etc.
Source:   WTO Secretariat calculation, based on data provided by the Egyptian authorities.31 32 33 34 35 36 37 38 39
36
373839Manufacture of non-metallic, except petroleum and coal
Basic metal industriesFabricated metal products, machinery and equipmentOther manufacturing industries2,105%
2,025
414%400.02,100.02,200.02,300.0
Avera ge 
27.6%
ISIC groups
 
40. According to the authorities, the private s ector contributed about 77% of manufacturing 
output in 2003:  currently, 95 manufacturing companies remain state-owned;  they are grouped in six holding companies for pharmaceuticals, food industries,  chemical industries, me tallurgical industries, 
spinning and weaving, and transport.  The G overnment plans to privatize these enterprises.  
41. In 1997, the Government launched an Industria l Modernization Programme with a view to 
increasing the competitiveness of private enterprises in the sector.  The specific objectives of the 
programme are to assist private enterprises in th eir development, to strengthen business associations 
and the Ministry responsible for Industry, and to  improve the policy framework for the industrial 
sector.  Training activities have been provided for 287 organizations and 2,005 specific service 
requests from 1,187 companies or organizations have b een satisfied.  The total cost of the programme 
is € 430 million:  € 250 million from the EU (the la rgest EU-funded project in the developing world);  
€ 106 million from the Egyptian Government;  and € 74 million in cost-sharing contributions from 
private sector beneficiaries. WT/TPR/S/150 Trade Policy Review 
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42. Egypt seeks to increase exports of and foreign investment in non-traditional products.  The 
targeted industries include furniture, leather, chem icals, glass, paper, and vessel and ship building.5  
Incentives to these industries, as well as to othe r industries in the manufacturing sector, are provided 
under the Investment Guarantees and Incentives Law (Chapter II(5)). 
43. A long list of manufactured imports are subject to quality inspections, carried out by the 
General Organization for Export and Import Contro l (GOEIC) (Chapter III(2)(vii)(b)).  The list 
includes electronic products, spare pa rts, consumer products, washing machines, electrical equipment, 
motor vehicle parts, steam boilers, and textiles. 
(ii) Selected manufacturing activities 
(a) Food processing 
44. The main activities of the food processing industry include wheat milling and bread making;  
edible oil production;  and production of soft drinks and alcoholic beverages.  Egypt's main exports of 
food products are milled grain pr oducts, canned vegetables and fruit, and sugar products.   
45. Average applied tariffs on imports of food, beverages and tobacco range from 15.3% and 
23.2% on food products (ISIC 311 and 312) to 1, 545.3% on beverages (ISIC 313). For religious 
reasons, Egypt maintains prohibitive tariffs of up to  3,000% on imports of alcoholic beverages.  
However, the tariff on alcoholic beverages impor ted under a licence issued by the Ministry of 
Tourism is 300%.  Tobacco products are subject to specific tariffs ranging from LE 6.1 to 
LE 9 per kg. 
46. Foreign investment in the production of alcoholic  beverages is not included in the general 
provisions of Law 8/1997, and is only allowed th rough joint-ventures with Egyptian companies.  
Foreign investment in food processing has been mainly in confectionery and the processing of vegetables and fruit, where there are no specific restrictions.  
(b) Textiles and clothing 
47. Egypt's exports of textiles and clothing pr oducts amounted to US$515.7 million in 2003, 
while imports were US$279.1 million.  The developm ent of textiles and clothing owes much to the 
abundant production of high-quality cotton in Egypt;  traditional exports are also high-quality raw 
cotton and yarn.  The average applied tariff on te xtiles (ISIC 321) is 22.2% and the average for 
clothing except footwear (ISIC 3220) is 35.6%.  Impo rt prohibitions on a large number of textile and 
clothing products were in place until 2004.  Doub le fumigation is require d for imported cotton. 
48. As at April 2005, 33 enterprises in the textiles and clothing subsector remained state-owned.  
These companies are mostly engaged in spinning  and weaving activities, and grouped under the 
Holding Company for Spinning and Weaving.  Re presentatives of the private textiles and clothing 
industries have expressed concerns about access to  relevant inputs due to various barriers. 
49. Egypt notified the Textiles Monitoring Body of the state of integration under the Agreement 
on Textiles and Clothing in 2002.
6  In total, Egypt integrated 19,140 tonnes of tops and yarns, fabrics, 
clothing, and made-up textile products.  
                                                      
5 Ministry of Foreign Trade (2004a). 
6 WTO document G/TMB/N/435, 14 March 2002. Egypt WT/TPR/S/150 
 Page 63 
 
 
(c) Motor vehicles 
50. In 2003, imports of motor vehicles tota lled US$361 million, while exports stood at 
US$6.1 million.  Production in the motor vehicle industry is centred around assembly activities, mostly by joint-ventures between foreign automobile producers and Egyptian companies. 
51. The average applied tariff on motor vehicles is  21.8%.  The import of used vehicles is 
prohibited.  Egypt also maintains local-c ontent requirements in automotive assembly 
(Chapter III(4)(v)). 
(7) S
ERVICES  
(i) Overview 
52. Services account for around 48% of Egypt's GDP (Table IV.1).  The largest contribution to 
the services sector is made by th e commercial and financial services, although their share in GDP has 
constantly declined since 1997.  While the contributi on of transportation, including the Suez Canal, to 
GDP has oscillated around 9%, the share of hotels and restaurants has grown, as a result of the 
increased importance of tourism. 
53. Egypt traditionally runs a strong surplus in ser vices trade, amounting to US$ 7,318 million in 
2003/04 (Table I.4).  Tourism and the Suez Canal are the most important generators of foreign 
exchange, with US$5,475 million a nd US$2,848 million respectively.  
54. In the Uruguay Round, Egypt made specific commi tments in four of the twelve sectors in the 
WTO classification (Table IV.8).  In general, Egypt's GATS commitments tended to bind the policy framework existing at the time of the Uruguay Rou nd negotiations.  However, recent changes have 
made the applied policy more liberal than Egypt's  commitments.  The International Trade Agreement 
Division in the Ministry of Foreign Trade is Egypt's contact and enquiry point notified to the Council for Trade in Services.
7 
55. Egypt's GATS Schedule restricts the entry and te mporary stay of foreign natural persons.  
Under the Labour Code (Law 137/1981), the number of  foreigners is limited to 10% of the total 
personnel employed by a company.  In addition, ther e are restrictions on the acquisition by foreigners 
of land for commercial purposes except within free zon es, for which no permissi on is required.  Egypt 
also has restrictions on commercial presence for most  sectors it has included in its Schedule.  These 
generally relate to limits on fore ign equity participation, up to 49% or 51%, such as in construction, 
insurance, and transport services;  an economic ne eds test is used to de termine commercial presence 
in the banking and insurance sectors.  In the Fift h Protocol to the GATS, Egypt made commitments to 
allow foreign equity participation outside the free zones to rise from a maximum of 49% to 51% by 
31 December 1999;  and to relax its economic ne eds test in life, health, and personal accident 
insurance in the year 2000, and in non-life insurance in the year 2002. 
                                                      
 7 WTO document S/ENQ/78/Rev.6, 25 May 2004.  WT/TPR/S/150 Trade Policy Review 
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Table IV.8  
Summary of Egypt's specific commitments in individual service sectors  
   Market access National treatment 
 Mode of supply:          
  Cross border 1    1    
  Consumption abroad  2    2   
  Commercial presence   3    3  
  Presence of natural persons    4    4 
Commitments (■ full;  ◨ partial;  □ none; − not in the Schedule)  
Sector-specific commitments         
Telecommunications services         
International and domestic services using any means 
of technology:  voice telephone services;  telex 
services;  telegraph services;  facsimile services;  
private leased lines (international only)  − □ ◨ ◨ □ □ □ ◨ 
International services using any means of technology:  
data services;  internet services;   − □ □ ◨ □ □ □ ◨ 
Domestic services using any means of technology:  
data services;  private leased lines;  internet services − □ □ ◨ □ □ □ ◨ 
Other services:  mobile services (digital only) − □ ◨ ◨ □ □ □ ◨ 
Other services using any means of technology:  paging 
services;  VSAT;  value-added services − □ □ ◨ □ □ □ ◨ 
Construction and related engineering services          
Construction work for civil engineering  − − ◨ □ − − □ □ 
Special trade construction work  − − ◨ □ − − □ □ 
Installation work  − − ◨ □ − − □ □ 
Electrical work  − − ◨ □ − − □ □ 
Financial services         
Insurance and insurance related services         
Life, health, personal accident □ □ ◨ ◨ □ □ □ ◨ 
Non-life insurance − □ ◨ ◨ − □ □ ◨ 
Reinsurance and retrocession □ □ ◨ □ □ □ □ □ 
Auxiliary services other than intermediation         
Actuarial services − − ◨ □ − − □ □ 
Consultancy (risk assessment and risk management 
only) □ □ ◨ □ □ □ □ □ 
Loss assessment  − − ◨ □ − − □ □ 
Liaison offices  □ □ ◨ □ □ □ □ □ 
Intermediation ◨ ◨ − − □ □ − − 
Banking services         
Joint venture banks − − ◨ ◨ − − ◨ □ 
Foreign bank branches − − ◨ □ − − ◨ □ 
Representative offices of foreign banks − − ◨ □ − − − □ 
Other financial services         
Securities:  underwriting;  brokerage;  trading in 
securities;  clearing and settlement;  marketing and 
market promotion;  portfolio and investment management;  establishment of collective investment funds;  venture capital □ □ □ □ □ □ □ □ 
Financial leasing  − − ◨ □ − − ◨ □ 
Tourism and travel related services           
Hotels and restaurants − □ ◨ □ − □ ◨ □ 
Travel agencies and tour operators − □ ◨ □ − □ ◨ □ 
Other tourism services         
Tourism management services □ □ ◨ □ □ □ ◨ □ 
Tourism transport services         
Land transport services − □ □ − − □ □ − 
 Table IV.8 (cont'd) Egypt WT/TPR/S/150 
 Page 65 
 
 
   Market access National treatment 
 Mode of supply:          
  Cross border 1    1    
  Consumption abroad  2    2   
  Commercial presence   3    3  
  Presence of natural persons    4    4 
Commitments (■ full;  ◨ partial;  □ none; − not in the Schedule)  
Inland water ways − □ ◨ □ − □ □ □ 
Tourism training institutions □ □ □ □ □ □ □ □ 
Tourism-related conventions  □ □ □ □ □ □ □ □ 
Institutional food service caterers  □ □ □ □ □ □ □ □ 
Transport services         
International maritime transport  − □ ◨ ◨ − □ □ □ 
Supporting services for maritime transport:  port 
dredging  − − ◨ ◨ − − □ □ 
Source : WTO documents GATS/SC/30, 15 Ap ril 1994;  GATS/SC/30/Suppl.1, 28 July 1995;  GATS/SC/30/Suppl.2, 
 26 February 1998;  and GAT S/SC/30/Suppl.3, 5 June 2002.  
56. Egypt's MFN exemptions under Article II of the GATS offer national treatment in all services 
sectors to personnel from Greece, Jordan, Libya, Qata r, Sudan, the United Arab Emirates, Yemen, and 
the possibility of including other countries (Table  IV.9).  Additional sector-specific exemptions 
(mainly MFN treatment extended to countries with which Egypt has bilateral or regional trading 
agreements) are provided for transport and communication services. 
Table IV.9 
Summary of Article II (MFN) exemptions listed by Egypt  
All sectors National treatment is provided to personnel from Greece, Iraq, Jord an, Libya, Qatar, 
Sudan, United Arab Emirates, Ye men and possibly other countries. 
Sector-specific commitment s (by major service area)a 
2.  Communication services Egypt provides national treatme nt for co-production agreements for audio-visual works 
from Algeria, Cyprus, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Sudan, Syria, Tunisia, United Arab  Emirates, and possibly other countries. 
11.  Transport services The supply of road transport services into and across Egypt is limited to countries from 
the Arab League and possibly other countri es with which Egypt has bilateral or 
multilateral agreements.  The MFN restriction is maintained to prom ote intra-Arab trade 
and the movement of citizens of Arab countries into Egypt as part of its commitments 
within the Arab League. 
a Sectors numbered according to WTO Secretariat classification.  
Note: This table summarizes Article II (most-favoured-nation) exem ptions listed by Egypt.  It does not contain the same level o f detail 
 as the Schedule and is not a substitute for it. 
Source : WTO document GATS/EL/30, 15 April 1994 
57. Together with other developing country Memb ers, Egypt submitted three communications to 
the WTO Council on Trade in Services in Special Sessi on, all aiming to achieve greater liberalization 
in service trade and increased participation of de veloping countries.  The first communication deals 
with proposals for liberalization of mode 4 under GATS negotiations.8  Further liberalization of this 
mode would provide effective market access to se rvice providers from developing countries.  Thus, 
Egypt believes that the negotiations should in par ticular address the following elements:  recognition 
of common categories of movement, extension of sector-specific commitments, administrative restrictions on the entry and stay of service pr oviders, the role of economic needs tests, and 
recognition of qualifications.   
                                                     
 
8 WTO document TN/S/W/14, 3 July 2003. WT/TPR/S/150 Trade Policy Review 
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58. The two other communications aim to initiate discussion on the extent to which Article IV of 
the GATS, on increasing participation of developing  countries, is being implemented in the ongoing 
negotiations.  To this e nd, one communication provides a set of qu estions to allow developing country 
Members to determine the conditions of market  access that have been offered in the ongoing 
negotiations.9  The other communication assesses the progress on common elements identified in 
negotiating proposals and requests made by developing country Members;  it concludes that some 
Members have not introduced any improvements to the existing commitments, while others have only 
introduced some minor changes with a limited expansion of their commitm ents.  In particular, most of 
the offers do not show any real improvement  to the existing commitments in mode 4.10 
59. Egypt's initial offer to the services negotiations  provides for expansi on of its schedule of 
horizontal as well as sector-specific commitments.11  At the horizontal level, Egypt offers expansion 
of its provisions on the entry and temporary stay  of natural persons.  Further sector-specific 
commitments on market access are made in telecommunication services, construction and related engineering services, and financial services.  As  the offered additional commitments are already 
incorporated in Egypt's legislation, the implemen tation of Egypt's initial offer would not require any 
legislative changes.  
(ii) Financial services 
(a) Banking 
60. The Egyptian banking system currently consis ts of 54 banks, down from 63 in 1999. This 
includes the Central Bank of Egypt (CBE), 27 commerci al banks (of which four are state-owned) with 
1,375 branches, 23 investment banks (including 12 branches of foreign banks), and three specialized 
banks.  The banking system (excluding the CBE) is dominated by the four state-owned commercial 
banks and their 937 branches, whic h in 2003 accounted for around 53.7%  of banking assets.  In June 
2004, total banking assets (excluding those of the CBE) amounted to LE 633,436 million, up from LE 
382,338 million in June 2000.
12   
61. The Bank of Alexandria, the fourth-largest co mmercial bank in Egypt, has been selected as 
the first state-owned bank to be privatized;  its priv atization is scheduled for early 2006 at the latest.  
All state-owned banks have been instructed to  sell their holdings in joint-venture banks.   
62. A new Bank Law (Law 88/2003) was adopted in  2003;  Executive Regulations to the Law 
were issued in 2004.  The CBE is responsible for supervision, control, and regulation of the banking 
sector.  Present regulatory criteria are the same for domestic and foreign banks;  they include an initial 
capital of at least LE 500 million per bank and a capital adequacy ratio of at least 10%.  For branches 
of foreign banks, the minimum capital requirement  is US$50 million or the equivalent in free 
currencies.  Article 87 of the Law provides for th e establishment of a deposit insurance scheme, with 
its own legal personality and an inde pendent budget.  In the past, ba nks with solvency problems were 
merged into more profitable banks, with comp ensation for non-performing loans.  This has 
contributed to the concentration in the banking system described above. 
63. Applications to establish a bank or a branch of a foreign bank must be submitted to the CBE's 
Board of Directors, which must take a decision within 30 days.  Negative decisions of the Board must be substantiated.  Foreign banks that have branches in Egypt must issue a guarantee for all deposits at 
                                                     
 
9 WTO document TN/S/W/16, 25 July 2003. 
10 WTO document TN/S/W/19, 31 March 2004. 
11 WTO document TN/S/O/EGY, 4 January 2005. 
12 Central Bank of Egypt (2004). Egypt WT/TPR/S/150 
 Page 67 
 
 
the branches and for all its other obligations.  Since 1999, the CBE has received 20 requests for 
establishment of banks and 13 requ ests for branch offices of foreign banks.  The authorities indicate 
that the licensing procedures have been suspended, with a view to restructuring Egypt's financial 
sector  
64. There are no limitations on foreign ownership.   Every natural or legal person owning more 
than 5% of the issued capital of a bank must notif y the Central Bank.  No na tural or legal person is 
allowed to own more than 10% of the issued cap ital of any bank, except with the approval of the 
CBE's Board of Directors. There are no restri ctions on Egyptians usi ng banking services abroad. 
65. Foreign banks may open representative offices in Egypt subject to the following conditions:  
(i) the bank does not have branches in Egypt;  (ii) the head office is subject to supervision in the 
bank's home country;  and (iii)  the activities of th e representative office are restricted to studying the 
market and investment potential.  There are 26 representative offices of foreign banks operating in Egypt. 
66. Banks may determine interest rates and fees freely.  There is no obligation on Egyptian 
companies to employ specific banking institutions for their operations. 
67. Law 80/2002, amended by Law 78/2003, establis hes provisions against money laundering.  
The Law obliges financial instituti ons and their employees to report to the Central Bank suspicious 
money transactions, to maintain records of nationa l and international transactions;  and, upon request, 
to make data available to the judiciary and othe r authorities concerned with the enforcement of the 
Law. 
(b) Insurance 
68. In November 2004, Egypt's insurance market  consisted of 21 companies (up from 12 in 
1999), of which six engage in a ll types of non-life insurance, seven engage only in liability and 
property insurance, five are involved in life-insu rance activities, one is an export credit guarantee 
company, one is a cooperative insurance society, and one is a specialized reinsurance company.  
There are also 614 private pension funds, three stat e-owned insurance funds, and five insurance pools.  
Gross premiums of Egypt's insurance companies amounted to LE 4,036 million in 2003/04. 
69. During the period under review, the Government has sold majority shares of two companies 
to foreign investors.  Four insurance companies (three direct insurance companies and Egypt's only 
reinsurance company) remain state-owned;  their combined market share in 2003/04 exceeded 70%.  
The authorities indicate that their privatizati on is planned for mid 2006, following valuation 
(completed) and restructuring.  
70. The legal framework for Egypt's insurance ser vices is laid down in the Insurance Law 
(Law 10/1981, amended by Law 156/1998).  The S upreme Council of Insurance is the main policy-
making body in the subsector.  The Egyptian Insu rance Supervisory Authority (EISA) under the 
auspices of the Ministry of Planning is responsib le for enforcement of th e Insurance Law and for 
regulating the Egyptian insurance subsector.   
71. The Insurance Law allows up to 100% foreign ownership of Egyptian insurance companies.  
It also allows foreign companies to establish repr esentative offices to advertise and promote life and 
non-life insurance activities.  However, they may not sell their services through representative offices.  
There are no restrictions on foreign nationals being on  the board of directors of insurance companies.  
All investment in the insurance subsector is subject  to an economic needs test.  Any shareholding of 
more than 10% is subject to approval by the Prime Minister.  The minimum capital required for WT/TPR/S/150 Trade Policy Review 
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incorporating an insurance company is LE 30 mill ion.  Pursuant to the Insurance Law, Egyptian 
residents (individuals and companies) are not allo wed to buy non-life insurance abroad.  However, 
when a specific insurance cover is not available on the Egyptian market, the EISA may authorize such 
contracts.  Egyptian insurance companies are allowed to offer insurance abroad. 
72. Pursuant to Law 91/1995, insurance companies ar e permitted only to transact either life or 
non-life insurance, and may not hold shares in ot her insurance companies engaging in the other 
activity.13  In June 2000, all insurance tariffs were dere gulated.  Nevertheless, premiums are subject to 
approval by the EISA, which evaluates the proposed  premiums in connection with the company's 
reserve situation.  
73. Since Egypt's last TPR, in 1999, the Governme nt has taken steps to further liberalize the 
insurance market and increase its  competitiveness.  In 2000, com pulsory rates in fire and car 
insurance were abolished.  Economic needs tests we re abolished for life, health, and personal accident 
insurance in 2000/01, and for life-insurance in 2002/ 03.  In 2003, the Government eliminated a 
provision that required direct insurance companies to cede 30% of non-life and 50% of life insurance business to the Egyptian Reinsurance Company.  
(c) Capital markets 
74. The Cairo and Alexandria Stock Exchange (CASE)  is Egypt's major stock market.  While the 
trading volume and the number of listed compani es were below the 2000 level in 2004, market 
capitalization has grown rapidly (Table IV.10).  Th e decrease in the number of listed companies was 
mainly the result of the introduction of new listing rules in 2000. 
Table IV.10 
Stock market indicators, 1996-04 
 1996 1997 1998 1999 2000 2001 2002 2003 2004 
Value of trading of listed 
securities (LE million) 8,769 20,282 18,501 32,851 41,745 24,660 25,985 23,039 36,124 
Volume of trading for listed 
securities (million securities) 171 287 440 841 952 1,184 713 1,202 1,786 
Turnover ratio (per cent) 18.2 28.6 22.3 29.5 34.9 22.2 21.6 13.4 15.4 
Average trading value for listed 
securities per month (LE million) 731 1,690 1,542 2,738 3,3479 2,055 2,165 1,920 3,010 
Number of listed companies 
(at year end) 646 650 861 1,033 1,076 1,110 1,151 967 792 
Market capitalization (LE billion) 48.1 70.9 83.1 112.3 119.8 111. 3 120-.0 171.9 233.9 
  As per cent of GDP  18.8 25.4 30.5 36.8 35.3 30.2 30.1 41.0 53.0 
Foreign participation (as per cent 
of trading volume) .. 19.0 21.1 22.0 23.0 16.0 19.0 20.5 27.5 
.. Not available. 
Source:  Information provided by the Capital Market Authority, and Cairo & Alexandria Stock Exchange.  
75. There are no restrictions on foreigners buyi ng and selling on the stock market.  Although 
foreign participation, expressed as percentage of trading volume, has decreased since 1999, the 
authorities indicate that this share had been risi ng again since the free floating of the Egyptian pound 
in January 2003. 
                                                      
13 Insurance companies established and selling both life and non-life insurance before the 1995 law 
may continue to do so. Egypt WT/TPR/S/150 
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76. The Government has taken various measures to  bring Egypt's capital market closer to 
international standards.  Companies listed on th e CASE are required to use international accounting 
and disclosure standards.  New listing and delisting ru les have been issued for stricter standards and 
the quality of the listed companies.  A new electronic trading system has been installed, and the 
clearing and settlement system has been upgraded. 
77. Egypt's capital markets are regulated by Law 95/ 1992 and its Executive Regulations issued by 
Ministerial Decree 135/1993.  The Law covers join t-stock companies that offer shares publicly, as 
well as companies that deal in securities and shares. The Law defines the rights and obligations of the 
Capital Market Authority as the main supervisory body 
78. With a view to simplifying participation in the stock market, a new draft Capital Markets Law 
has been prepared by the Government and is under consideration by Parliament.  The bill contains 
provisions on shareholders' rights in companies lis ted on Egyptian stock exchanges and on companies' 
obligations to disclose information.  
(iii) Telecommunication and postal services 
79. Egypt's telecommunications servi ces have expanded rapidly in recent years as the subsector 
has been partially liberalized and opened to compe tition (Table IV.11).  The state-owned fixed-line 
provider, Telecom Egypt, had 9 million subscribers in February 2004.  There are two providers of 
mobile telecommunications services, Mobinil an d Vodafone, with a total of about 7.9 million 
subscribers in February 2005.  The existence of  only two suppliers was a result of a four-year 
exclusivity period, starting in 1998, for network development.  A third licence was granted in 2003, 
but was withdrawn by the Government  due to non-use by the operator;  the Government is planning to 
re-offer it. 
Table IV.11 
Telecommunication services, 1998-04 
(Million units and US$)  
 1998 1999 2000 2001 2002 2003 2004 
Main lines in services (milli on) 3.9 4.7 5.5 6.8 7.5 8.8 .. 
Mobile subscribers (million) 0.2 0.9 2.2 3.4 4.4 5.8 7.5 
Internet users (million) 0.1 0.3 0.6 1.0 1.5 2.7 .. 
Connection fee for business telephone service (US$) .. .. 288.18 .. 222.22 170.94 .. 
Monthly costs of a business connection (US$) .. .. 1.80 .. 222 1.97 .. 
Annual investment (US$ million) .. .. 513.1 65.8 .. 513.0 .. 
Costs of a three-minute m obile local phone call at 
peak time (US$) .. .. 0.78 .. 0.17 0.13 .. 
Internet users (per 100 inhabitants) .. .. 0.71 .. 2.82 4.37 .. 
.. Not available. 
Source:  Information provided by the Egyptian authorities.  
80. In February 2003, the People's Assembly adopted a new Telecommunications Law 
(Law 10/2003).  The Law establishes the National Telecommunications Regulatory Authority 
(NTRA), a semi-autonomous institution under th e Ministry of Communications and Information 
Technology, with overall responsibilit y for regulating telecommunications in Egypt.  The NTRA is 
also responsible for the regulation of television and radio bandwidths, including frequency usage. 
81. A licence from the NTRA is required in or der to establish, operate or provide all 
telecommunications services, and to import, manufacture and assemble telecommunication 
equipment.  The licence determines the licensee's ob ligations with regard to the type of service and WT/TPR/S/150 Trade Policy Review 
Page 70 
 
 
technology, universal service obliga tions, and price setting.  There is no difference in the treatment of 
domestic and foreign companies in the licensing pro cess.  Universal services are financed by a fund 
sponsored by the NTRA budget surplus, additi onal contributions from the Government, and a 
percentage of revenue from licence and spectrum fees. 
82. Telecom Egypt is still a state-owned monopoly, although the Government  has announced that 
it plans to offer up to 44% of the company to a st rategic investor and additional shares on the stock 
exchange when market conditions are suitable.  The Telecommunications Law stipulates that Telecom 
Egypt will relinquish its monopoly status as domestic  and international fixed-line operator by 31 
December 2005. 
83. Egypt became party to the Informati on Technology Agreement in April 2003.14  It participated 
in the Negotiating Group on Basic Telecommunication Services.  In June 2002, Egypt accepted the Fourth Protocol to the GATS.
15  The Schedule establishes that the exclusive rights of Telecom Egypt to 
provide cross-border transmission should terminate no later than 31 December 2005.  Interconnection 
with a major supplier must be ensured at any technically feasible point in the network under 
non-discriminatory terms and in a timely fashion.  Interconnection agreements must be submitted to the 
NTRA for approval.  The NTRA also sets interconn ection conditions in case of  disagreement between 
the parties.   
84. In January 2002, the Ministry of Communica tions and Information Technology established 
the Information and Communication Technology Tr ust Fund, which has as objective of making 
information technology more accessible a nd affordable to all citizens.   
85. In April 2004, the People's Asse mbly adopted the Electronic Signatures Law (Law 15/2004), 
which regulates commercial operations through th e use of the internet.  With the objective of 
encouraging the use of information technologies, the Law provides the same legal recognition and 
protection to electronic contracts as to traditional contracts.  It also establishes the Information 
Technology Industry Development Authority, which is in charge of developing systems and rules for 
electronic signatures and transactions. 
86. Pursuant to Laws 16/1970 and 19/1982, the Egyp tian National Postal Organization (ENPO) is 
an independent agency operating under the Mi nistry of Communications and Information 
Technology.  The ENPO has both regulatory and ope rational functions.  It is responsible for the 
development of Egypt's postal services, including pol icy formulation, while engaged in all types of 
postal service activities.  Private sector participati on (including foreign companies) in mail express 
activities is allowed. 
(iv) Transport 
(a) Waterway transport 
87. Egypt has nine major ports, all state-owned, with a total annual cargo handling capacity of 
73 million tonnes.16  Alexandria, the main port, has annual tr affic of about 32.6 million tonnes.  The 
Suez Canal accounted for nearly 10% of Egypt's to tal external current account receipts in 2004.  The 
canal is operated by the state-owned Suez Canal Au thority, which also sets the fees for passing the 
canal.  There are plans to enlarge the canal to make it navigable for VLCC vessels by 2010 and ULCC 
                                                      
14 WTO document G/MA/TAR/RS/95, 30 July 2003.  
15 WTO document GATS/SC/30/Suppl.3, 5 June 2002. 
16 The ports are Adabia, Alexandria, Ariesh, Damietta, Dekhila, El Sokhna, Port Said, Safaga, and 
Suez.  Egypt WT/TPR/S/150 
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vessels between 2010 and 2015.  After several years of stagnation, the number of vessels passing the 
canal increased significantly in 2003 (Table IV.12) .  According to the authorities, between 85% and 
90% of Egypt's foreign trade is handled through its  maritime ports.  In 2003, Egypt's national fleet 
consisted of 124 vessels (of which 14 were state-owned) with a total of 2 million dead weight tonnes.   
Table IV.12 
Suez Canal traffic, 1996-04 
 1996 1997 1998 1999 2000 2001 2002 2003 2004 
Number of vessels 14,731 14,430 13,471 13,490 14,141 13,986 13,447 15,667 16,850 
Vessels (million S.C. net t onnes) 355 369 386 385 439 456 445 549 621 
Receipts (US$ million)  1,849 1, 793 1,765 1,823 1,942 1, 911 1,964 2,606 3,085 
Source:  Information provided by the Egyptian authorities. 
88. Egypt's maritime transport regime is governed by  a number of general and specific laws and 
regulations (Table IV.13).  Law 1/1998 amended Law 12/19 64 to allow private sector participation in 
the operation of ports and port auxiliary services.  Egypt has no specific policy or legislation on multi-
modal transport.  Cargo sharing on a 40-40-20 basi s takes place under bilateral agreements with 
Bangladesh and Saudi Arabia.17  Government or public sector  cargo may only be transported by 
state-owned or Egyptian-owned vessels or by fore ign flagged vessels chartered by the supplier or 
importer.18  
Table IV.13 
Legislation applied to the maritime sector, 2005 
Legislation Application 
Law 84/1949 Registration of merchant  vessels under the Egyptian flag 
Law 232/1989 Safety 
Law 8/1990 Maritime trade 
Law 94/1996 Exemptions from payment of customs duties and sales tax 
Law 11/1998 Establishment of the Egyptian Maritime Authority 
Ministerial Decree 105/1990 Nationa lity of crew on Egyptian vessels 
Ministerial Decree 21/1996 Private sect or ownership and access to services 
Ministerial Decrees 520 and 521/2003 Conditions of li censing for maritime transport and related activities 
Source : Information provided by the Egyptian authorities.  
89. Egyptian nationals or companies with major ity Egyptian shareholdings are eligible for 
registration under the Egyptian flag.  Maritime co mpanies may be registered under the Companies 
Law (Law 230/1981) or the Investment Guarante es and Incentives Law (Law 8/1997), but must obtain 
a shipping licence from the General Authority for Investment and Free Zones.  Law 232/1989 specifies safety and design conditions for ships fl ying the national flag;  these include a maximum age 
requirement for the vessel, set at 20 years (15 years in the case of passenger vessels).   
90. For shipping companies registered in Egypt, there are restrictions regarding nationality:  as 
established by Ministerial Decree 105/1990, only 5% of  the crew may be foreign nationals, and the 
Chairman of the company and the majority of the bo ard of directors must be Egyptian nationals;  for 
companies providing auxiliary services, foreign nationals on the board of directors may exceed 50%.  Companies established in the free zones are exempt from nationality requirements of the ship owner 
and the crew.  
                                                     
 
17 WTO document S/NGMTS/W/2/Add.9, 31 January 1995. 
18 WTO document S/NGMTS/W/2/Add.9, 31 January 1995. WT/TPR/S/150 Trade Policy Review 
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91. The improvement of inland waterw ays is one of the Government's priorities.  The Master Plan 
for Inland Waterways consists of elements such as the assignment of a safe navigation path on the 
Nile from Aswan to Cairo on a 24-hour, 365-day basi s, the construction of a container terminal at 
Ather El Nabi, and the establishment of a central navigation monitoring and control system. 
(b) Air transport 
92. Egypt has 22 major civil airports;  almost  15.5 million international passengers, 8 million 
domestic passengers, and 220,000 tonnes of freight we re handled in 2004.  The single most important 
airport is Cairo International, with about 9.2 million passengers, followed by Hurghada, Luxor, and 
Sharm El-Sheikh, both with 4.6 million passengers.  The Egyptian Holding Company for Airports and 
Air Navigation, a state-owned holding created in 2001, is responsible for the management of most 
Egyptian airports, including Cairo International.  
93. The Ministry of Civil Aviation, established in  March 2002, is responsible for formulating 
policies on air transport, and setting civil aviation fees and charges.  The Egyptian Civil Aviation 
Authority (ECAA), affiliated to the Ministry of Ci vil Aviation, is responsible for regulating Egypt's 
civil air transport (traffic control, and granting airport and aviation licences).  Egypt Air, a state-
owned holding company with seven subs idiaries, is the national carrier.   
94. Egypt has concluded 118 bilateral air transport agreements.  The agreements cover the third, 
fourth and fifth air transport freedoms. 
95. The Airport Build-Operate-Transfer (BOT) Law (Law 3/1997) is the main legal basis for 
private sector participation in the airport subsect or.  The Law allows private domestic or foreign 
investors to build and operate commercial airports through concessions for periods of up to 99 years.  
The Ministry of Civil Aviation has already awarded BOT concessions to a group of private investors at Marsa Alam and El Alamein airports.  Contract s are under negotiations with private companies to 
manage the country's major airports. 
96. In March 2004, the World Bank approved a US$335 million loan to help finance the 
estimated LE 2,557 million construction of new terminal s at Cairo and Sharm El Sheikh airports.  The 
bulk of the loan (US$280 million) will go to the Cair o project.  Passenger capacity at Cairo airport is 
expected to rise from 9.5 million to 20 million.  In addition, the project is aimed at improving airport service quality and promoting private sector participa tion in airport management and service delivery.   
(v) Tourism 
97. Tourism is by far Egypt's most important s ource of foreign exchange and an important 
generator of employment (Table IV.14).  Egypt's tourism industry has continued to perform well since 
1999, despite a slump in 2001/02 in the aftermath of the 11 September events.  The authorities 
estimate that the tourism industry contributes a bout 11.3% to GDP and LE 2.8 billion to public 
revenues in the form of taxes and fees.
19  The majority of tourists come from western and southern 
Europe (56%), followed by eastern Europe (18%), and countries in the Middle East (15%) and Asia 
(5%).  In view of terrorist attacks in early 2005,  the future development of Egypt's tourism industry 
may also depend on security perceptio ns by international visitors.   
                                                      
19 Ministry of Foreign Trade (2004b), p. 91. Egypt WT/TPR/S/150 
 Page 73 
 
 
Table IV.14 
Tourism industry, 1998/99 to 2003/04 
 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04a 
Number of tourists arrivals ('000) 4,266 5,311 5,347 4,341 5,239 3,797 
   Percentage change  24.5 0.7 -18.8 20.7 -27.5 
Tourist nights ('000) 25,692 34,045 32,702 28,542 33,011 38,157 
Tourist revenues (US$ million) 3,235.1 4, 313.8 4,316.9 3,422. 8 3,796.4 2,861.8 
Hotel capacity ('000)b 93.8 113.6 120.7 132.1 136.5 150.0 
   Occupancy rate of hot el rooms (%) 59 71 72 52 55 48 
Fixed investment (US$ m illion) 1,469 1,433 1,441 1,002 472 .. 
Employment ('000) 147 150 155 217 239 253 
.. Not available. 
a Provisional estimate. 
b Calendar year from 1999. 
Source : Information provided by the Egyptian authorities. 
98. Egypt offers a wide variety of attractions;  its  historical heritage spans several millennia.  
Landmarks and monuments of Pharaonic, Nubian, Gr eek, Roman, Christian, and Islamic civilizations 
are easily accessible.  In addition, beach and leis ure tourism on the coasts of the Red Sea and South 
Sinai have shown strong growth in recent years.   
99. Tourism regulation and development are the res ponsibility of the Ministry of Tourism and the 
Tourism Development Authority (TDA).  The TDA is the main public authority in charge of 
investment promotion in designated tourism development areas.  It also monitors individual tourism projects and ensures that they meet minimum sta ndards.  The Government's annual budget for tourism 
promotion is around US$40-45 million.  The General Authority for Foreign Investment and Free 
Zones (GAFI) regularly announces investment opportunities in the tourism subsector. 
100. Egypt's tourism subsector is governed by a larg e number of legal instruments (Table IV.15).  
All companies or individuals wish ing to become tourism-related establishments or operators must 
register with the Ministry of Tourism.  The Ministry rates all tourist establishments and approves prices of services.  Egyptian nationals and reside nts are eligible for a mandatory 50% discount on 
prices charged by hotels. Since the last Review of Egypt, in 1999, the Gove rnment has continued to 
sell various smaller state-owned hotel s and tourism assets;  the Nile Hotel was sold in February 2000 
for LE 48.9 million. 
Table IV.15 
Legislation applied to the tourism subsector, 2005 
Legislation Application 
Law 1/1973 Hotels and tourist constr uctions, amended as per Law 102/1992 
Law 2/1973 Supervision by the Ministry of Tour ism of tourist zones and their exploitation 
Decree 181/1973 Conditions and procedures of licensing hotel and tourist establishments 
Ministerial Decree 343/1974 Implementation of certain pr ovisions of Law 1/1973 on hotel and tourist establishment 
Law 38/1977 Reorganization of tourist companies  
Decree 222/1983 Executive statues of Law 38/1977  
Ministerial Decree 96/1996 Conditions  and controls on time-sharing system in hotel establishments 
Ministerial Decree 194/1997 De finition of tourism activities 
Ministerial Decree 99/1999 Regulation and conditions and rules granting authoriza tion to companies engaging in marine 
activities and diving 
Ministerial Decree 318/2000 Conditions and rules of licensing scuba-diving centres at hotel and tourist establishments 
Prime Minister's Decree 1034/2002 Controls on investment guarantees and incentives enjoyment by the integral tourist 
development activity 
Source:  Information provided by the Egyptian authorities.  WT/TPR/S/150 Trade Policy Review 
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101. Due to the limited growth potential of cultural tourism, the Government has been increasingly 
promoting the development of several areas for be ach and leisure tourism.  Among these are Dahab, 
Nuweiba, Ras Mohamed, Sharm El-Sheikh and Taba on the South Sinai;  El Gona, El Quser, Hamata, 
Hurghada, Mara Alam, Ras Banas, and Safaga al ong the Red Sea coast;  and Bagoush, Fuka, Marsa 
Matrouh, ras El Hekma, and Rossitta along the Medite rranean coast.  The authorities note that tourism 
development in these areas has contributed to  a more balanced regional development. 
102. Various incentives are provided to private investme nt in the tourism subsector (Table IV.16).  
Investors in the tourism industry, both domestic and foreign, are eligible for the benefits provided by 
the Investment Guarantees and Incentives Law .  Special customs privileges and incentives for land 
development are also available. 
Table IV.16 
Investment incentives in the tourism industry, 2005 
Scheme Exemptions or concessions 
Taxes All tourist establishments except restaurants ar e exempt from paying taxes for 5 years in Cairo; 
10 years in remote areas;  and 20 years in El Wady El Gedeed and Toshka areas, under the Investment Guarantees and Incentives Law (8/1997). 
 Rebuilding and expansion activities of tourist-related premises ar e exempt from taxes on 50% of 
income.  
 Law 93/1996 allows a reduction up to 75% of fees for tourist and passenger ships entering Egyptian 
ports. 
Customs duties Under Decree 11/1996, all imported equipment, except for restau rants, benefits from a reduced 
customs duty of 5%. 
 Limousines with no more than seven seats that are imported by tourism transportation companies are 
subject to a unified custom duty of 5%. 
 Alcoholic beverages may be impor ted by hotels at a rate of 300% duty, instead of the usual rates 
ranging from 1,200% (beer) to 3,000% (spirits).   
Land acquisition/development Law 5/1996 allows ownership or lease of state-owned lands in desert areas. 
 Low interest loans are provided to developers for infrastructure services, by the Tourism 
Development Authority.  
 Law 72/1996 allows the expansion of tourist facilities and exemptions for tourist projects.  
 The Tourism Development Authority offers land to private developers for a nominal rate of 
US$1 per square metre in designated tourist areas.  
Source : Information provided by the Egyptian authorities. Egypt WT/TPR/S/150 
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