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U.S. Department of State
Egypt Country Commercial Guide
Office of the Coordinator for Business Affairs



                          COUNTRY COMMERCIAL GUIDE
                                   EGYPT
                                1995/1996



                EMBASSY OF THE UNITED STATES OF AMERICA
                              CAIRO, EGYPT

                               JULY 1995


TABLE OF CONTENTS


CHAPTER I  EXECUTIVE SUMMARY      

CHAPTER II  ECONOMIC TRENDS AND OUTLOOK 

CHAPTER III  POLITICAL ENVIRONMENT 

CHAPTER IV  MARKETING U.S. PRODUCTS & SERVICES   

CHAPTER V  LEADING SECTORS FOR U.S. EXPORTS & INVESTMENT  

CHAPTER VI  TRADE REGULATIONS AND STANDARDS 

CHAPTER VII  INVESTMENT CLIMATE 

CHAPTER VIII  TRADE AND PROJECT FINANCING

CHAPTER IX  BUSINESS TRAVEL

CHAPTER X  APPENDICES
         APPENDIX A - COUNTRY DATA
         APPENDIX B - DOMESTIC ECONOMY  
         APPENDIX C - TRADE
         APPENDIX D - INVESTMENT STATISTICS
         APPENDIX E - U.S. AND COUNTRY CONTACTS
         APPENDIX F - MARKET RESEARCH 
         APPENDIX G - TRADE EVENT SCHEDULE 




This Country Commercial Guide (CCG) presents a comprehensive look at 
Egypt's commercial environment through economic, political and market 
analyses.

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annually at U.S. Embassies 
through the combined efforts of several U.S. government agencies.

While all reasonable care has been taken in the preparation of this 
guide, the U.S. Government assumes no responsibility for the outcome of 
any business transaction resulting from this publication.



COUNTRY COMMERCIAL GUIDE-EGYPT

CHAPTER I.  EXECUTIVE SUMMARY

Egypt has been opening its doors wider to foreign trade and more 
aggressively seeking foreign investment since launching its economic 
reform program in 1991.  In 1995 the business climate should continue to 
improve, with a number of laws and new incentive programs already in 
place or under consideration.  Egypt's reforms have created exchange 
rate stability and allowed the Central Bank to accumulate $18 billion in 
reserves.  The Egyptian Pound (LE) is fully convertible and investors 
report no difficulty in repatriating profits.  Most multi-national 
investors claim to be making money and Egypt is one of a handful of 
markets world-wide where the U.S. has a multi-billion dollar trade 
surplus. 

By far the largest Arab country by population, Egypt is in the heart of 
the Middle East and boasts of a reasonably well-educated and English-
speaking labor force.  The market is large:  anywhere from five to ten 
million of Egypt's population of 60 million enjoy Western consumption 
patterns.  The rest of the population is poor, but habits and 
consumption are changing rapidly:  fast food licensing has been a 
particular area of recent growth.  Moreover, given its strategic 
position in the region, Egypt continues to benefit from strong donor 
support, including about $2.3 billion annually in U.S. economic and 
military assistance.  Progress in the Arab-Israeli Peace Process is 
beginning to have an effect on opening regional markets.  Increased 
tourism is evident and new regional energy projects are under active 
discussion.

The main impediment to doing business in Egypt continues to be red tape:  
U.S. exporters and investors still face requirements for a multiplicity 
of permits, long delays in clearing goods through customs, arbitrary 
decision making, and an unresponsive commercial court system.  Other 
weaknesses of the market include the difficulty of obtaining financing 
beyond five years and non-transparent and difficult government tendering 
rules, which often put competing bidding parties in a "Dutch auction" 
after final tenders have been submitted.

On balance, Egypt's annual imports of $10 billion, modest annual growth 
rates of two percent, openness to foreign goods, market reforms, growing 
private-sector, and diverse manufacturing base contribute to a 
commercial challenge which holds significant promise for alert 
investors.  The U.S.-Egyptian Partnership for Economic Growth and 
Development launched in September 1994, and explained in this guide, is 
a manifestion of that challenge.  The Partnership sets as its goal the 
fostering higher levels of sustainable economic growth, improvement of 
Egyptian standards of living, job creation, increased productivity, and 
a mature international trading system.

*  Country Commercial Guides are available on the National Trade Data 
Bank on CD-ROM or through the Internet.  Please contact STAT-USA at 1-
800-STAT-USA for more information.  To locate Country Commercial Guides 
via the Internet, please use the following World Wide Web address: 
WWW.STAT-USA.GOV.  CCGs can also be ordered in hard copy or on diskette 
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS.

CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK

MAJOR TRENDS AND OUTLOOK

Introduction:  In 1991, faced with large external debt service arrears, 
declining growth, a worsening balance of payments, 20% inflation, and 
steadily shrinking foreign reserves, the Government of Egypt launched a 
comprehensive economic reform program.  This program was a major 
departure from the statist economic policies of the previous four 
decades and represented a shift from the piecemeal reforms of the mid-
1980's.  
 
As part of its stabilization program supported by an International 
Monetary Fund (IMF) Standby Agreement, the government freed interest and 
exchange rates, sharply reduced the  budget deficit and disciplined 
monetary growth.  Pursuant to the conditions of a World Bank structural 
adjustment loan (SAL), Egypt developed a framework for public sector 
reform and privatization, and liberalized trade and investment policies.

These, in combination with additional policy reform conditionality 
associated with USAID cash transfers and considerable technical 
assistance, have resulted in exchange rate stability, a balance of 
payments surplus, a liberalized banking regime, and lower inflation.

Key to the next stage of the government's reform effort are reduction of 
trade barriers, elimination of unnecessary regulations and restrictions, 
and privatization of the country's massive public sector.  Major 
structural reforms proposed include sales of state enterprises, 
reductions in the maximum tariff rate and elimination of tariff 
exemptions; consistent application of quality control standards; 
unification of the laws governing investment and commercial activity; 
and a labor law that allows employers to lay off workers for economic 
reasons.  The government has announced plans to implement legislation or 
issue decrees that address many of the above issues in 1995.  Laws in 
preparation as of mid-1995, relate to anti-trust and anti-dumping, 
commercial establishment, equipment leasing, insurance, rent decontrol, 
patent protection, and labor.  
          
After a strong start in the early 1990s, the pace of economic reform in 
Egypt, particularly with regard to the difficult task of structural 
reform, slowed significantly in 1994.  A renewed demonstration of the 
government's commitment to broad economic reform will spur economic 
recovery in 1995 and contribute to creation of a climate which 
encourages sustained growth. 
 
Egypt's Economic Reform Program:  Egypt's reform program encompasses all 
major areas of economic activity, including  financial activities and 
foreign exchange, trade liberalization, public sector reform and 
privatization, and price and investment deregulation.  Although 
important reforms have indeed been  implemented, particularly in the 
areas of financial liberalization, trade reform and investment and 
pricing decontrol, serious shortfalls in other key areas, notably in the 
privatization program and deregulation, slowed the reform program 
significantly in 1994.  Success in achieving sustainable economic  
growth in 1995 will depend greatly on the acceleration of the reform 
process.  
          
Differences between the IMF and the Government of Egypt on the pace and 
scope of the economic reform program became public in July, 1994, when 
government officials announced that Egypt would not agree to an IMF 
recommendation to devalue the LE.  Although the issue of enhancing 
Egypt's export competitiveness was apparently only one of many under 
discussion, public attention immediately focussed on the possibility of 
devaluation.  Senior government officials, including the President and 
the Prime Minister, have repeatedly stressed that market forces set the 
LE's value.  If the LE comes under pressure, however, we expect that the 
government will support the Egyptian currency at its current level of 1 
USD to LE 3.40.  Indeed, bankers report that the Central Bank intervened 
twice (once in July and once in December 1994) to do so.  The government 
argues that a devaluation would undermine investor confidence, do little 
to improve short term export competitiveness, and could threaten 
economic reforms already in place.  Many in the local business community 
agree, and, to date, the Government's position has been borne out by the 
market place.  Consultations between the two sides are on-going. 

These differences on the reform program has temporarily stalled  release 
of the third tranche of Paris Club debt relief, originally scheduled for 
July 1994. 
          
In the financial and banking sector, banking regulation and control has 
been strengthened dramatically since 1991: provisions for dealing with 
weak banks have been increased and foreign currency reserve requirements 
have been reduced.  Egypt has eliminated exchange controls, unified its 
two-tier exchange system, and opened the exchange market to nonbank 
dealers.  Local branches of foreign banks may now conduct Egyptian pound 
(LE) operations; six have obtained licenses to do so.  Five new mutual 
funds, all managed by local banks, have begun operation; licenses for 
other funds are pending.  A new Foreign Exchange bill, passed in 1994, 
formalized many of these changes. 
          
Passage of the Capital Markets Law in 1992 has set the stage for 
revitalization of Egypt's stock market.  Early indications are that 
investors are enthusiastic: share prices have, according to one widely 
used index, went up an average of 40% in 1994.  Although the market has 
seen technical adjustments downward in 1995, investor enthusiasm remains 
high.  However, the market is thin and new offerings will have to be 
brought quickly to the market to maintain momentum.  As part of its 
privatization program, the government began making limited blocks of 
shares in public sector companies available to the market in 1994; these 
offerings were immediately oversubscribed.  The first domestic bond 
offering since 1953 was launched in 1994 for the pharmaceutical company 
Hoescht-Oriental; others are expected to follow.  In early 1995, the 
government issued its first tranche of government bonds.
          
Egypt has made progress in liberalizing its trade regime, but  domestic 
industry remains protected by non-tariff import barriers  and relatively 
high tariff rates.  A three year trade reform  program, announced in 
July, 1993, calls for the lifting of nearly  all import bans, most 
tariff preferences, and the elimination of  non-tariff barriers.  The 
government has ended the import ban list  for all products except 
textiles, apparel, and poultry.  Since 1993, it has reduced maximum 
tariff rates from 100% to 70%.  Commodities such as alcohol, tobacco, 
and passenger cars, are exempt from the ceiling.   
          
Privatization is an essential element in the government's structural 
reform program; however, progress has been limited.  Law 203, enacted in 
1991, forms the basis of the government's restructuring of 314 public 
sector enterprises, 70% of Egypt's industrial sector.  In an October 
1994 conference on  private sector development, officials justified the 
slow pace of privatization but said that the government intended to 
offer 10% blocks of shares of public sector companies every two weeks to 
jump start the privatization program.  Many deals remain to be 
finalized.  
          
The government's policy on privatization is evolving.  It appears to be 
moving away from outright sales of companies (such as the Coca-Cola and 
Pepsi Cola bottling factories agreements concluded in  1994) to a policy 
of more gradual privatization through public share offerings, use of 
Employee Shareholder Organizations, and long term lease and management 
contracts.  Confusion about the procedures, delays and disagreements 
over the valuation process, and a general reluctance to follow through 
on bids have dampened investor interest.  The market would welcome an 
acceleration of the privatization process.
          
In early 1991, Egypt replaced its investment licensing regime with a 
system for automatic approval of investments in sectors not on a  
"Negative List," (military related industries, tobacco, and  investments 
in the Sinai.)  In July 1993, it eliminated domestic content 
requirements for assembly industries, although they must  still meet a 
local content requirement up to 40% in order to obtain customs duty 
reductions.  A Unified Companies Law should be submitted to the People's 
Assembly in 1995.
          
Investors seeking incentives (primarily tax holidays) under  Investment 
Law 230 still must obtain project approval from the  General Authority 
for Investment and Free Zones (GAFI).  The  government has been working 
on improving legal protection of patents, copyrights, and trademarks.  
Some progress is being made in this area.  U.S. officials continue to 
stress the need for greater protection of intellectual property rights 
in Egypt.  In 1992, the government amended the 1954 copyright law by 
increasing penalties and extended coverage to computers and software. 
          
Further positive amendments were made in 1994 and a draft patent law is 
awaiting submission to the People's Assembly. 
          
Despite government efforts to encourage investment, both foreign and 
domestic, significant barriers to investment exist.  According to 
studies prepared for the Private Sector Development Conference, these 
include: a complicated and non-transparent legal, regulatory, and 
bureaucratic environment, cumbersome approval process, lack of long term 
financing, and an inefficient public  sector.  President Mubarak, in a 
series of meetings with  government officials, bankers, and business 
people in January 1995, has made elimination of these barriers a main 
objective of his administration.
 
The government deregulated pricing in recent years, freeing all  
industrial prices except for pharmaceuticals, cigarettes, rationed  
sugar, and rationed edible oil products.  Failure to deregulate  
pharmaceutical products is a major concern for foreign companies  
operating in Egypt.  In agriculture, subsidies for fertilizers, feed and 
pesticides have, for the most part, been eliminated.  The  government is 
in the process of deregulating the cotton sector,  although some direct 
market intervention still occurs.  Petroleum  prices have risen from 36% 
of international prices in May  1989 to 90% by mid-1993, while 
electricity prices have risen from 24 to 73% of long run marginal cost 
(LRMC) in the same period.  Petroleum prices are expected to increase to 
world levels by mid-1995, while the price of electricity will increase 
more slowly.  
          
To alleviate the impact of economic reforms on low income groups,  
donors in 1991 pledged 617 million dollars to an IBRD sponsored  Social 
Fund for Development (SFD).  In 1994, the SFD disbursed 239 million 
dollars to beneficiaries, creating a claimed 300,000  permanent and 
temporary jobs.  Now that the Government has virtually stopped hiring, 
the SFD's small loan and public works program has become the only 
"government" job creation effort.  However, the SFD's labor mobility 
programs, directed at displaced public sector workers, remain extremely 
limited owing to government sensitivities and footdragging on 
privatization and liquidation.
          
Growth Rates:  According to the Central Bank, real GDP growth was  3.6% 
in FY 93/94, up from 1.5% in FY 92/93.  More  conservative estimates 
place that figure closer to 2%.   Projections for FY 94/95 range from 
official estimate of 4.9% to more modest projections of 2.0-2.5%.  
Although the current spate of activity in some sectors, such as real 
estate, construction and agriculture, is encouraging, tight government 
fiscal policy, high interest rates, unsettled foreign exchange markets, 
and limited private sector activity are likely to constrain growth rates 
for the foreseeable future. 

No reliable data exists on Egypt's large informal sector, which may 
account for 30 to 50% of economic activity and serves as the employer of 
last resort.  However, government hiring constraints and economic 
weakness have increased the number of jobseekers in the informal sector.    

Fiscal policy:  The government's strong commitment to fiscal  stringency 
has been a major element in its successful stabilization program.  From 
a high of about 17% of GDP in FY 90/91 (year ends June), Egypt slashed 
its budget deficit to 4.7% of GDP in FY 92/93 (excluding earthquake 
relief), 2.8% in FY 93/94, and a projected 1.5% in FY 94/95.  

Although the government did agree to a 15% wage increase for the public 
direct sector during the year, it should be able to achieve its GDP 
target in the coming year. 
          
Total government revenues rose by approximately 9% in FY  93/94, two 
thirds of which comes from taxes.  The government instituted a general 
sales tax (GST), applicable at the import and manufacturing level, in 
May 1991.  The GST is to develop in stages into a full value added tax; 
the second stage is due to be implemented in summer, 1995.  Taxes on 
certain consumer goods (alcoholic and soft drinks, tobacco and petroleum 
products) not integrated in the GST were raised and progressively 
converted to ad valorem taxes.  Customs duties were also increased, 
preferential tariff rates virtually eliminated and import-related fees 
raised.  

A Unified Income Tax Law came into effect January 1, 1995.  The law 
reduces marginal tax rates, simplifies the tax rate structure, and aims 
to improve administration of tax policy.  However, it may well have an 
adverse impact on revenue, at least in the short term, as it does not 
broaden significantly the country's tax base. 

Monetary policy:  Despite capital inflows and the rapid accumulation of 
foreign reserves, now estimated at more than $18 billion, the government 
has continued to limit domestic money creation through a public Treasury 
bill auction.  T-Bill auctions are the Central Bank's major tool for 
regulating money and credit and financing the deficit.  In 1994, the CBE 
reduced the amount of T-bills available for auction; at one point in the 
year, six month bills were taken off the market.  The average rate for 
three-month Treasury bills dropped from 14.5% at the beginning of the 
year to 10.7% in December, 1994, bringing the rate close to the level of 
inflation.  In January, 1995, the government announced that it would 
begin issuing longer term (5-15 years) government bonds.  Official 
ceilings on bank lending, used initially to regulate credit, were ended 
for the private sector in 1992.

According to the Central Bank, growth in the broad money supply  slowed 
to 11% in FY 93/94, compared to 15.8% the  previous year.  The Egyptian 
economy has been "de-dollarized" in the past two years:  foreign 
currency holdings as a percentage of the overall money supply fell from 
51% in 1991 to approximately 29% in mid-1994.  By the end of 1994, 
consumer loan demand had begun to pick up, utilizing the banking 
system's considerable excess liquidity.   

Balance of Payments:  According to the Central Bank, the current  
account balance, including transfers, registered a surplus of $1.8  
billion in FY 93/94, down from the previous year's (revised) figure of 
$4.5 billion (and considerably off the government's FY 93/94 projection 
of $2.3 billion.)  Excluding transfers and remittances, the current 
account was $3.39 billion in deficit for the first nine months of the 
fiscal year, due in large part to the continuing low level of tourism 
revenues, a decline in non-petroleum exports, and an increase in imports 
of goods and  services.  Given weak export growth and declining service 
payments, this deficit is expected to grow in the near to medium  term.  

Egypt has yet to see significant improvement in its merchandise  trade 
balance.  According to preliminary figures from the Central  Bank, the 
deficit hit $7.6 billion in FY 93/94, slightly higher than the previous 
year.  Non-petroleum exports continued to decline from $3.5 billion in 
FY 92/93 to $3.1 billion in FY 93/94.  Lack of significant export growth 
is indicative of deteriorating export competitiveness, loss of 
traditional Soviet markets, increased production costs, including 
administrative taxes and fees, and the low rate of private sector 
activity.  

Services and transfers remain strong, although there are indications 
that Suez Canal receipts, a major component of the services account, 
have declined and tourism revenues continued to drop in 1994. 
Remittances are estimated to have reached more than $6 billion in 93/94; 
those figures reported by the Central Bank are actually higher due to 
inclusion of short term capital inflows.  Relatively high rates on pound 
savings and stability in Egyptian pound-U.S. dollar exchange rates (at 
around LE  3.39) continue to attract investors, although fears of 
devaluation apparently limited short term capital inflows in the second 
half of 1994, as did rising dollar interest rates.  

In May 1991, Egypt came to terms with its Paris Club creditors.  The 
agreement, staged over a three year period, offered debt relief equal to 
an immediate 15% reduction in the net present value of its eligible 
official debt, with a further 15 percent reduction approved after the 
completion of the 1991 IMF program and the adoption of a successor IMF 
program.  A final 20 percent reduction has been delayed indefinitely.  
When the program is complete, it should reduce Egypt's external debt to 
approximately $30 billion, a significant but likely manageable figure.

Inflation:  In June 1995, the government reported that inflation is 
running at 9% (November to November) down from 11% the previous year.  
However, informal surveys indicate that prices are beginning to increase 
across the board, contributing to rising pressure on wages.
  
THE U.S.-EGYPTIAN PARTNERSHIP FOR ECONOMIC GROWTH AND DEVELOPMENT

In September, 1994, President Mubarak and Vice President Gore announced 
the creation of the U.S.-Egyptian Partnership for Economic Growth and 
Development.  This partnership aims to develop a broadly based economic 
relationship focussed on trade, investment, and enhanced commercial 
ties.  The two sides agreed to establish a Joint Committee for Economic 
Growth which will maintain a high level policy dialogue between the two 
governments.  The Committee aims to encourage and facilitate private 
sector contacts, intensify trade flows, strengthen science and 
technology and launch a dialogue on economic policies that will promote 
growth and development.  This committee will be complemented by the 
organization of an independent Presidents' Council of senior Egyptian 
and American business leaders which will seek to highlight areas of 
economic and commercial opportunities and identify possible obstacles to 
doing business.  The Joint Committee will also oversee implementation of 
a U.S.-Egyptian Science and Technology Agreement.  

Three sub-committees were developed under the partnership initiative:

-   the Sub-Committee on Economic Policy, Trade and Investment, and 
External Finance;

-   the Sub-Committee on Sustainable Development and the Environment; 
and

-   the Sub-Committee on Technology and Human Resource Development.

As of July 1995, all three sub-committees have met and the Executive 
Committee of the Presidents' Council has met twice.


PROSPECTS FOR THE FUTURE

A significant upswing in Egypt's economic growth in 1995 is predicated 
on an acceleration of the structural reform program and on continued 
improvements in the macroeconomic situation.  The desultory nature of 
the economic reform program in 1994-1995 has led observers to argue that 
the program has stalled. Therefore, government actions, particularly 
with regard to privatization and trade liberalization, will be closely 
scrutinized by investors both at home and abroad.  Inflationary 
pressures, extremist violence and political considerations, including 
the 1995 elections, could contribute to an additional delay in 
implementation of promised reforms. 
          
Economic growth in the coming year will depend greatly on Egypt's 
ability to create an economic climate conducive to private sector 
activity.  The government will remain firm in its commitment to maintain 
the current LE/USD exchange rate, though modest corrections to improve 
Egypt's export competitiveness cannot be ruled out.  Absent pressure on 
the pound, interest rates should head downward, causing a temporary -- 
but manageable -- outflow of capital.  Recent indications that economic 
activity is beginning to pick up are encouraging.  However, inflationary 
pressures could jeopardize any recovery and need to be monitored 
closely.  Balance of payments prospects are fair: tourism, hard hit by 
the events of the last three years, should begin to pick up while 
remittances will remain steady at approximately $5 billion annually.  A 
modest downturn in both petroleum revenues and Suez Canal receipts is to 
be expected.  

The government will continue to hold the line on expenditures; job 
creation and expansion in economic activity will therefore be dependent 
on a robust private sector.  Competition in the banking sector will 
remain intense.  Less profitable banks will likely merge, while some 
foreign banks may exit the market altogether.  Unless inflation becomes 
a major issue, consumer credit will continue to expand while lending 
rates, which have been higher than economic conditions appear to 
warrant, will move downward.   

PROSPECTS FOR U.S. BUSINESS

Egypt's 60 million population, at least 5% of which are affluent in 
American terms, attracts the attention of consumer product manufacturers 
-- both U.S. exporters and firms exploring local assembly or licensing.  
In addition, Egypt's strong construction market, including tourism 
resorts and hotels, and numerous industrial projects require building 
and industrial products of a wide range.  

U.S. exporters enjoy a solid position with one-third of the $11 billion 
import market.  Most of this comes from competitively priced commercial 
sales unrelated to the large U.S. economic and military aid programs.  
Egyptians like American goods and technology, and the American "image" 
overall is quite positive here.
          
While Egypt's regulatory system is cumbersome, the commercial agency 
regulations which govern relationships with U.S. sellers are quite 
favorable and safe from the foreigner's point of view.  There continues 
to be a steady growth in the number of U.S. suppliers who have appointed 
Egyptian representatives.
          
Challenges to doing business in Egypt include the relative poverty of 
the majority of the population which limits the consumer market and 
requires localizing of product characteristics (e.g. smaller than 
"normal" sizes of goods to fit within limited consumer budgets); the 
slow pace of business deregulation under the economic reform program; 
the propensity of Egypt's ponderous bureaucracy to mask or totally avoid 
the decision-taking process, causing delays in implementing projects; 
and a corollary ability of ingenious and turf-conscious bureaucrats to 
discover ways to insert their regulations and authority in most business 
decisions.
      
Marketing venues in Egypt include the annual U.S. Pavilion at the March 
Cairo International Fair, trade missions, technical seminars, technology 
information offices run by the Embassy at trade shows, and the Foreign 
Commercial Service's "Gold Key" special appointment making service. 
 
LABOR AND EMPLOYMENT
          
Egypt's total domestic work force now numbers 16.4 million.  Official 
government figures place the unemployment rate at 9.8 percent in FY 
93/94, while international observers estimate that the figure could 
actually range as high as 17.5%.  According to the World Bank, the 
economy must create 5 million jobs in the next five years to sustain a 
growth rate of 3.5 percent and halve the current rate of unemployment.  
The two largest employers, agriculture and the government, offer very 
limited prospects for job expansion.  Underemployment probably affects 
one-third to one-half of all workers.  Approximately 2.5 million 
Egyptians work overseas.  

PRINCIPAL GROWTH SECTORS

Agriculture:  Economic reform has paid off in the agricultural sector, 
which accounts for 17% of GDP and 36% of total employment.  Despite the 
vagaries of weather, production grew at an estimated 2.5% in 1994.  
Major crops, including rice, corn and a variety of vegetables, 
registered gains in 1994, while citrus, wheat, and tomato production 
experienced a downturn in production due to poor weather and blight.  
Cotton production fell with less land under cultivation, but exports in 
1994 were at their highest level in ten years, accounting for close to 
LE 1 billion in foreign exchange earnings.  A decree issued in November 
1993 removed many export restrictions which should benefit rice 
producers, among others.  The production of cotton and sugar cane which 
was formerly regulated, is now liberalized.  Farmers now have an 
alternative to public sector entities in marketing all crops other than 
sugar cane. 
          
Industry:  Official data show the industrial sector   contributed about 
16.7% of GDP in FY 93/94.  Official figures place the growth rate at 
more than 3%; anecdotal information, however, suggests overall 
industrial production, especially in the public sector, has declined.  
According to government figures, private sector investment share of the 
industrial sector was estimated at 58.9% in FY 92/93 (latest figures 
available) compared to 53.7% in FY 90/91. 
        
Services:  Egypt's services sector is dominated by tourism and the Suez 
Canal.  Egypt's tourist industry, rocked by continued terrorist attacks, 
continued its downward trend during FY 93/94.  According to the Minister 
of Tourism, revenues were down 14% to $1.3 billion in the first nine 
months of the year compared to the previous year.  However, good advance 
bookings for FY 95/96 and FY 96/97 and a strong summer in 1994 indicate 
that tourism is on the rise.  Suez Canal revenues also declined to $1.7 
billion in the first nine months of the year and are expected to 
continue their downward trend. 
          
Energy:  The petroleum and natural gas sector accounted for 
approximately 10% of Egypt's GDP in FY 1993/94, while petroleum products 
including crude oil made up more than 52% of total exports.  Oil 
production during the first half of 1994 equaled 22.69 million tons, 
approximately 890,000 barrels of oil per day.  During the same period, 
the value of Egypt's petroleum exports decreased slightly to $1.156 
billion, compared to the previous year's level of $1.158 billion.  In 
1993 (latest data available), the United States imported 13.1% of 
Egyptian crude oil and petroleum products exports, valued at 
approximately $281.6 million, an increase over the previous year.  The 
prices of Egypt's reference crude, Suez Blend (33 degrees API) in 
January to September 1994 fell by 4.7% to an average of $13.76 per 
barrel compared to 14.44 per barrel for the same period in 1993.
          
Natural gas accounts for approximately 28% of total energy consumption 
in Egypt.  During the FY 1993/94, natural gas production increased by 
12% to 9.185 million tons from 8.236 million tons in FY 1992/93.  During 
the same period, butagas and condensates production amounted to 800,000 
tons and 1.342 million tons respectively.  The growth in natural gas 
consumption in Egypt is due to an increase in the installed electrical 
capacity in Egypt, going up from 4,730 megawatts (M.W.) in 1980 to more 
than 11,900 M.W. in 1993; and the increase in electricity generation 
from 18.4 billion kilowatt hours (KWH) to more than 47 billion KWH over 
the same period.  In 1993, 64.3% of the natural gas produced in Egypt 
was consumed by electrical power-generating stations and the rest of the 
balance was mainly consumed by fertilizers, cement and petroleum 
industries.
          
In August 1994, the government approved the establishment of Egypt's 
first private sector refinery with a capacity of 100,000 b/d to be built 
near SUMED's export terminal.  The cost of the project is estimated at 
$450 million for the first phase and $500 million for the second phase 
and directed toward export markets.

Environment:  In January 1994, the environmental protection law was 
ratified by the People's Assembly.  The new law provides  authority for 
enforcing standards and mandates environmental impact studies prior to 
approval of industrial and tourist projects.  The executive regulations 
are expected to be published and in effect in the first half of 1995.  
The World Bank, Denmark, Japan, Britain and Canada have begun new 
environmental projects in collaboration with the Egyptian Environmental 
Affairs Agency. 

    

CHAPTER III.  POLITICAL ENVIRONMENT

NATURE OF POLITICAL RELATIONSHIP WITH THE UNITED STATES

President Hosni Mubarak has supported a strong U.S.-Egyptian 
relationship based on shared interests in promoting regional peace and 
stability, revitalizing the Egyptian economy, and strengthening trade 
ties.  Over the years, Egypt and the U.S. have worked closely to help 
further the Middle East peace process.  In 1993-94, Egypt hosted many of 
the negotiating rounds for the Gaza-Jericho autonomy agreement which was 
signed in Cairo in May 1994 by Israeli Prime Minister Yitzhak Rabin and 
PLO leader Yasir Arafat.

MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE

Terrorism:  Since 1992, extremist groups seeking to overthrow the 
Egyptian government have staged attacks on Egyptian government 
officials, security forces, foreign tourists, and Egyptian Coptic 
Christians.  Although the terrorist attacks have hurt Egypt's tourist 
industry, they are not a substantial threat to the government or its 
ability to make overall progress.

Political Reform:  The Egyptian political system has undergone 
significant liberalization since the Nasser era of a few generations 
ago.  Today, citizens enjoy a substantial degree of freedom of 
expression and the judiciary regularly demonstrated its independence 
from the executive branch.  Further progress on political reform has 
taken a back seat to meeting the challenge posed by terrorist groups.  
The government's anti-terrorism campaign has raised serious allegations 
of such human rights abuses as torture, arbitrary arrest, prolonged 
detention without trial and the use of military courts to try persons 
accused of terrorism.  Moreover, the governing National Democratic Party 
(NDP) dominates the political scene to such an extent that, as a 
practical matter, people do not have a meaningful ability to change 
their government.  In 1994, the People's Assembly approved a three-year 
extension of the Emergency Law and Egypt has been under an official 
state of emergency continuously since 1981.

BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE OF ELECTIONS, AND
ORIENTATION OF MAJOR POLITICAL PARTIES

The Egyptian Constitution provides for a strong president who is 
empowered to appoint one or more vice presidents, the prime minister, 
the cabinet, and the governors of Egypt's 26 provinces.  In 1993, 
President Hosni Mubarak was endorsed in a national referendum, in which 
he ran unopposed, to serve a third six-year term as President by the 
People's Assembly.

The People's Assembly has 454 members - 444 popularly elected and 10 
appointed by the President.  The constitution reserves 50% of the 
Assembly seats for workers and farmers.  Assembly members sit for five-
year terms.  The next national election for the Assembly is scheduled 
for November 1995.  There is also a 210-member Shura (Consultative) 
Council which has an advisory role on public policy but little 
legislative power.

The NDP has been in power since its establishment in 1978 and commands 
large majorities in the Assembly and the Shura Council and effectively 
controls the local governments, mass media, organized labor, and the 
large public sector.  The NDP is an umbrella political party containing 
within its ranks members who favor greater economic and political reform 
as well as those who advocate continued government ownership of the 
public sector and an active government role in "regulating" the economy.

There are 12 recognized opposition parties, but only one -- the leftist 
Tagammu Party -- is represented in the People's Assembly.  All other 
parties boycotted the 1990 People's Assembly election because of 
allegations of unfair election procedures.  Some of the other opposition 
parties include the new Wafd party (centrist), the Islamist-oriented 
Socialist Labor party, and the Nasserist Party (leftist).


CHAPTER IV.   MARKETING U.S. PRODUCTS AND SERVICES

DISTRIBUTION AND SALES CHANNELS

Foreign firms can sell directly within Egypt if they are registered to 
make direct sales.  Many do so as part of a manufacturing or assembly 
operation in Egypt.  A few foreign firms use free zones or bonded 
warehouses to store goods, and hire their own employees to sell door-to-
door consumer goods such as vacuum cleaners. 

Most foreign firms, however, rely on Egyptian companies for effective 
wholesale and retail distribution, ensuring their effectiveness through 
staff training programs in Egypt and abroad, supply of short-term home 
office personnel to work with the Egyptian firm in Egypt, and frequent 
visits by marketing and support staff.  Although the concept of 
"marketing" as compared to simply selling, or waiting for the customer 
to find and come to you, is new to Egypt and weakly practiced, there are 
a growing number of good Egyptian firms who know what they are doing and 
how to market products in which they specialize.

Egyptian commercial agents are required for foreign firm bids on most 
civilian government tenders.  By contrast, commercial agents cannot be 
used to bid on military tenders, although use of Egyptian "consultants" 
may be allowed if the arrangement is properly structured.  Commercial 
agents are optional when bidding on tenders issued by the petroleum 
companies, when selling to the private sector, or when selling under 
USAID-financed programs.

There are many choices for distributors, dealers and agents in Egypt.  
There are a few firms with modern management, including "profit center" 
staff responsible for success in specialized departments.  There are 
more traditional "general trader" type companies, some of which have 
developed a certain specialization (e.g. lumber, building products, 
canned goods, fresh and frozen meats), and some of which handle 
"everything."  Also there are smaller firms specializing in only a few 
product lines or only a handful of foreign suppliers.

According to Egyptian Customs authorities and the Minister of Public 
Enteprise, in 1994 Egypt had 8,800 registered importers, 12,500 
exporters, 2,900 commercial agents representing 100,000 foreign firms, 
and 2,500 factories licensed to import components.  Most of these firms 
are privately owned, but the government sector -- which produces two-
thirds of manufacturing output -- includes 314 separate companies 
affiliated to 17 Holding Companies; nearly 30 military factories that 
also make civilian products; and 1,500 companies owned by one of the 26 
provincial authorities (governorates).

The Cairo Chamber of Commerce reports that in 1992 in Cairo alone the 
following numbers of companies were registered by type indicated: 1,921 
limited liability companies, 1,906 partnerships, and 3,706 sole 
proprietorships. 

Most retailers of consumer goods tend to do their own importing, rather 
than pay high markups to wholesalers.  A corollary is that many 
Egyptians would prefer getting quotes directly from the overseas 
supplier instead of the local agent, on the theory that the price will 
be better.  This requires that U.S. principals be sensitive in 
describing the role (and presumed cost) of their Egyptian agent if the 
U.S. firm refers customer inquiries back to the Egyptian agent, or to a 
regional representative outside Egypt.  

Some agents specialize in government tenders.  Often such persons have 
retired from the government agency they now specialize in selling to.  
This is especially common among agents selling to the military, security 
and police agencies.  In the extreme, some of these agents literally 
operate out of their homes and have neither office nor staff, but they 
can be effective.

In Egypt as elsewhere, the artistry of appointing a representative 
requires a blend of many concerns and decisions.  Will your company and 
its product line be prominent in the attention of the prospective agent, 
or just be added to a dusty shelf of many other product lines?  If the 
prospective agent is a one-man band, can you find him/her when you need 
him/her; does he vacation all summer in Cannes or on the Red Sea?  Is 
his influence with government decision makers generational, and 
therefore subject to decline as his years pass?  Does he have children 
or trusted staff being groomed for responsibility?

Egyptian law requires that all commercial agents and importers have 
Egyptian nationality (if it is a company, the chairman and all members 
of the board must be Egyptian, and it must be 100% Egyptian owned).  
Agents also must have resided continuously in Egypt for at least five 
years (with specified exceptions for expatriate Egyptians having an 
overseas work permit); be certified by a local chamber of commerce or 
professional association; not be a civil servant or worker in a public 
sector company (i.e. no moonlighting), nor a member of the People's 
Assembly; not be a "first grade relative" (i.e. a member of the 
immediate family, or uncle, aunt, niece, or nephew) of a civil servant 
of the rank of Director General or higher, or of a member of the 
People's Assembly.  (This prohibition against agents with family members 
in government is rarely enforced.)  Public sector firms can be agents, 
as can be private firms and individuals.

Distributor-type companies with any foreign ownership can market goods, 
including imported goods, in the following circumstances.  However, they 
cannot handle the import operation per se: 

(A) general partnership companies, or limited partnership companies:  In 
these types of companies, there may be a foreign partner provided that 
the Egyptian partner(s) have at least 51% of the capital and the general 
manager or head of the company is an Egyptian national.  In these 
instances, such a distributorship company cannot be an "importer" nor 
act as commercial agent unless it is 100% Egyptian owned and managed.

(B) limited liability company: a foreign partner in this type of 
distributorship company faces no limit on the percentage of ownership, 
provided that at least one manager of the company is an Egyptian 
national (there can be one or more managers depending upon the articles 
of incorporation), there are at least 2 shareholders or partners and the 
capital of the company is not less than LE 50,000 (approx. $15,100).  A 
distributorship company of this type also cannot be an "importer", nor 
act as commercial agent.

(C) Joint Stock Company: Provided that at least 49% of the shares are 
offered to Egyptians upon formation, foreign shareholders ultimately can 
own up to 100% of the company provided that a majority of the board of 
directors are Egyptians, the capital of the company is not less than 
L.E.250,000 and there are at least 3 shareholders.  Again, a 
distributorship company of this type may not import nor act as a 
commercial agent unless it is at least 100% Egyptian owned and managed.   

Foreign firms which form a distributorship as mentioned above often 
permit the Egyptian partners to form a separate company to act as 
"importer" or agent.  The latter delivers the goods to the 
distributorship company for distribution/marketing within Egypt.

USE OF AGENTS AND DISTRIBUTORS - FINDING A PARTNER

Egyptian law concerning commercial agency agreements is among the most 
liberal in the Middle East from the foreigner's perspective.  The law is 
neutral concerning exclusivity, compensation is not required to cancel 
an agency, and there is no minimum notification period for cancellation.  
There is no requirement that the agent authorize the import of the 
foreign principal's products into Egypt, nor that the importation take 
place through the agent.  (Importers of any product must be separately 
registered, under another law.)  Commercial agents must register the 
fact of their agency with the Ministry of Economy and Foreign Trade's 
Commercial Registry Department, giving basic facts about the agreement 
including the amount of commission to be received on sales.  The foreign 
firm itself faces no local registration requirement.  The law is also 
neutral about dispute settlement procedures (leaving this to the parties 
to decide, preferably in writing at the time of appointment of the 
agent, and in advance of a dispute), and on the amount of commission due 
an agent.  

Commission rates vary with the volume of sales; five percent is common 
and typical, but the rate can be less than 1% for high-volume sales or 
10% in special cases.  The commission rate must be reported in bid 
packages for government tenders, with the government reserving the right 
to reduce any commission it deems extravagant.  As previously noted, 
commission rates also must be noted in the Ministry of Economy and 
Foreign Trade commercial registry documents signed by the Egyptian 
agent.

Although exclusivity is not required by law, in practice most Egyptians 
expect or at least hope for it.  The majority of U.S. firms have one or 
two Egyptian agents, although a few have more.

Agencies can be split geographically, although this is generally avoided 
in a country like Egypt centralized around the capital city of Cairo.  
If there is a geographic split, it is generally Alexandria with or 
without the Delta cities on one hand, and Cairo and the Nile valley on 
the other.  Agencies also can be split between private and public 
customers, with one agent specializing in tenders and one or more others 
handling private sector customers.  Agents often appoint subagents to 
cover the smaller cities in Egypt.  

There is no special Egyptian secret to finding a partner.  It is as 
difficult and personal in Egypt as anywhere.  Advance networking and 
lengthy investigation by the interested principal is necessary.   

There are plenty of reputable, dynamic, educated, and far-sighted 
Egyptian entrepreneurs available in Egypt, and some reside overseas in 
London, Paris, or the United States.  The best have intellects more than 
a match for senior management of major U.S. corporations, and they 
should never be underestimated in one's evaluation of them or in 
negotiating with them.

In this search, the U.S. Mission in Egypt can be helpful through its 
network of contacts with the Ambassador, the U.S. & Foreign Commercial 
Service, Foreign Agriculture Service, U.S. Agency for International 
Development, the Office of Military Cooperation, the U.S. Information 
Service, the Embassy's Economic and Political offices, and others. 

Recommended business networks in Egypt include the over 600-strong 
American Chamber of Commerce in Egypt (with branch office now in 
Alexandria and Washington, DC) and various associations of Egyptian 
entrepreneurs including the Egyptian Businessmen's Association, the 
Alexandria Business Association, and similar groups in Port Said, 
Ismailia, and some other cities.  There are also investor committees in 
the large industrial cities of Tenth of Ramadan, Sixth of October, Borg 
El Arab, and a new one in Ismailia promoting projects in the Sinai and 
in the Canal Cities.

FRANCHISING

Franchising of fast-food restaurants and clothing stores is a growing 
business in Egypt.  Franchises in other business lines are rare to 
nonexistent, however, probably because of (a) fears of cost and (b) the 
assumption that a locally managed business can offer good enough product 
or service to meet customer expectations, thus the "extras" proffered by 
a franchise are not needed.   There are no special laws governing 
franchising, and no unique trade or legal barriers to overcome.  

Egyptians themselves have begun franchising their own retail businesses 
to others, particularly clothing stores and very recently a fast-Indian-
food chain.  This suggests that the franchise business concept per se is 
acceptable in the Egyptian cultural milieu, and could be replicated in 
other business lines by an interested firm.

All but one Egyptian franchise known to the U.S. Embassy is the fruit of 
an Egyptian initiative approaching the foreigner, rather than a 
marketing effort by the foreign firm.  This proves that Egyptians know 
their market better than anyone else, of course, and also indicates an 
attention gap on the part of foreign franchisors.


U.S. FAST FOOD FRANCHISEES IN EGYPT

ARBY'S
Al Nowair Foodstuff Co.
4 Awad Amer Street
Wadi El Nile, Mohandessein
Tel: 346-0691; Fax: 345-4253
Dr. Muthana Al-Durrah, General Manager

Baskin-Robbins
(Americana) Egyptian Co. for Int'l Touristic Projects
47 El-Batal Ahmed Abd-Elaziz St., Mohandessein
Tel: 346-9719, 346-1697;  Fax: 346-9754
Mr. Shereif Fathalla, Chain Manager

Broaster Foods
Broast Restaurants Co.
32 Eltyaran Street, Nasr City
Tel: 263-2408;  Fax: 707-933
Mr. Ziad Abughazala, General Manager

Chili's
Tropicana for Projects
74 Beirut Street
Heliopolis
Tel: 417-0463;  Fax: 664-283
Mr. Mansour Amer, Chairman

House of Donuts
House of Donuts
6 El Nil El Abid Street, Lebanon Square
Mohandessein
Tel: 302-2739, 302-2738
Mr. Mike Mosavi

I Can't Believe It's Yoghurt
La Poire Touristic Enterprise
Sur Nadi El Zamalek, commercial Passage Mohandessein
Tel: 302-3500;  Fax: 303-6383
Mr. Abdel Fattah Faizy, Operation Manager

Jack in the Box
Middle East Int'l Trading Co.
1 Wadi El Nile Street, Mohandessein
Tel: 303-6346;  Fax: 303-6347
Mr. Makram Nawar, Chairman (Opening August 1995)

Kentucky Fried Chicken
(Americana) Egyptian Co. for Int'l Touristic Projects
47 El-Batal Ahmed Abd-Elaziz St., Mohandessein
Tel: 346-9719, 346-1697;  Fax: 346-9754
Mr. Adel Hussein, General Manager

McDonalds
Orascom (Greater Cairo)       Mansour Group (Giza & Alex)
106, 26th of July Street      54, Gameat El Dowal El Arabia St
Agouza                        Mohandessein
Tel: 301-5109                 Tel: 341-0112, 341-0480
Fax: 346-1133                 Fax: 341-1510
Mr. Nasseif Sawiris           Mr. Yassein Mansour

Pizza-Hut
(Americana) Egyptian Co. for Int'l Touristic Projects
47 El-Batal Ahmed Abd-Elaziz St., Mohandessein
Tel: 346-9719, 346-1697;  Fax: 346-9754
Mr. Hisham Ahmed, Chain Manager

Pizza-Inn
Egypt-Emirates for Ready Foodstuff Co.
15 Tiba Street, Mohandessein
Tel: 361-6771;  Fax: 360-0424
Mr. Awad Mohamed El Hadidi, Chairman of the Board

Taco Bell
The Egyptian-British Foodstuff
7 Nazih Khalifa Street, Heliopolis
Tel: 291-3698, 417-3004;  Fax: 417-2860 (opening October 1995)

TCBY "The Country's Best Yoghurt"
M.E.S.
87 Abdel Aziz Al Soud St., Manial, Cairo
Tel: 362-8777, 989-785, 983-899;  Fax: 362-3123
Mr. Hisham El Tayeby, General Manager

Winschell's
Winschell's Egypt
7, Hassan Mousa El Agaad, Heliopolis
TeL 418-3813, 418-3659;  Fax: 418-3812
Mr. Moataz Sedki, General Manager
Mr. Ahmed Morsi, Owner's Representative  

DIRECT MARKETING

Direct marketing within Egypt is covered above, under Distribution and 
Sales Channels.  Other forms of direct marketing such as catalog sales 
or television sales are problematical and not yet used.  This is because 
the use of credit cards or checking accounts drawn on foreign banks is 
not common in Egypt (although it is increasing), and the mailing of 
goods into Egypt faces the risks of mail theft, loss in the netherworld 
of the airport mail warehouse, and arbitrary and high customs duties.  

JOINT VENTURES/LICENSING

Egyptian entrepreneurs like the comfort factor in having a foreign 
partner in a joint venture in Egypt.  The foreigner supplies and ensures 
quality of the technology as well as the "cachet" necessary to gain 
customer acceptance.  Thus, foreign equity in joint ventures can be as 
low as a few percentage points depending upon mutual agreement.  
Egyptian law allows foreign investors to own any amount, up to 100%, in 
an approved project involving industry, reclamation and cultivation of 
barren and desert land, tourism, housing, and real estate development.  
There are currently some 50 U.S. joint ventures with private and 
government partners.  Some include third-country partners from Europe or 
other Arab countries.

The details of joint venture or licensing agreements between Egyptians 
and their foreign partners are a matter of mutual agreement, defined by 
their contract, not by special law.   Liberalized foreign exchange 
regulations since 1991 permit the free transfer abroad of profits and 
dividends, and invested capital may be repatriated with prior approval 
of the government's investment authority, the General Authority for 
Investment and Free Zones-GAFI (without restriction if the investment is 
under Investment Law 230; with some what different restrictions if under 
Companies Law 159/1981).

Technology licensing that is part of an Investment Law 230 investment 
application is no longer part of the now streamlined, 2-page application 
form.  Technology licensing that does not involve "investment" in Egypt 
by the foreigner but that does involve using "process secrets" for 
manufacturing in Egypt may be approved by the Ministry of Industry's 
General Organization for Industrialization (GOFI).  Approval is not 
required for licensing agreements involving trademarks and technical 
know-how other than "process secrets."  A stiff withholding tax is 
levied on royalty payments unless a double taxation treaty exists.  
(There is a U.S.-Egyptian treaty for the avoidance of double taxation 
treaty which limits tax on royalty payments to 15% of the gross amount 
of such royalty.)

Numerous government and private companies have licensing agreements with 
foreign firms under which royalties and other fees are freely 
transferred abroad pursuant to individual corporate agreements.  
Examples of licensed production in Egypt include name-brand clothing, 
personal care consumer products, kitchen utensils, pistols, laser 
alignment equipment, and military vehicles.  Service licenses include 
diving training, and franchised services include personal care and 
restaurants.

Inadequate patent protection has been the biggest barrier to licensing 
in Egypt.  This hopefully will change with passage of a new patent law, 
a draft of which is currently under debate within the government and 
should reach parliament in the end of 1995.

STEPS TO ESTABLISHING AN OFFICE

As in any other country, seek early legal counsel from one or more 
attorneys and tax counsel from a professional accounting/auditing firm.

Egypt is a country in which the bureaucracy has been flourished since 
the time of the Pharaohs.  A newcomer's biggest and never-ending 
challenge is to learn, preferably in advance, what laws affect him/her 
and how to cope with them.  Many of the laws reflect Egypt's socialist 
government of the 1950's-1970's, and, if interpreted literally, do not 
favor private enterprise.  However, newer laws and the policy of today's 
government favor entrepreneurship and the free market economy.  Tension 
between alleged political desire favoring entrepreneurs and bureaucratic 
reliance on old laws-on-the-books continues.

There are two alternative legal routes for a foreign company to invest 
in Egypt: through Law 159/1981 or, alternatively through Law 230/1989.  
Companies Law 159 offers fewer privileges to foreign investors than 
Investment Law 230.  However, Companies Law 159 may be the better route 
where speedier and more certain approval of an Egyptian corporate 
subsidiary is desired.  (Note: in 1995-96, both these laws are to be 
combined into a single new company/investment law, which will also cover 
regulations (Law 203) governing public sector companies, and the capital 
markets (Law 95.)

Investment Law 230 is outlined in Chapter VII.

SELLING FACTORS/TECHNIQUES

The Egyptians with whom an American will deal in business are typically 
trilingual (English-French-Arabic), well-traveled individuals who pride 
themselves on ferreting out good deals at decent prices.  Mid-level 
government officials with whom a foreigner may deal may be less 
sophisticated and less well-traveled, but no less able to negotiate.

Cairo is the cultural capital of the Arab world.  Thousands of affluent 
Arab tourists and investors travel to Cairo often throughout the year, 
soaking up the cinema, theater, television, live performances, and 
relaxed lifestyle not generally available in some other Middle East 
countries.  Many of these persons have second or vacation homes and 
apartments in Egypt, as well as factories and real estate investments.  
Foreign suppliers/ marketers have not yet learned to take advantage of 
Egypt as a locale from which to market to its audience of wealthy Arab 
visitors.

One fourth of the estimated 60 million Egyptians live in Cairo, the 
capital.  Three million live in Alexandria permanently, and its 
population increases by 50% in the summer as holiday makers flood in.  
There are numerous important secondary cities which offer market 
opportunities for agricultural, industrial, and consumer goods in the 
Delta (Tanta, Damietta, Mansoura, Mehalla el Kubra, Damanhour, Benha, 
Zagazig); along the Suez Canal (Port Said, Ismailia, and Suez); and 
along the Nile south to Upper Egypt (Assiut, Minia, Qena, Luxor, Aswan).

Negotiations for a sale, whether with a government agency or a private 
individual, will be bound by certain unspoken Egyptian cultural 
requirements.  One is that there is no final best price that cannot be 
reduced further by haggling.  A corollary is that only a fool would 
offer one's best price, or anything close to it, early in negotiations.  
Government employees are judged on their ability to suck the final penny 
from the lowest bidder.  This happens repeatedly, at every level of 
decision making.  This is the Egyptian version of the "Dutch auction," 
called in Arabic: "momarsa."  Momarsas are popular because they give 
Egyptian officials the appearance of trying to get the best deal for 
Egypt, and they reduce charges of cronyism in the award.  Unfortunately, 
momarsas are viewed by companies subjected to them as potentially 
unfair, without clear rules or procedures, and a violation of Tenders 
Law No. 9's mandate to negotiate with the lowest qualified bidder 
(only).

A marketing problem in Cairo is that it is difficult to find out who 
offers what for sale, and where to find them.  The city is splayed 
across the Nile about 15 kilometers (10 miles) in diameter, with several 
distinct marketing districts that are an hour apart in normally heavy 
traffic.  This means that the average consumer may only find a product 
he/she wants by attending a trade show or fair, as it is too hard to 
find the single or handful of outlets maintained by official agents, 
distributors and dealers.    

ADVERTISING AND TRADE PROMOTION (INCLUDING LISTS OF MAJOR
NEWSPAPERS & BUSINESS JOURNALS)

Strategically placed newspaper/magazine ads can produce good results.  
Egyptians read newspapers voraciously, and all literate people will see 
or hear about advertisements placed in widely circulating Al Ahram 
daily.  

Television is watched by all Egyptians, literate or not.  TV 
advertisements reach and influence wide audiences.

Other forms of advertisement in Egypt consist of roadside billboards, 
flashing neon signs on building roofs, building walls completely painted 
with advertising signs, "junk mail" advertisements (most Egyptians do 
not view these as mass-mailed or junk, but each recipient assumes 
someone has specially sought him out), faxed junk mail advertisements 
(as prevalent in Egypt as they are in the U.S.), and messenger/courier-
delivered direct mail campaigns.  Flyers/ stickers plaster Cairo's walls 
and lampposts just as in America.  Street peddlers and hawkers shout the 
praises and prices of consumer products they offer for sale.  

Trade promotion is becoming more sophisticated.  True trade shows are 
common, aimed either at segregated business audiences or at the general 
public; several take place each month at one or more of the downtown 
hotels, or the new Cairo International Conference Center.  Most of these 
shows consist exclusively of Egyptian distributors/dealers/agents of 
foreign suppliers, or local manufacturers -- not because they purposely 
exclude foreigners but because of poor marketing and last-minute 
preparations.  

FCS Egypt is working with some of the better trade show organizers to 
offer advance publicity to U.S. firms, help the organizers target 
Egyptian customers, and provide an opportunity for U.S. technology to be 
displayed at an Embassy-staffed information stand that includes catalogs 
of American suppliers relevant to the show's theme.

The annual Cairo International Trade Fair is the historical centerpiece 
of Egyptian trade promotion events.  It has evolved from its beginnings 
as a "required" government annual extravaganza to today's version of a 
county fair aimed at consumer purchasers.  U.S. firms offering consumer 
products as diverse as office and business equipment, telephone credit 
cards, courier services, saunas and swimming pools, satellite dishes, 
educational toys, car care products, lawn furniture, and recreational 
equipment all do very well at the annual U.S. Pavilion at the Cairo 
International Fair.

SELECTED MEDIA LIST (those of likely interest to U.S.
advertisers):

Daily Newspapers
Al Ahram (circulation 650,000 - 700,000)
--Egypt's most prestigious daily and most prosperous of the country's 
five largest publishing houses.  In addition to publishing, the company 
has interests in many business services including computerization, 
billing services, and ID card services.

Al Akhbar (circulation 780,000)
--- more informal news (crime, human interest) than Al Ahram.

Al Gomhouriya (circulation 200,000)
---established by Sadat but now with more local and sports news than 
other dailies.

Al Wafd (circulation 150,000 - 180,000)
---mouthpiece of the New Wafd opposition party.

Egyptian Gazette (circulation 15,000)
--- the English-language daily.

Weekly Newspapers/Magazines
Akhbar al yom newspaper (circulation 1 million)
--- Saturday edition of Al Akhbar has many special interest sections, 
particularly women's and sports.

Akher Saa magazine (circulation 35,000) 
--- current events, sports, economics, history, arts, cinema, theater.

Rose al Youssef (circulation 50,000)
--- political magazine with human interest stories.

Al Ahram Weekly (circulation 25,000)
--- English-language weekly newspaper summarizing key features 
originally published in Al Ahram Arabic-edition, as well as original 
stories.

Al Ahram Hebdo (circulation 15,000)
--- French-language weekly 

Economic Publications
Al Ahram Al Iktisadi weekly magazine (circulation 30,000)
--- Egypt's leading economic magazine, modeled after the British 
"Economist", is read by academics and government economic officials.

Al Alam Al Yom daily newspaper (circulation 5,000 in Egypt, 50,000 in 
Saudi Arabia).
---economic, commercial and Arab affairs.

Nosf al Donia weekly magazine (circulation 45,000)
--- women's issues.

Hawaa weekly magazine (circulation 50,000)
--- Egypt's original women's magazine, first published in 1892.

Al Kawakeb (circulation 30,000)
--- Egypt's cultural magazine, specializing in cinema, theater, radio 
and television.

Business Monthly
--- Published by Amchamber of Commerce Egypt.

Egypt Today and Business Egypt (circulation 17,000)
---  Glossy magazines related to social/business life in Egypt published 
by International Business Associates.

PRICING PRODUCTS

Egypt traditionally is a price-sensitive market, where quality often 
takes second place to cost.  Government tender rules require that low 
bids win regardless of quality.  American firms sometimes do not believe 
this and mistakenly quote "better value" than is required by tender 
specifications.  This is ineffective and produces losing bids, although 
it is acceptable as a second "alternative" optional bid alongside a bid 
that directly meets requested specifications.  Tender specifications are 
frequently unclear and sometimes poorly written, which allows wide 
divergence in interpretation of needs by various bidders.  Elaborate bid 
proposals often fail, passed over for cheaper, practical alternatives.  
U.S. firms that succeed in Egypt tailor their products to customers' 
specific needs.

Exceptions to the generalization that price sells are sales financed by 
USAID and other foreign/international donors such as the African 
Development Bank.  Since funds are provided by these donors, Egyptian 
decision makers can afford (and the foreign donors often require) 
quality, efficiency, and endurance considerations to play heavily in 
buying decisions.  Another exception is consumer goods; people will pay 
for quality if they perceive it.  However, the same affluent Egyptians 
who may buy a Mercedes car will tend to outfit their new factories with 
used equipment if they can transplant cheaply a "complete" factory from 
abroad. 

Another pricing issue that causes some U.S. firms to fail in Egypt is 
that some U.S. suppliers may inflate their prices when quoting to USAID-
financed projects, since they know such projects are restricted to U.S. 
firms.  Egyptians who get cheaper quotes for the same products on non-
AID related projects network with one another and will refuse to deal 
with such suppliers. 


SALES SERVICE/CUSTOMER SUPPORT

U.S. sellers should aim to create and support a sales/service network in 
Egypt by training their distributors and dealers.  Firms that sell 
directly to government agencies need to do the same thing -- ensure 
training of the work-force using the product or it will fail through 
ignorance of proper maintenance and the foreign supplier will be blamed 
for poor quality.  Total Quality Management (TQM) interest has sky-
rocketed among producers since January '95, many with a view toward ISO 
9000 certification. 

SELLING TO THE GOVERNMENT

In selling to the Egyptian Government one will of course deal directly 
with the client agency.  Egyptian procurement is either done with 
national budgetary funds, or by using aid funds from USAID or other 
donors.

In the case of USAID-funded procurement, project announcements are made 
in the U.S. "Commerce Business Daily," published in Chicago.  This 
journal publishes U.S. Government procurement needs, and is available in 
hard copy for $324 per year from the Superintendent of Documents, 
Government Printing Office, Washington, D.C. 20402-9371, phone 202-783-
3238, fax 202-512-2233, or on line from Mead Data Central, Arlington, 
VA, phone 800-843-6476.

Other donor-funded projects open to U.S. bidders are from the Government 
of Japan's United Overseas Development Assistance (ODA), or multilateral 
assistance from entities such as the World Bank, African Development 
Bank, or Arab and Islamic development funds.

The following pertains to contracting directly to the Egyptian 
Government.  It is also relevant for donor-financed projects to the 
extent that Egyptian law applies to them.

Tenders Law
Tenders Law No. 9 of 1983, supplemented by implementing regulations 
issued by the Ministry of Finance (Decree 157 of 1983, as amended), 
governs Egyptian government procurement by all civilian and military 
agencies ("ministries, departments, local government units, and public 
and general organizations") unless they are excused from this law.  Some 
government corporations do have their own separate procurement 
procedures.

Law 9 requires that all foreign bidders on public sector tenders submit 
bids through an Egyptian commercial agent, except in the case of 
Ministry of Defense tenders for which commercial agents are prohibited.  
("Consultants" may, however, be used in connection with military bids.)  
This means that tender documents generally can be purchased from issuing 
government offices only by the commercial agent.  U.S. firms usually 
cannot get the documents by writing directly to the government agency or 
through the U.S. Embassy.

Public sector entities routinely request credit terms in their tenders 
for capital equipment.  Typical payment guidelines for tenders worth 
more than $62,000 are 10% paid at contract signing, 10% against shipping 
documents, and the rest paid in semi-annual installments over two to 
five years.

Egypt's tender regulations are written by the government, for the 
government's benefit.  Obligations and responsibilities of suppliers are 
spelled out in excruciating detail, but there are fewer explicit 
requirements placed on the government client agency.  A 
contractor/supplier's safeguards, therefore, must be negotiated before 
contract signing, particularly in defining force majeure, "final 
acceptance," and dispute resolution.

What the Tenders Law says
Tenders Law No. 9 requires, with specified exceptions:
(A) open competition with publication for at least 30 days;
(B) 15% price preference for Egyptian bidders;
(C) a two-phase decision-making process: a bid opening committee that 
convenes a public session to which all bidders are invited and bid 
prices are read aloud; and a decision-making (settlement) committee that 
reviews the technical bids and either makes a decision or (if the value 
is over $62,000) recommends a decision to the minister concerned;
(D) bid bonds of one or two (generally two) percent, and a performance 
bond by the winning firm of (generally) five percent.
Favoritism is shown to Egyptian public sector companies and Egyptian 
cooperatives both of which are exempted from the bonding requirements 
provided they do the work themselves and do not request an advance 
payment;
(E) fraud, bribery ("either personally or through a third party, 
directly or indirectly"), or bankruptcy by the contracting party annuls 
the contract and allows any outstanding bid or performance bond to be 
confiscated;
(F) sole source decisions are permitted in special instances: monopoly 
sources of supply; goods whose import is monopolized; specialized 
products or services; and goods and services needed urgently; 
(G) advance payments are permitted, against a letter of guarantee.  U.S. 
standby letters of credit (which preferably should be insured for 
political risk by the U.S. Overseas Private Investment Corp.) are 
acceptable in Egypt.

Law 106 of 1976 requires that insurance be provided to meet the 
decennial liability of the civil code.  

Practical Problems of the Tenders Law
There is no time limit for the decision making committees to meet, make, 
or announce their decision.  If a bidder withdraws its bid prior to bid 
opening, it forfeits the bid bond.   Bidders often are "held hostage" to 
a government agency that stalls the bid opening for varied reasons, 
including running out of funds for the project.  Costs of extending bid 
bonds are borne by the bidders.  If a winning firm withdraws from a 
project before beginning or completing a project, its performance bond 
similarly will be confiscated.  This has happened when a client has 
delayed start-up because of budget shortfalls, expecting the 
contractor/supplier to carry the burden of maintaining the performance 
bond. By contrast, the government agency can cancel an order even after 
awarding it and after the supplier/contractor posts a performance bond.

Government agencies often delay giving the "final acceptance" of goods 
or works projects.  This holds up final payment and final retirement of 
the performance bond.

If award decisions are delayed beyond the validity date specified by a 
bidder, extra costs incurred by the delay cannot routinely be passed on.  
If the client adds new requirements to an ongoing contract, any extra 
monies requested by the supplier/contractor must be endorsed by a 
special "price study committee" which sometimes takes years to approve 
them.  In the meantime, of course, the supplier/contractor is expected 
to fulfill the revised contract without delay or complaint.

Elements Absent from the Tenders Law
There are no time limits for making payment from the date of acceptance 
of a bid, nor for the decision making committee to make a decision or 
recommend a decision to the Minister.  Bidders cannot withdraw a bid 
prior to an award without risking loss of their bid bond.  There is no 
provision providing for implied or automatic acceptance of a supplied 
good or service.  The client must explicitly acknowledge "final 
acceptance" before the contractor can receive final payment, retire the 
performance bond, and close its books.

The Tenders Law makes no reference to dispute resolution, which 
therefore must be negotiated prior to contract signing.  Arbitration in 
Egypt or abroad (the latter can include foreign law and foreign arbitral 
procedures) is preferred to the court system.  If no specific dispute 
settlement procedure is mentioned, any future dispute will go to the 
government's Council of State, a government agency that both reviews the 
constitutionality of proposed laws and regulations and functions as a 
court for all non-criminal matters in which the government is a party.  
If the government party does not honor an arbitration decision, the 
tenders law does not permit the winning party to use the arbitration 
settlement documents to settle claims with other government entities 
(customs, tax, social insurance, etc.).

There is no provision allowing the supplier to delay work if payments 
are delayed.  There is no provision to reduce the performance bond 
progressively according to the rate of completion of the work.  

The law does not require publication of decision making criteria, nor 
that losing bidders be informed why they lost.

Other Practical Considerations in Selling to the Government
Poorly written specifications make bidders guess what the customer 
wants.  U.S. firms must stay in close touch with client agencies to 
minimize doubts and uncertainties.  Do not assume the "best" is desired, 
since its superior features may not be understood or its price may be 
too high.    

The law is silent about who writes tender specifications and neither 
encourages nor discourages hiring of consultants to do so.  Foreign 
firms that are trusted by government officials often voluntarily propose 
tender specifications to prospective tenderers, which gives them a 
chance to wire the specifications. 

In the decision making committee, the technical representative 
(typically an engineer) must concur in the award decision.  Such persons 
thus carry much influence.

Government entities expect performance bonds to cover the full warranty 
period for the product or work in question.  U.S. suppliers, by 
contrast, generally want their warranty limited to safe delivery and/or 
set-up.  Therein lies grounds for much misunderstanding and complaints 
over alleged delays in releasing performance bonds.

As for bid bargaining, although Article 16 of Law No. 9 says "no 
negotiations may take place with any of the tenderers to modify his 
tender" except in final negotiations with the lowest bidder, this is 
rarely practiced.  Instead, freewheeling bargaining is routine with 
several competing low bidders, with the object being to extract maximum 
concessions from each bidder.  Law 9 translations refer to this as "open 
negotiations."  Experienced bidders have come to call it "Dutch 
Auction."

Influence peddling in procurement decisions is a much-discussed 
phenomenon.  What is certain is that decision makers must feel 
comfortable with a supplier.  They will not select a low-bidder unknown 
to them.  Personal friendships and frequent visits to decision makers by 
foreign principals and their local representatives are important 
marketing factors.  Some sweetheart deals are known to take place.  
However, many Egyptian sources affirm that most decisions are openly 
competitive and straightforward.

While the decision making process per se may be opaque, it is also 
porous in the sense that details of all bids are readily obtainable 
through back channels and become known quickly to all concerned.  

DEFENSE TRADE

Defense and "Defense Conversion"
U.S. military aid finances many of Egypt's big-ticket defense 
procurements - $1.3 billion annually for several years.  Large projects 
underway include the M1A1 Abrams tank manufacturing facility, which is 
in production; F-16 assembly; military radars; minesweepers; and 
rehabilitation of Chinese-supplied submarines.  Such projects can be 
expected to continue, although improvements to and maintenance of 
existing force capabilities are perhaps more likely targets of future 
spending than entirely new systems.

"Defense conversion" (reinvestment) in the sense of making productive 
use of surplus military capacity is under intense discussion within the 
Egyptian military.  Most of the two dozen military factories under the 
Ministry of Military Production, the four companies of the National 
Service Projects Organization, or the Arab Industrialization 
Organization (AOI)'s nine factories, already produce a wide range of 
civilian products, ranging from sewing machines to Jeeps.   They want to 
expand into new, productive product lines for domestic and export sales, 
and are open to foreign licensing/joint venture proposals.   The tank 
factory, for example, might expand into assembly and repair of other 
vehicles.  Recently the military bought the main state-controlled (and 
money losing) food packaging company.  

Military production plants are not scheduled for privatization and are 
unlikely to be sold.  Twenty-six of these plants produce both military 
and civilian goods, and many managers of these plants are interested in 
licensing arrangements with foreign firms to enhance their production 
mix and improve quality.

The M1A1 Tank Factory (Military Factory 200) outside Cairo is one of the 
largest military manufacturing facilities in this part of the world.  
Its American-trained Egyptian workforce is highly skilled and has access 
to state-of-the-art production and maintenance machinery.  Since the 
foreseen production run of M1A1 tanks will end in 1997, Egyptian 
authorities are interested in attracting large-scale medium-and heavy 
industrial producers to produce other products at this excellent 
facility either under license or in joint venture.

Examples of civilian products currently manufactured at 26 of Egypt's 
military factories include: medical and diagnostic equipment, domestic 
appliances, fire extinguishers, ammunition, machine shop equipment such 
as lathes, drills, grinders, generating and welding sets, electric 
motors, television receivers, computers, batteries, electric and water 
meters, agricultural machines, kitchen equipment, mobile water 
purifiers, circuit boards, calibration equipment, Chrysler Jeep-brand 
vehicles, laser alignment instruments, and microscopes.

Military goods produced in Egypt include: small caliber and heavy 
ammunition, mortars, mines, grenades and other explosives, antitank 
rockets, rocket motors, radars and electronic equipment, smoke and 
pyrotechnic devices, rifles, pistols (Beretta licensee) and machine 
guns, jet trainer aircraft (Alpha and Tucano), armored personnel 
carriers, Alpha jet engines, field and aircraft communications 
equipment, Gazelle helicopters and engines, gyroscopes, weapon sights, 
binoculars, periscopes.

Three entities are responsible for military production plants: the 
Ministry of Military Production, 5 Ismail Abaza Street, Cairo, Phone 
355-3063, Fax: 355-3617, which supervises 20 factories of which 14 also 
produce civilian goods; the Arab Organization for Industrialization 
(AOI) (P.O. Box 770, Cairo, Egypt, Phone 282-2087, Fax 826-010) whose 
nine factories Egypt produce civilian and military goods; and the 
National Service Projects Organization (NSPO), 10 Mahmoud Talaat St., 
Nasr City, Cairo, Egypt, Phone 600-236, 601-684, Fax 604-203, which 
operates three production companies.  In late 1994 AOI became a wholly 
Egyptian Government owned entity when the governments of Saudi Arabia, 
Qatar, and the United Arab Emirates withdrew from the joint venture.

Defense Opportunities:

The Egyptian Armed Forces will continue to operate and maintain the U.S. 
weapons systems currently in their force structure for the foreseeable 
future.  This means the Egyptian Services will have procurement 
interests in the following categories over the next few years:

Egyptian Land Forces:  spare parts and major assemblies support for M1A1 
tanks, M60 series tanks, M113 series APC's, M109A2 SP artillery pieces, 
M88 recovery vehicles, and numerous tactical wheeled vehicles.

Egyptian Air Force:  ongoing technical support, maintenance support and 
spare parts for C-130's, F-4's, F-16's, E2-C's, CH-47's, Apaches, and 
Black Hawks.  They will probably also have valid requirements for 
control tower equipment and simulator support for these aircraft.

Egyptian Air Defense: technical and maintenance support for TPS-63 and 
other air defense radars.  Technical and maintenance support for HAWK, 
Chaparral and Sparrow Air Defense Systems.

Non-service-specific:  spare parts for engineering equipment and tools 
and test equipment for upgrading depot support of all the U.S. Systems 
listed above.  Integrated IFF system for all Egyptian Armed Forces.

The Egyptian Armed Forces are currently trying to complete their 
replacement of East European and ex-Soviet equipment with modern Western 
systems.  Based on these requirements plus Egyptian inquiries for 
information, the Egyptian Government is probably considering the 
purchase of the following new systems:  modern anti-tank weapons 
systems, APC's, air defense radars, and missiles frequency hopping 
radios, diesel submarines, Perry class frigates, coastal patrol craft, 
night vision equipment of all types, and antisubmarine helicopters.

Although the Egyptian Armed Forces tightly control information about 
their various five-year defense plans, it is very likely that the 
Egyptian Armed Forces will be interested in the purchase of the 
following equipment to complete the modernization of their armed forces 
(this is in addition to the new platforms discussed above):

     -  Additional F-16 aircraft.
     -  Additional HAWK or other mid-range air defense systems.
     -  Additional air defense radars.
     -  RPV systems.
     -  Additional scout vehicles (HMMWV or similar vehicles).
     -  Armored personnel carriers.
     -  Mine hunters.
     -  Engineer equipment.
     -  GPS equipment.
     -  Modern NVG equipment of all types.
     -  Additional Apache aircraft.
     -  Short range air defense systems.
     -  MILES and other training equipment for establishing a
        National Training Center.
     -  Improvements/upgrades to Egyptian Air Defense Command and
        Control Systems.
     -  Improvements/upgrades to Strategic Communications networks.
     -  Additional cargo aircraft to support unit deployments.


PROTECTING YOUR PRODUCT FROM INDUSTRIAL PROPERTY RIGHT (IPR)
INFRINGEMENT

Egypt is a party to the Bern Copyright and Paris Patent Conventions.  
However, inadequate protection and enforcement concerns about Egypt's 
IPR regulations have put Egypt on the U.S. Trade Representative's "Watch 
List" under the Special 301 provision of the 1988 Trade Act.  While 
there has been widespread piracy of sound and video recordings, computer 
software, and books, industry has taken action too:  The Motion Picture 
Association (MPA) has established a Cairo anti-piracy office and 
software publishers are considering a similar move.  The Motion Picture 
Association recently opened an office in Cairo.  Egypt has moved to 
improve its IPR regulations and enforcement.  (See Chapter VII, item A-
8).

NEED FOR A LOCAL ATTORNEY

Like anywhere else, serious business in Egypt such as implementing a 
major supply or construction contract, registering a company, or 
pursuing investment requires that eyes be open and assumptions tested, 
if not eliminated.  A good local attorney, of which there are many in 
Egypt, is vital to successful business.  Names of prominent attorneys 
are available from the American Embassy in Cairo.

FINANCING U.S. AGRICULTURAL EXPORT SALES

The USDA/FAS operates the GSM-102 Export Credit Guarantee Program for 
private sector Egyptian importers of U.S. agricultural commodities.  In 
FY95, the program level for Egypt is $165 million in one-year financing 
for Egyptian imports of wheat, flour, soybean oil, protein meals and 
dairy products.  Through GSM-102, U.S. banks provide financing to 
Egyptian banks on commercial terms, but the USDA's Commodity Credit 
Corporation serves as the guarantor of the transaction by typically 
insuring up to 98% of the principal and a portion of the interest for 
the credit extended.



CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS & INVESTMENT


1996 BEST PROSPECTS LISTING FOR U.S. EXPORTS:

Telecommunications Equipment (TEL)
Electrical Power Systems (EPS)


Aircraft and Parts (AIR)
Plastic Materials And Resins (PMR)
Franchising (FRA)


Oil and Gas Field Machinery (OGM)
Paper and Paperboard (PAP)
Airport and Ground Support Equipment (APG)
Architectural/Construction/Engineering Services (ACE)
Computers & Peripherals (CPT)
Food Processing and Packaging Equipment (FPP)
Water Resources Equipment (WRE)
Pumps, Valves and Compressors (PVC)
Medical Equipment (MED)
Biotechnology  (BTC)
Building Products (BLD)
Sporting Goods & Recreation Equipment (SPT)
Renewable Energy (REQ)
Pollution Control Equipment (POL)
Railroad Equipment (RRE)
Machine Tools & Metalworking Equipment (MTL)
Business Equipment (BUS)
Toys and Games (TOY)
General Consumer Goods (GCG)



BEST PROSPECTS FOR INDUSTRY GOODS AND SERVICES:

Part 1.  1  -  Telecommunications Equipment (TEL)

Part 2.  With the modernization of Egypt's telecommunication's network, 
state-of-the-art satellite equipment is needed to upgrade TV 
broadcasting and for rapidly growing private user market.  The Egyptian 
market for satellite telecommunications equipment is expected to 
continue increasing at a rate of 30%. The current telephone density of 
three per 100 persons is planned to increase to seven per 100 by the 
year 2010.  This will require the installation of 250,000-400,000 lines 
per year.  The current five year plan 1992-1997 includes $700 million 
for the telephone and communications sector.  The U.S. has the largest 
share, 65%, mainly due to high quality and durability.   

Most promising subsectors:  satellite telecommunications equipment ($55 
million); cellular telecommunications ($35 million); fiber optic cables 
($140); telephone cable ($130 million).

(Exchange Rate: 1994/3.3; 1995/3.4; 1996/3.4)

Part 3.   Data Table          1994    1995    1996

A. Total Market Size          760    841    931
B. Total Local Production     100    120    144
C. Total Exports               50     60     72
D. Total Imports              710    781    859
E. Total Exports from U.S.    500    550    605

The above statistics are unofficial estimates.

Part 1.  2  -  Electrical Power Systems (EPS)

Part 2.  There is little electrical power system manufacturing in Egypt. 
The Egyptian Electricity Authority (EEA) is implementing steam cycle 
additions to previously-installed gas turbines, which will be used to 
produce steam in heat-recovery steam generators (HRSGs) to drive steam 
turbine generators.  EEA is contemplating the relocation of other gas 
turbines ranging in size from 24 mw to 50 mw from sites scattered 
throughout Egypt to a single site where a large combined cycle plant 
would be constructed.  Procurement, financed by USAID, IBRD, AFDB and 
Saudi Fund.  USAID assistance in the sector so far exceeds $1.7 billion.

Most promising subsectors:  turbine generators, power converters and 
transformers.

Part 3.  Data Table        1994    1995    1996

A. Total Market Size        600    690    793
B. Total Local Production     9    10      12
C. Total Exports              0     0       0
D. Total Imports            591   680     781
E. Total Imports from U.S.  400   460     530

The above statistics are unofficial estimates.



Part 1.  3  -  Aircraft and Parts (AIR)



Part 2.  The U.S. is the major supplier of aircraft and its parts to 
Egypt.  Almost 50% of the civilian fleet (43 aircraft) is from the U.S.  
The remaining half is from France.  Over 90% of the Egyptian force is 
U.S. aircraft.  The market will always remain for spare parts and 
engines.  The Egyptian Government has allocated $350 million in its 
third five year plan 1992-1997 to purchase aircraft engines, parts, 
flying simulators.  In 1992, the U.S. share of the total market size of 
civil aircraft and parts exceeded 85%, in addition to the U.S. export of 
military aircraft and parts worth $620 million, partially included in 
the above figures.  

Most promising subsectors: aircraft engines ($35 million), airborne 
equipment ($15 million), general aviation equipment ($80 million), and 
large transport ($50 million).

Part 3.   Data Table           1994    1995    1996

A. Total Market Size           612     735     882
B. Total Local Production        0      15      20
C. Total Exports                 0       0       0
D. Total Imports               602     720     862
E. Total Imports from the U.S. 412     453     498

The above statistics are unofficial estimates.


Part 1.  4 -  Plastic Materials and Resins (PMR)

Part 2.  Egypt imports most plastic raw materials and resins, except 
polyvinyl chloride suspension resin which is manufactured locally.  
During 1994, imports of plastic raw material and resins totalled $720 
million.  Main suppliers are the U.S., Italy, Saudi Arabia, Germany and 
Spain, with an expected annual import growth of 20% for the coming three 
years.  Due to a trade agreement between Saudi Arabia and Egypt, goods 
imported into Egypt are customs-tax free.  This agreement has changed 
the market trend in favor of Saudi Arabia.  Sabic, the Saudi Arabian 
entity exporting plastic material to Egypt, has recently failed to 
deliver on time and is focusing sales instead to China.

Most promising subsectors:  polyethylene ($220 million), resins ($50 
million), and polyethylene terephthalate (PET) ($25 million).

Part 3.     Data Table      1994     1995     1996

A. Total Market Size         864    1,040    1,155
B. Total Local Production    110      135      165
C. Total Exports              35       40       45
D. Total Imports             720      865    1,035
E. Total Imports from U.S.   369      405      445

The above statistics are unofficial estimates.




Part 1.  5  -  Franchising (FRA)

Part 2.  Franchising in Egypt has become active in various fields i.e. 
fast food, garments, hotels, courier and rent-a-car service.  Fast food 
has been the fastest growing sector (increasing by 50% during 1994), and 
dominated by American firms.
  
Part 3.   Data Table            1994      1995       1996

A. Total Market Size             350      400        528
B. Sales by Local firms          140      160        240
C. Foreign sales by local firms   35       40         48
D. Sales by foreign-owned firms  210      240        288
E. Sales by U.S.-owned firms     100      220        260

The above statistics are unofficial estimates.


Part 1.  6  -  Oil and Gas Field Machinery (OGM)



Part 2.  Future growth in this industry is expected to be in gas 
exploration projects, new refineries and petrochemical plants.  Several 
billions are invested in this major sector by both private and public 
sector companies.  Egypt produces iron, steel, and plastic pipes 
required for this sector; other equipment used in this sector, excluding 
pipes, are imported.  The Ministry of Petroleum invested over $40 
million in an isomerization project.  The Ministry also has four 
important projects which will be completed before the end of 1996: a 
hydrocraker project; two plants for the production of polyethylene and 
ethylene and a lube oil complex expansion.  Recently the government has 
approved establishing of two refineries that will be owned and operated 
by the private sector, the two projects worth $2.6 billion.  

Part 3.    Data Table              1994       1995       1996

A. Total Market Size                350       430        546
B. Total Local Production            60        75         94
C. Total Exports                      0         0          0
D. Total Imports                    290       362        452
E. Total Imports from the U.S.       54       100        200

The above statistics are unofficial estimates.





Part 1.  7  -  Paper and Paperboard (PAP)

Part 2.  The paper industry is largely in the hands of the public 
sector, however, there is an increasing number of newly established 
private sector concerns, some in the paper converting field.  During 
1994 total imports of pulp reached $60 million, mainly from the U.S., 
Russia, Finland and Sweden.  Most promising subsectors: newsprint ($45 
million); chemical woodpulp, soda, sulfur ($35 million).

Part 3.      Data Table          1994     1995      1996

A. Total Market Size             557       625      645
B. Total Local Production        100       115      135
C. Total Exports                  15        20       30
D. Total Imports                 439       490      540
E. Total Imports from U.S.       135       150      170

The above statistics are unofficial estimates.


Part 1.  8 -  Airport and Ground Support Equipment (APG)

Part 2.  The majority of the airport equipment and its supporting aids 
which are actually operating in the Egyptian Airports are French made.  
In September 1994, the U.S. Trade and Development Agency TDA assigned 
the Air Traffic Control Association to undertake a regional project 
identification and investment study for them odernization and 
rehabilitation of aeronautical communication and navigation 
installations in airports in Egypt and other Middle East countries.  
Egypt has indicated its interest in modernizing and upgrading  NAVAIDS 
equipment in its 18 civilian airports.

Most promising subsectors: radars; communication systems; security 
systems; navigational systems; building of runway and supply of airport 
lighting systems.  The above figures do not include equipment for 
military airports. 

Part 3.  Data Table  1994  1995  1996

A. Total Market  30  150  300  
B. Total Local Production  5  10  25
C. Total Exports  0  0  0
D. Total Imports  25  140  275
E. Total Import from the U.S.  5  75  150

The above statistics are unofficial estimates.



Part 1.  9  -  Architectural/Construction/Engineering Services
          (ACE)

Part 2.  Construction is one of Egypt's dynamic industries and is 
considered of paramount importance as it stimulates all other sectors of 
the economy.  Low-cost housing, tourist facilities, port expansion, 
construction of new cities, and infrastructure projects in all sectors 
are just a few of the substantial opportunities in construction.  
Opportunities exist for U.S. firms to form joint ventures with skilled 
Egyptian counterparts for work both in Egypt (as the country begins 
slowly to upgrade its construction standards because of problem brought 
to light by the 1993 earthquake) and in other countries in Africa and 
the Middle East, including African Development Bank funded projects.  

Most promising subsectors include construction management services ($60 
million) port development services ($50 million), engineering services:  
design ($40 million), public utilities development services ($30 
million) and commercial building A/C/E services ($30 million).

Part 3.  Data Table            1994  1995  1996

A. Total Market Size            395  435   478.5  
B. Total Local Production        80   90      99
C. Total Exports                 30   40      44
D. Total Imports                285  315   346.5
E. Total Imports from U.S.      100  125   137.5

The above statistics are unofficial estimates.


Part 1.  10 - Computers & Peripherals (CPT)

Part 2.  The computer market has experienced good growth in recent years 
and will continue to expand.  The high reputation of U.S. technology 
enhances sales from the U.S. computer industry.  There is a small 
computer industry assembling imported computer components.  The 
upgrading of the telephone network has facilitated the use of computer, 
laptops, and modems for interconnecting systems.  

Most promising subsectors:  PC's, LAN's, and laptops.
    
Part 3.  Data Table            1994  1995  1996

A. Total Market Size           200  203  206
B. Total Local Production        0    0    0
C. Total Exports                 0    0    0
D. Total Imports               200  203  206
E. Total Imports from U.S.      80   81   82

The above statistics are unofficial estimates.




Part 1.  11  -  Food Processing and Packaging Equipment (FPP)

Part 2.  There is a growing market in Egypt for food processing and 
packaging equipment, due to rapid growth in the food processing industry 
and export promotion efforts to earn foreign currency.
  
U.S. equipment enjoys an excellent reputation in Egypt, but a more 
aggressive sales approach is required, if a larger share of the market 
is to be secured.  There is a market for food and vegetable processing 
equipment and fast food processing equipment.  Egypt imports mainly from 
Germany, Italy and the U.S.  

Most Promising Subsectors: packing & packaging machinery ($50 million); 
fast food processing machinery ($35 million)

Part 3.  Data Table       1994  1995  1996

A. Total Market Size       220  285  325
B. Total Local Production    0    0    0
C. Total Exports             0    0    0
D. Total Imports           220  285  325
E. Total Imports from U.S.  55   70   85

The above statistics are unofficial estimates.

Part 1.  12 - Water Resources Equipment (WRE)

Part 2.  Reclamation of desert land is a government priority and has 
attracted significant private investment.  Major projects include 
installation of new sewer systems and potable water in Sinai, and 
renovation of existing systems in Cairo, Alexandria and other cities.  
These and other projects are financed through local sources, as well as 
through foreign donors including U.S.AID, IBRD and other international 
financing organizations.  PVC pipes, cement tubes and pumps are locally 
manufactured.  

Most promising subsectors: desalination equipment and water pumps, in 
addition to irrigation management services.
    
Part 3.  Data Table          1994  1995  1996

A. Total Market Size          211  243  281
B. Total Local Production      30   34   40
C. Total Exports               14   16   18
D. Total Imports              195  225  259
E. Total Imports from U.S.     72   74   78

The above statistics are unofficial estimates.




Part 1.  13  -  Pumps, Valves and Compressors (PVC)

Part 2.  Egypt has a large pump market especially for water and 
industrial pumps.  Imports during 1994 totalled to $54 million.  U.S. 
suppliers have captured a large portion of the market share.  This 
market is expected to grow during the next few years by 15% annually.  
The government's plan to expand in establishing new oil refineries, 
rehabilitation of remote areas, desert land reclamation and the 
establishment of new communities will have an increased demand on pumps.

Most promising subsector: industrial and water pumps.

Part 3.  Data Table         1994  1995  1996

A. Total Market Size          52  60  68
B. Total Local Production      1   2   2
C. Total Exports               3   4   4
D. Total Imports              54  62  70  
E. Total Imports from U.S.    49  55  63

The above statistics are unofficial estimates.


Part 1.  14  -  Medical Equipment (MED)

Part 2.  There is little medical equipment manufacturing in Egypt. While 
the use of sophisticated medical equipment is growing, total 
expenditures are still small for a country of 60 million.  The GOE has 
an ambitious plan to upgrade more than 40 general hospitals, and 
construct 12 new hospitals in the coming two years.  In addition, the 
installation of 100 electro-dialysis units in rural areas is a priority.  

Most promising subsectors:  dialysis equipment, lasers: medical.

Part 3.  Data Table         1994  1995  1996

A. Total Market Size         120  138  158
B. Total Local Production      7    8    9
C. Total Exports               0    0    0
D. Total Imports             113  130  149
E. Total Imports from U.S.    45   52   60

The above statistics are unofficial estimates.



Part 1.  15  -  Biotechnology  (BTC)

Part 2.  The Ministry of Health is giving special emphasis in the third 
five year plan (1992-1997) to acquire sophisticated laboratory equipment 
used for medical purposes.  Such equipment is becoming more popular in 
medical research centers, universities, as well as private sector 
hospitals and clinics in Egypt.  Biotechnology laboratories are used for 
bone marrow transplants and kidney transplants in addition to genetic 
engineering.  Such laboratories comprise cell image equipment, amino 
acid analyzers, DNA sequence analysis systems, flow cytometry, DNA 
synthesizers, tumor markers, and electrophoresis equipment.  
 
Most promising subsector:  biotechnology laboratories ($48 million).      

Part 3.   Data Table        1994         1995       1996

A. Total Market Size         40            48        58 
B. Total Local Production     0             0         0
C. Total Exports              0             0         0
D. Total Imports             40            48        58
E. Total Imports from U.S.   30            36        43

The above statistics are unofficial estimates.

Part 1.   16  -  Building Products (BLD)

Part 2.  The construction industry has been one of the fastest growing 
and most dynamic sectors of the Egyptian economy.  Progress achieved 
during the past five years has been remarkable.  It is expected to 
continue to expand at a double digit for at least another five or more 
years.  This is in addition to construction projects for tourist resorts 
on the Red Sea coast and on the North coast (Mediterranean), road 
construction, canals, highways, bridges and tunnels.  The U.S. has very 
stong competition from domestic and third-country suppliers (primarily 
the former Eastern bloc).   
  
Most promising subsectors: lumber ($300 million), iron and steel ($30 
million).
    
Part 3.  Data Table         1994  1995  1996

A. Total Market Size        1,700  1,870  2,057
B. Total Local Production     750    825    908
C. Total Exports                0      0      0
D. Total Imports              950  1,045  1,149
E. Total Imports from U.S.     25     29     33

The above statistics are unofficial estimates.




Part 1.  17  -  Sporting Goods & Recreation Equipment (SPT)

Part 2.  Sporting and recreational equipment is considered new and very 
promising, in particular swimming pools and indoor sports.  This is 
attributed to the rapid increase in developments in the North Coast, 
Sinai and the Red Sea and the construction of tourist facilities and 
summer resorts.  The U.S. dominates the market in bowling equipment and 
swimming pool equipment and has a large share of the billiard equipment 
market.  Goods and equipment are imported from the U.S., U.K., Germany 
and Spain. 

Most promising subsectors: bowling equipment ($15 million), swimming 
pool equipment ($13 million).

Part 3.  Data Table         1994  1995   1996

A. Total Market Size          35  45  55
B. Total Local Production      0   0   0
C. Total Exports               0   0   0
D. Total Imports              35  45  55
E. Total Imports from U.S.    15  20  25

The above statistics are unofficial estimates.


Part 1.  18  -  Renewable Energy (REQ)

Part 2.  Egypt's development plans include expansion of land 
reclamation, food production, industrialization and community 
development.  To achieve these goals, about 49 million tons of oil 
equivalent of primary energy will be required annually by the year 2000, 
increasing to 60 million tons by the year 2005.  To meet these demands 
for energy, Egypt must diversify and alter its current mix of energy 
sources and technologies.  The strategy developed to avoid falling short 
of energy requirements includes the use of renewable energy sources. 

Most promising subsectors:  wind energy, photovoltaic systems, solar 
thermal power, and solar water heating systems.

Part 3.  Data Table            1994  1995  1996

A. Total Market Size             50  55  60.5
B. Total Local Production         0   0     0
C. Total Exports                  0   0     0
D. Total Imports                 50  55  60.5
E. Total Imports from U.S.       16  18    20

The above statistics are unofficial estimates.






Part 1.  19  -  Pollution Control Equipment (POL)

Part 2.  The current five year plan 1992-1997 has allocated almost $500 
million for environment projects.  The World Bank is also providing $120 
million to EEAA for its programs. 

Most promising subsector: water treatment, air pollution control, 
machinery and technology for recycling.

Part 3.  Data Table            1994  1995  1996

A.  Total Market                 65  85  110
B.  Total Local Production       20  27   35
C.  Total Exports                 0   0    0
D.  Total Imports                45  58   75
E.  Total Imports from the U.S.   8  12   20  

The above statistics are unofficial estimates.


Part 1.   20  -  Railroad Equipment (RRE)

Part 2.  Almost all of the Egyptian National Railways (ENR), the sole 
purchaser of railway and locomotive equipment in Egypt, requirements are 
imported.  Passenger coaches and a limited number of cargo cars are 
locally assembled by the public entity SEMAF.  ENR  plans to overhaul 
about 600 locomotives for the coming years.

Most promising subsectors:  overhauling locomotive engine and 
replacement parts.

Part 3.  Data Table            1994  1995  1996

A. Total Market Size            111  129  151
B. Total Local Production        48   55   63
C. Total Exports                  0    1    2
D. Total Imports                 63  7 5   90
E. Total Imports from U.S.       13   14   15

The above statistics are unofficial estimates.




Part 1.  21  -  Machine Tools & Metalworking Equipment (MTL)

Part 2.  As Egypt is upgrading its industrial base with emphasis given 
to produce quality products designed for export markets, demand will 
increase on metal working equipment.  Moreover, the Government's program 
to privatize public concerns will create additional demand to renovate 
production lines many of which heavily depend on machine tools and 
metalworking equipment.  Domestic machine tool and metalworking 
manufacturers only supply about 20%  of the total market.  U.S. 
suppliers have so far captured a 15% market share.  With the low dollar 
versus European currencies, it is expected that the U.S. share will 
increase in the near future.

Most promising subsectors:  hand power tools ($30 million).

Part 3.   Data Table         1994        1995       1996

A. Total Market Size           72          82         94          
B. Total Local Production      12          13         15         
C. Total Exports                0           0          0          
D. Total Imports               60          69         79          
E. Total Imports from U.S.      9          10         12           

The above statistics are unofficial estimates.


Part 1.  22  -  Business Equipment (BUS)

Part 2.  The business equipment market is rapidly picking up momentum 
especially for photocopiers, fax machines, and electric typewriters.  
Xerox is assembling such machines in Egypt and has captured a 70% market 
share.  There is a market, however, for additional suppliers who can 
offer competitive prices.  Japan has a growing presence in the business 
equipment sector through several suppliers including Ricoh, Minolta, and 
Canon.

Most promising subsectors:  photocopiers ($10 million), fax machines ($6 
million), typewriters  ($3 million).

Part 3.  Data Table             1994  1995  1996

A. Total Market Size              25  35  45
B. Total Local Production         15  20  25
C. Total Exports                   0  0  0
D. Total Imports                  10  15  20
E. Total Imports from U.S.         7  9  12

The above statistics are unofficial estimates.




Part 1.  23  - Toys and Games (TOY)

Part 2.  The toys and games market in Egypt is estimated at $27 million 
per year, expected to grow during the next few years by 10% annually.  
U.S. suppliers have so far captured a 20% market share.  Although 
competition from Europe and the Far East is strong, U.S. brands play a 
leading and dominant role for a wide variety of quality products 
including: plastic outdoor bulk and pre-school items, infant and ride-on 
battery operated toys, puzzles, dolls, plush animals, electronic and 
educational games, battery cars, and inflatable toys.  It is expected 
that the U.S. share  will increase in the immediate future.  

Most promising subsectors: toys ($20 million), games ($7 million)

Part 3.   Data Table                   1994  1995  1996

A. Total Market Size                    27     31   36
B. Total Local Production                2      3    4
C. Total Exports                         0      0    0
D. Total Imports                        25     28   32
E. Total Imports from U.S.               5      6    7

The above statistics are unofficial estimates.


Part 1.  24  -  General Consumer Goods (GCG)

Part 2.  Statistics below focus on electrical home appliances i.e. 
refrigerators, washing machines and dryers, dish washers, radio and T.V. 
sets.  Imports dominate the sector.  A recent decrease in customs tariff 
and Egyptian culture -- buying imported items is a sign of wealth -- are 
the reason for increased imported consumer goods.  Imports are expected 
to increase by 15% yearly.  

Most promising subsector:  home appliances.

Part 3.  Data Table             1994  1995  1996

A. Total Market Size              85   95    109
B. Total Local Production         14   14     16
C. Total Exports                   4    5      5
D. Total Imports                  75   86     98
E. Total Imports from U.S.         5    6      7

The above statistics are unofficial estimates.






1996 BEST PROSPECTS FOR AGRICULTURAL GOODS & SERVICES:


REPORT TITLE              DATE DUE  

Poultry Annual  06/20/95       
Cotton Annual                  06/20/95       
Annual Marketing Plan          07/15/95       
Livestock Annual               08/01/95       
Forest Products Annual         09/01/95       
Agricultural Situation Report  09/30/95       
Citrus Annual                  11/01/95       
Dairy Annual                   11/30/95       
Grain & Feed Annual            03/10/96       
Sugar Annual                   04/10/96       
Oilseeds & Products Annual     05/01/96       
Tobacco Annual                 05/20/96       


1.  Wheat (including Wheat Flour)
2.   Corn
3.  Soybean Meal
4.   Frozen Red Meats, primarily offals
5.  Cotton
6.  Tallow
7.  Tobacco
8.  Soybeans


Total Exports: of all best prospects, only local cotton is   exported.  



(Exchange Rate: 1994/3.3; 1995/3.4; 1996/3.4)

Part 1.   Wheat 

Part 2.   Although domestic wheat production had expanded steadily in 
the 1990s, it declined in 1994.  The U.S. has been Egypt's principal 
supplier of wheat throughout this decade, and the U.S. sold more wheat 
in CY94 than in any prior year.  This market dominance is likely to 
continue.  All U.S. sales of wheat are made through the Export 
Enhancement Program (EEP).  Australia, especially in view of its now 
obvious price subsidization policy, and the French to a lesser extent 
compete for market share although the former's poor 1994 crop has kept 
it out of the Egyptian market in MY94.  As expected, Egypt's imports of 
flour have dropped below  500,000 MT as entrepreneurs increase their 
presence in the wheat import business.  For the time being, there are no 
privately owned flour mills, but a handful are in the initial stages of 
construction and in the interim, four companies are renting mills from 
the Egyptian public sector.  

Part 3.  Data Table (000 MT)   MY93  MY94    MY95
    
    Total Mkt. Size  9,504  9,937  10,300
    Local Product.  4,780  4,437  4,800
    Total Imports    5,739  6,000  5,700
    Imports From U.S.   3,578  5,200  5,000

Marketing Year Data: MY93 is July 1993 - June 1994, etc.
The above statistics are unofficial estimates.



Part 1.  Corn       

Part 2.  The U.S. clearly dominates the import market for feed corn in 
Egypt.  Because poultry production has been on the rebound since late 
1992 and red meat output has picked up recently, demand for feed corn 
has also risen. Some Argentinian and French corn is imported each year, 
but there is clear preference is for U.S. corn, the importation of which 
is facilitated by the GSM-102 Credit Guarantee Program.  Egyptian 
production of corn is mostly for human consumption.  

Part 3.  Data Table (000 MT)  MY93    MY94    MY95
    
    Total Mkt. Size  6,830  7,450  7,400
    Local Product.  4,980  5,650  5,500
    Total Imports    2,050  1,800  1,900
    Imports From U.S.   1,540  1,600  1,700

Marketing Year Data: MY93 is October 1993 - September 1994, etc.
The above statistics are unofficial estimates.


                      
Part 1.  Soybean Meal

Part 2.  Import business is dominated by South American producers Brazil 
and Argentina although U.S. meal is preferred when the price is right.  
Healthy soybean meal consumption is wholly attributable to resurgence of 
the Egyptian poultry industry since the later half of 1992.  Increased 
local meal output is a result of reopening of a private sector crushing 
facility in Alexandria that is importing U.S. soybeans.

Part 3.  Data Table (000 MT)  MY93    MY94    MY95
    
    Total Mkt. Size  402    426    450
    Local Product.   62    126    150
    Total Imports    340    300    300
    Imports From U.S.   127    125    125

Marketing Year Data: MY93 is October 1993 - September 1994, etc.
The above statistics are unofficial estimates.





                       
Part 1.  Beef and Veal  

Part 2.  Egyptian buffalo and cattle production covers the bulk of 
domestic demand.  Ireland is the main supplier of imported carcass and 
boxedbeef, and there is some importation from Germany and France as 
well.  U.S. prices are not competitive with EU restitution-supported 
frozen meat sales here for most cuts of meat, but the U.S. dominates the 
liver and offal import market.  The U.S. was selling high quality beef 
for the hotel/restaurant trade, but this business is now suspended owing 
to the Egyptian Government's arbitrariness - not fat limits on meat.
  
Part 3.  Data Table (000 MT)  1993    1994    1995
    
    Total Mkt. Size  537    540    543
    Local Product.  364    392    393
    Total Imports    180    153    155
    Imports From U.S.    28     24      31

The above statistics are unofficial estimates.




           
Part 1.  Cotton

Part 2.  Long known as the "government's crop", Egyptian cotton 
production declined in 1994 as area was cut back and yields were 
stagnant, owing to mismanaged government pricing policy.  The future of 
domestic cotton production depends on the Government's continued 
decontrol of production and marketing.  Private firms have now begun 
buying and processing local cotton.  Egyptian cotton exports reached a 
ten-year high in MY93 largely because of poor crops elsewhere and 
significant stocks at home.  U.S. Upland cotton is the only variety 
allowed for import, but abundant domestic stocks dampened the need for 
imports in 1994.  If Egypt concentrates more on exporting long and 
extra-long staple cottons for which it can reap the greatest 
remuneration, it will have need for shorter staples to meet the demands 
of the local textile industry.  This is an area where other U.S. cottons 
could fill a potential market gap.   

Part 3.  Data Table (000 MT)  MY93    MY94    MY95
    
    Total Mkt. Size  362    338    305
    Local Product.  416    267    250
    Total Exports     114     67      65
    Total Imports      13       46      60
    Imports From U.S.    13       46      60

Marketing Year Data: MY93 is August 1993 - July 1994, etc.
The above statistics are unofficial estimates.



                       
Part 1.  Palm Stearin/Tallow  

Part 2.  Palm stearin and tallow are substitutes used in the production 
of soap.  Malaysia is the source for all of the stearin and the U.S. 
supplies the tallow.  Product sales are a function of relative prices, 
and most importation is handled by the public sector's Food Industry 
Holding Company.  

Part 3.  Data Table (000 MT)  1993    1994    1995
    Mkt. Size       150     153     150
    Local Product.     0         0       0
    Total Imports     150     153     150
    Imports From U.S.     35       34      35

The above statistics are unofficial estimates.


CHAPTER VI. TRADE REGULATIONS AND STANDARDS

TRADE BARRIERS, INCLUDING TARIFFS, NON-TARIFF BARRIERS AND IMPORT TAXES

Egypt's current customs regulations came into effect in 1986.  In 1991, 
under its economic reform program developed in conjunction with the IMF 
and the World Bank, the Government reduced the dispersion of its tariff 
rates from a minimum rate of 5% to a maximum rate of 100%, compared to a 
previous range of 0.7% to 120%.  In early 1993, the Government 
instituted the second phase of compression in which the tariff range was 
narrowed further to between 80 and 5%.  The maximum tariff rate 
currently is 70%.  Concurrent with the reduction in customs tariffs, and 
in order to encourage domestic industries, the Government addressed 
custom structure discrepancies by differentiating between custom duties 
levied on industrial inputs and finished products, the rates being lower 
on the former and higher on the latter group.  Nevertheless, Egyptian 
tariffs are still relatively high compared to other developing 
countries.  The Government has pledged to further lower the maximum 
limit to 60%, then 50%, but that probably will not happen until 1996.

In February 1994, Egypt implemented the Harmonized System (HS), which 
replaces the previously used CCCN (Customs Commodity Classification 
Nomenclature), formerly called BTN (Brussels Tariff Nomenclature).

The Government does not abide by tariff rates outlined in the GATT.  In 
1991, importers began to experience difficulties with custom officials 
who refused to apply the lower rates that Egypt had offered in the GATT 
for imports from GATT member countries.  Subsequently, the Government 
submitted to GATT a request for a waiver of its obligation to provide 
these lower rates.  The waiver was approved with the Government pledging 
to negotiate new rates with its GATT members.  New GATT rates have yet 
to be finalized.

To counterbalance the reduction in tariffs, in 1993 the Government 
levied a 1% service fee on the value of imported shipments in return for 
inspection, listing, classification and reexamination of shipments.  In 
February 1994, this surcharge was raised to 3% or 6%, depending on the 
customs duty of the imported item: 3% for commodities subject to customs 
duties between five and 30% and 6% for those subject to custom duties 
over 30%.  In accordance with an April 1994 agreement with the World 
Bank, the Government committed to reduce this surcharge to 2% by July 
1994, and abolish it in July 1995, but it has yet to do so.

In addition to the customs tariff, a sales tax ranging between 5% and 
25% is added to the final customs value of the imported item.  Law 
87/86, issued by Presidential Decree, cancelled a series of taxes and 
fees which were formerly levied on imports: statistical 
duty, subsidy tax, marine duty, and the municipal tax.

CUSTOMS VALUATION

Egyptian customs procedures are complicated and rigid in areas such as 
duty rates.  They are designed to eliminate trading loopholes.  
Authorities do not have to explain or justify their decisions and there 
is no formal appeal process for customs officers' decisions.  Customs 
procedures are subjective when it comes to identifying whether a 
commodity fits in one tariff category or another. 

Under-invoicing is prevalent in Egypt as a means of tax-avoidance by 
local businesses.  The Customs Authority has a tough policy regarding 
commercial invoices.  Tariff valuation is based on the so-called 
"Egyptian Selling Price" -- i.e. the commercial invoice that accompanies 
a product the first time it is imported.  Customs authorities retain 
information from the original commercial invoice and expect subsequent 
imports of the same product to have a value no lower than that noted on 
the invoice from the first shipment.  "Like" products must generally be 
imported with invoice prices similar to other "like" products, although 
some allowance is given on an ad hoc basis for different sources of 
supply (such as expensive versus cheap-labor source countries).  In 
cases where customs officials suspect under-invoicing, they usually add 
from 10 to 30% to the invoice value of imports for customs valuation 
purposes.

Customs officials suspect under-invoicing when legitimate sellers  low-
ball introductory prices of samples, then send larger quantities at 
higher prices; offer one price for a few items, and a quantity discount 
for subsequent shipments; or introduce a new product at a basic cost 
much cheaper than similar products previously imported from other 
sources.

Assembly industries may benefit from lower customs rates on imported 
goods if they meet a local content requirement of 40%.  In this case, 
they may choose how they wish tariffs to be computed:  1) they may 
either apply to the imported goods the tariff applicable to the finished 
product, minus a certain percentage, ranging between 20 to 85%, 
dependent on the local content (e.g., customs duties are reduced by 40% 
for imported components used in a finished good that has 40% local 
content); 2) alternatively, the producer may choose to pay the rate 
applicable to each individual imported part, if the rate is lower than 
that computed under the first method.  Assembly industries importing 
complete knock-down parts are charged the tariff rate on the final 
product minus 10%.

LOCAL CONTENT IN FINAL  PROPORTION OF REDUCTION OF
     PRODUCT        IMPORT DUTY
                                                     

Local content is 20%   25%
Local content is 30%   30%
Local content is 40%   40%
Local content is 50%   50%
Local content is 60%   60%
Local content is 65%   65%
Local content is more than
  65% and up to 75%   75%
Local content is more than   
  75%   85%

A February 1994 amendment of some articles of the import/export 
regulations introduces a new provision for duties on semi-finished 
products exported from Egypt to another country in which the 
manufacturing process will be completed.  Duties on these goods, when 
re-imported as finished products, will be levied based on value-added, 
plus transportation and insurance costs, resulting in a tariff that is 
less than that which would be levied on a similar finished product 
import.

Prior to issuance of Ministerial Decree 99/94, free-of-charge 
compensatory shipments meant to make up for losses caused by a drop in 
the international price of an imported good between the contract date 
and the time of shipment were considered illegal imports.  The importer 
had to pay a fine equal to the value of the additional quantities before 
customs would release them.  Now, compensatory shipments are released 
from Customs and the importer does not pay extra custom duties for the 
additional quantities, since custom fees are computed based on the 
value, not quantity, of the original shipment.

Ministerial Decree 99/94 of February 1994 allows for the release of 
imports that replace previously imported defective or damaged goods 
without assessing custom duties.  Egyptian importers now fill out Form 
(126) declaring that the exported items are defective or damaged and are 
to be replaced.  However, the exporter of a previously imported good 
that was damaged or rejected must post a deposit (acceptable to the 
Customs Authority) guaranteeing importation of a replacement item within 
two years (renewable) from the date of export.  The passage of the new 
foreign exchange law should abolish this two-year restriction.  This is 
a major improvement over the former situation where replacement products 
having a different serial number from the re-exported item were subject 
to full customs duties when re-entering the country, i.e double 
accounting of custom charges for the same item.

In case an item is exported to be refitted and then re-imported, custom 
duties are paid on the value-added only.  If the item is replaced by 
another used machine, having a different serial number from the exported 
one, then the re-imported item is subject to full custom fees.

IMPORT LICENSES

Egypt no longer requires import licenses.

EXPORT CONTROLS

All Egyptian products can be exported without obtaining export approvals 
as long as they are not banned from export.  Hide, scrap metal (except 
scrap of stainless steel), and alpaca fibers are the only items banned 
from export.  Quality control of exports is voluntary.

An export duty is imposed on certain commodities produced locally in 
accordance with specified rates listed in Schedule (B) of the Custom 
Tariff promulgated by Law 351/86 as follows: 

Sinews and tendons, parings and similar     LE 0.60 per MT
  waste of raw hides or skins
Molasses     LE 0.60 per 100 KG
Raw hides and skins fresh salted and     LE 1.20 per MT
  sheep skin
Iron and steel scrap     LE 11.00 per MT
Nickel scrap     LE 11.00 per MT
Aluminum scrap     LE 11.00 per MT
Zinc scrap     LE 11.00 per MT
Antiques over 100 years old     5%

All other kinds of goods are exempt from export duty.

IMPORT/EXPORT DOCUMENTATION

Decree 275/91 and Law 121/82 stipulate that exporters and importers must 
be Egyptians.  However, companies established under Investment Law 
230/89 (which allows for 100% foreign ownership) or Companies Law 159/81 
(joint-stock and limited liability companies) are exempt from these 
regulations.  Investment Law 230 and Companies Law 159 companies may 
import industrial inputs necessary for production and export the 
products they manufacture.  Foreign companies that are not manufacturers 
(e.g. consultancy firms) may import commodities (e.g. furniture, 
equipment) as long as it is for office use only.  Foreign companies 
wishing to import commodities for commercial (resale) purposes can only 
do so through an Egyptian import company.

Importers should possess the following documents:

1.  An Import Card which is issued by the General Authority for 
Import/Export Quality Control at the Ministry of Industry.
2.   Taxation Card, which is obtained from the Taxation Authority or any 
of its offices.
3.  Three forms of Annex (11) of the import/export executive regulations 
issued by Ministerial Decree 275/91.  Annex (11), the application to 
finance imports with convertible currencies, includes information on the 
type, quantity, price and country of origin of the imported commodities.  
The importer retains one copy which he/she submits to Customs to release 
the shipment, the second copy is submitted to the Foreign Trade 
Department at the Ministry of Economy and Foreign Trade and the third 
copy is kept with the bank to follow-up on payment.  The pro-forma 
invoice or final invoice should be stamped by the bank.  (Note: 
Investment Law 230 companies must obtain approval from the General 
Authority for Investment to import material necessary for their 
operation.)

The following documents should be presented to Customs to release 
imports:

1.  Bill of lading.
2.  Original invoice.
3.  Packing lists.
4.  Certificate of origin (optional).
5.  Form (EX), which is a bank form, applicable in cases where the bank 
finances the importation transaction.  This form is not required if the 
importer self-finances the transaction.
6.  Content analysis of the commodity, if required.
7.  Delivery order from the carrier in return for the bill of lading.
8.  Custom procedural certificate, which is a customs form that lists 
information and data including source and country of origin of imports, 
name of importer, type of product, port of delivery, value, and quantity 
of the shipment.

Exporters should possess the following documents:

1.  An Export Card which is issued by the General Authority for 
Import/Export Quality Control at the Ministry of Industry.
2.  Taxation Card, which is obtained from the Taxation Authority or any 
of its offices.
3.  Original invoice.
4.  Custom procedural certificate, which is a customs form that lists 
information and data on the exported goods.

TEMPORARY ENTRY

Imports may be admitted into the country under the temporary release 
system.  In order to obtain a waiver of custom duties, manufacturers 
fill out a special form with the Customs Authority declaring that these 
imports will be further processed in Egypt and exported as part of a 
finished product.  The importer must deposit a bank guarantee or 
insurance policy covering the value of applicable customs duties until 
the final commodity is exported.

Imports may be released from Customs under the drawback program.  This 
is different from the temporary release system in that full customs 
duties are paid on the imported material and the manufacturer does not 
fill out a special form with Customs.  However, there is a one-year time 
requirement to re-export these imports as part of a final product in 
order to have the right to reclaim the full amount of the duties paid as 
well other taxes such as the sales tax.  This is a cumbersome procedure 
and refunding may take up to six months for processing.  The agencies 
administering the program are tasked with the responsibilities of 
determining then repaying the drawback amount.  The Industrial 
Surveillance Authority carries out the first task; the Customs Authority 
carries out the second.  To refund the amount paid, several 
administrative requirements must be satisfied:

-  Details, such as quantities and materials used in manufacturing a 
unit of the exported products, must be provided to enable Customs to 
calculate the drawback rate.
-  Proof of duties paid on the imported quantities must be furnished.
-  In order to collect an allowance in the drawback rate for wastage and 
scrap, quantities of such must be verified.

In addition, the following documents must be provided:  customs import 
release certificate, certificate of export of product, an export permit, 
a registered deed of sale from the original importer, and a customs 
clearance certificate.

LABELING, MARKING REQUIREMENTS

Ministerial Decree 16/93 addresses labeling and marking requirements of 
imports as follows:

a) For packed items, the package should protect the product.  The 
product should fill the package completely.  If the package is wooden, 
it should be accompanied by an official certificate indicating it is 
free of wood pests and insects.  The following information should be 
written on each package in clear Arabic letters in a non-erasable 
manner:

1.  The name of the product, its trademark (if any), type of product and 
its brand.
2.  The product's technical data and mode of operation.
3.  Data and international marks that should be observed during 
transportation and handling.
4.  Country of origin.
5.  Date of production and expiry date.

b) The data appearing on equipment, tools and machines should match 
those appearing on the package.  The country of origin should be 
indicated on each item in a non-erasable manner.  They should be 
accompanied with an Arabic-language catalog indicating the following:

1.  An illustrative design of the parts.
2.  Mode of assembly and operation.
3.  Maintenance procedures.
4.  Electrical circuits for equipment that is operated electrically.
5.  Safety measures.

Products prone to rust and corrosion should be painted with a special 
protective paint.

c) Food products should be packed in appropriate packages which should 
be clean, intact, and odorless so as to preserve the product and not 
affect its characteristics.  Shipments should be consistent in terms of 
packaging and weight.  The following data should be written on each 
package in clear non-erasable Arabic letters (and optionally a foreign 
language):



1.  The name of the product, the factory, the trade mark (if any).
2.  Country of origin.
3.  The name of the brand, its kind and grade.
4.  The name and address of the importer.
5.  Date of production and date of expiry according to type of product.
6.  Method of processing for those products that require such a 
procedure prior to use.
7.  Ingredients of the product, their percentage, concentration 
according to the type of imported product.
8.  Method of preservation, storage conditions, temperatures for 
preservation of perishable products.
9.  Net weight and gross weight according to type of product.
10. Preservatives and additives, if used.
11. The term "Slaughtered according to Islamic Rules" must be           
written on packages of animal product (except fish).

PROHIBITED IMPORTS

The import ban list now applies to textiles, apparel and poultry, 
accounting for approximately 4.1% of total manufacturing and 
agricultural tradeable goods.  As part of its economic reform program, 
Egypt should remove poultry from the banned list in 1995 and review the 
ban on textile products in conjunction with GATT negotiations on the 
Multifiber Arrangement.

STANDARDS

Domestic industries must comply with the specifications of Egyptian 
standard definitions.  The Egyptian General Authority for 
Standardization and Quality Control, an autonomous body under the 
Ministry of Industry, is responsible for issuing industrial quality 
control certificates for local industries.  Adherence to ISO 9000 
specifications is optional.  Industries wishing to apply ISO 9000 
standards should submit a request to the Egyptian General Authority for 
Standardization and Quality Control, which in turn will provide them 
with the required specifications and conduct the necessary tests to 
verify that goods produced meet ISO 9000 standard definitions.

Annex (8) of the import/export regulations lists commodities subject to 
quality control inspection prior to admittance into Egypt.  The list 
consists of 126 items, including food stuffs, spare parts, construction 
products, electronic devices, appliances, and many consumer goods.  
Although Egyptian authorities stress that standards applied to imports 
are the same as those applied to domestically-produced goods, importers 
report that testing procedures for imports differ, and tests are carried 
out with faulty equipment by testers who often make arbitrary judgments.  
Moreover, importers face the problems of ill-defined or unwritten 
product standards, and backlogs resulting from authorities having 
limited staff or too few inspection machines to conduct their quality 
inspections.

In general, inspection fees range between 0.5 piasters (PT) per Kilogram 
to 10 Egyptian pounds (LE) per container, with an average inspection fee 
of PT 1 per kilogram.  (Note: There are 100 piasters (PT) to a pound.  
The inspection fee for goods imported for industrial purposes is lower 
than that applied to goods imported for retail purposes.

Ministerial Decree 99/94 exempts from quality control inspection 
industrial inputs imported by factories.  In contrast, the same 
products, if imported for resale, are subject to inspection.  Imports 
for personal or private use are exempt from quality control inspection.

FREE TRADE ZONES/WAREHOUSES

Law 43/74 allowed the establishment of free zones in Egypt.  The law was 
superseded by Investment Law 230/89, which regulates operations in the 
free trade zones of Egypt.  It allows for  storage, warehousing, mixing, 
repacking, assembly, and manufacturing for export; and provision of 
services to firms located in the free zones.  There are eight free trade 
zones in Egypt:  Cairo (Nasr City), Alexandria, Port Said, Suez, 
Ismailia, Damietta, Safaga, and Sohag.  Goods exported from or imported 
into the free zones are not subject to normal import/export customs 
procedures nor to customs duties and other taxes and fees.  Likewise all 
instruments, machinery, equipment, and transportation equipment 
necessary for establishments authorized within the free zones are exempt 
from customs and taxes.  Provisions of the labor law do not apply to 
companies operating in the free zone, nor are they subject to currency 
transaction controls.  Commodities manufactured and/or stored in the 
free zones are considered "imports" subject to full customs duties if 
they enter Egypt.

The Customs Authority supervises both public and private bonded 
warehouses.  The Ministry of Finance authorizes establishment of the 
warehouses, specifying the site of the bonded area, conditions of 
stowage, storage charges, administrative charges, expenditures, 
guarantees to be presented, and other conditions relating to warehousing 
under bond.  The Customs Authority supervises both public and private 
sector bonded warehouses.

Imported and domestically-produced commodities, which may be bonded in 
either public or private sector bonded warehouses, may not be withdrawn 
from bond unless the necessary taxes and fees are paid or a suitable 
bank guarantee is provided and accepted by Customs.

SPECIAL IMPORT PROVISIONS
None other than those described above.

MEMBERSHIP IN FREE TRADE ARRANGEMENTS

Egypt is not a member of any free trade arrangement, but it is 
negotiating a preferential relationship with the European Union that is 
likely to enter into force a decade after signing.  Egypt officials and 
business leaders have also informally expressed interest in a Free Trade 
Agreement with the United States over the longer term.

CHAPTER VII.  INVESTMENT CLIMATE

A-1 OPENNESS TO FOREIGN INVESTMENT

The Government of Egypt is open to foreign direct investment.  In 1992, 
the United States and Egypt implemented a Bilateral Investment Treaty.  
In general, the Egyptian law under which most foreign investors 
establish projects, Investment Law 230, provides al the guarantees 
offered by the Bilateral Investment Treaty.

Since 1991, Egypt has taken increased measures to promote investment.  
Investments are approved automatically if the sector is not on a 
"negative list" of projects.  The Negative List now includes only two 
items:

(A)  All military products and related industries;
(B)  Tobacco and tobacco products.

Rules and Regulations Covering Foreign Investments

Enterprises with private sector ownership of 50% or more can incorporate 
under either Investment Law 230 or Companies Law 159.  A unified 
companies law is under discussion in the Cabinet, but is not expected to 
go to parliament before 1996.

Investment Law 230:  Most foreign investment is under Investment Law 
230.  It allows 100% foreign ownership of ventures and guarantees the 
right to remit income earned in Egypt and to repatriate capital.  Law 
230 companies are regulated by the General Authority for Investment and 
Free Zones (GAFI).  Key provisions of Law 230 include: the guarantee 
against confiscation and nationalization without compensation; the right 
to own land; the right to maintain foreign currency bank accounts; 
freedom from administrative attachment; the right to repatriate capital 
and profits; and equal treatment regardless of nationality.  Perhaps one 
of the most important advantages of organizing an enterprise under Law 
230 is that such enterprises may own land necessary for their objectives 
without obtaining the specific approval of the Prime Minister, 
regardless of the foreign ownership percentage.

Law 230 limits inland investments to certain broad fields which may be 
expanded by the Council of Ministers.  Sectors currently covered are: 
land reclamation; industry; tourism; housing; real estate development; 
services for oil production; medical services; car repair; water pumping 
stations; transportation services for all sectors open to foreign 
investment under Investment Law 230; consultancy firms; and securities' 
companies.

Free Zones:  Investment Law 230 distinguishes between "inland" 
investments and free zone investments.  Designated free zones are in 
Cairo (Nasr City), Alexandria, Port Said, Suez, Ismailia, Damietta, 
Safaga, and Sohag.  Free zones, also subject to Investment Law 230, are 
open to any type of sectoral investment.  Although exempt from taxes and 
fees stipulated by Egyptian laws, free zone investment companies are 
subject to an annual fee of one percent of the value of goods entering 
or leaving the free zone, or on the gross revenues realized by the 
project if the activity of the project does not require the entry or 
exit of goods.  Companies producing largely for export (normally 80% or 
more of total production) may be established in the free zones and 
operate in foreign currency.  Concession agreements such as petroleum, 
natural gas and mineral exploration and exploitation, although not 
explicitly covered by Investment Law 230, are in effect treated as free 
zone areas, but each agreement is finalized separately and is subject to 
legislative approval.

Companies Law 159:  Foreigners may choose to invest under provisions of 
the Companies Law 159.  Provided that at least 49% of the shares are 
offered to Egyptians upon formation, Law 159 companies ultimately may 
have 100% foreign ownership.  The minimum capitalization for joint stock 
companies is LE 250,000 or LE 500,000 if shares are offered in a public 
subscription.  For limited liability companies, the minimum capital 
requirement is LE 50,000.  While Law 159 does not guarantee the right of 
access to hard currency for remittances, access to hard currency is no 
longer a problem.  Foreign companies established under Companies Law 159 
can benefit from incentives (notably tax holidays) offered for 
investments in designated areas set forth in the New Communities Law.  
In addition, companies registered in the Industrial Register which 
employ more than 50 employees are eligible for a five year tax holiday 
under the Company Tax Law pursuant to Law 157/1981. Industrial companies 
established under Law 159 require approval of their activity from the 
General Organization for Industrialization (GOFI).

Representative Offices:  These may be established in Egypt to conduct 
market research in scientific, technical or consulting fields.  They are 
required to be funded entirely by remittances from abroad in foreign 
currency.  Representative offices cannot engage in commercial activities 
and are not subject to Egyptian tax.  Representative offices are 
regulated by the Companies Department at the Ministry of Economy and 
Foreign Trade.

Branch Offices:  Branch offices are mainly in the oil, construction, or 
construction consulting industries and services.  They come under the 
supervision of the Companies Department at the Ministry of Economy and 
Foreign Trade.

Investment Screening Procedures

Investment Law 230:  GAFI decides on a request to establish a project 
within two days.  If the request is rejected, an appeal may be lodged 
within 15 days.  After approval of the investment request, the potential 
investor must submit a two-page "Application Form" for incentives giving 
detailed information on the project's objective, location, capital, 
investment costs, sources of finance, labor, and wages.  Projects of 
capital (equity) up to LE 50 million are only required to fill out a 
one-page "Notification Form" which is approved by the Prime Minister 
within a maximum of one-two weeks.  Projects over LE 50 million must be 
approved by GAFI's Board, which the President chairs, thus, may not meet 
for several months.  Therefore, delegating the Prime Minister to approve 
small projects is an improvement.

Repatriation of profits or capital cannot be carried out without the 
approval of GAFI's Executive Director, which is to be granted within 
three days of application.

Recent reduction of fees for Law 230 companies:  In 1995, the Government 
streamlined investment procedures and cut back expenses of incorporating 
under Law 230.  Prime Ministerial Decree 372/95 abolishes the LE 1,000 
fee which projects had to pay to obtain GAFI's approval.  Presently, 
projects pay GAFI an annual fee of 0.05% of their investment cost (with 
a maximum of LE 3,000) in return for administrative services.  Branches 
of foreign companies pay this fee based on total annual value of 
concluded transactions.  Law 9/95 maintains the authentication fees (for 
signatures of partners in Law 230 companies) collected by GAFI at 0.25% 
of the project's capital, but it reduces the ceiling of this surcharge 
from the previous LE 5,000 to LE 1,000 or its equivalent in foreign 
currency.

To relieve Law 230 investors from exorbitant declaration fees (ranging 
between LE 25,000 - LE 40,000) paid to publish the articles of 
incorporation in the Official Journal as well as to reduce delays, these 
companies can now announce the formation of the company in the 
Investment Journal for an LE 1,000 fee.  Law 159 companies, however, are 
still required to declare their establishment in the Official Journal.

Companies Law 159:  A request to establish a Law 159 company should be 
directed to the Companies Department at the Ministry of Economy and 
Foreign Trade.  The original and ten copies of the articles of 
incorporation and other pertinent information, including biographical 
data on the foreign partner, must be submitted with the request.  
Founders of joint stock and limited liability companies must submit to 
the Companies Department a bank certificate indicating the deposit of 
one-quarter of the capital (for joint stock companies) or capital (for 
limited liability companies) in a escrow bank account, pending approval 
from the Companies Department.  After obtaining the approval, the 
company must obtain a permit from the Local Chamber of Commerce before 
being registered in the Commercial Register at which point it comes into 
existence as a legal entity.  Approval to carry out activities must be 
obtained from the relevant authorities such as the General Organization 
for Industrialization (GOFI) for industrial projects, the Central Bank 
for banking, etc.  The Company's Department also obtains necessary 
security approvals from the Ministry of Interior (screening of foreign 
partner).

Privatization

Public Business Law 203 of 1991 and its executive regulations establish 
the framework for privatization of Egypt's massive public sector.  
Privatization guidelines clearly state that there shall be no 
discrimination against foreign investors, but the sale of public sector 
assets to foreigners remains controversial.  Government officials have 
announced that priority would be given to Egyptians, Arabs, and finally 
foreign buyers.  Nonetheless, officials state that foreign investors are 
favored if they introduce new technology, create jobs, and promote 
exports.

In 1994, the Government sold two bottling companies and an industrial 
boilers plant.  In these cases, the buyers were consortia of Arab and/or 
Egyptian investors and a multinational U.S.-based company (Coca-Cola 
International, Pepsi Cola International, and Babcock & Wilcox).  In 
early 1995, Cairo Sheraton hotel, one of Egypt's largest hotels, was 
sold to a consortium of Arab and Egyptian investors with the Government 
retaining a minority stake.  Although initially the government aimed to 
sell public sector companies to the bidder with the best financial and 
technical bid package, the Government is now more inclined to offer 
shares of these companies on Egypt's stock exchange.  To date, some 12-
15 State-run enterprises have offered a portion of their shares for 
public subscription.  By law, foreigners are allowed to purchase stock 
and there are no restrictions or limits on the amount of shares 
acquired.
 
Other Laws and Regulations

In 1992, new securities and banking laws were passed to deepen financial 
markets and stimulate interest in new investment instruments.  The 
executive regulations of both laws were issued in 1993.  The Government 
hopes the new Capital Markets Law 95 of 1992 will revitalize the 
moribund Cairo Stock Exchange, facilitating public offerings of shares 
in state enterprises.  Law 95 permits the establishment of securities 
companies, mutual funds and private stock exchanges, and it allows 
trading of foreign securities in Egypt.  The implementing regulations of 
Law 95 do not address procedures for mergers and takeovers.  These are 
covered by Companies Law 159.  The new Bank Law 37 of 1992, as amended 
by Law 101 of 1993, allows foreign bank branches to deal in Egyptian 
currency.  Insurance Law 91 of 1995 allows for only minority foreign 
participation in Egyptian retail insurance, limits the number of foreign 
employees, and mandates the use of Egyptian reinsurance companies.  
Foreign companies are allowed 100% ownership of reinsurance companies 
and insurance in the free zones.

Although investment procedures have been streamlined, there are still 
impediments to foreign investment in Egypt.  Requests for increases in 
or repatriation of capital, expansion of existing projects, changes in 
the product-mix, or start-up of a new production line still require an 
approval from GAFI's Executive Director.  According to GAFI officials, 
this is undertaken for statistical purposes only.  Existing projects 
also need prior GAFI approval to import inputs.  Each import shipment 
must be approved by GAFI's Executive Director to obtain Customs release.  
GAFI officials claim this ensures that the goods are actually imported 
and utilized by Investment Law 230 companies, and that approval is 
usually granted within a maximum of 48 hours.

The leasing law (Law 95 of 1995) will take effect August 1995.  It 
allows for the lease of capital assets and real estate and should reduce 
the high start-up costs facing new investors.  The value of the law will 
depend upon the ability of the Egyptian court system to protect the 
rights of the lessor.

R & D Projects:  Foreign firms are permitted to participate in 
government-sponsored research and development programs without any 
apparent restrictions.  U.S. firms are viable candidates to transfer 
technology to Egypt.  A joint venture was established between 
International Electronics Co., which produces T.V. sets and home 
appliances under license from Goldstar, and Universal Sonics Corp. of 
the U.S. for manufacturing and marketing a low-cost ultrasound imaging 
system.  In this project the software was produced locally whereas the 
hardware was developed in the U.S.  This is a successful example of 
cooperation between Egypt and the U.S. in R&D.

Egypt has a wealth of engineers who are skilled in software technologies 
and could be trained in several labor intensive fields like electronics.  
International Electronics Company is one of few Egyptian companies which 
heavily invests in R&D to develop technology.
 
Investment Incentives

Taxes:  All inland Investment Law 230 companies receive a five-year 
exemption from tax payments on profits and dividends, commencing from 
the first fiscal year following the start of production or of business 
activity, as the case may be.  The Cabinet may grant an additional five-
year exemption if deemed in the public interest.  Project expansions 
also are granted a five-year tax holiday.  Projects established inside 
new urban communities, industrial zones, and remote areas are exempted 
for a ten-year period, as are land reclamation, real estate development, 
and new city/industrial zone projects.  Projects to develop medium and 
low-income housing receive a fifteen-year tax holiday.

Other Exemptions:  All inland investment projects under Investment Law 
230 are granted exemptions from:

-  notarization and notification fees
-  payment of inheritance tax on 25% of heir's share in invested 
capital, and
-  income tax on a proportion of dividends after expiration of the 
exemption fees.

Law 11/95 abolishes the annual proportional tax collected on company 
securities.  Share issuance to increase capital as well as share 
transactions are also exempt from this tax.

Free Pricing:  The government may not intervene in pricing or setting 
profit margins for products produced by ventures subject to Investment 
Law 230, except for "essential" goods specified by decree.

Customs Preferences:  Per Ministry of Finance decree, machinery and 
equipment imported for Investment Law 230 investment projects are 
assessed a low, flat tariff rate of 5%.

Discriminatory Policies

Under the U.S.-Egypt Bilateral Investment Treaty, each party to the 
Treaty "retains the discretion to approve investments according to 
national plans and priorities on a non-discriminatory basis."  
Generally, foreign companies established under Investment Law 230 are 
treated in a non-discriminatory fashion.  Under the economic reform 
program, privileges enjoyed by public sector enterprises (subsidized 
inputs, credit facilities, and preferential custom rates) have, for the 
most part, been eliminated.  Industrial product prices, except for 
pharmaceuticals, have been decontrolled.  A standard cost-plus formula 
is used to determine pharmaceutical prices for new-to-market products.  
Although U.S., other foreign, and (most recently) public sector 
pharmaceutical companies argue that the price control system is 
financially harmful, it is expected to remain in effect for the 
foreseeable future.  The only other goods still subject to price 
controls are cigarettes, rationed edible oil, and rationed sugar.

Export and Import Policies

Egypt has made significant progress in reduction of non-tariff barriers.  
In 1990 the import ban list covered 210.  By July 1993, the Egyptian 
Government had dropped all but three commodities from the import ban 
list:  fabrics, apparel, and poultry, which together represent 
approximately 4% of total domestic production.  The list of goods 
requiring prior approval before importation was eliminated in 1993.

Some 131 items are inspected for quality control prior to admittance 
into Egypt.  The Government stresses that standards applied to imports 
are the same as for domestically produced goods, but in practice, 
imports are subject to different, and usually tougher, inspection tests.  
Tariffs range between 5-70%, with exceptions on the upper end for luxury 
goods (automobiles, tobacco, and alcoholic beverages).  The Government 
has failed to honor its commitment to the World Bank to lower the 
maximum tariff rate to 60% by end-1994 with a further reduction to 50% 
by mid-1995.  In 1993, the Government abolished preferential customs 
treatment for public-sector businesses for all but two commodities:  
baby milk, which requires an approval from the Ministry of Health, and 
yachts, boats, and vessels, which are imported by tourism companies.

Export subsidies do not exist and the Government does not impose export 
performance requirements.  Exporting industries, including Investment 
Law 230 projects, receive rebates on duties paid on imported inputs at 
the time of export of the finished product.  Animal hides, and scrap 
metal (except scrap of stainless steel) are the only items banned from 
export.  The import/export paperwork process has been greatly simplified 
from past Egyptian practice, but several days are required to obtain 
necessary signatures for import or export.

A-2 CONVERSION AND TRANSFER POLICIES

Repatriation Of Profits And Capital:  Investment Law 230 guarantees the 
right to remit profits, provided the amount remitted does not exceed the 
balance of the project's foreign currency account.  Investment Law 230 
also guarantees the right to repatriate invested capital.  Upon 
liquidation, all invested capital may be transferred in one installment 
if the foreign currency account balance is sufficient to cover the 
transfer.  Otherwise, the transfer may be effected in five equal annual 
installments.

Egypt's February 1991 liberalization of the foreign exchange market 
eliminated foreign exchange transfer restrictions.  Despite this, 
Investment Law 230 companies still require authorization from GAFI's 
Executive Director to remit profits.  GAFI reports that the pro-forma 
authorization process takes no longer than 48 hours and is for 
statistical purposes only.

Investment Law 230 retains restrictions on the transfer of proceeds from 
the sale of assets, and prior GAFI approval is required.  GAFI claims 
that it is able to process paperwork for transfer of funds the same day 
as submitted, thus, not appreciably delaying the remittance process.

Companies established under Companies Law 159 face no similar impediment 
to the free transfer of earnings.  Such firms, however, still face 
problems if they wish to repatriate capital (upon the liquidation of the 
company).  A new foreign exchange law passed by the People's Assembly in 
May 1994 relaxes restrictions on capital transfers and emphasizes the 
right of individuals and companies (whatever their legal status) to 
transfer foreign exchange out of Egypt.  Foreign currency is readily 
available at banks and foreign exchange companies.

Bilateral Investment Treaty:  The U.S.-Egypt Bilateral Investment Treaty 
provides for free transfer of returns, royalties, compensation for 
expropriation, payments arising out of an investment dispute, contract 
payment, and proceeds from sales. Transfers are to be made in a "freely 
convertible currency at the prevailing market rate of exchange on the 
date of transfer with respect to spot transactions in the currency to be 
transferred".

Remittances:  Investment Law 230 stipulates that non-Egyptian experts 
and personnel recruited in a Investment Law 230 project are entitled to 
transfer up to 50% of their total earnings.  Remittances are to be 
processed within a maximum of 48 hours of submission of paperwork to 
GAFI.

Royalty Payments:  Royalty payments are authorized when a patent, 
trademark, or other licensing agreement has been approved under 
Investment Law 230.

OPIC Inconvertibility Claim:  As of April 1994, the U.S. Embassy in 
Cairo has ceased to act as a disbursing office, hence, no longer 
purchases local currency to finance U.S. government operations.  Since 
late 1994, the free market dollar selling rate has been stable at 3.40 
Egyptian pounds per U.S. dollar.  There is no parallel market rate.  For 
the past two years, the government has deflected recommendations that it 
improve its export competitiveness by adjusting its exchange rate 
policies.  It can be expected to hold to that policy, absent significant 
changes in the economic situation.


A-3 EXPROPRIATION AND COMPENSATION

There have been no expropriation actions by the Government since the 
1960s.  Given the present environment, in which the Government is 
committed to creation of a market economy which will require new and 
sustained private-sector investment, expropriation actions are unlikely.

Article (8) of Investment Law 230 guarantees against nationalization or 
confiscation of investment projects under its domain.  It further 
guarantees against seizure, requisition, blocking, confiscation, and 
placing under custody or sequestration, except through judicial 
procedures.  Investment Law 230 offers guarantees against full or 
partial expropriation of real estate and investment project property, 
except when necessary for the public interest, and fair compensation 
based on market value is provided.

The U.S.-Egypt Bilateral Investment Treaty also provides protection 
against expropriation.

There is no evidence that the Government discriminates against foreign 
investors in general, or U.S. investors specifically.  Nonetheless, 
foreigners in Egypt find doing business in Egypt extremely difficult, 
because of non-transparent procedures and regulations and inefficient 
bureaucratic practices.

A-4 DISPUTE SETTLEMENT

Egypt acceded to the International Convention for the Settlement of 
Investment Disputes in 1971 and is a member of the International Center 
for the Settlement of Investment Disputes (ICSID) which provides a 
framework for arbitration of investment disputes between the government 
of the host country and a foreign investor from another member state, 
provided that the parties agree to such arbitration.  Without prejudice 
to Egyptian courts, Investment Law 230 recognizes the right of investors 
to settle disputes within the framework of:  bilateral agreements; the 
Convention for Settlement of Investment Disputes; or through arbitration 
before the Regional Center for International Commercial Arbitration in 
Cairo.  The U.S.-Egypt Bilateral Investment Treaty (BIT) provides for 
non-binding, third-party arbitration in investment disputes.

Egypt passed Law 27 of 1994 which provides a comprehensive framework for 
the arbitration of all commercial disputes whether domestic or 
international.  This law provides a highly flexible framework for 
arbitration and limits challenges of arbitral awards in court.  Even if 
an arbitral award is challenged, a special order must be obtained to 
stay enforcement which in turn must be based on a showing a likelihood 
of success in challenging the award.  Egypt's new law represents a 
significant advance over a prior confusing and conflicting set of rules 
which left the enforceability of both international and domestic 
arbitral awards in doubt.  In addition, Egypt adheres to the 1958 New 
York Convention on Enforcement of Arbitral Awards (which means that 
foreign judgments can be enforced in Egypt), the 1965 Washington 
Convention on the Settlement of Investment Disputes between States and 
the Nationals of Other States (i.e. the ICSCD agreement), and the 1974 
Convention on the Settlement of Investment Disputes between the Arab 
States and the Nationals of Other States.

There have been several investment disputes extending over many years, 
involving U.S. persons or companies.  There is no pattern except that 
principals have ceased to trust one another, and generally the foreign 
side consists of a single individual or a small firm which did not 
benefit from OPIC or other insurance.  These disputes most often take 
the form of contract disputes, wherein the U.S. side claims arbitrary, 
illegal action (typically cancellation of the contract and takeover of 
the entity) by the Government side.  In some instances, Government 
entities refuse for years to accept contractual requirements to 
arbitrate even if arbitration is explicitly written into the contract.  
Local lawyers insist, however, that the recalcitrant party cannot 
prevent indefinitely the initiation of arbitration.  It requires time, 
sometimes numerous court proceedings which in many cases average five 
years to reach primary court decision, and sometimes numerous appeals to 
senior Government officials.  Legal appeal procedures can extend court 
cases to 15 years or longer.

The following is a description of two investment disputes over the past 
few years involving U.S. investors, which the U.S. government has 
attempted to help resolve by raising issues at a political level:

-  A U.S. company's contract to operate airport duty-free shops was 
canceled in 1988, the government-owned airline was given the management 
contract, and inventory and equipment were confiscated.  The owner has 
initiated several legal suits in the court system over the past five 
years, with no visible result.  The owner is initiating steps to invoke 
arbitration.  GOE officials have indicated they cannot intervene in 
court processes.  As of July 1995, the company reported having won its 
latest suit in the courts, and prospects are high for resolution in the 
company's favor.  

-  A U.S. company entered into a contract with a public sector company 
to operate two hotels in Egypt.  Disputes arose over both properties.  
Both disputes were arbitered in 1994, after long reluctance by the 
Government party to so agree, but the company has had difficulty in 
getting the public sector company to comply with the arbitration 
decision.

The Egyptian Legal System:  The Egyptian Constitution of 1971, as 
amended in 1980, states that Islamic Law is the source of all law.  Laws 
issued prior to 1980 need not comply with this provision, but new 
regulations are checked for conformity with Islamic Law.  The 1948 Civil 
Code and the 1883 Commercial Code are the basic laws governing 
commercial contracts and transactions.

Secured Interests In Property:  Mortgages are limited in scope and 
highly restricted.  Real estate mortgages can be registered with the 
Land Register, but the registration fee is prohibitive, equal to 1.5% of 
the amount being secured by the mortgage.  Residential mortgages are 
unenforceable because there is no right to evict for non-payment.  
"Pledges" of personal property are possible, but they are only effective 
if the creditor takes actual possession of the property.  The only non-
possessory security interest in personal property available in Egypt is 
through a "commercial" mortgage or "mortgage of the fonds de commerce."  
This type of mortgage covers tangible as well as intangible assets of a 
business (ranging from equipment to "good will") and is registered at 
the Commercial Register, but can be done only by banks registered with 
the Central Bank.  The Government is considering amending some 
provisions of the banking law to allow banks to engage in mortgages.  

Judicial System:  The judicial system in Egypt consists of the following 
components:

1) The Supreme Constitutional Court:  an independent judicial body with 
jurisdiction over questions of constitutionality of laws and regulations 
and their interpretation.  It rules on jurisdictional questions 
regarding other courts and on conflicting, non-appealable judgments 
issued by other judicial bodies.

2) The Council of State and Administrative Court:  The Council of State 
gives legal advice to different ministries and government departments 
and adjudicates administrative litigation in which the state is 
involved.  It also reviews draft legislation before it is considered by 
Cabinet or introduced to parliament.  The Administrative Court detects, 
investigates and judges any administrative or financial infraction 
within the government. These courts judge all disputes between private 
firms and the government unless contracts explicitly provide for 
alternative dispute resolution.  The Administrative court operates under 
the authority of the Council of State, both of which are under the 
Ministry of Justice.

3) The Judiciary: is comprised of (a) the various national courts and 
(b) the public prosecution.  There are two general types of national 
courts:  (1) regular courts, including summary, primary, appeals, and 
cassation courts; and (2) special courts, including the court of ethics 
and state security courts.  U.S. firms typically would use the regular 
courts for disputes with private parties.


(a) National Court System:
(1) Regular Courts:
Summary courts - cover civil litigation, cases of contravention and 
misdemeanors, and minor criminal offenses punishable by imprisonment not 
exceeding three years.

Primary courts - hear civil and criminal appeals from summary courts.  
They also function as first instance courts in matters that involve 
civil litigation exceeding LE 5000 and crimes of a more serious type.  
Courts of Appeal - adjudicate appeals in both civil and criminal 
sentences passed by lower courts.

Court of Cassation - is the highest court of law in Egypt. Its 
jurisdiction lies in interpretation of the law and its application.  
Court of Appeals judgments are referred to the Court of Cassation only 
when a matter of legal interpretation is in question.

(2) Special Courts:
The Court of Ethics (Law of Shame) - is divided into a lower and upper 
court.  The two courts have jurisdiction over litigation brought by the 
Socialist Prosecutor against persons or groups alleged to be endangering 
society's "safety."  It also acts as a brake on bureaucrats who might 
wish to deviate from regulations, minimizes compromises in negotiations, 
and exacerbates the fear of taking decisions which might be challenged 
by the Socialist Public Prosecutor.

State Security Courts -  are also divided into lower and upper courts 
which have jurisdiction over crimes against the external and internal 
safety and security of the state, bribery, tariff offenses, and 
"national unity."

(3) Public Prosecution:  The Public Prosecutor is responsible for 
investigating crime as well as formulating cases against accused 
criminals.  His office enforces court judgments.

(4) The Socialist Prosecutor is responsible for taking measures to 
secure people's rights and the safety of the society.  Revisions to 
Ethics Law 95/80 removed from the Socialist Prosecutor's jurisdiction 
over any political issue.  Hence, the main responsibility of the 
Socialist Prosecutor is to look into crimes of illicit gains.  The 
Socialist Prosecutor is subject to the control of the People's Assembly 
and is appointed by the President.  Only the Socialist Prosecutor can 
refer cases to the Court of Ethics.

The government does not interfere in the court system.  The acceptance 
of judgments of foreign courts and their enforcement is determined by 
bilateral agreements between Egypt and other countries or on the 
provisions of the contract.  Foreign and Egyptian parties can specify 
methods of settling commercial disputes in contracts including choice of 
law and, under Egypt's new Arbitration Law 27/1994, can select for 
arbitration under virtually any set of rules including those of 
UNCITRAL, the International Chamber of Commerce (which follows the 
UNCITRAL rules), or any other organization.

A-5 PERFORMANCE REQUIREMENTS/INCENTIVES

Performance requirements are not specified in Investment Law 230.  The 
ability to fulfill local content requirements is no longer required to 
obtain an approval to set up an assembly project.  However, assembly 
industries must meet a minimum local content requirement of 40% in order 
to benefit from customs tariff reductions on imported industrial inputs.

Employment Requirements:  Under Investment Law 230 and Companies Law 
159, Egyptians must normally comprise 90% of the company's workforce, 
and wages for the Egyptians employed must constitute 80% of the total 
wage bill.  Egyptian technical and administrative staff must make up no 
less than 75% of the labor force and their wage bill must be at least 
70% of the total wage bill.  In cases where qualified Egyptian workers 
do not exist, however, companies may seek permission from the 
appropriate Ministry to hire foreign workers, advisors or specialists.  
In certain sectors, additional restraints on the number of foreign 
employees exist.  For example, in case of maritime services, only 5% of 
the total crew may be foreign, and foreign insurance companies (only 
allowed in the free trade zones) must have an Egyptian national as 
managing director.

Geographical Areas:  There are no formal geographic restrictions on 
investment, but GAFI will approve investments in congested areas such as 
Cairo only when there is an economic rationale for the location.  As 
noted above, both Investment Law 230 and Companies Law 159 investments 
may benefit from incentives for establishments in new communities.  Upon 
request, GAFI will assist investors in locating a site for the project, 
assuring the availability of necessary infrastructure.  Governorates 
(i.e. local government) have authority to issue decrees involving prior 
establishment and operation licensing, investment approval, and location 
changes for investments under their geographical jurisdiction.  Although 
the government pledged to the World Bank that these decrees will be 
abolished, it appears that the process will take some time.  Therefore, 
the government plans to work on streamlining the process first, with the 
eventual goal of elimination of the governorate's involvement in the 
investment process.

Upper Egypt:  Egypt's historically neglected southern region is the 
target of new Government efforts to attract private investment.  In 
1995, the Government decreed the establishment of 16 new industrial 
zones nationwide of which eight are in Upper Egypt:  three in Assiut; 
two in Qena; one in Sohag; one in Minya; and one in Aswan governorates.  
President Mubarak said that land in these industrial zones will be 
offered free-of-charge, with the Government providing infrastructure 
(water, sewer, electricity, gas), and title to be transferred to the 
developer three years from project startup.  Implementing regulations 
are presently being written in detail, but likely will include the 
following:

-  each allocated plot of land will not exceed 12,000 square meters 
based on size of factory plus 40%;
-  investors cannot dispose of land until ten years from transfer of 
title, and subject to approval of local authorities (city council).

To benefit from these offerings, projects must meet the following 
conditions:

-  include an Egyptian partner;
-  priority is given to labor-intensive and environmentally-friendly 
projects;
-  start production within three years of land allocation;
-  adhere to building specifications in the industrial zones;
-  contribute toward maintenance costs of roads and other infrastructure 
in the industrial zones.

A-6 RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT

Under Investment Law 230 and Capital Markets Law 95, foreign investors 
may own up to 100% of establishments engaged in various activities 
within the scope of those laws.  Investment Law 230 covers the following 
activities:  land reclamation, industry, tourism, housing, real estate 
development, services for oil production; medical services, car repair, 
water pumping stations; transportation service; and consultancy firms.  
Law 95 allows the establishment of Egyptian and foreign security 
companies conducting one or more of these activities:  underwriting of 
subscriptions; participation in the establishment of companies issuing 
securities; venture capital; clearing and settling of securities 
dealings; forming and managing securities portfolios and mutual funds; 
and acting as brokerage firms.  Furthermore, under Banking Law 37/1992 
as amended by Law 101/93, existing foreign bank branches are allowed to 
provide all banking services in both local and foreign currencies.  
Central Bank of Egypt policy with regard to new entrants has been very 
restrictive.

In theory, under Companies Law 159, foreign shareholders may own 100% of 
a limited liability company and ultimately own 100% of a joint stock 
company provided that 49% of the shares have been offered to Egyptians 
upon the formation.  The activities in which such companies with foreign 
ownership may engage, however, may be restricted by specific laws or 
institutions.

Foreign investors may not engage in export/import activities, accounting 
services, and the local insurance market.  The domestic insurance market 
is closed to foreign companies, but they may operate in free trade zones 
as minority partners.  In mid-April 1995, the People's Assembly passed a 
new insurance law which allows insurance companies with no more than 49% 
ownership access to the Egyptian market after a five-year phase-in 
period (which the government may waive).  Law 15 of 1963 prohibits 
foreign ownership of agricultural lands, except for desert reclamation 
projects.  Egyptians or foreign investors wanting to establish companies 
in "negative list" activities -- the military or tobacco sectors -- must 
seek approval from GAFI, but approval of such projects is unlikely.  The 
private sector (both domestic and foreign) is prohibited from investing 
in shipping agencies, stevedore services, and airport services.

The new Public Business Law 203/1991 and its executive regulations allow 
the sale of shares (with no upper limit) and assets of public 
enterprises to private sector investors without restrictions.  The law 
does not preclude purchase of assets by foreigners.

Credit:  Established foreign and domestic private investors have good 
access to credit.  Despite abolition of credit ceilings and the relative 
decline of interest rates, private demand for credit is still relatively 
low because the economy has been in a state of recession.

A-7 PROTECTION OF PROPERTY RIGHTS

Egypt, as a party to the Berne Copyright and Paris Patent Conventions, 
bears a commitment to protect U.S. inventive and artistic works.  
Egypt's legal system provides protection for acquisition and disposition 
of all property, protection for most forms of intellectual property.  
Enforcement of current laws, although improving, is still ineffective.

Despite significant government efforts to improve legal protection for 
copyrighted works and enforcement of the copyright law, Egypt has not 
passed a modern patent law.  Because of that, in May 1995, the U.S. 
Trade Representative placed Egypt on the "Watch List".

Patents:  Egypt's 1949 patent law excludes certain categories of 
products and contains overly-broad compulsory licensing provisions.  
Product patent protection for pharmaceuticals and food products is 
excluded.  The patent term is only 15 years from the application filing 
date.  A five-year renewal may be obtained only if the invention is of 
special importance and has not been worked adequately to compensate 
patent holders for their efforts and expenses.  Compulsory licenses, 
which limit the effectiveness of patent protection, are granted if a 
patent is not worked in Egypt within three years or is worked 
inadequately.

Egypt is considering adopting a new patent law to meet its TRIPS 
requirements under the Uruguay Round. The draft law, which is expected 
to be submitted to the People's Assembly in late 1995, represents a 
significant improvement.  However, it is not clear whether Egypt will 
offer immediate protection for pharmaceutical products and agricultural 
chemicals or whether it will avail itself of the 10 year transition 
period permitted by TRIPS.  Industrial designs receive protection (under 
the Patent Law) through registration with the Bureau of Industrial 
Designs in the Ministry of Supply.

Copyrights:  In response to U.S. and domestic industry calls for 
improved legal protection for copyrighted works, the government passed 
Law 38 of 1992, amending the 1954 Copyright Law.  Penalties against 
piracy were increased substantially, and computer software was afforded 
specific protection.  As a result of U.S. lobbying, in March 1994, the 
government passed Law 29 which amended Law 38 and ensured that computer 
software was afforded protection as a literary work (allowing it a 50-
year term of protection).  In addition, in April 1994, the GOE issued a 
ministerial decree which clarifies rental and public performance rights, 
protection for sound recordings, and the definition of personal use.  
Although the legal framework for protection of copyrights has improved 
significantly, and enforcement has been stepped-up, copyright piracy is 
still widespread and affects all categories of works.  Holders of 
copyrights on motion pictures (in video cassette format), sound 
recordings, printed matter (notably medical textbooks), and computer 
software suffer the greatest harm, although video piracy has fallen off 
over the past year.

Trademarks:  Trademark protection is provided by Law 57 of 1939.  Egypt 
is a member of the Paris Convention for Protection of Industrial 
Property of 1883, the Madrid Convention of 1954, and the Nice Convention 
for the Classification of Goods and Services.  Instances of alleged 
trademark infringement have been cited frequently by U.S. and other 
foreign firms operating in Egypt.  The trademark law is not enforced 
strenuously and the courts have only limited experience in adjudicating 
infringement cases.  Fines amount to less than $100 per seizure, not per 
infringement.  Judgments and enforcement thereof must be made separately 
in each of the 26 governorates.

Trade Secrets:  Egypt has no specific trade secrets legislation.  
Protection of commercially valuable information is possible through 
contractual agreement between parties.  Breach of contractual terms of 
protection can be remedied in legislative proceedings under either the 
civil or criminal code, depending on the severity of the damage caused.

Semiconductor Chip Layout Design:  There is no separate legislation 
protecting semiconductor chip layout design, although Egypt signed the 
Washington Semiconductor Convention.

A-8 REGULATORY SYSTEM: LAWS AND PROCEDURES

The streamlining of investment procedures over the past three years 
represents a positive step toward facilitating new investment, but there 
is room for much improvement in the general business climate in Egypt.  
Egypt's accounting system is not consistent with international norms.  
The often arbitrary imposition of bureaucratic impediments and the 
length of time which must be spent resolving them remain significant 
obstacles to increased private sector investment in Egypt.  For example, 
Egypt's Capital Markets Law 95/1992 stipulates that any company wishing 
to make a public offering must obtain the approval of the Capital 
Markets Authority.  However, it does not bind the Authority to a time 
frame to grant the approval.  Generally, decision-making is complex, 
non-transparent, and often inconsistent.  If the government meets its 
pledge to implement a unified business law, combining Public Business 
Law 203, Companies Law 159, and Investment Law 230, this could improve 
the situation. But bureaucratic efficiencies in any number of Egyptian 
agencies will continue to plague investors for the foreseeable future.

A particular area of difficulty is in imports, where several ministries 
can have overlapping regulatory authority.

Adherence to health and safety regulations is uneven and enforcement is 
complicated by a multiplicity of laws, agencies, and opinions.  For 
example, at least four ministries regulate the operation of restaurants.

A-9 EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT

Private foreign investors have access to credit in the local market.  
The market offers only a very limited range of financial instruments:  
treasury bills, treasury bonds, limited range of stocks traded on the 
Cairo exchange, and CD's.  There is no active securities or bond market.  
In January 1991, the Government began issuing Treasury bills with tax-
free interest rates determined at auction.  The Central Bank uses the 
three-month treasury bill average interest rate as an indicator for the 
Central Bank's discount rate. Treasury bill sales have been very 
successful, but experts believe they may be crowding out private sector 
investments.  In April 1995, the government issued the first tranche of 
five-year maturity treasury bonds.  In contrast to treasury bills, 
treasury bonds are tradable on the stock exchange.

In order to activate the stock exchanges, the Government issued the new 
Capital Market Law 95/1992, allowing establishment of mutual funds and 
companies operating in the securities market.  The Law exempts returns 
on securities of public subscription companies from taxes and stamp 
fees.  It also allows issuance of bearer shares.  Moreover, it removes 
the ceiling on bond return (formerly, returns on bonds could not exceed 
7%).  Some forty securities companies have received final approval to 
operate and five mutual funds have been licensed.  Revival of the 
Egyptian stock market is closely tied to the progress of the 
privatization program as it has provided virtually all of the dozen or 
so recent new issues.

A-10 POLITICAL VIOLENCE

A number of domestic terrorist groups have since 1992 sough to de-
stabilize Egypt's government through violence.  While some attacks were 
directed against foreign tourists, none were directed specifically at 
foreign investments in Egypt.  Most extremist targets, however, seem to 
be police or other symbols of the Government's security apparatus.  
Generalized civil disturbances are unlikely. While attacks have 
diminished dramatically since early 1994, random terrorist incidents 
anywhere in Egypt remain possible at any time.  U.S. citizens traveling 
to Egypt should avail themselves of the State Department's regularly up-
dated travel information on security conditions within Egypt and contact 
the Consular Section of the American Embassy in Cairo for current 
assessment on travel conditions.

B. BILATERAL INVESTMENT AGREEMENTS

On June 27, 1992, the U.S.- Egypt Bilateral Investment Treaty (BIT) went 
into effect.  As mentioned previously, the treaty provides for fair, 
equitable and non-discriminatory treatment for investors of both nations 
and includes the following provisions: international legal standards for 
expropriation and compensation; free financial transfers; and 
procedures, including international arbitration, for the settlement of 
investment disputes.

Egypt has signed investment agreements with the following countries:  
the United States, Germany, the United Kingdom, Sweden, Switzerland, 
Japan, the Netherlands, Belgium, Luxembourg, France, Italy, Greece, 
Finland, Romania, Sudan, Morocco, and Thailand.

C. OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS

Egypt and OPIC have an investment guarantee agreement providing 
political risk insurance for U.S. private investment, as well as for 
bid, performance, advance payment, and customs bonds and guarantees 
issued on behalf of U.S. suppliers and contractors in Egypt.  To date, 
25 U.S. investment projects in Egypt have been covered by OPIC 
insurance.  Egypt is a member of the World Bank's Multilateral 
Investment Guarantee Agency (MIGA).

D. LABOR

The civilian labor force was estimated at 16 million in 1994, with 14.4 
million estimated as employed.  Egypt has a surplus of both unskilled 
and skilled labor: consequently, thousands of workers in both categories 
have sought employment abroad. Generally, the low wages prevailing for 
low skilled employees has meant that foreign investors have employed 
labor-intensive technologies.  Shortages of skilled managers has been a 
complaint of foreign companies doing business in Egypt.

Labor-management relations are generally good in Egypt.  Foreign 
companies tend to pay more and attract better skilled employees than 
those prevailing in the state sector or domestic private sector.  The 
current labor law does not allow for strikes or collective bargaining.  
The Government plans to submit a new draft labor law to the People's 
Assembly in 1996.  This law has been drafted in cooperation with the 
ILO.

The unions are most active in the state sector companies.  As such, they 
are a natural source of opposition to privatization and trade 
liberalization. However, they do not seem opposed to foreign investment 
generally.  Under the current law, the dismissal of workers is 
difficult, except for documented cases of incitement to strike, 
extremely poor work performance, chronic absenteeism, or willful 
damaging of property.  Wage rates are low, even with social insurance 
payments and other fringe benefits.

Labor and Investment Law 230:  Investors - including those under 
Investment Law 230 - are required by the Companies Law to employ 9 
Egyptians for every foreigner, unless an exemption is obtained from the 
appropriate authorities under Investment Law 230 must employ nine 
Egyptians for every foreigner.  In the free zones, Egyptian personnel 
must comprise no less than 75% of the project's work force.  Certain 
restrictive sections of the Labor Law are not applicable in the free 
zones.  The Investment Law 230 provision requiring companies to 
distribute 10% of profits to employees was amended in January 1992 to 
require distribution of 10% of distributed profits (instead of 10% of 
total net profits) up to a ceiling of not more than 100% of salaries.  
This amendment placed Investments Law 230 companies on an equal footing 
with companies organized under Companies Law 159 and public sector 
companies regulated by Public Business Law 203/1991.

E. FOREIGN TRADE ZONES/FREE PORTS

Investment Law 230 distinguishes between "inland" investments and 
investments in free zones.  Foreigners have the same investment 
opportunities in the free zones as their domestic counterparts.  
Companies producing largely (normally 80% or more) for export can be 
established in the free zones and operate free of customs duties and 
taxes.  An annual fee of 1% of the value of the commodities traded by a 
project or proceeds of the enterprise, whichever the case may be, is 
collected from free zone investment companies.  Goods produced in the 
zones are treated as imports if sold in Egypt and are subject to customs 
duties and import regulations.  In general, free zone companies face 
minimal regulations compared to inland investments.

See Section B above for more information on Investment Law 230 and 
exemptions for free zones.

F. CAPITAL OUTFLOW POLICY

There are no restrictions on foreign exchange current transfers outside 
the country.  A new foreign currency law was passed in April 1994, 
eliminating all restrictions on repatriation of tourism and export 
proceeds.  While the government promotes the creation of closer economic 
ties with its neighbors and trading partners, it does not encourage 
increased Egyptian investment abroad.

G. FOREIGN DIRECT INVESTMENT STATISTICS

Statistics were provided by GAFI and include only approved investment 
projects established under Investment Law 230 as of June 30, 1994.  No 
more recent or data is available from the Egyptian government.  
Information below does not include foreign investment in petroleum and 
minerals exploration projects, nor does it include information on 
investments made under Companies Law 159.  Generally, the largest 
private investments in Egypt are in the petroleum sector, while the bulk 
of industrial investments are made under Law 230.


CUMULATIVE INVESTMENT LAW 230 
FOREIGN INVESTMENT IN EGYPT BY COUNTRY
AS OF JUNE 30, 1994
(IN MILLIONS OF EGYPTIAN POUNDS)


COUNTRY        NUMBER OF       COUNTRY            TOTAL       COST 
INVESTMENT   PROJECTS        PARTICIPATION      CAPITAL      
------------------------------------------------------------------
U.S.A.        159             984                  2876          4957
U.K.          112             595                  1376          2055
FRANCE         62             244                  1034          1616
GERMANY        84             143                   638          1214
LUXEMBOURG     39             146                  1113          1388
ITALY          58             131                   655          1468
NETHERLANDS    29             102                   454           736
DENMARK        15              96                   159           362
IRELAND         5             520                  1169          2840
SPAIN           8              27                    74            99
BELGIUM        14              46                    67           106
GREECE         10              15                    24            36
PANAMA         30             673                   948          1947
CANADA         12              11                    38            45
SWITZERLAND    80             505                  1079          2035
ROMANIA         3             102                   241           241
SWEDEN         10              32                   120           199
NORWAY          6              28                    50           173
POLAND          2              23                    80            97
CZECH/SLOVAK    2               9                    10          13  
FINLAND         3               4                    23            44
RUSSIA          6               5                    16            23
AUSTRIA         6               4                    31            52
AUSTRALIA       3               3                     8            10
JAPAN          15             125                   878          1575
HONG KONG       9              40                    78           147
MALAYSIA        1              21                    23            40
KOREA           5              10                    59            90
SINGAPORE       6              29                    72           128
CHINA           5               3                     8            10
TURKEY          3               5                    11            25
CYPRUS          5               6                    10            22
IRAN            7             122                   216           285
INDIA          16              16                    72           171
UKRAINE         2               2                     8             8
OTHERS         27             462                  1759          3484
---------------------------------------------------------------------
TOTAL         859           5,289                15,477        27,741

H. MAJOR U.S. INVESTORS IN EGYPT

U.S. firms have been active investors in Egypt for decades, although 
most firms currently in operation entered the market in the mid-
eighties.  The majority of U.S. investment capital is in the hydrocarbon 
sector, with Amoco the largest foreign investor in Egypt.  Other U.S. 
oil and exploration and production companies include Mobil, Caltex, 
Arco, Esso, Texaco, Marathon, and Phoenix.  Foreign investors (AGIP, 
Shell, Repsol and British Gas) are also significant in this sector.

U.S. firms are active in banking and in a wide range of manufacturing 
industries, producing goods for the domestic and export markets.  
Examples of U.S. investors include:  American Express, Citibank, Coca 
Cola, Ralston Purina/Eveready, General Motors, Johnson & Johnson, 
Proctor & Gamble, Squibb, Pfizer, H.J. Heinz, Chrysler/Jeep, Gillette, 
American Standard, R.P. Scherer, Bristol-Myers Squibb, PepsiCo, Pioneer, 
and Xerox.

Reliable current data on U.S. investments in Egypt is unavailable.  The 
July 1993 "Survey of Current Business" reports that U.S. investment 
stock in Egypt fell from $1.24 billion in 1991 to $922 million in 1992, 
primarily due to a decline in petroleum investment.  Oil and gas remain 
by far the largest U.S. investment.  However, in recent years new 
exploration activities have increased considerably, meaning that the 
trend of net disinvestment has probably ended.  Egyptian authorities 
state that as of mid-1994, cumulative total U.S. investments (including 
petroleum) equal $1.5 billion.  According to GAFI information, 
cumulative U.S. investments under Investment Law 230 (both inland and 
free zones) equaled LE 4.957 billion in 1994, approximately 11.3% of 
cumulative foreign investments from all sources.

CHAPTER VIII. TRADE AND PROJECT FINANCING 

BRIEF DESCRIPTION OF BANKING SYSTEM

With the exception of the three banks exempted from CBE control by law 
or treaty, all banks in Egypt are subject to CBE supervision.  The 
Egyptian banking system consists of 86 banks: 

- 25 public sector banks (4 commercial, 4 specialized and 17
  agricultural);
- 58 private sector and joint venture banks (26 commercial, 32
  established under the investment law); and
- 3 banks not registered with the Central Bank.

During the period 1957-1974, only fully-owned Egyptian banks were 
permitted to operate in the country.  Although the banking system has 
since been opened to private sector banks, the four state-owned 
commercial banks still dominate the banking market due to their large 
size in terms of assets, deposit base and branches.

In 1974, Investment Law 43 permitted joint venture commercial and 
investment banks with a minimum of 51% Egyptian ownership into the 
Egyptian market.  Law 43 also gave these banks equal national treatment 
and tax benefits.  However, foreign bank branches were restricted to 
foreign currency business until the March 1993 amendment to Banking Law 
37/1992 permitted existing foreign bank branches to engage in local 
currency operations.  The 32 investment-law banks consist of 11 joint 
venture banks and 21 foreign bank branches.

The banking system deposit base and loan portfolio totalled LE 129.4 
billion ($38.6 billion) and LE 67.6 billion ($20.2 billion) 
respectively, at the end of June 1993.  Total assets of banks were LE 
198.3 billion ($59.2 billion).  Banks are free to set their own interest 
rates and exchange rates, although the CBE provides informal guidelines, 
such as T-bill auctions and discount rates.  The CBE regulates the 
banking system by setting reserve and liquidity requirements and rules 
for loan categorization.  The minimum paid-in capital requirement for 
banks under the new Banking Law 37/1992 is LE 5O million ($14.8 
million).  A deposit insurance fund is being phased in, in compliance 
with Banking Law 37/1992.  Membership in the fund is obligatory for all 
banks operating in Egypt, including foreign bank branches.

Two American bank branches (Citibank, American Express) and one 
Egyptian-American joint venture commercial bank (Egyptian-American Bank) 
are currently operating in Egypt.  Citibank and AmEx operate in both 
local and foreign currencies.  Under Banking Law 37/1992 as amended by 
Law 101/1993, foreign banks operating in Egypt, whether joint ventures 
or branches, receive equal treatment and are subject to the same 
regulations as national banks.  Due to the large number of banks now 
operating in Egypt, CBE policy regarding new entrants into the banking 
market, whether foreign or Egyptian, is very restrictive and no new 
banks have been licensed.


FOREIGN EXCHANGE CONTROLS AFFECTING TRADING

The GOE liberalized foreign exchange rates in February 1991, conducting 
transactions through two markets: the primary market for government 
transactions and the free foreign exchange market.  Effective October 8, 
1991, the primary market was eliminated, and all transactions now are 
effected through the free market.  The Egyptian pound exchange rate 
versus U.S. dollar showed minor fluctuations from period May 1991 to 
July 1995 between LE 3.33 to LE 3.39 per U.S. dollar.  Foreign exchange 
is easily available in the banking system or in foreign exchange 
companies.  As of 1 April, 1994, the CBE had accumulated $16.5 billion 
in reserves and remains a net buyer of dollars.

A new Foreign Exchange Law was passed in May 1994 allowing individuals 
and legal entities to retain and to transfer foreign exchange in Egypt 
and abroad.  The new law also stipulates that banks can engage in all 
foreign exchange transactions.  Under this law, exporters and tourism 
companies are no longer obliged to repatriate their foreign exchange 
proceeds to Egypt.  The only foreign exchange restriction is a five-year 
period for transfer of sale proceeds of real estate in Egypt owned by 
foreigners residing outside Egypt.  Although the law does not specify 
the terms of transfer of sale proceeds, the assumption is that transfers 
will be made in equal installments over a five-year period.


GENERAL FINANCING AVAILABILITY

The Egyptian banking system is highly liquid.  Financing in either 
Egyptian pounds or foreign currency is readily available, to the extent 
that Egyptian entrepreneurs deny that "capital" is a key problem in 
putting a project together.  Banks are willing to finance activities in 
all economic sectors, but they have to know the customer well. The 
Egyptian pound deposit base also has increased substantially.  Deposit 
rates rose to a high of 17% in 1992 and are currently at 10%, tax free.  
Although banks invested heavily in T-bills during 1991-1993, T-bill 
issuance has declined significantly in the past 3 months increasing 
banks' liquidity positions.

On the other hand, loan demand continues to be low due to the current 
recession.  The loan/deposit ratio at the end of June 1993 was 52%.  
Although banks are suffering from excess liquidity, they are not willing 
to take substantial risk.  Hence, banks' financing is generally limited 
to well-established companies or individuals.  Lending rates have fallen 
from a peak of 21% in some months during 1991 and 1992 to an average of 
15% in May 1994, while the prime lending rate is much lower.

Other sources of finance are very limited.  Investors seldom approach 
the bond or stock markets for financing.  In the first quarter of 1994, 
the securities market started showing some signs of growth, as companies 
began to consider issuance of new bonds or stocks to finance expansion.  
Egypt now has at least one venture capital company, "El Ahli for 
Development and Investment Company", headed by Mr. Fouad Sultan.

HOW TO FINANCE EXPORTS/METHODS OF PAYMENT

Local banking system and offshore banks operating in Egypt are the only 
source of finance for Egyptian exports.  Export financing is usually 
short-term, ranging between three to four months, to cover the 
exporter's working capital during the production period.  Banks decline 
to finance long-term export contracts, especially after the negative 
experiences of Egyptian exporters in the former USSR and Iraq.  The 
exporter may use loans to finance imported inputs or locally produced 
ones.  Banks prefer to lend exporters the same currency they will 
receive in payment for their exports to reduce foreign exchange risk.

Banks finance 50 to 80% of the value of an export order, whether in the 
form of a contract, shipping documents or a letter of credit (L/C), 
depending on the credibility of the exporter.  If the exporter is not 
well known in the market and does not have a proven track record, banks 
will request that the importer open a L/C to reduce risk.  Requesting a 
L/C constitutes an additional cost to the importer, which may reduce the 
competitiveness of Egyptian exports.  On the other hand, credit worthy 
exporters are offered direct overdraft facilities.  Interest rates on 
export financing range between 1.5-2% above LIBOR.  Banks deduct loan 
repayments from the export proceeds.  In general, export credit is a 
revolving credit.

Multilateral banks and funds do not provide export financing to Egyptian 
exporters.  The African Export-Import Bank (AFREXIM) was established in 
October 1993 to offer low-cost financing for foreign and intra-African 
trade. 

TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE

Egypt has one export guarantee company, established by Export 
Development Bank, National Bank of Egypt, Bank of Alexandria, National 
Investment Bank, Misr Insurance Company, Al-Shark Insurance Company, and 
Egyptian National Insurance Company.  

The Export Credit Guarantee Company of Egypt (ECGE) started operation in 
October 1993.  It provides guarantees against importer's risk or 
political risk to Egyptian or foreign exporters who export products that 
are totally or partially produced in Egypt.  "Importer's risk" is 
defined as the importer's inability to pay for the exported goods or 
his/her refusal to receive the shipping documents of exported goods, 
although the exporter fulfilled all obligations.  ECGE's guarantee also 
covers political risk (non-commercial), including the cancellation of 
the importer's license by his/her country's authorities, refusal of 
entry of goods by the importer's government, denial of permission to 
transit a country's territory, seizure or confiscation of exported goods 
by the importer's country or the transit country, insolvency of a 
public-owned importer, or military actions or civil disturbances that 
affect the importer's assets.  The guarantee, on the other hand, does 
not cover foreign exchange risk and risks pertaining to the nature of 
the goods.

Whenever the ECGE receives a request for guarantee, it investigates the 
importer thoroughly.  Based on the importer's financial status and 
estimated country risk, ECGE decides on a coverage limit and informs the 
exporter.  The guarantee can reach 80% of the importer's outstanding 
debt.  ECGE receives 0.5-2% premium depending on the importer's country 
and the product exported.  The exporter can sell the guarantee to 
his/her bank.

Foreign NGO's Working in Egypt

Bilateral agreements with the Government of Egypt authorize NGOs/PVOs to 
work in Egypt after an arduous and lengthy process.  It is not clear 
which GOE ministries or agencies are to enter into bilateral agreements 
with PVOs/NGOs to authorize their activities.  A number of foreign PVOs 
are operating under bilateral agreements with the Ministry of Social 
Affairs (MOSA) while others under agreements with the Ministries of 
Agriculture, Education, etc.

It is worth noting that MOSA officials have at one point indicated that 
entering into bilateral agreements was a function mandated to MOSA.  
However, no official notice to that effect has been produced.  A 
committee of the Ministry of Foreign Affairs has played a central role 
in the approval of bilateral agreements and may continue on occasion.

PROJECT FINANCING

Banks are the main source of finance for projects in Egypt.  As 
mentioned above, banks are highly liquid in both local currency and 
foreign exchange and are competing to finance credible, well-known 
clients.  Egyptian pound lending rates have fallen considerably from a 
peak of 22% in 1991 and 1992 to an average of 15% in May 1994, while the 
prime lending rate is much lower.  Egyptian investors do not resort to 
stock or bond markets to obtain capital.  The Cairo and Alexandria stock 
exchanges, dormant since 1956 have been reviewed in the last year.  A 
new Capital Market Law 95/1991 was issued to help activate the 
securities market; however, its impact thus far has been marginal.  
Corporate bonds issued by a private sector company "Hoechst" and the to-
be-issued bonds of Movenpick may indicate that investors are aware of 
the importance of bonds as a source of finance.  The Central Bank has 
offered a first tranche of treasury bonds valued at LE 3 billion with a 
maturity of over one year.

The stock exchange is currently witnessing increased activities.  The 
sale of public business sector company shares (about 10% of capital) has 
started to activate the market.  However, the exchange has still a long 
way to go until it will provide significant investment and financial 
opportunities.

U.S. EXIM Bank loans and guarantees are available in Egypt.  However, 
EXIM interest rates are considered high compared to financing available 
from local banks.

Small investors who lack the right business connections find it 
difficult to start up small or medium-size projects.  On the other hand, 
the Social Fund, established to cushion the impact of economic reforms 
on low-income groups, is providing funds to banks to lend to small-scale 
enterprises.  A private sector credit guarantee company started 
operation in mid-1991 to encourage banks to finance small-scale 
enterprises.  The Credit Guarantee Company guarantees 50% of a bank's 
loan to a small-scale enterprise.  The company also provides services to 
small investors to help them choose suitable projects and to prepare 
feasibility studies.

MULTILATERAL INSTITUTIONS:

Multilateral Development Bank Office
Department of Commerce
International Trade Administration
14th and Constitution, NW
Washington, DC 20230
Tel: 202-482-3399
Fax: 202-482-5179

African Development Bank
U.S. and Foreign Commercial Service
U.S. Embassy
5 Rue Jesse Owens, 01 B.P. 1712
Abidjan 01, Cote d'Ivoire
Tel: 225-21-46-16
Fax: 225-22-24-37

African Export Import Bank
Mr. Christopher Edordu
World Trade Center
1191 Corniche El Nil, Cairo
Tel: 202-578-0281 (6 lines)
Fax: 202-578-0278

European Bank for Reconstruction and Development
Office of the U.S. Executive Director
One Exchange Square
London EC2A 2EH
United Kingdom
Tel: 44-71-338-6569
Fax: 44-71-338-6487

International Finance Corp. (IFC)
1818 H Street, NW
Washington, DC 20433
Tel: 202-477-1234
Fax: 202-477-6391

World Bank
Office of the U.S. Executive Director
1818 H Street, N.W.
Washington, D.C. 20433
Tel: 202-458-0120/0118
Fax: 202-477-2967

LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS:

American Express Bank
Mr. Ahmed Dabbous/Vice President & General Manager
4 Syria St., Mohandessin, Cairo
Tel: 360-8226/8, 360-5256/8
Fax: 570-3146

Arab American Bank
Mr. Sherif Abdel Khalek/Vice President, Regional Representative
6 Salah El Din St., Zamalek, Cairo
Tel: 340-6767
Fax: 340-6753

Citibank
Mr. Ahmed Barda'i/Vice President
4 Ahmed Pacha St., Garden City, Cairo
Tel: 355-1501, 355-1161, 355-1873/7
Fax: 355-8056

Bank of Alexandria
Mr. Abdel Karim Mohamed/Chairman
49 Kasr El Nil St., Cairo
Tel: 391-9686
Fax: 390-7793

Cairo Bank
Mr. Mohamed Aboul Fath/Chairman
22 Adly St., Cairo
Tel: 390-9575
Fax: 390-1735

Bank Misr
Mr. Issam Al Elhamdy/Chairman
151 Mohamed Farid St., Cairo
Tel: 391-4239, 391-1159
Fax: 393-5381

National Bank of Egypt
Mr. Mahmoud Abdel Aziz/Chairman
Cairo Plaza Bldg., Corniche El Nil St.
24 Sherif St., Cairo
Tel: 574-6858
Fax: 574-6000


Arab International Bank
Dr. Moustafa Khalil/Chairman
35 Abdel Khalek Tharwat St., Cairo
Tel: 390-5765
Fax: 391-6233

Banque du Caire et de Paris
Mr. Mohamed Abou El Fatah/Chairman
3 Latin America St., Garden City, Cairo
Tel: 355-2906, 390-9575
Fax: 390-1735

Cairo Barclays Bank
Mr. Youssef Ess  /Joint Managing Director
12 El Sheikh Youssef Sq., Garden City, Cairo
Tel: 354-0686, 355-7447
Fax: 355-2746

Commercial International Bank (CIB)
Mr. Mahmoud Abdel Aziz/General Manager
Nile Tower Bldg., 4th Fl.
21/23 Giza St., Giza
Tel: 570-3172
Fax: 570-3043

Egyptian British Bank (Ex-HongKong Bank)
Dr. Ibrahim Kamel/Chairman
3 Aboul Feda St., Zamalek, Cairo
Tel: 340-9186/286
Fax: 341-4010

Delta Int'l Bank
Mr. Aly Negm/President
1113 Corniche El Nil, Cairo
Tel: 574-0831
Fax: 750-904

Egyptian American Bank (EAB)
Mr. Gary Johns/Managing Director
6 Hassan Sabri St., Zamalek, Cairo
Tel: 341-7330/6150/7/8, 339-1572
Fax: 341-4924, 391-8601, 342-0265

Misr International Bank
Mr. Essam El Ahmady/Chairman
54 El Batal Ahmed Abdel Aziz St., Mohandessin, Ciaro
Tel: 349-4424/7091/0164,  Fax: 349-8072

Misr America Int'l Bank
Mr. Yousry Moustafa/Chairman 
2 Nadi El Seid St., Dokki, Cairo
Tel: 361-6634/13/23/24/27
Fax: 361-6610



Misr Exterior Bank
Mr. Mohamed Nabil Ibrahim/Chairman
Cairo Plaza Bldg., Corniche El Nil, Cairo
Tel: 778-021
Fax: 762-806

Misr Iran Development Bank
Mr. Omar Mohanna/Deputy General Manager
Nile Tower Bldg., Giza St., Giza
Tel: 572-7311/004/890
Fax: 570-1185


CHAPTER IX.  BUSINESS TRAVEL

BUSINESS CUSTOMS

Business in Egypt is personal.  Egyptian and foreign business community 
members, who have broad experience in the market, give the following 
suggestions:

1. Have patience:  Unfamiliar paperwork processes, and bureaucratic 
procedures make business conduct somewhat slow in Egypt.  Don't expect 
to breeze in for a week in Cairo and leave with a contract.  It may take 
a year or more, but in the end, it is usually profitable.

2. Get Acquainted With Local Culture:  Egyptians are a proud people who 
trace their civilization back 5,000 years.  Take time to learn the 
culture, and develop an appreciation for Islamic faith.  All private 
business leaders and most high level government officials have a good 
command of English.  Learn as much Arabic as possible - it pleases 
Egyptians if you know key phrases in Arabic ... Good Morning (Sabah El 
Kheir), Good Evening (Messaa El Kheir), etc.

3. Be Personable:  When you visit with a business person, don't just 
walk in, shake hands and get down to business.  If you have previously 
met with the person, chat about common friends, family, children, etc.

4. Do Your Homework:  The Egyptian market is a complex and highly 
competitive one.  A good Egyptian agent will help you a great deal in 
directing you to success.  Find yourself a good local representative 
with the help of the U.S. and Foreign Commercial Service at the American 
Embassy or other reliable business group.

5. Remain Flexible:  The Egyptian market, like anywhere in the Middle 
East, is a changing one.  Don't always expect the terms of a contract to 
remain the same during its length.  Explore different markets - be 
flexible to change from partnership to technology transfer or royalty 
provisions.

6. Send Your best:  Your top experienced executive with knowledge of the 
area will do a better job with the Egyptian business community.  Your 
young, enthusiastic representative may not be as effective with the 
local partner, particularly in a culture which venerates age and 
experience.

7. Business Rules:  When doing business in Egypt, be prepared to play it 
in the Egyptian tradition, or you may waste your time.  A few foreign 
firms come to Egypt and give up after a short stay.  But most foreign 
companies, once established with a base here, find the Egyptian market a 
worthwhile and profitable place to do business.
 

TRAVEL ADVISORY AND VISAS

Country Description:  Egypt is a developing country with extensive 
facilities for tourists.

Entry Requirements: A passport and visa are required. For travelers 
arriving by air, a renewable 30-day tourist visa can be obtained at 
airport points of entry.  Those arriving overland and by sea, or those 
previously experiencing difficulty with their visa status in Egypt, must 
obtain a visa prior to arrival. Military personnel arriving on 
commercial flights are not exempt from passport and visa requirements.  
Tourists must register with local authorities (either through their 
hotels, at local police stations, or at the central passport office) 
within seven days of arrival.  Proof of yellow fever and cholera 
immunizations is required if arriving from an infected area.  Evidence 
of an AIDS test is required for everyone staying over 30 days.  For 
additional entry information, U.S. citizens can contact the Embassy of 
the Arab Republic of Egypt, 2310 Decatur Place, N.W., Washington, D.C. 
20008 (Tel: 202-234-3903), or the Egyptian consulates in San Francisco, 
Chicago, New York or Houston.
  
Areas of Instability:  Egyptian extremist groups seeking to overthrow 
the government have staged violent attacks against Egyptian police and 
security officials, Egyptian Christians, and moderate Muslim 
intellectuals.  In several incidents, extremists have sought to hurt the 
Egyptian economy through attacks on tourists, tour buses, and sites 
frequented by tourists.  Some attacks have occurred in Cairo, but the 
vast majority of the violent incidents have taken place in the southern 
provinces of Assiyut, Minya and Qena, which lie between Cairo and Luxor.  
All surface travel (bus, car, train, boat, etc.) through those provinces 
is considered dangerous.  While there have been no specific credible 
threats singling out American citizens or businesses in Egypt, Islamic 
extremists have threatened to target foreign investors and tourists.  A 
series of successful, police counter-terrorist operations, particulary 
in the Cairo area.  Sporadic incidents of extremist violence continue, 
however, and the threat of terrorist activities directed against tourist 
targets remains a concern.

Restricted Areas:  Those wishing to visit areas near Egypt's frontiers, 
including oases near the border with Libya and off-road areas in the 
Sinai, must obtain permission from the Travel Permits Department of the 
Ministry of the Interior, located at the corner of Sheikh Rihan and 
Nubar Streets in downtown Cairo.  

Information on Crime:  The crime rate in Egypt is low.  While incidents 
of violence are rare, purse snatching, pickpocketing and petty theft are 
not uncommon.  Unescorted women are vulnerable to sexual harassment and 
verbal abuse.  Travelers and foreign residents are subject to Egyptian 
laws.  A U.S. citizen enjoys no special consideration simply because he 
or she is an American.  The loss or theft of a U.S. passport abroad 
should be reported immediately to local police and the nearest U.S. 
embassy or consulate.  Useful information on safeguarding valuables, 
protecting personal security, and other matters while traveling abroad 
is provided in the U.S. Department of State pamphlets, "A Safe Trip 
Abroad" and "Tips for Travelers to the Middle East and North Africa."  
They are available from the Superintendent of Documents, U.S. Government 
Printing Office, Washington, D.C. 20402.

Drug Penalties:  Travelers are subject to the laws and legal practices 
of the country in which they travel.  Drug enforcement policies in Egypt 
are very strict.  The death penalty may be imposed on anyone convicted 
of smuggling or selling marijuana, hashish, opium, LSD, or other 
narcotics.  Law enforcement authorities prosecute and seek fines and 
imprisonment in cases of possession of even small quantities of drugs.

Customs Requirements:  Everyone entering Egypt must declare items such 
as jewelry, electronic equipment, and other valuables.  This requirement 
is strictly enforced.  Any valuables not accounted for may be 
confiscated.  There are no currency exchange requirements.  A maximum of 
100 Egyptian pounds may be carried into or out of Egypt.

Photography Requirements:  There are strict duties on the importation of 
expensive photographic and video equipment.  This includes most types of 
equipment typically carried by tourists to Egypt, including all video 
cameras, all autofocus cameras, etc.  Travelers who wish to take such 
equipment with them on a temporary visit have three options with Customs 
authorities:  (1) the Customs inspector may inventory the equipment and 
list it by model an serial number in their passports, so that the 
equipment can be crosschecked when they leave Egypt, in which case no 
duty will be collected; (2) the traveler may have the equipment placed 
in storage for the duration of the stay, in which case a storage fee may 
be collected; and (3) long-term visitors or residents will pay the 
standard duty fee for importing these items and be issued a receipt; at 
the time of departure, the fee would be refunded upon presentation of 
the receipt.  There are restrictions on photographing military personnel 
and sites, bridges and canals.

Embassy Location:  The U.S. Embassy in Cairo is located at 5 Latin 
America Street, Garden City, in downtown Cairo.  The mailing address 
from the U.S. is American Embassy Cairo, UNIT 64900 APO AE 09839-4900.  
The switchboard telephone number is (20-2) 355-7371.  The Consular 
Section telephone is (20-2) 357-2201; the consular fax is (20-2) 357-
2472.  The Commercial Section address is 3 Lazoghli Street, Garden City, 
Cairo; the telephone number is (20-2) 357-2340; its fax number is (20-2) 
355-8368.

HOLIDAYS

Following is list of commercial holidays that will close most Egyptian 
business and government offices during the period between Oct. 1, 1995 
and Sept. 30, 1996:

October 6  Armed Forces Day
January 1  New Year's Day
*February 22-23  Ramadan Bairam (End of Ramadan Fasting Month)
April 15   Sham El Nessim (Spring Day)
April 25  Sinai Liberation Day
*April 30-May 2  Kurban Bairam (Pilgrimage Feast)
May 1   Labor Day
*May 20  Islamic New Year
July 23  National Day
*August 9  Moulid El Nabi (Prophet's Birthday)

* Depends on Lunar Calendar.  A difference of a day may occur.

BUSINESS INFRASTRUCTURE

TRANSPORTATION

Air and Sea
Egypt is an important air terminus for the Middle East, and Cairo is 
served by many major airlines.  Currently TWA is the only American 
airline serving Egypt non-stop from/to the U.S., with United involved 
under a code-sharing agreement with Lufthansa and Northwest similarly 
with KLM.  Other major international airlines represented in Cairo 
include: Air France, Alitalia, British Airways, Egypt Air, Japan 
Airlines, and Swissair.  Shipping lines, serving Ports Said and 
Alexandria (the largest port on the Mediterranean) are Adriatica, 
Farrel, Lykes, Ogden, Prudential, and American President Lines.  Egypt 
has its own merchant fleet, as well.

Local
Using Cairo's black-and-white taxis effectively requires some basic 
Arabic phrases and practice.  If going to an area you do not know well, 
a map may help both you and the driver, who won't have one.  Negotiating 
the fare is best done before the trip.  Although taxis have meters, the 
official rate is so low, the obligation to pay something realistic is 
clear.  Other variables are your familiarity with the city, the driver's 
demeanor and the taxi's physical attributes.  Its age and size count.  
While newer, larger taxis command higher fares, the cost is very 
reasonable, much less than in the U.S. 

The Cairo Metro is a light rail system, partly underground.  One line is 
now running from al-Marg in the north through the center of the city to 
Maadi and on to Helwan.  Future lines will cross the Nile to Giza and 
Imbaba and connect Shubra al-Kheima in the north with Salah Salim in the 
east.  

Regional
Alexandria and Cairo are connected by both the Western Desert Highway, a 
high-speed toll road and the busier Delta Road.  Buses take 3-1/2 hours, 
with a rest stop.  A non-stop Turbino train takes just over 2 hours. 


LANGUAGE/COMMUNICATIONS

Arabic is the common language.  Colloquial Cairene Arabic is expressive 
and rich in words of Coptic, European and Turkish origins.  The written 
language differs from the spoken.  Modern standard Arabic, based on the 
language of the Koran, is heard on radio and TV and in formal speeches. 

About 90% of Egyptians are Muslim and Islam is the state religion.  Most 
others are Christian, either Greek Orthodox, Roman Catholic or Anglican 
Protestants.  Indigenous minorities include four to six million Copts, 
Nubians, Bedouin and a small Jewish community.  Coptic has remained the 
liturgical language of the Coptic Church.  

HOUSING

Representative costs (per month) for acceptable furnished housing in 
Cairo and Alexandria are indicated below:

  2 bedroom apartment  $1,200
  3 bedroom apartment  $1,800
  4 bedroom apartment  $2,400
  5 bedroom apartment  $3,000
  Villa/house          $5,000

Egyptian law allows a landlord to charge higher rents if apartments are 
"furnished;" therefore, almost all rental units are of this type.  
However, the amount and quality of furnishings vary greatly.  Kitchen 
equipment and appliances provided often are inadequate.  Landlords 
prefer to rent their premises "furnished" even if only minimally so, and 
may insist on keeping some items in the apartment or villa for legal 
reasons.

Rent deposits of one month may be required for short-term leases (six 
months or under).  Landlords often require an advance payment of one 
year's rent for leases of one year or more rather than a security 
deposit.

HEALTH

There are many Western-trained medical professionals in Egypt.  Medical 
facilities are adequate for non-emergency matters but emergency and 
intensive care facilities are limited.  Facilities outside of Cairo fall 
short of U.S. standards.

Most Nile cruise boats do not have a ship's doctor, but some employ a 
medical practitioner with the equivalent of a U.S. bachelor's degree.  
Hospital facilities are available in Luxor and Aswan, but are extremely 
limited at most other ports of call.

U.S. medical insurance is not always valid outside the United States.  
Doctors and hospitals often expect immediate payment in cash for 
treatment.  Supplemental health insurance which specifically covers 
overseas treatment has proven useful.

Beaches on the Mediterranean and Red Sea coasts are generally 
unpolluted; however, there is a strong risk of exposure to the bilharzia 
parasite when swimming in the Nile or canals, walking barefoot along the 
river, or drinking untreated river water.  Bilharzia can cause extensive 
tissue damage, kidney failure, and blindness.

The risk of exposure to Rift Valley Fever (RVF) exists throughout Egypt.  
RVF is a disease of domestic animals that can infect humans and which 
flares up in parts of the country from time to time.  Preventive 
measures include avoiding freshly slaughtered meat and known areas of 
infestation.  Properly prepared, thoroughly cooked meat in tourist 
hotels, Nile cruise boats, and tourist restaurants is considered safe.

Additional information on health problems can be obtained from the 
Centers for Disease Control's international travelers hotline at (404) 
332-4559.

FOOD

Egyptian cuisine features all vegetables, fruits, grains and pastas both 
domestic and import.  For religious reasons, pork and products 
containing pork are sold only in special shops.  Popular beverages are 
hot tea, sweetened and often served in a glass, Turkish coffee and 
carbonated drinks. Local and imported bottled water, both still and 
sparkling, is available, as are locally produced wine and beer.

CHAPTER X.  APPENDICES

APPENDIX A:   EGYPT DATA

     -Population: 59 million
     -Population Growth Rate: 2.3%
     -Religion(s): Muslim (Sunni) 92% - Christian (Coptic) 8%
     -Government System:  Presidential/Parliamentarian
     -Languages:  Arabic (for more details, see chapter IX.)
     -Work week:  Saturday - Thursday (Egyptian Government)

APPENDIX B:  EGYPT'S DOMESTIC ECONOMY ($ MILLION)

                           1994/95      1995/96 (est)

- GDP (LE Bil. factor cost,
   at fixed prices 91/92)    145.9      153.7
- GDP Growth Rate (%)          4.         5.4
- GDP per capita (LE factor
   cost, at fixed prices
     91/92)                 2,472        2,553
- Government spending
   as % of growth rate  NA
- Inflation (%)
  (based on 6 months
    consumer price index)  9.3
- Unemployment (%)  9.6  9
- For. Exch. Reserves
  ($ billion) as of Apr '95  18.24
- Avg. Exch. Rate
   for U.S. $1  3.39
Debt Service Ratio  NA
U.S. Economic Military/  1.3 bil.
    Economic Assistance  815 mil.


APPENDIX C:  TRADE ($ MILLION)
     1994  1995

- Total Egypt Exports  3,136  1,207
- Total Egypt Imports  8,237  4,310
- U.S. Exports  1,385  802
- U.S. Imports  760  106

(Note: 1995 figures are for Jan.-April.)


APPENDIX D:  INVESTMENT STATISTICS 

See chapter VII.


APPENDIX E.  U.S. AND EGYPTIAN CONTACTS

(Note: From the U.S. dial Country Code: 20, and 2 for Cairo, or 3
       for Alexandria)

U.S. CONTACTS

American Mideast Educational & Training Services, Inc. (AMIDEAST)
4&6 Kamel El Shennawy St., 2nd Fl., Garden City, Cairo
Mrs. Elizabeth B. Khalifa/Country Director
Tel: 355-3170, 354-2726
Fax: 355-2946

American Research Center in Egypt (ARCE)
Mr. Mark Easton/Director
2 Simon Bolivar Sq.
(Ex. Kasr El Doubara), 2nd Fl., Garden City, Cairo
Tel: 355-3052, 354-8239
Fax: 355-3052

American University in Cairo
Mr. Donald McDonald/President
113 Kasr El Aini St., Cairo
Tel: 354-2964 (9 lines)
Fax: 355-7565

Care
Mr. Earl Goodyear/Country Director
18 Hoda Sharaawi St., 1st Fl., Cairo
Tel: 393-5262
Fax: 392-8176

Catholic Relief Services
Mr. Joseph Curtin/Country Rep.
13 Ibrahim Naguib St., 1st Fl., Garden City, Cairo
Tel: 354-1360, 356-0091
Fax: 355-8034

Ford Foundation
Dr. Humphrey Davies/Regional Rep. for Middle East & North Africa
1 Osiris St., Garden City, Cairo
Tel: 355-2121, 354-4450, 354-9635
Fax: 355-4018

Fulbright Commission
Ms. Ann B. Radwan/Executive Director
1081 Corniche El Nil, Belmont Bldg., Garden City, Cairo
Tel: 354-4799, 354-8679
Fax: 355-7893

Int'l Executive Service Corps.
Mr. Peter Cross/Director of Operations
Al Boustan Commercial Center, Suite 1, 10th Fl.
Al Boustan St., Bab El Louk, Cairo
Tel: 390-3232, Fax: 390-2929

Project Hope
Dr. Hoda Zaki/Program Director
86 Mohi El Din Aboul Ezz St., Mohandessin, Cairo
Tel: 348-0915, 360-6295
Fax: 360-6295

EGYPTIAN CONTACTS

Cabinet of Ministers 
H.E. Dr. Atef Mohamed Naguib Sedqi
Prime Minister
Magles El Shaab St., Kasr El Aini St., Cairo
Tel: 391-0008, 390-9749
Fax: 390-8159

Ministry of Planning
H.E. Dr. Kamal Al Ganzouri
Deputy Prime Minister 
Salah Salem Road, Nasr City, Cairo
Tel: 602-935, 601-215, 601-416
Fax: 263-4747

Ministry of Agriculture, Animal & Fish Wealth, & Land Reclamation
H.E. Dr. Youssef Amin Wally
Minister
Nadi El Seid St., Dokki, Giza
Tel: 702-677, 702-596, 702-758
Fax: 703-889, 704-660

Ministry of Social Affairs and Insurances
H.E. Dr. Amal Osman
Minister
El Sheikh Rihan St., Bab El Louk, Cairo
Tel: 354-2900
Fax: 917-799

Ministry of Transport, Communication and Civil Aviation
H.E. Suliman Metwalli
Minister
105 Kasr El Aini St., Cairo
Tel: 354-3623
Fax: 355-5564

Ministry of Electricity and Energy
H.E. Mr. Maher Abaza
Minister
Abbassia, Nasr City, Cairo
Tel: 261-6299, 261-6514, 261-6317
Fax: 261-6302

Ministry of Defense and Military Production
H.E. Hussein Tantawi
Commander-in-Chief of the Armed Forces and
  Minister of Military Production
23 July St., Kobri El Kobba, Cairo
Tel: 263-5681
Fax: 291-6227, 824-086

Ministry of Information
H.E. Safwat El Sherif
Minister
Maspero, Corniche El Nil, Cairo
Tel: 747-193, 749-394, 747-416
Fax: 757-144

Ministry of Foreign Affairs
H.E. Amre Moussa
Minister
Maspero, Cairo
Tel: 354-1414, 354-2215
Fax: 354-6285

Ministry of Supply & Home Trade
H.E. Ahmed El Goweily
Minister
99 Kasr El Aini St., Cairo
Tel: 355-0360
Fax: 354-4973

Ministry of Finance
H.E. Mohammed Al Razaz
Minister
Lazoughly Square, Justice & Finance Bldg., Cairo
Tel: 355-7027, 354-1055, 355-7136, 354-0601
Fax: 354-5433

Ministry of Awqaf (Religious Trust)
H.E. Mohamed Ali Mahgoub
Minister
Sabry Abou Alam St., Bab El Louk, Cairo
Tel: 392-6163, 392-6305
Fax: 392-6305

Ministry of Justice
H.E. Counselor Farouk Seif El Nasr
Minister 
Lazoughly Square, Justice & Finance Bldg., Cairo
Tel: 355-1176, 355-7592, 355-8103
Fax: 355-8103


Ministry of Culture
H.E. Farouk Hosni
Minister
2 Shagaret El Dor St., Zamalek, Cairo
Tel: 341-5568, 341-5495
Fax: 340-6449

Minister of Cabinet Affairs & Follow-Up
H.E. Ahmed Radwan
Minister
1 Magles El Shaab St., Cairo
Tel: 354-1722
Fax: 355-6306

Ministry of Local Administration
H.E. Mahmoud El Sherif
Minister
4 Shooting Club St., Dokki, Cairo
Tel: 349-7470, 349-7656
Fax: 349-7785

Ministry of Education
H.E. Hussein Kamel Baha' El Din
Minister
4 Ibrahim Naguib St., Garden City, Cairo
Tel: 354-3454, 356-4065, 354-5479
Fax: 356-2952, 354-2163

Ministry of Petroleum
H.E. Hamdi Al Banbi
Minister
El Mokhayyam El Da'em St., Nasr City, Cairo
Tel: 262-2268, 262-2237, 262-2238
Fax: 263-6060

Ministry of Interior
H.E. Hasan Al Alfi
Minister
El Sheikh Rihan St., Cairo
Tel: 354-5897, 354-8307, 355-7500
Fax: 355-7792

The Cabinet of International Cooperation Affairs
 and Prime Minister's Cabinet 
H.E. Youssef B. Ghali
Minister of State
Magles El Shaab St., Cairo
Tel: 391-0008, 390-9749
Fax: 390-8159


Ministry of Population and Family Affairs
H.E. Dr. Maher Mahran
Minister
Corniche El Nil, Maadi, Cairo
Tel: 363-9818, 363-8207
Fax: 363-9818

Ministry of Housing & Utilities
H.E. Salah El Din Hasaballah
Minister 
1 Ismail Abaza St., off Kasr El Aini, Cairo
Tel: 355-7013, 355-3468, 355-7978
Fax: 354-5666

People's Assembly & Shura Council Affairs
H.E. Kamal Al Shazli
Minister
Magles El Shaab St., Cairo
Tel: 354-3000, 354-3116
Fax: 354-8977

Ministry of Tourism
H.E. Mamdouh El Beltagi
Minister 
Abassia Square, Borg Misr Travel, Cairo
Tel: 282-8457, 282-8456, 282-9778
Fax: 282-8771

Ministry of Economy & Foreign Trade
H.E. Mahmoud Mohamed Mahmoud
Minister
8 Adly St., Cairo
Tel: 390-6796, 390-6804, 391-9661, 391-9278
Fax: 390-3029

Ministry of Public Works & Water Resources
H.E. Mohamed Abdel Hadi Radi
Minister
El Nil St., Embaba, Cairo
Tel: 354-5884, 354-1478
Fax: 355-8008

Ministry of Health 
H.E. Ali Abdel Fattah
Minister
Magles El Shaab St., Cairo
Tel: 354-1076, 354-3462, 354-0426
Fax: 355-3966


Ministry of Industry & Mineral Wealth
H.E. Ibrahim Fawzi Abdel Wahed
Minister
2 Latin America St., Garden City, Cairo
Tel: 354-3600, 355-7034, 355-4826
Fax: 354-8362

Ministry of New Communities
H.E. Mohamed Ibrahim Soliman
Minister
1 Ismail Abaza St., Cairo
Tel: 354-0419, 355-3320, 355-7978
Fax: 355-7836

Ministry of State for Scientific Reserach Affairs
H.E. Dr. Venice Kamel Gouda
Minister
101 Kasr El Aini St., Cairo
Tel: 354-6039, 355-7952
Fax: 355-8609, 356-2820

Ministry of State for Military Production
H.E. Dr. Mohamed El Ghamrawi Dawoud
Minister
5 Ismail Abaza St., Cairo
Tel: 355-3063, 354-7487
Fax: 354-8739

Ministry of Manpower & Employment
H.E. Ahmed Ahmed El Ammawi
Minister
3 Youssef Abbas St., Nasr City, Cairo
Tel: 260-9362, 260-9363/4

Ministry of Public Enterprise Sector &
   Administrative Development & Environmental Affairs
H.E. Dr. Atef Ebeid
Minister
Magles El Shaab St., Cairo
Tel: 355-8026, 355-0164
Fax: 355-3606

Alexandria Governorate
H.E. Mr. Al Sayyed Ismail Al Gawsaqi 
The Governor of Alexandria
Alexandria
Tel: 482-5800, 482-5805

Cairo Governorate
H.E. Mr. Mohamed Omar Abdel Akher
The Governor of Cairo
Abdin, Cairo
Tel: 590-8591, 593-7050


EGYPTIAN GOVERNMENT AGENCIES

Arab Organization for Industrialization (AOI)
Lt. Gen. Ibrahim El Orabi/Chairman
2D Midan El Abbassia, Cairo
Tel: 482-3377, 932-395, 932-822, 591-8244
Fax: 482-6010

Arab Republic of Egypt National Telecommunication Organization (ARENTO)
Mr. Mohammed Selim/Chairman
Ministry of Transport, Communications & Civil Aviation
Ramses St., Cairo
Tel: 574-4909, 777-551, 760-333
Fax: 574-4244

Central Agency for Public Mobilization & Statistics (CAPMAS)
Gen. Dr. Farouk Abdel Azim/President
Salah Salem St., Nasr City, Cairo
Tel: 402-4110, 402-3191
Fax: 604-099

Capital Market Authority
20 Emad El Din St., Cairo
Tel: 777-774, 762-626
Fax: 755-339

Commercial Representation Division Economy and Foreign Trade
Mr. Ahmed Medhat El-Goweiny/Undersecretary of State 
96 Ahmed Orabi St., Mohandessin, Cairo
Tel: 347-1892/1893/4/5
Fax: 345-1840

Central Bank of Egypt
Dr. Ismail Hassan/Governor
31 Kasr El Nil St., Cairo
Tel: 392-3679, 392-6211, 393-1514
Fax: 392-5045

Customs Authority
Mr. Fathy Salama/Head 
4 El Tayaran St., Nasr city, Cairo
Tel: 260-5710, 604-402, 608-683
Fax: 261-2672

Taxation Authority
Mr. Fathy Abdel Baki/Chairman
5 Hussein Hegazi Street, Cairo
Tel: 355-7784


Egyptian General Petroleum Corp. (EGPC)
Mr. Farouk Kenawy/Chairman
Palestine St., 4th Sector, New Maadi, Cairo
Tel: 353-1441, 353-1438, 353-1439, 377-1489
Fax: 353-1570 X4177, 352-1286

General Authority for Control of Imports & Exports
Mr. Salah El Din Awad/Chairman
Atlas Bldg., El Sheikh Maarouf & 1 Ramses Sts., Cairo
Tel: 574-2830, 575-6095/031
Fax: 766-971, 575-8195

General Authority for Investment & Free Zones
Mr. Moheiddin El Ghareeb/Executive Director
8 Adly St., Cairo
Tel: 390-0597, 390-3776, 391-6029, 391-5627
Fax: 390-7315

General Authority for Int'l Fairs & Exhibitions (GOIEF)
Mrs. Hanaa Shaker/Director 
Fair Grounds, Nasr City, Cairo
Tel: 260-7811-5
Fax: 260-7845

General Organization for Industrialization (GOFI)
Eng. Mohamed Mahmoud Farag Abdel Wahab/Chairman
6 Khalil Agha St., Garden City, Cairo
Tel: 354-0678, 354-4640, 355-7005
Fax: 354-4984

Immigration & Egyptians Abroad Administration
Behind the Tirsana Sporting Club
Sahafeyeen, Cairo
Tel: 303-4438, 303-4439
Fax: 303-6433

Public Enterprise Office
Mr. Fouad Abdul Wahab/Director
2 Latin America St., 6th Fl., Garden City, Cairo
Tel: 355-9253
Fax: 355-9233

Stock Exchange
Mr. Mohamed Hamed/President
35 Aboul Feda St.
Zamalek, Cairo
Tel: 392-1402 
Fax: 392-8526

Radio & TV Union
Mr. Amin Bassiouny/President
TV Bldg., Corniche El Nil, Cairo
Tel: 749-508, 760-454 
Fax: 574-6989


State Information Service
Mr. Nabil Osman/President
22 Talaat Harb St., Cairo
Tel: 762-766, 758-511
Fax: 752-187

Social Fund for Development
Mr. Hussein El Gammal, President
Hussein Hegazy St. & Kasr El Nil Sts., Cairo
Tel: 354-8339
Fax: 355-0628

Information & Decision Support Center (IDSC)
Dr. Hisham El Sherif/Chairman
Cabinet Bldg., Magles El Shaab St., Cairo
Tel: 356-1600
Fax: 354-1222

General Authority for Supply Commodities
Mr. Samir El Shakankiri/Vice Chairman
99 Kasr El Aini St., Cairo

Egyptian Export Promotion Center (EEPC)
Mr. Wafaa Abdel Maaboud/Executive Director
106 Gameat El Dowal El Arabia St., 5th Fl.
Mohandessin, Giza, Egypt
Tel: 349-3919, 349-3920/21/22, 700-037, 348-4056
Fax: 348-4142

Egypt Air
Eng. Mohamed Fahim Rayyan/Chairman
Cairo Int'l Airport, Cairo
Tel: 244-7971, 291-4277

EGYPTIAN TRADE ASSOCIATIONS/CHAMBERS OF COMMERCE

American Chamber of Commerce in Egypt
Mr. M. Shafik Gabr/President
Cairo Marriott Hotel, Suite 1541
Zamalek, Cairo
Tel: 340-8888
Fax: 340-9482

American Chamber of Commerce Egypt/U.S.
James Shea/Acting Executive Director
815 Connecticut Ave. NW
Washington, DC 20006-4078
Tel: 202-835-1890
Fax: 202-452-7073


American Chamber of Commerce in Alexandria
Menat Guemiah/Manager
110 El Horreya Avenue
Alexandria, Egypt
Tel: 545-2066
Fax: 482-9199 (temporary)

Federation of Egyptian Chambers of Commerce
Mr. Mahmoud El Araby/President
4 Falaky Square, Cairo, Egypt
Tel: 355-1136, 355-1164, 355-1813
Fax: 355-7940 

Federation of Egyptian Industries
Mr. Mohamed Farid Khamis/President 
Immobilia Building, 26A Sherif St., Cairo
Tel: 392-8238, 392-9319, 392-8075
Fax: 392-8075

Egyptian Businessmen Association (EBA)
Mr. Said El Tawil/Chairman
Mr. Taher El Sherif/Executive Director
21 Giza St., Nile Tower, Giza
Tel: 736-020, 736-030, 723-855
Fax: 737-258

Alexandria Business Association
Mr. Mohamed Ragab/President
c/o Ragab Exp. & Imp. Co.
18 Avenue El Horria St., Alexandria
Tel: 482-5518, 482-9618, 483-2206
Fax: 482-9576

EGYPTIAN MARKET RESEARCH FIRMS

International Business Associates (IBA)
Mr. William Harrison
1079 Corniche El Nil, Garden City, Cairo
Tel: 355-1300, 355-2803, 355-0427, 355-1063
Fax: 355-7454

Rada Research & Public Relations Co.
Mrs. Loula Zaklama
1 Mostafa El Wakil Street, Heliopolis, Cairo
Tel: 291-7956, 291-5437
Fax: 291-7563

Fiani & Partners
Mrs. Josse Dorra Fiani
143 Tahrir Street, Dokki, Cairo
Tel: 348-7353, 348-5242
Fax: 348-5204


Transcentury
Mr. Anis Aclimandos
20 Adly Street, Kodak Passage, Cairo
Tel: 393-6425, 393-9038
Fax: 393-6425

Intermarkets Advertising
Mr. Galal Zaki
42 Abdel Moneim Riad Street, Dokki, Cairo
Tel: 360-3017/8
Fax: 360-3019

Research & Advertising Consultants
Dr. Sami Abdel Aziz
30 Gameat Al Dowal Al Arabia St., Mohandessin, Cairo
Tel: 360-8439
Fax: 360-4815

Americana Advertising Agency
Mr. Ihab Shalaby
32H Radwan Ibn Tabib St., Giza, Cairo
Tel: 730-855
Fax: 733-550

COMMERCIAL BANKS

See complete list of banks under chapter VIII.

U.S. EMBASSY TRADE PERSONNEL

U.S. & Foreign Commercial Service (USFCS)
Mr. Larry Jensen, Counselor for Commercial Affairs
Mr. Michael Speck, Commercial Attache
Mr. James Putt, Assistant Commercial Attache
3 Lazoughly St., Garden City, Cairo
Tel: 357-2330, 357-2340
Fax: 355-8368

U.S. & Foreign Commercial Service (US&FCS)
Mr. John Abdelnour/Sr. Commercial Specialist
110 El Horreya Avenue, Alexandria
Tel: 482-5607/483-6330
Fax: 482-9199

USDA/Foreign Agricultural Service (FAS)
Mr. Forrest Geerken, Counselor for Agricultural Affairs
Mr. Kurt Seifarth, Agricultural Attache
8 Kamal El Din Salah St., Garden City, Cairo
Tel: 357-2388/2389
Fax: 356-3989


U.S. Information Service
Mr. Rick Roberts, Press Attache
8 Kamal El Din Salah St., Garden City, Cairo
Tel: 357-3473/4
Fax: 357-3740 

American Cultural Center
Ms. Janet Wilgus, Cultural Attache
5 Latin America St., Garden City, Cairo
Tel: 357-3412
Fax: 357-3740

American Cultural Center
Mrs. Kathy Van De Vate, Director
3 El Faraana St., Alexandria
Tel: 482-1009, 482-4117
Fax: 483-3811

U.S. Agency for International Development (USAID)
Ms. Priscilla Del Bosque, Associate Director
Trade and Investment Division
106 Kasr El-Aini St., Garden City, Cairo
Tel: 357-3304, 357-3310
Fax: 357-2932

U.S. Embassy - Cairo
U.S. Department of State
Mr. Russ LaMantia, Minister-Counselor for Economic Affairs
8 Kamal El Din Salah St., Garden City, Cairo
Tel: 357-2251
Fax: 357-2181

WASHINGTON-BASED USG COUNTRY (EGYPTIAN) CONTACTS

U.S. Department of Commerce
Mr. Tom Sams, Egypt Desk Officer
IEP/ONE, Room 2029B
Washington, D.C. 20230
Tel: 202-482-1860
Fax: 202-482-0878

U.S. Department of Commerce
U.S. & Foreign Commercial Service
Mr. Ben Brown, Regional Director - ANESA
HCH Bldg., Room 1223
Washington, D.C. 20230
Tel: 202-482-4836
Fax: 202-482-5179


U.S. Department of Agriculture
Agricultural Trade Coordination Office 
Mr. Pitambr Devgon, Coordinator
USDA/FAS, Room 5088-S
14th Independence Ave., SW
Washington, D.C. 20250
Tel: 202-205-2405
Fax: 202-690-3606

U.S. Department of Agriculture
Agricultural Trade Assistance & Promotion Office
USDA/FAS, Room 4939-S
14th Independence Ave., SW
Washington, D.C. 20250
Tel: 202-720-7420
Fax: 202-690-4374

U.S. Department of State
Mr. David Jensen, Economic Officer
Office of Egyptian Affairs
Bureau of Near Eastern Affairs
Washington, D.C. 20520
Tel: 202-647-1228
Fax: 202-736-4460

U.S.-BASED MULTIPLIERS RELEVANT FOR EGYPT

Embassy of the Arab Republic of Egypt
3521 International Court, NW
Washington, D.C. 20008
Tel: 202-895-5400, Fax: 202-332-7894

Office of Economic & Commercial Affairs
Embassy of the Arab Republic of Egypt
2232 Massachusetts Ave., NW
Washington, D.C. 20008
Tel: 202-328-4517,  Fax: 202-328-5417

Consulate General of Egypt
1110 Second Ave., Rm. 201
New York, NY 10022
Tel: 212-759-7120
Fax: 212-308-7643

Consulate General of Egypt
3001 Pacific Ave.
San Francisco, CA 94115
Tel: 415-346-9700
Fax: 415-346-9480

Consulate General of Egypt
2000 West Loop S Suite 1750
Houston, TX 77027
Tel: 713-961-4915
Fax: 713-961-3868


Permanent Mission of Egypt to the United Nations
36 East 67 Street
New York, NY 10021
Tel & Fax: 212-879-6300

U.S.-Arab Chamber of Commerce
1825 K St. NW, Suite 1107
Washington, D.C. 20006-1202
Tel: 202-331-8010
Fax: 202-331-8297

American Egyptian Cooperation Foundation (AECF)
330 East 39th Street,  Suite 32L
New York, NY  10016
Tel: 212-867-2323
Fax: 212-697-0465

Overseas Private Investment Corporation (OPIC)
1615 M street, NW
Washington, D.C. 20527
Tel: 800-424-OPIC or 202-457-7010
Fax: 202-223-3514

Export-Import Bank (EXIM Bank)
811 Vermont Avenue NW
Washington, D.C. 20571
Tel: 202-566-8990, 202-566-2117
Fax: 202-566-7524

World Bank
1818 H St., NW
Washington, D.C. 20433
Tel: 202-477-1234
Fax: 202-477-6391

U.S. Small Business Administration (SBA)
409 3rd St., SW
Washington, D.C. 20416
Tel: 202-205-6531
Fax: 202-205-6928

United States International Trade Commission (USITC)
500 E Street, SW
Washington, D.C. 20436
Tel: 202-252-1000
Fax: 202-252-1798

U.S. Trade and Development Agency (USTDA)
Mr. John Richter
SA-16, Room 309
Washington, D.C. 20523-1602
Tel: 703-875-4357
Fax: 703-875-4009



National Institute of Standards and Technology (NIST)
   Technology Services
Office of Standards Services
Administration Bldg., Rm. A602
Gaithersburg, MD 20899
Tel: 301-975-4000
Fax: 301-963-2871

Egyptian American Businessmen Association
88 South Water St.
Greenwich, CT 06830
Tel: 203-531-6242
Fax: 203-531-6903

International Monetary Fund (IMF)
700 19th St., NW
Washington, D.C. 20431
Tel: 202-623-7900
Fax: 202-623-4661

African Development Bank
U.S. and Foreign Commercial Service
U.S. Embassy
5 Rue Jesse Owens, 01 B.P. 1712
Abidjan 01, Cote d'Ivoire
Tel: (225) 21-46-16
Fax: (225) 22-24-37


APPENDIX F:  MARKET RESEARCH

LIST OF AVAILABLE INTERNATIONAL MARKET INSIGHT (IMI) REPORTS:

- Devlopment Projects - IMI950515
- New Air Taxi Company - IMI950319
- Copyright Enforcement - IMI950323
- Plastics Machinery Market Overview - IMI950309
- Textile Machinery Market Overview - IMI950206
- Biotechnology Equipment Market Overview - IMI950201
- Used Equipment Import Regs - IMI950130
- Inflation Trends - IMI950118
- Construction Overview - IMI950103
- Specialized Trade Shows - IMI950103
- Alexandria Economic Profile - IMI941130
- Fast-Food Trends - IMI941127
- TV Advertising Overview - IMI941122
- Free Zone Profile - IMI941120
- Defense Market Overview - IMI941116
- Food Processing Trade Show - IMI941030
- Credit Shopping - IMI941025
- Shipyard Privatization - IMI941025
- Printing Industry Overview - IMI941020
- Book Market Overview - IMI941018
- Earthmoving Equipment Market Overview - IMI941018
- Export Charges Reduced - IMI941013
- Tariff Revisions - IMI940928
- Investment Statistics - IMI940915
- Railway Manufacturers List - IMI940810
- Home Water Processing Equip Market Overview - IMI940802
- Investment Dispute Procedures - IMI940802
- Tanta Economic Profile - IMI940801
- Toys Market Overview - IMI940727
- Trade Association Contacts - IMI940726
- Fast-Food Franchise News - IMI940721
- Housing, Hotel Construction Proj - IMI940721
- Red Sea Construction Proj - IMI940718
- Beer Company Privatization - IMI940718
- Fish Market Overview - IMI940713
- Advertising and Marketing - IMI940626
- Court Building Construction Proj - IMI940518
- Port Said Economic Overview - IMI940503
- Sinai Economic Overview - IMI940503
- New Import/Export Regulations - IMI940429
- New Standards Regs - IMI940429
- Cement Industry Overview - IMI940421
- Development AID from Japan - IMI940418
- Film Studio Expansion Proj - IMI940418
- Fast-Food Franchises Open - IMI940411
- New Business Directory - IMI940405
- Upper Egypt Development Plans - IMI940405

NOTE:  FCS reports are available on the National Trade Data Bank (NTDB).





USDA/FAS COMMODITY REPORTS


REPORT TITLE                            DATE DUE

Poultry Annual  06/20/95       
Cotton Annual                    06/20/95       
Annual Marketing Plan            07/15/95       
Livestock Annual                 08/01/95       
Forest Products Annual           09/01/95       
Agricultural Situation Report    09/30/95       
Citrus Annual                    11/01/95       
Dairy Annual                     11/30/95       
Grain & Feed Annual              03/10/96       
Sugar Annual                     04/10/96       
Oilseeds & Products Annual       05/01/96       
Tobacco Annual                   05/20/96       





NOTE:  FAS reports available from Reports Office/USDA/FAS, Washington, 
D.C. 20250, Fax: 202-720-7729.




APPENDIX G:  TRADE EVENT SCHEDULE FOR 1995 & 1996:


EVENT NAME                    SECTOR      DATE  LOCATION

PROCESS FOOD/PAKEXPO/KEMICA  BFC  SEP 21-24, 95  CAIRO

MARINE  BIO  NOV 16-18, 95  CAIRO

MEDICINA  BIO  DEC 14-17, 95  CAIRO

CAIRO BOOK FAIR  BIO  JAN (TBD), 96  CAIRO

CAIRO INTERNATIONAL TRADE FAIR  TFO  MAR  9-22, 96  CAIRO  
  USA PAVILION

AUTOMECH '96  BFC  MAR 23-26, 96  CAIRO





Legend:  BFC - Business Facilitation Center
         BIO - Business Information Office
         TFO - Trade Fair, Overseas Organized (USA Pavilion)
  
               

"Because trade event schedules may change, firms should consult the 
Export Promotion Calendar on the NTDB or contact the Commercial Service 
in Egypt at the U.S. Embassy for the latest information."
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