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Egypt, a country linking northeast Africa with the Middle East, dates to the time of the pharaohs. Millennia-old monuments sit along the fertile Nile River Valley, including Giza's colossal Pyramids and Great Sphinx as well as Luxor's hieroglyph-lined Karnak Temple and Valley of the King's tombs.
The capital, Cairo, is home to Ottoman landmarks like the Muhammad Ali Mosque and the Egyptian Museum, a trove of antiquities. The country is approximately 626,000 square miles in size. Its longest distance north-south is 640 miles and its widest distance east-west is about 775 miles. Egypt's 62 million people live primarily in the Nile Valley, leaving the rest of the land sparsely populated.
Lets quickly take a look at small scale businesses in Egypt you can invest in. They include:
- Fashion Designing/Stylist
- Fitness Coach
- Online Store
- Make-up
- Cupcake/Customized Pastries
- Photography
- Relaxation Centre
- Hair Salon Business
- Catering Business
- Tutoring
- Events Planning
- Roadside Fast Food Corner
- Rice Farming
- Laundry Business
- Mobile Restaurants
- Snail Rearing
- Oil Palm Retailing
- Point of Sale (POS) Agents
- Website Designing
Small Scale Business Investment In Egypt
Egypt's 2020 population is estimated at 102,334,404 people at mid-year according to UN data. Egypt's population is equivalent to 1.31 percent of the total world population. Egypt ranks number 14 in the list of countries and dependencies by population.
With over 100 million inhabitants, Egypt is the most populous country in North Africa, the Middle East, and the Arab world, the third-most populous in Africa (after Nigeria and Ethiopia), and the thirteenth-most populous in the world.
Egypt is nearly crime-free. The incidence of crime, violent or otherwise in Egypt is negligible compared with many Western countries and foreigners are generally safe walking around day or night. Most crime is petty theft with little violent crime.
Despite the Covid-19 pandemic, Egypt remained the largest recipient of foreign direct investment in Africa, although with a significant reduction minus 35 percent from 9 billion dollars recorded in 2019 to 5.9 billion dollars in 2020, according to the United Nations Center For Trade And Development's 2021 World Investment Report.
In the same year, the foreign direct investment stocks reached 132 billion dollars. Efforts to boost foreign direct investment diversification include the recent agreement to activate the 16 billion dollars Saudi-Egyptian investment fund which lists tourism, healthcare, pharmaceuticals, infrastructure, digital technologies, financial services, education, and food as priority sectors.
Nevertheless, foreign direct investment in the country is still largely directed to natural resources. This pattern has been reinforced by the discovery of the Zohr offshore gas field in the Eastern Mediterranean region.
In 2020, the development of the Baltim South West offshore project, the Kattameya field project and the third phase of the Kamose-North Sinai project have been identified as priorities, all expecting significant participation from foreign investors.
A substantial investment of 210 million dollars was made outside the gas industry by Realme a Chinese smartphone manufacturer to set up its regional sales and service facility in Cairo to serve the entire African market.
The UK is by far the largest investor in Egypt, followed by Belgium, the USA, and UAE. Foreign direct investment is concentrated in the oil and gas industry around three-quarters of total investments, followed by real estate, manufacturing, financial services, and construction.
The dynamic growth of the Egyptian economy, its strategic geographical position, low labor costs, skilled workforce, unique tourist potential, substantial energy reserves, large domestic market and the success of the reforms undertaken by the authorities including many privatizations contributed to driving up foreign direct investments.
Egypt recently adopted an Investment Law which includes performance requirements for certain investment incentives, including labor-intensive projects and geographical location.
The government has also set up special economic zones with business-friendly regulations which includes more liberal, more efficient administration, tax incentives, facilitation of registration and customs procedures, better infrastructure, etc.
However, outside these areas, it is difficult to register a new company, and instability in the country is hindering business developments in Egypt.
The country ranked 114th out of 190 countries in the 2020 Doing Business report of the World Bank, gaining six spots compared to 2019.
Where To Invest In Egypt
Egypt has witnessed a lot of ups and downs in the recent few years, but the country is now getting back on track. Investors are now seeing the Egyptian market as a fruitful and future-oriented market and encouraging more and more investors to come and invest there.
Egyptian oil, gas, and petrochemical industries are widely regarded as having the most potential right now in Egpyt, there are also a few additional areas where it's worth thinking seriously about investing.
Making investments in Egypt is a very good idea and it's increasingly the new go-to investment location of the future. From its location to its resources and future growth expectations, Egypt has a ton of investment potential.
Areas Of Investment Consideration
Egypt has many prime investment opportunities. Some of the best sectors according to research are:
Asset acquirement
Oil and gas production and exploration
New petrochemical projects
New world-class third-generation refinery projects
New joint mega LNG projects
Buying shares of great companies in the Egyptian stock market
Industries manufacturing oil and gas materials, equipment, and services.
Why you should Invest In Egypt Now
Egypt has been successful in appealing to foreign investors and in creating prolific partnerships with many international oil and gas companies. The support of the Egyptian government has
been a driving force behind these successful partnerships and has helped the country emerge as a favored location for investment.
There are many reasons which make investing in Egypt a wise decision which includes increased tariff rates, revitalization of assets, growth in the financial sector, free trade agreements, low land prices, easy dispute settlement methods, and the addition of new trading opportunities are few of the steps that have been taken to make Egypt a very attractive investment location.
Sectors where you can invest in Egypt
Egypt is progressing in every sector, but a few of the true superstar sectors are the production sector, tourism sector, petroleum sector, agricultural sector, industrial sector, and real estate sector.
Egypt As An Outsourcing Location
Egypt is quickly positioning itself as a leading outsourcing location in the global market. The country is now involved in offering services to many companies headquartered in places like the USA, Canada, UK, mainland Europe, Sub-Saharan Africa, Asian Pacific, and the Middle East.
The excellent command and fluency in spoken and written English by Egyptians are one major reason companies are choosing to outsource to Egypt.
Many Egyptians also have a good command are French, German, and Spanish. Now is a great time to invest in Egypt. Sound reforms, public initiatives, and an educated and
healthy labor force, as well as plenty of natural resources, have helped Egypt become a prime destination for global companies and investments.
Egypt may be best known for its impressive pyramids and colorful history, but the heavily populated Middle Eastern and African country is also popular among investors.
The country is widely considered to be a major frontier market, while it is also a member of Goldman Sachs' Next Eleven economies that may have as much potential as countries in the
BRIC region to overtake the G-20 nations.
The Egyptian Economy
Egypt's economy is one of the most developed countries in the Middle East and African region, with a gross domestic product of approximately 363 billion dollars in 2020 and approximately
3,058 dollars per capita in 2020.
Egypt, like many larger countries, has an economy that is dominated by the service and industrial sectors at the same time, it is also known for its agricultural sector, which is a significant source of employment.
Egypt's stock exchange is also one of the most developed in the Middle East and African region, with more than 600 listed companies and 6 billion dollars in annual turnover. While the markets were shut down for a period of time after the fall of Hosni Mubarak in February 2011, they re-opened, and the economy began to show signs of recovery by late 2012.
The easiest way to invest in Egypt is by using exchange-traded funds which offer instant diversification in a single U.S traded security.
The most popular ETF for U.S investors is the VanEck Vectors Egypt Index ETF which has approximately 21.1 million dollars under management and a net expense ratio of 0.98 percent
as of July 2021.
Those looking for more direct play may instead want to consider American Depository Receipts which are U.S traded securities that track stocks listed on the Egyptian stock exchange.
The most popular American depository receipts are Commercial International Bank, Orascom Construction Industries, and Ghabbour Auto A.D.R.
Is Investing in Egypt Risky?
While Egypt may be one of the largest economies in the Middle East and African region, its markets entail significant risks. The risk includes the following:
Political and Geographical Risk: Egypt had undergone a major political change after the overthrow of Hosni Mubarak in February 2011. There continues to be ongoing political turmoil, as the country remains divided by religion.
Lack of Diversification:
Investors looking to take broad positions in Egyptian equities may find an issue with the lack of diversification offered by the markets. There are only four companies that account for a large portion of the country's economy, while the financial industry has also been overly represented.
Investors should carefully consider these risks before investing in Egyptian ETFs or ADRs, especially during periods of an uprising or political turmoil in nearby countries. Fortunately, these risks can be diversified away to some extent by incorporating stocks into an otherwise diversified investment portfolio.
The increasing rates of unemployment in Egypt have left a lot of people jobless, thereby making life unpleasurable for them. Living without a means of income isn’t the best for anyone. Interestingly, in the midst of unemployment, young entrepreneurs are grabbing opportunities to start businesses.
Egypt is a land with very many opportunities for entrepreneurs, especially if you are willing to jump at them as a small-scale investor. These businesses are quite lucrative and can very high
return on investment.
Events Planning
Individuals often find they lack the expertise and time to plan events themselves. independent event planners can step in and give these special events the attention they really deserve.
Event planning simply involves planning people’s events such as weddings, birthdays, anniversaries, political rallies, convocations, matriculations, etc. As an event planner, you have to carry the whole work of planning for the events on your shoulder and get paid for it.
Depending on the type and size of the events, planners of an event may handle tasks related to that event such as conducting research, creating an event design command finding a location for the events, arranging for the food, deco, entertainment, etc.
As an event planner, you need to have an office, or you need to have your phone number and contact address publicly listed for people to be able to reach you.
Roadside Fast Food Corner:
Generally, food is an excellent business domain. The demand for food is always on the increase because food is an essential commodity.
Road side fast food corner is in lucrative money-making activity if you wish to reap the rewards steadily. Rather than allow your culinary skills to waste, you can opt for this business choice and enjoy a good flow of cash in return come 2021 first-time visitors will quickly become regulars if you maintain quality, good proportions, and create your own brand.
Rice Farming:
The consumption of rice in Egypt is far greater than the rate at which rice is produced. You can be guaranteed that the rice market is not saturated. Therefore, the cultivation of rice can be an ideal idea to start a business and a fruitful source of profits. Internet Business Can you imagine this world without the Internet? Surely not, no one would like that.
Egyptians, as well as Africans as a whole, are avid Internet users. If you can provide Internet connection at fair prices, throw in the occasional offer, and advertise smartly you could earn plenty of money.
Laundry Business:
The laundry business is highly lucrative and you can start with low capital. You can actually make a living from this business in Egypt on a small scale level.
Mobile Restaurants:
This is another lucrative business idea that can fetch you a lot of money. With mobile restaurants, you can deliver food to individual customers and corporate clients. This business is not limited by physical space. All you need is to create a medium through which the clients can place their orders. You also need to be able to swiftly and promptly respond to the clients’ orders.
Snail Rearing:
Snail farming is one of the surest ways to immense wealth in Egypt. This business is an effortless task, with little or nothing to be spent on food and shelter. Snails reproduce at a faster rate and the Egyptian markets are always willing to pay for them.
Oil Palm Retailing:
Palm oil is widely used in Egypt. There are plenty of gains in retailing this commodity in Egypt. You can store the oil during the peak times and sell it during the off-season, and watch as your gains will skyrocket.
First, to enter into this business, you need to identify where to buy, sell, and how to store the products. Your profit is guaranteed as the demand for palm oil can never plunge in Egypt.
Point of Sale (POS) Agents:
With the recent resurge of Covid-19 and the need to decongest public places, POS agents help to reduce the number of individuals crowded in banking halls.
Most retail outlets now use POS machines to transact businesses, allowing the cardholders to have real-time online access to funds, rather than carrying physical cash around. Being a POS agent will be a lucrative business you should look out for in 2021 if you are considering migrating to Egypt and starting a small-scale business.
Website Designing:
This is quickly growing to be one of the most favorable and budding business domains for young entrepreneurs, not just in Egypt, but also across the globe. All you need to have is a deep and clear understanding of online processes, marketing strategies, SEO tactics, and legal guidelines. This is cost-effective, futuristic, gainful, and customer-focused.
Tutoring:
Tutoring can fetch you a high income. Don’t limit your options to academic tutoring. Turn your hard and soft skills into a lesson. For example, if you play a musical instrument, can draw, or are a food lover or cook, you can actually, tutor others and get paid in return. Tutoring is an excellent small business in Egypt to make money. You can decide to do it part-time or full-time. Before you go into tutoring make sure you have a piece of exceptional knowledge and experience in your specific area/niche.
Catering Business:
There is an increasing demand for catering services in events. Thus, the services of caterers will always be needed.
As noted earlier, food is an essential part of our lives and events. You can start a catering business and make good money from it with that your culinary skill.
Hair Salon Business:
The popular saying: “looking good is good business” is in fact, very true. People spend money to look good and you can have a good share of their money. It doesn’t matter how you start, you can expand the business premises with time once you are good at what you are doing and are providing excellent services in exchange for their money.
Relaxation Centre:
A lot of people, especially the working class, are always on the lookout for lounges to relax either after the day’s work, on business trips, or during the weekend. A relaxation center is a very lucrative business if established in highbrow cities of Egypt.
Photography:
Photographers are artists with the camera, using a blend of technical skills and an artistic eye to take pictures of people, places, landscapes, food, you name it. As a photographer, you can work as a fine artist, wedding and event photographer, or sell your photos to commercial clients. You can also be a fashion photographer, responsible for photographing apparel, accessories, and fashion models, as well as collaborating with hairstylists, fashion stylists, makeup artists, and fashion designers. You can probably be making more money than you’ve ever dreamed of!
Cupcake/Customized Pastries Baker:
Do you have all the skills to bake delicious and tasty cakes? If so, then you could make money baking. Yes, you could actually make quite a lot of money baking! Home cooking, especially baking cakes and cupcakes, is very fashionable right now. People will pay good money for high-quality baking. You can sell your food at parties, fairs, and even at local food markets. The beautiful thing about earning by baking is that it’s straightforward, flexible, and enjoyable.
It isn’t something that you necessarily have to do on a regular basis if you don’t want to. But if you’re ever short on cash, the option is there. All you’ll really need is a few good recipes and a the reasonable idea of what people want to buy.
Fashion Designing/Stylist:
The fashion designing business is a highly profitable business where you can make up to thousands of Egyptian Pounds on a weekly basis. So, if you are blessed with the talent of designing clothes, you can take it up from there. Currently, the fashion industry has a huge scope for growth.
People always want to actually look good in what they are wearing. A fashion idol, you should different, creative, and actually know how to dress!
Fitness Coach:
If you have a love for fitness, whether as a professional or just someone who loves keeping healthy, you can make money from it! With the rise of health movements such as vegan, keto, and paleo diets, coupled with exercise trends such as HIIT and circuit training, it’s safe to say that the fitness industry is booming and will only continue to grow in Egypt.
Online Store Owner:
You can make lots of money owning an online store. You can own a very large market using your mobile phone, Facebook, and other social media platforms. Photographers can upload their images to any one of a number of huge databases, allowing magazine editors, designers, or any organization with a website to buy them. Fashion designers too can sell their fabrics online and attract lots of clients to themselves.
Make-up Artist:
This career offers a strong income but you will need experience and training that helps you apply makeup to performers that are specific to the situation. The growth for this career is strong, and you will only need a non-degree award. You also won’t need previous training or experience in this lucrative business opportunity.
WATCH FULL VIDEO BELOW: SMALL BUSINESS YOU CAN DO IN EGYPT AS A FOREIGNER - FOREIGN INVESTMENTS IN EGYPT
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Conclusion
With over 100 million inhabitants, Egypt is the most populous country in North Africa, the Middle East, and the Arab world. It is also the third-most populous in Africa (after Nigeria and Ethiopia). The incidence of crime, violent or otherwise in Egypt is negligible compared with many Western countries. The UK is by far the largest investor in Egypt, followed by Belgium, the USA, and UAE. Foreign direct investment is concentrated in the oil and gas industry around three-quarters of total investments.
The country ranked 114th out of 190 countries in the 2020 Doing Business report of the World Bank. Egypt is one of the most developed countries in the Middle East and African region. Sound reforms, public initiatives, and an educated and healthy labor force have helped Egypt become a prime destination for global companies and investments. The support of the Egyptian government has been a driving force behind these successful partnerships. Egypt's stock exchange is one of the most developed in the Middle East and African region.
The easiest way to invest in Egypt is through exchange-traded funds (ETF) or ADRs. Risks include a lack of diversification and ongoing political turmoil. Individuals often find they lack the expertise and time to plan events themselves. Event planning simply involves planning people's events such as weddings, birthdays, anniversaries, political rallies, convocations, matriculations, etc. Food is an excellent business domain because demand for food is always on the increase.
With mobile restaurants, you can deliver food to individual customers and corporate clients. Snail farming is one of the surest ways to immense wealth in Egypt. Being a POS agent will be a lucrative business you should look out for in 2021 if you are considering migrating to Egypt. Tutoring is an excellent small business in Egypt to make money. You can decide to do it part-time or full-time.
A relaxation center is a lucrative business if established in highbrow cities of Egypt. There is an increasing demand for catering services in events so you can start a catering business. Home cooking, especially baking cakes and cupcakes, is very fashionable right now. You can sell your food at parties, fairs, and even at local food markets. Fashion designers too can sell their fabrics online and attract lots of clients to themselves.
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disadvantages of doing business in egypt
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foreign indirect investment
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