{"id":1039,"date":"2019-05-31T10:08:20","date_gmt":"2019-05-31T10:08:20","guid":{"rendered":"http:\/\/www.goodada.com\/blog\/?p=1039"},"modified":"2025-02-05T15:47:10","modified_gmt":"2025-02-05T15:47:10","slug":"trading-with-egypt-useful-information","status":"publish","type":"post","link":"https:\/\/www.goodada.com\/blog\/trading-with-egypt-useful-information\/","title":{"rendered":"Trading with Egypt &#8211; Useful Information"},"content":{"rendered":"<p>Trading with Egypt\u00a0 &#8211; As of 2025, Egypt continues to progress from its past economic challenges, showcasing potential as a high-growth market attributed to its significant population and reliance on imports. Egypt\u2019s strategic geographic location not only serves its diversified economy but also positions it as a pivotal hub for commercial activities across the Middle East and Africa. Currently categorized as a lower-middle-income country, Egypt remains integral to regional trade dynamics.\u00a0Egypt ranks 17th in recent World GDP economy rankings (source:<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.cia.gov\/the-world-factbook\/field\/real-gdp-purchasing-power-parity\/country-comparison\/\">cia.gov<\/a><\/span>)<\/p>\n<p>With a population exceeding 111 million, over 35% of which is under 15, Egypt benefits from a youthful demographic<\/p>\n<p><strong>Strengths of the Egyptian Market:<\/strong><\/p>\n<ul>\n<li>A young, vibrant workforce.<\/li>\n<li>The newly expanded Suez Canal is a critical artery for global maritime traffic.<\/li>\n<li>Strategic location with proximity to major continents, including Asia, Africa, and Europe.<\/li>\n<li>Positioned as the third-largest economy in Africa.<\/li>\n<li>Beneficiary of multiple free trade agreements enhancing its trade capabilities.<\/li>\n<\/ul>\n<p><strong>Challenges of Doing Business in Egypt:<\/strong><\/p>\n<ul>\n<li>Persistent security concerns.<\/li>\n<li>Notable corruption levels, with Egypt ranking 117 out of 180 countries in the 2024 Transparency International Corruption Perceptions Index.<\/li>\n<li>High unemployment and significant poverty rates continue to challenge economic stability.<\/li>\n<li>Restrictions on foreign property ownership that complicate investment.<\/li>\n<li>Slow and cumbersome customs procedures.<\/li>\n<li>Excessive bureaucracy, which complicates business operations.<\/li>\n<\/ul>\n<p>As Egypt continues to develop and refine its economic landscape, it offers substantial opportunities and notable challenges for international businesses looking to engage with this dynamically evolving market.<\/p>\n<h3><span style=\"color: #800000;\"><strong>Egypt Business culture<\/strong><\/span><\/h3>\n<p>Egyptian Arabic or Masry, which means Egyptian, is the most widely spoken in the country. English is spoken across Egypt. It is common for written correspondence to be in English; however, Arabic is preferred within some public sector organizations.<\/p>\n<p>Egypt is an Islamic country, so you should dress and behave conservatively, observe Islamic customs, and ensure that travel documentation, including passports and any necessary visas, are valid and up-to-date.<\/p>\n<p>Egyptian businesspeople are friendly and open. Developing personal relationships is essential in Egyptian business culture.<\/p>\n<p>It is always advisable to make an appointment to meet someone in Egypt.\u00a0 It is considered rude to try and hurry a meeting.<\/p>\n<p>For business occasions, it is customary to wear suits and ties in the major cities. Lighter clothing is acceptable for business purposes in other cities. Jackets and ties are recommended when dining at better hotels and restaurants. Women should be modestly dressed on any occasion.<\/p>\n<p>Egyptians love to bargain; you should allow this in any original deal. This process can significantly enhance your chances of an ongoing business.<\/p>\n<p>Always bear in mind that in Egypt, the written contract is not generally considered to be the final deal. Egyptians will often want to continue to negotiate better terms throughout the business relationship.<\/p>\n<h3><span style=\"color: #800000;\"><strong>Setting up in Egypt<\/strong><\/span><\/h3>\n<p>There are many ways you can do business in Egypt. The most common are:<\/p>\n<ul>\n<li>appoint a local partner, distributor or agent<\/li>\n<li>set up a representative office or branch office in Egypt<\/li>\n<li>form a joint stock or Limited Liability Company<\/li>\n<\/ul>\n<p>Commercial agents must register the existence of their agency with the Ministry of Trade and Industry Commercial Registry Department, giving basic facts about the agreement, including the amount of commission received on sales.<\/p>\n<p>The most common form for foreign investors is a limited liability company.<\/p>\n<h3><span style=\"color: #800000;\"><strong>Banking and Finance<\/strong><\/span><\/h3>\n<p>The unit of legal tender in Egypt is the Egyptian Pound E\u00a3 (EGP).<\/p>\n<p>The Egyptian banking system consists of 40 banks categorized as the commercial, non-commercial public, and private sectors. The National Bank of Egypt, Bank Misr, and Banque Du Caire are large public-sector banks which control 40 per cent of the banking sector.\u00a0 All banks in Egypt are subject to supervision by the Central Bank of Egypt (CBE).<\/p>\n<h2><span style=\"color: #008000;\"><strong>Trading with Egypt &#8211; Tariffs and Non-Tariff Barriers<\/strong><\/span><\/h2>\n<h3><span style=\"color: #800000;\"><strong>Tariff<\/strong><\/span><\/h3>\n<p>In 2021, Egypt&#8217;s Ministry of Finance introduced a new customs framework through Decree 38\/2021, establishing the Advanced Cargo Information (ACI) system under a unified platform called &#8220;Nafeza&#8221; (Arabic for &#8220;window&#8221;). This system, operational from February 1, 2021, mandates that shipping documentation for consignments bound for Egypt must be uploaded to Nafeza at least 48 hours before arrival. Managed by Misr Technology Services (MTS), this initiative aims to streamline customs processes, reduce the time for goods clearance, and align Egypt&#8217;s trade procedures with global standards.<\/p>\n<p>The ACI system centralizes the exchange of shipping details between international exporters and Egyptian importers through an electronic portal, facilitating efficient customs clearance. The Egyptian Customs Authority expects this system to enhance procedural compliance and speed up the movement of goods through Egyptian ports. The system includes various pathways for shipments based on assessed risk levels, with a &#8220;green&#8221; pathway allowing for swift clearance without routine inspections, though subject to random audits to verify compliance.<\/p>\n<p>Under this system, importers or their customs brokers log into the Nafeza portal, submit their shipment documents, and receive an Advanced Cargo Information identification number (ACID). This number is crucial as it must be referenced in all transaction documents. The process involves the importer inputting data into the ACI system, receiving an ACID from the customs authority within 48 hours, and ensuring all parties are notified of this number. Once the shipment arrives and undergoes any necessary inspections, customs clearance is granted.<\/p>\n<p>For more information about navigating the ACI system, stakeholders can visit the official Nafeza website at <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.nafeza.gov.eg\/en\/site\/aci-info\" target=\"_new\" rel=\"noopener\">https:\/\/www.nafeza.gov.eg\/en\/site\/aci-info<\/a>.<\/span><\/p>\n<h3><span style=\"color: #800000;\"><strong>Non-tariff barriers<\/strong><\/span><\/h3>\n<h4><span style=\"color: #000080;\"><strong>Import<\/strong><\/span><\/h4>\n<p>The Egyptian Minister of Industry and Trade requires foreign manufacturers of specific products to register for export with the Egyptian General Organization for Export and Import Control (GOEIC). Decree (43\/2016).<\/p>\n<p>The requirements set out by Decree 43\/2016, which mandate foreign manufacturers to register their factories with the Egyptian General Organization for Export and Import Control (GOEIC) in order to export specific products to Egypt, are still applicable. However, there have been amendments introduced by Decree No. 195\/2022 that modify some of the original provisions of Decree 43\/2016.<\/p>\n<p>Key updates include:<\/p>\n<ul>\n<li>The registration process no longer requires a ministerial decree for each factory; instead, registered factories will be published in the official gazette.<\/li>\n<li>Overseas applicants can now submit registration documents through the relevant consulate or embassy.<\/li>\n<li>GOEIC is required to provide proof of registration within 15 days from the submission of the required documents. If proof is not issued, the applicant can file a grievance with a newly established grievance committee, which reviews complaints about non-registration or delisting within 15 days.<\/li>\n<\/ul>\n<p>These changes are aimed at facilitating the registration process and ensuring a quicker response for exporters looking to enter the Egyptian market<\/p>\n<h4><span style=\"color: #000080;\"><strong>Product labelling, certification, and packaging<\/strong><\/span><\/h4>\n<p>The Labels\/ Stickers of goods exported to Egypt must be in Arabic (other languages can also be added). The information on the labels must include:<\/p>\n<ul>\n<li>Complete details of the product, including name, quality and ingredients in proportions (including additives and preservatives)<\/li>\n<li>Detailed instructions for usage and storage<\/li>\n<li>Full details of the manufacturer, including country of origin<\/li>\n<li>The date of production and the expiry date<\/li>\n<li>The net weight and gross weight<\/li>\n<li>The name and address of the Egyptian importer<\/li>\n<\/ul>\n<p>For meat and poultry products, the label must include the following statement: \u201cslaughtered according to the Islamic ritual&#8221; or &#8220;Halal slaughtered.&#8221; You must insert labels inside the package as well as on the outside. The label on the meat must include the following:<\/p>\n<ul>\n<li>Country of origin<\/li>\n<li>Producer\u2019s name and logo<\/li>\n<li>Name of slaughterhouse<\/li>\n<li>Slaughter date<\/li>\n<li>Name and address of the importer<\/li>\n<li>Name of the entity that issued the &#8220;Islamic slaughter&#8221; definition. The Egyptian Ministry of Health requires that the batch number must be added to all consumer products.<\/li>\n<\/ul>\n<p>Other goods, imported in the form in which they are sold to the public, must bear a label in Arabic indicating:<\/p>\n<ul>\n<li>Country of origin.<\/li>\n<li>Handling and transportation instructions.<\/li>\n<li>Kind of product and style.<\/li>\n<li>Producer&#8217;s name and trademark (if applicable).<\/li>\n<li>Product specifications and instructions for usage.<\/li>\n<li>Production and expiry dates where applicable.<\/li>\n<li>Goods must be shipped from the country of origin ports.<\/li>\n<\/ul>\n<p>Egypt uses the metric system.<\/p>\n<h4><span style=\"color: #000080;\"><strong>Packing<\/strong><\/span><\/h4>\n<p>Egypt&#8217;s import and export regulations mandate packaging that preserves the product and ensures the product fully occupies the container&#8217;s space. If a crate is wooden, the container should be accompanied by an official certificate that states it is free from wood-harmful pests and insects.<\/p>\n<p>Data that appear on equipment, tools, and machinery should be identical to those appearing on the package. The country of origin should be indicated on each item and be non-erasable. They should be accompanied by an Arabic-language catalogue showing the following:<\/p>\n<p>Exporters should ensure that any packaging used can protect the products from extreme weather and climate changes as well as the rigours of transport and handling.<\/p>\n<h3><span style=\"color: #800000;\"><strong>Methods of quoting and payment when trading with Egypt<\/strong><\/span><\/h3>\n<p>Quotes can usually be FOB, C&amp;F, or CIF (Incoterms 1990).<\/p>\n<p>Parties commonly use an irrevocable letter of credit (L\/C) payable at sight to settle international transactions. It offers protection to both the exporter and the importer. The currency can be in US$ or Euro.<\/p>\n<p>You must agree on payment terms in advance. Make sure all parties understand and agree to these terms, and ensure that your client, representative, or contact signs a document confirming the agreement.<\/p>\n<p>It is best practice for sellers dealing with new customers to use secured payment terms such as 100% payment before shipping, letters of credit, sight drafts, or bills of exchange.<\/p>\n<h2><span style=\"color: #008000;\"><strong>Trading with Egypt &#8211; Documentary &amp; Clearance Requirements<\/strong><\/span><\/h2>\n<h3><span style=\"color: #800000;\"><strong>Documentation required:<\/strong><\/span><\/h3>\n<p>You must provide the following documents for any shipment to clear customs in Egypt:<\/p>\n<ul>\n<li>Bill of lading &#8211; No special requirements.<\/li>\n<li>Commercial invoice &#8211; A minimum of three copies is required. It must indicate all details usually provided and include a full description of the goods, all price details (including freight, packing and other charges and discounts) and the country of origin. Consular legalization is not required unless the L\/C or the consignee stipulates it.<\/li>\n<li>Certificate of origin \u2013 The Egyptian Consulate must authenticate this in the country of origin.<\/li>\n<li>You don&#8217;t need a packing list, but it is recommended to facilitate clearance.<\/li>\n<li>Pro forma invoice and letter of credit<\/li>\n<\/ul>\n<p>Egypt no longer requires import licenses for most products, though permits are necessary for animal products.<\/p>\n<h3><span style=\"color: #800000;\"><strong>Customs process:<\/strong><\/span><\/h3>\n<p>When goods land in Egypt, the importer must present Egyptian Customs with the documentation needed to allow the products to enter Egypt.<\/p>\n<p>Egyptian Customs and Security Office must conduct a security inspection for illegal products.<\/p>\n<h2><span style=\"color: #008000;\"><strong>Business Risks when trading with Egypt<\/strong><\/span><\/h2>\n<p>Companies wishing to operate in Egypt should commit to the highest level of corporate behaviour and familiarise themselves with the laws of the country and the penalties for bribery of foreign officials.<\/p>\n<h3><span style=\"color: #800000;\"><strong>Intellectual Property Protection<\/strong><\/span><\/h3>\n<p>Trademark counterfeiting, copyright piracy, and patent infringements are issues in Egypt. There is little enforcement of IP law in Egypt.<\/p>\n<p>However, Intellectual property law in Egypt conforms to international standards and provides recourse for infringements. Egypt is a member of the World Intellectual Property Organisation (WIPO) and a signatory to the Paris, Madrid, and Bern Conventions.<\/p>\n<p>The <a href=\"http:\/\/www.egypo.gov.eg\/default.aspx\">Egyptian Patent Office <\/a>registers patents.<\/p>\n<h3><span style=\"color: #800000;\"><strong>Dispute resolution<\/strong><\/span><\/h3>\n<p>The Egyptian legal system comprises three legal systems: Napoleonic Codes, Roman law, and Islamic law. The &#8216;Court of First Degree&#8217; (Mahkmat El Daragah El Aoulah) adjudicates commercial and contractual disputes. There are also several specialized courts, such as the Economic Courts and Environmental Courts.<\/p>\n<p>Hiring a local legal representative is the best advice.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><span style=\"color: #008000;\"><strong>Trading with Egyptian &#8211; Web Resources<\/strong><\/span><\/h2>\n<p><a href=\"http:\/\/www.eos.org.eg\/\">Egyptian Organization for Standards and Quality Control (EOS)<\/a><br \/>\n<a href=\"http:\/\/www.mti.gov.eg\/English\/Pages\/default.aspx\">Ministry of Trade, Industry, and Investment<\/a><br \/>\n<a href=\"http:\/\/www.egac.gov.eg\/\">Egyptian Accreditation Council<\/a><br \/>\n<a href=\"http:\/\/www.cbe.org.eg\/\">Central Bank of Egypt<\/a><br \/>\n<a href=\"https:\/\/www.mts.gov.eg\/en\/\">Egypt&#8217;s Maritime Transport Sector<\/a><br \/>\n<a href=\"http:\/\/www.egypo.gov.eg\/default.aspx\">Egyptian Patent Office<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #008000;\"><strong>So Trading with Egypt &#8211; About the Author<\/strong><\/span><\/h2>\n<p>Aidan Conaty is the founder of\u00a0<a href=\"http:\/\/www.tcichina.co.uk\/\">TCI China<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.goodada.com\/\">Goodada.com<\/a>. Aidan has spent over 15 years assisting companies to trade internationally. TCI China provides trade support services for China. Goodada helps companies to trade internationally.<\/p>\n<p>Aidan is available for contact by email at <a rel=\"noopener\">aidan@goodada.com<\/a>\u00a0or by phone at:<\/p>\n<ul>\n<li>(Europe\/ Rest of the World) +353 1 885 3919<\/li>\n<li>(UK) +44.020.3287.2990<\/li>\n<li>(North America) +1.518.290.6604<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Trading with Egypt\u00a0 &#8211; As of 2025, Egypt continues to progress from its past economic challenges, showcasing potential as a high-growth market attributed to its significant population and reliance on imports. Egypt\u2019s strategic geographic location not only serves its diversified economy but also positions it as a pivotal hub for commercial activities across the Middle [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1042,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64],"tags":[155,153,122],"class_list":["post-1039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-trade","tag-international-business","tag-international-trade","tag-sell-internationally"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.3 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Trading with Egypt - Useful Information - Goodada Blog<\/title>\n<meta name=\"description\" content=\"Trading with Egypt. 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