Due to the current political unrest in Egypt, the information on these pages may not reflect current conditions in the country.

Country Risk Rating

C
A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behavior. Corporate default probability is high. - Source: Coface

Business Climate Rating

B
The business environment is mediocre. The availability and the reliability of corporate financial information vary widely. Debt collection can sometimes be difficult. The institutional framework has a few troublesome weaknesses. Intercompany transactions run appreciable risks in the unstable, largely inefficient environments rated B.

Strengths

  • Large market
  • Advantageous geopolitical situation; Suez Canal
  • Tourism potential
  • Gas (Zohr field) and mineral potential (gold, kaolin, potash, copper, zinc, lead, feldspar)
  • Political and financial support from Gulf monarchies and Western countries
  • IMF support programme
  • Limited external debt (less than 20% of public debt)

Weaknesses

 

  • Poverty (one third of the population); low employment rate among young people
  • Low government revenues (19% of GDP) and informal economy (half of all jobs)
  • Jihadists active in Sinai region
  • Tensions between part of the Muslim majority and the Christian minority (10%)
  • Lack of water and dependence on the Nile
  • Public deficit and public debt
  • Banking system vulnerable to sovereign risk, with the public sector absorbing 2/3 of credit
  • High cost of credit
  • Low and low value-added manufacturing exports; food dependency
  • Non-transparency of companies controlled by the military (30% of the economy)
  • Corruption, lack of competition, and bureaucracy, including in foreign trade

 

Current Trends

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Source:

Coface (02/2021)
Egypt