Why Is Egypt A Good Candidate For Foreign Direct Investment?

Cotton is also one of the very effective industries on Egypt's economy and competitive advantage. Egypt is exporting tons of the Egyptian cotton every year. It's one the finest and top quality cottons in the world; during the past period of time cotton has successfully proven its ability to become one of Egypt's greatest competitive advantages. Food industry is an everyday developing industry in Egypt. As an example Juhayna is an Egyptian firm, it's one of the largest firms that regarding to diary, juice and cooking products. Another example is Herbs Egypt, it’s a leading company in producing and exporting dried herbs. All these industries and more, together shape and frame the Egyptian competitive advantage. If one of those declined, another will maintain the competitive advantage. Thus, if is there were just one industry that the company relying on this would be too risky. As it happened after 2011 tourism industry faced a drop, if there weren't another advantage the nation will lose any competitive advantage among its rivals and this would have terrible impact on economy. It's also a waste of opportunities if the nation focused in one industry and ignored another that may show strong

Over a quarter of the Egyptian populace (26.3 percent) lives under the neediness line of 2 dollars a day, with another quarter floating simply over the line. Government approaches that for quite a long time gave social assurance to poor people—through summed up endowments for nourishment and open utilities; free training and wellbeing administrations; and ease lodging—have all ended up being, excessive and wasteful. All the more significantly, these appropriations are no more financially reasonable.

Egypt is a difficult place for people to live in because there are to many dialects spoken,the population is very unproportional and the land is substandard.

Egypt is located in the Northern part of Africa. The country is famous for its rich history and the pyramids, which are one of the Seven Wonders of the World. Aegyptos is the name given to the country by its inhabitants. The western culture derives from this term to the name Egypt, which is commonly used. However, according to the Arabic culture, the country’s name is Misr (Gleason, 2006). This term is derived from the Koran, used by Muslims, who make up the majority in the country. This name is far older than the popular Muslim conquest which took place between 639-642AD, where the Muslims fought for the control of the country away from the Eastern Roman Empire. The name is popular in songs and poems. However, the official name of the country, as used in official occasions such as the representation of the country in major world conventions is the Arab Republic of Egypt. This report will evaluate the background of the Egyptian culture, cultural practices as well as recommendations of how a business investor can act in some social situations.

2002). Egypt holds a very geographically strategic location in the world, from being a bridge between

“Let’s talk about Investment from one country into another normally by companies rather than governments that involve establishing operations or acquiring tangible assets, including stakes in other businesses. Foreign direct investment is well-known from group of foreign investment by the factor of control. FDI is a transfer of ownership; it usually involves the transfer of factors matching to capital, including management, technology and organizational skills. (D. A. MacDougall G. 1960.). Businesses that make foreign direct investments are often called multinational corporations may make a direct investment by creating a new foreign enterprise, or by the acquisition of a foreign firm. In the framework of foreign direct investment, advantages and disadvantages are one way or another kind of perspective. A Foreign

Foreign absolute investment (FDI) has become to be accepted as one of the a lot of able adjustment of cartoon flows from alien sources. The use of this address has aswell become a cogent aspect of architecture basic in developing countries about the world. However, the allotment of investment from these countries in added states has been crumbling over the accomplished years.For developing countries, the absolute appulse of adopted absolute investment is acceptable added accepted as a apparatus for bread-and-butter advance and deepening (Muhammad 2007). The a lot of arch positives of implementing FDI is the admission in accumulated productivity, added opportunities of employment, greater address of exports and barter of abstruse

The selection was narrowed to four subcategories that are of particular concern for Egypt, but could also reasonably expected to be addressed through institutional reform. First, legitimacy of the state has been an urgent concern since the revolution, corruption has been widespread throughout all aspects of the government, which severely hinders the functioning of government. Additionally, security has been a grave concern in Egypt, partially due to the failures that stem from the lack of a legitimate state. Conflict often arises between the military government and various groups, and these conflicts often end in violence and fatalities. Furthermore, security forces will imprison political dissidents for little to no reason. Human rights violations are also commonplace within Egypt, those who are incarcerated are often subject to inhumane conditions and torture and press freedom is at the will of the state. Furthermore, group grievance has been enhanced in recent years, particularly concerning discrimination against religious and ethnic minorities and the violence that ensues. Combined, these four indicators allowed for a more specialized analysis of the variables that concern Egypt.

Egypt’s economic policy during 2004-2008 is best described as a command economy due to the government’s involvement in the process of reforming economic policies that were hindering the country ability to grow economically. The government’s involvement did help boost the growth rate by liberalizing trade. Egypt reduced the tariffs, tax cuts, deregulation, and made changes in investment regulations to fuel their economic growth. Eventually, with these changes Egypt saw great economic growth. Big name companies like Oracle and Microsoft built new office buildings and construction could be seen throughout the country. The reformed economic policies definitely helped boost Egypt’s growth rate as it provided more jobs and allowed outside

For the past recent years, Egypt has shown a historic turnaround. Moreover, the country went through many political crisis which has bad effects on the economy and increased its problem, all this, leaded to a huge effect on the global business environment in Egypt.

Foreign direct investment (FDI) plays a crucial and a growing role in the modern world and in global businesses. It helps third world countries to over-come their problems by sharing their resources with other countries in exchange of an investment. More formally FDI is defined as a company from one country making an investment on another country that are known as the host countries. Recently, due to the rapid growth and alternative global investment patterns, this definition has been developed to comprise the acquisition of a lasting management interest in a company or enterprise outside the investing firm’s home country. This investment can be in many forms, such as a direct acquisition of a foreign firms, construction of a facility, or

FDI laws and regulations. Qatar’s investment-stimulating policies are proceeding on a steady basis, in an effort to protect Qatari-owned companies from significant competition. The chief legislation governing foreign investment in Qatar is Investment Law No. 13/2000. This law permits foreign investors to hold 49% of the capital while a Qatari partner holds at least 51%. However, Investment Law No. 13/2000 provides leeway for 100% ownership with special government approval. This leeway is limited to investments in certain sectors, including: “agriculture, industry, health, education, tourism, development and exploitation of natural resources, energy, mining, sports and entertainment services; and banking and finance” (“Investment Climate,” 2015). Significantly, the investment must contribute to the long-term development of Qatar’s human resources and technology.

At the end of civil war, Mozambique established the political stability and government established an open market oriented economy and has start to attract significant FDI flows.

The factors involved in process of economic growth of nations have transformed overtime, from savings to trade, foreign investment and human capital base of the country. With opening up of the economies and the formation of multiple agreements among the countries, trade and FDI have become the major medium of accord among the economies. There has been surge in FDI inflows ever since the countries adopted liberalisation policies across the globe. The countries have been looking for policies to attract more FDI by boosting investment climate in their countries, to finance their process of growth and development.

Thought out the presidential period of Hosni Mubarak, a lot of investment entered Egypt, as large investments and businesses are not afraid of expropriation of corporate assets without adequate compensation, or forced sale of equity to host- country nationals usually at or below depreciated book value. Also foreign firms are not facing discriminatory treatment against in the application of regulations or law. Finally it is very easy in Egypt to repatriate funds.