MaSSSoftech

Doing business in Egypt eases as the country increases its global
competitiveness



CAIRO, Sept. 10 /PRNewswire/ -- Despite tough economic conditions, Egypt is
continuing to strengthen its position not only as one of the world's leading
outsourcing destinations but also as a successful business location.

Reports published this week by the World Economic Forum and the World Bank
reveal that Egypt is becoming an increasingly competitive and growing economy.
It is also proving easier for local and multinational companies to set up
business operations in the country.

The recent reports seem to be consistent with the positive developments
witnessed by the Egyptian economy especially in the ICT sector where
multi-nationals like IBM, CISCO, Google, and HSBC have opted for utilizing the
wide array of competitive advantages offered by the country.

In the IFC-World Bank Doing Business 2010 report, Egypt has risen sharply from
116th to 106th in the ranking on the ease of doing business, driven by
regulatory reforms that have made it easier to start and operate a business in
the country.

The report highlights that governments in the Middle East and Africa are
reforming at a rate similar to those in Eastern Europe and Central Asia and
Egypt was highlighted as one of the region's most active reformers. In the
past year, Egypt's reforms have made it easier to start a business, deal with
construction permits, secure credit and enforce contracts.

Over the past five years, Egypt has implemented at least 19 reforms covering
the areas measured by the report. Some of the reforms implemented include a
cut in the personal tax rate from 32 percent to 20 percent; the halving of
corporate tax from 42 percent to 20 percent and the simplification of tariffs.


Egypt has also jumped 11 places in the World Economic Forum's Global
Competitiveness Report 2009/2010 as a result of the recent liberalization
efforts in the country. Egypt is now 70th in the rankings, up from 81st in
2008/2009. The World Economic Forum attributed the improvement in Egypt's
ranking to the upgrading of its infrastructure across all categories and to
positive developments related to labor market efficiency.

One of Egypt's biggest growth areas is the communications and information
technology sector, which grew by 14.6 percent in the fiscal year to June 2009.
Reductions in piracy levels, introduction in e-signature law and
anti-corruption initiatives have seen Egypt establish itself as one of the
world's leading outsourcing destinations.

About ITIDA:
The Information Technology Industry Development Agency (ITIDA) is a
governmental entity affiliated to Egypt's Ministry of Communications and
Information Technology. It is responsible for growing and developing Egypt's
position as a leading global outsourcing location by attracting foreign direct
investment to the industry and maximizing the exports of IT services and
applications.

Located in the heart of the modern business environment at Smart Village, the
six hundred acre business park on the outskirts of Cairo, ITIDA is a self
sustainable entity that drives the IT industry in Egypt and raises awareness
among the Egyptian people of the benefits and use of ICT to advance
socio-economic welfare of the whole community.

Contact details:

Ahmed Reda
Media & Communication Manager
Information Technology Industry Development Agency
T: +202 35 34 51 85
E: areda@itida.gov.eg

Ramya Kumaraswamy
Hill & Knowlton
T: +1 212 885 0552
E: ramya.kumaraswamy@hillandknowlton.com