29.11.2005 country profile - egypt agnieszka gwizdz manuel vasconcelos ela siudyla andreas schmidt...
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29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
Comparative International Management
Country Profile – Egypt
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Team
Agnieszka Gwizdz (Poland)
Manuel Vasconcelos (Portugal)
Ela Siudyla (Poland)
Andreas Schmidt (Germany)
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Impressions
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Impressions
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Impressions
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Overview - Arab Republic of Egypt
1. Location: Northern Africa,bordering the Mediterranean Sea, between Libya and the Gaza Strip
2. Total area - 1,001,450 sq,
3. population: 77 million
4. Capital: Cairo
5. Nile – the father of rivers
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
1. 3200 B.C: beginings of unified kingdom
2. From 341 B.C.: Persians, Greeks, Romans, and Byzantines
3. 7th century: Arabs
4. 13th – 16th century : Mamluks
5. Till 19th century - allegiance to the Ottoman Empire, governmant controlled by UK since1882
6. 1922 – independence
>> History –ancient and modern Egypt
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
750 000 tourists monthly
13 000 hotel rooms only in Cairo
2.2 million people employed in
industry
11% of GDP
>> Tourism
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Economy
1. Economy in numbers• GDP (purchasing power parity): $316.3 billion
• GDP - real growth rate: 4.5%
• GDP - per capita: - $4,200
• GDP - composition by sector: agriculture: 17.2%
industry: 33%, services: 49.8%
2. Oil – 50% of total exports
3. Other industries
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
1. Terrorisim
2. Overpopulation
3. Environment degaradation
4. Health care
>> Today’s problems of Egypt
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Information about the culture
People
1. Modern Egyptians (Arabs, living in big cities like Cairo and Alexandria)
2. Bedouin Arabs (nomadic tribal peoples living in isolated oases)
3. Nubian peoples (living
along the Nile)
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Information about the culture
Population (2005)
77 mio. inhabitants
Growth rate: 1.78%
population explosion
habitable land area (only 4% of the country)
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Information about the culture
Religion
Official religion: Islam
About 90% of the population are Sunni Muslims
About 10% are Coptic Christians and others
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Information about the culture
Language
official language: Arabic
The Egyptian dialect is distinct from all others arabic coutries because of the dominance of the media (television, cinema, radio and music)
English and French widely understood by educated classes
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Information about the culture
Arts
ancient history, cosmopolitanism, strong Islamic traditions, modern pan-Arab political and intellectual history and relative freedom
cultural capital of Arab world
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Information about the culture
Media
capital of Middle Eastern communications
strong journalistic traditions and a relatively free press
largest publishing industry in the Arab world
newspapers are under governmental supervision
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Information about the culture
TV and Cinema
The Arab TV and cinema is dominated by the Egyptian film industry and its popular Arabic music
strong cinematic tradition since the 1930s
the only major motion picture industry
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Doing business in Egypt
appointment appearance
coffee and small talk business card
communication mannerism
Egyptian agent gifts
meeting
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Appointment Wait for your counterpart to initiate the greeting!
punctuality is not so much a priority but arrive on time!
Expect that your partnership will be late or an appointment will be canceled Standard practice is to keep foreign businesspeople waiting
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Coffee and small talk
usually meetings start with coffee and small talk even if time is limited
sometimes the Egyptian businessman has time not limited
Be careful: The “coffee” conversation and drinks can take too much time and you will fail your other tasks
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Communication with Egyptian
Speaking distance closer than in other parts of the world
Do not back up !!! in their perception you will be unfeeling person you will present your distance to them
Use simlpe words like “hello”, “please” or “thank you” you can expect to be
better respected
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Egyptian agent
allow him to explain the major points of your business in Arabic
in a short meeting, a translation can be very useful
your points will be made much more concisely
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Meeting
Business meetings are usually quite formal
You should expect…
interruptions by: phone calls, visits from your partnership’s family, friends
Fridays are off of meetings, it’s a Muslim holy day
The working week takes a place from Saturday to Wednesday
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Meeting
You should expect…
Business schedule:In summer: 8 a.m. to 2 p.m. In winter: 9 a.m. to 1 p.m. and 5 p.m. to 7
p.m.
Different dates on paperwork - it should include the Gregorian (Western) and the Hijrah (Arabic) - make sure of it
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Appearance – what Egyptian appreciate
Conservative dress, suit with tie Polished shoes Hair-style, beard well cared Visible jewellery – avoid wearing by men Modesty dress all the time – wearing by women
Even if it is extremely hot – most of the part of body should by coveredProfessional look it is important aspect
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Business Cards
printed in English on one side and in Arabic on the reverse
It is polite to make a nice comment about it or make a question: “when are you available at your office?”
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Mannerisms – what Egyptian appreciate
Call Egyptian by name Sit down with both feet on the floor – showing the bottom of shoes could be a signal of ignorance Keep your feet on floor till when Egyptian do not cross their legs when sitting Hand gestures are often considered rude Eye contact – look with honesty
Professional look it is important aspect
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Mannerisms - Difference between women and men
Eye contact withmen - appreciatedwomen - too much intimate
- avoid any hint of intimacy
Welcome withmen - hug to express warm welcome
- hold a hand, means friendshipwomen - never expect that type of behavior
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Mannerisms - Left hand
… is considered unclean
… should avoid gesturing
… is acceptable to use if you have to lift something heavy
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Mannerisms - Right hand
Arabs greetingsmen shake each other’s hands, placing left hand on he right shoulder, exchanging kisses on each cheekKisses are acceptable between that same sex in public
Westernized Egyptian menshake hands with other menSome Egyptian men will shake a hands with Western women
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Advices for dealing with Egyptian
Gifts
are old customs are expected in a business meeting should have some meaning
Bring souvenirs with you
Don`t use Flowers They are traditionally used at funerals and weddings
Make sure you give or receive gifts with right hand
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Economic history
1991: Association agreement signed with the EU. Beggining of
trade and economy liberalisation
Lack of deep economic reforms until 2003 limited foreignt
direct investment
2003/4: Several measures to attract investment:
- Customs reform - Privatizations
- Tax reform - Reduced energy subsidies
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Incentives
5 to 20 years of fiscal advantages
Free trade zones and special economic
areas to encourage the creation of export hubs
39 industrial zones spread through the country
New legal framework concerning investment guarantees
(excluding any nationalisation or confiscation of assets)
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Incentives
5% customs tax applied to imports of incoming
products/equipment required for the investment
Freedom to establish prices and repatriate profits
National companies opened to foreign investors
General Authority for Free Zones and Investment: provides
information and advice to local and foreign investors
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Business Opportunities
Public works
1. Construction
2. Energy sector
3. Consulting and studies
Demographic development
1. Health system
2. Distribution sector
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Business Opportunities
Tourism
1. Rich cultural heritage
2. Security problems
New technologies
Downstream of agricultural production
Privatisation programs
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Finance and banking system
Progressive liberalisation has been taking place since 1991
Public sector remains in a dominant position
(8 banks under state-control)
Free floating of the egyptian pound against the dollar
Foreigners are allowed to have all the kinds of financial
companies
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Transnational companies investing in Egypt recently
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Weak points and threats
11th September and middle east terrorist attacks
created some fear on investors
Terrorist attacks on tourists made tourism decrease
Financial system still too controled by the state
Low GDP per capita and high unemployment rate
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Weak points and threats
Language barriers
Weak private sector
Cultural differences
Different consumer habits
Communication problems
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
>> Investing in Egypt
Strong points and opportunities
Low labor cost
New gas and oil reserves discovered
Strategic role in the region:
1.Cultural influence on the arab world
2.Geographical location
3.Large population
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
Main sources
“How to negotiate” Sergey Frank – Financial Times Gesteland, Richard – Cross-Cultural Business Behavior – Copenhagen Business School Press, 1999 Hofstede, Geert - Cultures and Organizations: Software of the Mind – McGraw-Hill, 1997 www.cia.gov/cia/publications/factbook/geos/eg.html www.arab.net/egypt/index.html www.hejleh.com/countries/egypt.html www.animaweb.org/pays_egypte_pourquoiinvestir_en.php
29.11.2005 Country profile - Egypt
Agnieszka GwizdzManuel Vasconcelos
Ela SiudylaAndreas Schmidt
Thank you for your attention!