To ease the burdens of doing business in Egypt and increase Foreign Director Investment (FDI), the GoE has undertaken an International Monetary Fund (IMF)-mandated reform program since 2016, including introducing a value added tax (VAT) system and implementing laws on investment, bankruptcy, and capital markets. In 2025, Egypt launched a unified national investment strategy and enacted new tax incentives for small and medium enterprises (SMEs), including reduced corporate tax rates and exemptions from capital gains and dividend taxes. Long-term monetary policy and fiscal reforms, including broadening the tax base and phasing out the GoE’s market-distorting food and fuel subsidy program, remain critical to economic stability.
Though Egypt is a signatory to international arbitration agreements, its courts do not consistently recognize foreign judgments. Resolution of commercial disputes takes three to five years on average. The GoE is reluctant to include international arbitration clauses in commercial contracts, except for the Ministry of Petroleum and Mineral Resources and mega project investments approved by the Ministry of Finance.
Despite recent improvements in remittance inflows and foreign investment, persistent foreign currency shortages remain an obstacle to increased trade and investment. Excessive bureaucracy remains a challenge. Although the government has accelerated digital transformation and launched a one-stop investment platform, the GoE’s excessive bureaucracy, exemplified by a lengthy approval process and implementation process for projects, continues to hinder foreign investments. Additional barriers include a shortage of skilled labor, particularly in climate-smart agriculture and advanced manufacturing, limited access to credit and trade finance, slow but improving customs procedures, intellectual property issues, and inconsistencies in government procurement processes. U.S. exporters face competition from geographically advantaged European Union (EU) Member States. Egypt has a free trade agreement with the EU, which sometimes puts U.S.-origin products at a disadvantage.