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COUNTRY PROFILE
General Information
Sectors Overview
Economic Environment

General Information

Geography
Area
  • Total: 1,001,450 sq km
  • Land: 995,450 sq km
  • Water: 6,000 sq km
  • Populated: 53,008 sq km
  • Cultivated land: 35,007 sq km
  • Ratio of cultivated land to the total area is 3.6%

Location
Located at the heart of the world, standing as a major trade and crossroads destination between Europe, the Middle East, Africa and west and south Asia. It occupies the north Eastern corner of Africa, bordered by Libya to the west, Sudan to the south, Palestine, Israel and Jordan to the northeast. Its north coast is on the Mediterranean Sea, while the eastern coast is bounded by the Red Sea. The Suez canal links the Red Sea to the Mediterranean- a linkage vital to both Egypt and the world.

The Nile
Traverses over 1,000 miles within Egypt, from Wadi Halfa in the South to the Mediterranean in the north, divides the country into four broad regions; the Western Desert which occupies almost two-thirds of the total area, the Eastern Desert, the Sinai Peninsula, and the Nile Valley and Delta, which is the most densely populated region of the country. Egypt is dependent on the Nile for nearly all its water needs. The vast majority of the remaining land is made up of sparsely inhabited, arid desert. Extensive land reclamation efforts since 1947 have aimed at increasing the area of cultivable land.

Natural Resources
Petroleum, natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, zinc, among others.

Terrain
Vast desert plateau interrupted by Nile valley and delta.

Climate
Hot, dry summers with moderate winters.

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Population

Total
69,536,644 (July 2001 est.)

Age Structure
0-14 years: 34.59% (male 12,313,585; female 11,739,072) 15-64 years: 61.6% (male 21,614,284; female 21,217,978) 65 years and over: 3.81% (male 1,160,967; female 1,490,758) (2001 est.)

Population Growth Rate
1.69% (2001 est.)

Birth rate
24.89 births/1,000 population (2001 est.)

Death rate
7.7 deaths/1,000 population (2001 est.)

Net migration rate
-0.24 migrant(s)/1,000 population (2001 est.)

Sex Ratio
1.02 male(s)/female (2001 est.)

Infant mortality rate
60.46 deaths/1,000 live births (2001 est.)

Life expectancy at birth
total population: 63.69 years male: 61.62 years female: 65.85 years (2001 est)

Total fertility rate
3.07 children born/woman (2001 est.)

Ethnic Groups
Eastern Hamitic Egyptians, Bedouins and Berbers representing 99%, Greek, Nubian, Armenian, and other European primarily Italian and French representing 1%. Today, there are approximately 10,000 Americans, 3,500 British, 3000 French, 3000 Germans and thousands of other Europeans and Africans living and working in Egypt. There are also many Latin Americans and larger number of Middle Easterns, who maintain residences and do business in Cairo, plus Asians from India to the Philippines.

Religions
Muslim (mostly Sunni) 94%, Coptic Christian and other 6%

Language
Arabic (official), English and French widely understood by educated classes. The Egyptian dialect is the most widely understood of all other Arabic dialects.

Literacy
definition: age 15 and over can read and write total population: 51.4% male: 63.6% female: 38.8% (1995 est.)

Human Resources
With a population of over 60 million, Egypt has the largest single market in the region. It is rich in human resources; its businessmen are experienced in the markets of its neighbor countries, and it possesses a good mix of semi-skilled, skilled and highly qualified labor force.Egypt's workforce, close to 16 million, is an excellent source for productive inexpensive labor. The growth of Egypt's labor force has averaged about 2.7% annually in recent years. The number of employees is 17,434 thousand employees with an annual growth rate of 3.3%.Low prevailing wages have encouraged the use of labor-intensive technologies. Foreign companies frequently pay higher wages and attract workers with higher than average skills, however, many foreign companies have expressed the need for skilled managers in Egypt. Unemployment remains a significant problem, as Egypt has a surplus of both skilled and unskilled labor. Hundreds of thousands of workers from both categories seek employment abroad on both temporary and permanent bases. Gulf countries have attracted most of the departuring labor over the past two decades, however, this trend started to fade away after the Gulf war and the subsequent policies of foreign employment reduction adopted by these countries.

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Government

Type
Republic

Capital
Cairo

Administrative Divisions
Egypt has 26 governorates, namely; Ad Daqahliyah, Al Bahr al Ahmar, Al Buhayrah, Al Fayoum, Alexandria, Al Ismailiyah, Giza, Al Minya, Al Minuffiyah, Cairo, Al Qalyubiah, Al Wadi Al Gadid, Al Sharkiyah, Al Suways, Aswan, Asyut, Beni Sweif, Port Saaid, Demiatta, South Sinai, Kafr El Sheikh, Marsa Matrouh, Qina, North Sinai and Sohag.

Egypt has a bicameral legislature, made up of the elected People's Assembly (Maglis al Shaab) and the Advisory Council ( Maglis al Shura). The Advisory Council is a consultative organ, whereas the People's Assembly functions as the main representative law making body. The People' s Assembly elections were held in late 2000 for a five-year term. The People's assembly has a total of 454 seats of which 444 are filled by popular vote, and the remaining ten are appointed by the president. Elections for the upper house of parliament, which only has an advisory role, took place in June 2001. In 1977, a constitutional adjustment was made to allow for the existence of a variety of parties with a wide spectrum of political platforms. Currently, there are more than a dozen recognized opposition parties, some of which have representatives in the People's Assembly. The current ruling party is the National Democratic Party (NDP) and it is headed by the president of the state. The ruling NDP has been in power since 1978. It effectively controls national government, the government-owned media, and state owned enterprises. The NDP now holds 388 seats in the current parliament and the opposition parties and independents hold the remaining seats. The opposition doubled its representation and included a vocal contingent allied to the Muslim Brotherhood, which will be determined to scrutinize government activity more closely than was possible in previous parliaments. The tendency towards a more critical level of debate has already been illustrated by the relatively tough time the government had passing the mortgage and sales tax laws.

The Egyptian judicial code combines elements from the Napoleonic Code, English Common Law and Islamic Law. The Supreme Constitutional Court tops the judicial hierarchy that branches down into the court of appeals and primary and summary tribunals throughout the 26 governorates. Christians and Jews are subject to their own jurisprudence in personal status affairs.The distinction between civil and criminal courts exists in Egypt. In the civil system, there are two courts of primary jurisdiction: (i) the Summary Courts, which deal with low value matters, urgent matters (e.g. injunctions), and matters relating to the individual (e.g. divorce, inheritance); and (ii) the Courts of First Instance, which handle labour and commercial issues, and appeals from the Summary Courts. Appeals from the Courts of First Instance are heard by the Courts of Appeal, which are situated in main cities and will effectively involve a rehearing of the matter. Further appeals, on points of law only, may be made to the Court of Cassation. The Constitutional Court is a court in charge of reviewing the constitutionality of any law issued in Egypt. It decides whether the law in question is in conformity with the constitution. A separate structure under the Council of State exists for resolving administrative disputes involving government agencies and Ministries, such as challenges to the validity of presidential decrees, or disputes involving government contracts.

Under the 1971 constitution, amended in 1980, Egypt is an Arab Republic with a socialist-democratic system. The constitution states that there should be no discrimination on the grounds of race or religion. The country is divided into 26 governorates, with governors appointed by the president. There is universal suffrage with a voting age of 18.The executive power rests with the president, who is elected by universal suffrage for a six-year term (and may be re-elected), having been nominated by at least one-third of the People's Assembly and approved by at least two-thirds.The president may take emergency measures, but these must be approved by a referendum within 60 days; he may also dissolve the People's Assembly (the legislative body) prematurely, but a referendum, and elections, must be held within 60 days.

President Hosni Mubarak
Egypt's head of state, came into power in 1981, following the assassination of former president, Anwar El Sadat. Mubarak was the Commandor in Chief of the Air Force in the 1973 Arab Israeli war and his last post before assuming presidency was Vice-President to President El Sadat. President Hosni Mubarak was re-elected in September 1999 to a fourth 6-year term.

The Egyptian Constitution grants the President the authority to appoint one or more Vice Presidents, the Prime Minister, the Cabinet, and Egypt's 26 provincial governors. The president is supreme commander of the armed forces and head of the police.Mr. Mubarak does not have a vice- president, however, the constitution provides for a systematic transfer of power in the absence of an appointee, until normal elections can be held.

Cabinet Reshuffles
During 2001, some cabinet reshuffles took place starting with the appointment of Mr. Ahmed Maher as Minister of Foreign Affairs to replace Mr. Amr Moussa who was appointed as Secretary General of the Arab League. Then towards the end of the year, President Mubarak appointed new ministers for the ministries of Industry and Technological Development, Environment, State for Foreign Affairs and Planning. The Ministry of Economy and Foreign Trade was renamed as the Ministry of Foreign Trade and continued to supervise the operations of the Capital Market Authority.Political Issues Affecting Business Climate: There have been no confirmed terrorist incidents in Egypt since November 1997, attributable at least in part to the concerted, successful Egyptian Government counter-terrorist campaign. Previously, extremist groups have staged attacks on Egyptian Government officials, security forces, and tourists. While terrorist attacks do not pose a credible threat to Egypt's government, they do pose a potential threat to the business climate and Egypt's vital tourist industry. Nevertheless, terrorism has receded since the Luxor incident in November 1997 and an active security presence is evident throughout the country.

Egypt will remain an important player in diplomatic efforts to resolve the conflict between the Palestinians and Israelis. In the light of the September attacks on New York and Washington, the US is likely to exert pressure on the hard line Israeli prime minister, Ariel Sharon, and Palestinian Authority chairman, Yasser Arafat, to return to the negotiating table. Concerned that the escalation of violence may prove destabilizing for the region, Egypt will exert even greater efforts to convince the US to step up its involvement and at the same time push for an expanded role for the EU. Since the election of Sharon to the Israeli premiership, the scope for Egypt to play its traditional role of mediator has been severely reduced, with its attention turning from how to restart peace negotiations to how to prevent major retaliatory strikes on the Palestinian Territories. Should Mr. Sharon's government survive for some time, his history of involvement in atrocities against Arab civilian populations and uncompromising stance towards Palestinian demands will fan anti-Israeli sentiment within Egypt.

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