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Egypt Open for Business Explore ICT Opportunities Egypt Open for Business Explore ICT Opportunities
Egypt Open for BusinessExplore ICT Opportunities
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For almost a decade, Egypt has been conscientiously working on stayingabreast in the ICT. The Ministry of Communications and InformationTechnology (MCIT) was established in 1999 at a time when the governmentof Egypt made it a priority in its agenda to focus on the growth ofinformation technology and its applications in Egypt. Egypt has managedto leapfrog into the information age and create a comfortable climatefor investment and development.
Egypt is one of the most densely populated countries in the area andthe Egyptian ICT market is a young and growing market with greatpotential. The number of ICT companies in Egypt has increased from185 companies in 1998 to 1625 companies in 2005, an incredible increaseover seven years. However, the market is still growing and has thepotential to grow even further. The Egyptian ICT market containsenormous untapped opportunities just waiting for investors to capitalizeon.
The implementation of the WTO agreements and many other regionaland international trade agreements means that Egypt has excellentpotential as a regional exporter and provider to other markets in thearea. There are already 9.9 million fixed lines and 9.86 million mobilelines in place.
Egypt Open for BusinessExplore ICT Opportunities
WhyWhyEgypt ?
Why Egypt ?
A quick glimpse at the international investments in Egypt and their
progress presents evidence to the welcoming and growing environment
that poses a great investment opportunity. Some European businesses
are experience an annual growth in sales of 45% and are therefore keen
on continuing their efforts in such a dynamic marketplace.
Geography
Egypt has the potential for being the region’s leader in ICT. Situated in
a geographically strategic location, setup with the necessary infrastructure,
still in the growth and development phase of its market, and getting
direct attention from the government, Egypt is an attractive asset to any
investor who is interested in the Middle East and Africa (MEA).
Whether politically, legally, financially or from the business perspective,
Egypt has all the elements of an ICT industry hub in MEA. The geographic
location is a plus for any investor in the region. Having a regional office
in Egypt will facilitate transactions, transportations, and otherwise
between countries of the region, Europe, and the states.
Political Stability
Egypt has proven over history to be the most stable and tolerant nation
in the very turbulent political setup it exists in. Political harmony with
its neighbors encourages investment and has enticed other countries
to form trade relations with Egypt. Egypt manages excellent trade
relations with all its neighbors in the region and the rest of the world.
Telecom Infrastructure
Egypt has been diligently working on providing the comfortable setup
for investors in general and entrepreneurs in ICT in particular. There
has been huge improvement in the telecom infrastructure in the past
15 years making available high caliber technical staff, the necessary fa
cilities and links. Egypt has been investing in its people as well. Investors
find it easy to employ highly professional and well-trained personnel in
the area of business they are interested in. That represents a motive
as it saves them a lot of time and money. Additionally, this high quality
human resource base doe not come at a high price which is even more
encouraging.
Business Environment
Egypt is conducive to investment and business development. The setup
it provides has become encouraging and reassuring for first time investors.
The great improvement in telecom infrastructure, the availability of
technical engineering talents and calibers, and the flexible labor laws in
the country all the set the stage for a successful business venture.
Capital Availability, Human Resource
Egypt produces over 22,000 IT professionals every year who are university
graduates from technical school with fluency in two or more languages
and who have received government-sponsored human development
programs. Thus far, more than 113,0000 Egyptians have completed the
government-sponsored IT basic training program, approved by the
UNESCO.
At the end of the course, students take the UNESCO-approved
International Computer Driving License (ICDL) exam. It is worth noting
that the nature of Egypt’s population is business-oriented in the sense
that more than of the population (now 72 million) is no more than 30
years old. There are literally thousands to chose from when it some to
recruiting candidates for establishing business in Egypt.
More than 15 million young Egyptians are currently enrolled in primary,
secondary, and technical education. Meanwhile, over 265,000 university
students graduate each year, as do more than 1.1 million high school
students. Out of the total number of university graduates, 16,000
graduate each year from technical universities, with more than one third
speaking two or more languages.
Legislative Environment (Legal Base)
Egypt is constantly striving to create an environment conducive to a
thriving investment. Income and corporate taxes as well as custom
duties have been reduced dramatically. The Egyptian government has
passed several laws aiming at facilitating the road for investors in the
ICT industry. Of these laws is the investment law #8 of 1997 which
includes many incentives for investors. Another law is the intellectual
property law #82 of 2002 which guarantees punishment for violators.
The electronic signature law #15 of 2004 effectively regulates electronic
signature transactions away from all the time-consuming and energy-
wasting logistics. In 2003, the Government of Egypt issued law #12 to
regulate the relation between the company and its employees. There
is a lot of flexibility in this law to allow maneuverability for the employer.
Costs of Doing Business
Egypt is one of the lowest cost base countries to invest in. One of the
factors that added to decreasing the cost was the floating of the local
currency in January 2003. Egypt has a skilled and competitively cost-
effective human resources pool. The average pay for a programmer can
be as low as $4/hour. Additionally, the Egyptian government has reduced
investment capital needed for investing in Egypt by paying for the required
training of the Egyptian professionals according to the investor’s
requirements. This immediately adds to the investor’s bottom line; hence
providing higher returns on invested capital.
WhereEgypt ?
Where
Where Egypt ?
The Smart Village is a true paradigm shift in doing business in Egypt.
Investors need only visit the village and all processes will be explained
and facilitated. The Smart Village is located on the outskirts of Cairo
right before the Cairo toll station on the Cairo-Alexandria Desert Road.
More information on the village will follow in the ‘How Egypt?’ section
of this flyer.
Egypt is geographically well-positioned to serve the less mature European
market and to draw on its European language skills. Offshore call centers
are estimated to grow at roughly double the global growth rate of 14%.
Egypt has a number of existing call center precedents, including: Xceed,
Raya, Orascom, Ecco and C3. Egypt has many strengths to attract call
centers with its multilingual language capabilities and strong telecom
infrastructure as well as having a time zone advantage.
Some of Egypt’s call centers include:
• Xceed
• Raya
• Orascom
• Ecco
• C3
Investors can rest assured that all their technical needs can be met
within Egypt. Egypt enjoys the highest global market share in Technical
Support Centers; a share that is almost twice the size suggested by its
share of emerging markets GDP. Egypt has a number of important
precedents in this sector, including Oracle, Alcatel, Equant, Huawei and
Avaya. Investors are welcome to take advantage of this service to ensure
a state-of-the-art company network, links with important organizations,
compatibility and accessibility to technologies within the countries,
facilitation of any procedures in this area, and troubleshooting support.
On the other hand, investors will find it quite rewarding when establishing
technical support centers within Egypt. Egypt has lead engineering
university programs in the Mid-East region and is considered a source
of engineers. Add to that the multilingual capabilities edge and the strong
presence in the telecom sector. The wages in IT are very competitive
and the telecom infrastructure is very strong.
Egypt boasts some world-class R&D/Engineering output and, compared
to some other offshore services, has a relatively larger share of the
global offshore market. This subsector is projected to grow at roughly
10% above the global growth rate of 27%. Egypt has some strong
precedents in this sector, including: Mentor Graphics, SysDSoft and RDI.
Egypt is building on its existing good reputation for engineering skills
to capitalize on this high-value added sector.
HowEgypt ?
How
How Egypt ?
The Government of Egypt has facilitated the umbrella under which
investors in ICT can easily maneuver their businesses. Unlike the past,
the investor does ‘one-stop shopping’ to get everything done and start
the business without a lot of time invested in procedures or in establishing
the business. The Smart Village, on the outskirts of Cairo, is a massive-
scale, high-tech zone that aims at being the all-round business district
of the region. The Smart Village includes several multinational giants
which encouraged many companies to move there and take advantage
of the technology oriented setup.
The Smart Village lies on 450 acres of land. It now includes prominent
companies such as Microsoft, Alcatel, and Vodafone in addition to a large
scale call center, Xceed which has capacity for 2000 agents serving 12
countries. The facilities in the Smart Village make it a safe haven for the
investor. The village includes a gigantic conference center, a public library,
and exhibition hall, a hotel, a health center, a day care center, and full-
fledged emergency services. The Smart Village includes an entire financial
district dedicated to financial institutions, banks, and stockbrokers such
as the Capital Market Authority and Misr for Clearing, Settlement, and
Depository.
The Smart Village is setup with the highest ICT infrastructure available
including high speed network, VPN connections. The Smart village has
state-of-the-art technologies such as Cable TV, videoconferencing system,
power network that meets international standards and codes of practice,
as well as uninterrupted power supply and standby generators.
Egypt's core infrastructure is based on optical fiber 10 Gbps and 2.5
Gbps rings. This huge infrastructure is the fundamental layer that connects
and delivers services over PSTN, mobile and packet-based networks
across the country, in addition to class 4 switches in Cairo and Alexandria
respectively. This nationwide optical core has been expanded not only
to accommodate the increasing demand in voice and mobile services,
but also to allow for full-fledged IP backbones to be built that absorb
the exponential growth in data and internet traffic.
The following are the regional and international telecommunications
links facilitate operations between Egypt and the rest of the world:
SEA-ME-WE: This is the first submarine cable to pass between
South East Asia, the Middle East and Western Europe.
SEA-ME-WE-II: is a second cable along the same route, but serves
more countries and uses digital fiber optic technology.
EA-ME-WE-III: a third cable along the same route with extended
coverage from Europe to Japan, Australia, and elsewhere in East Asia.
The FLAG Project (Fiber Optic Link around the Globe):
Egypt is a part of this world-wide project.
There is a submarine cable shared with Italy and Greece
A submarine fiber optic cable shared with Sudan.
Regional microwave links to Libya and Jordan.
Telecom Egypt (TE) satellite earth station with multiple connections
to Intelsat, Inmarsat, and Arabsat.
Government Incentive Packages
The Egyptian government offers a generous incentives package to each
investor as it values investments in business. The government works in
partnership with each investor to customize an incentives package to
cater to the investor's needs. Examples of these incentives include:
The Egyptian government offers special tax exemptions and reductions
for ICT industries.
There are special reductions on land prices for investors in the ICT
sector.
Easing of export and import regulations.
The Egyptian government offers training programs for professionals
in the ICT industry that investors intend to recruit. The government
offers training in IT, communications and networks according to
investors' standards and specifications. These training programs are
often offered at the government's expense.
The Egyptian government assigns a government official to facilitate
interaction with government organizations.
Egypt is on its way to becoming the ICT industry hub in the Middle East
and North Africa. Egypt is indispensable when it comes to working in
the Middle East or Africa. Businesses that without working in Egypt,
many opportunities are lost and many processes are more complicated.
The strong dynamic Egyptian marketplace provides potential for successful
business.
For more information, please contact:
Egypt @ ITU World Telecom Exhibition
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BiosBios EgyptianDelegation-
Dr. Tarek Kamel was Senior Advisor to the Minister of Communicationsand Information Technology for five years before himself being appointedMinister. During this time he spearheaded a number of national initiativesto spread the use of ICT tools amongst segments of Egyptian society.Currently, the Minister is known for his visionary strategy to drive PublicPrivate Partnership initiatives to develop Egypt's ICT sector, leadingEgypt into the global Information Society.
He began his career as a networks support engineer for the Academyof Technology and Scientific Research, and swiftly moved on to becomingan assistant researcher at the Electronics Research Institute. Uponwinning a fellowship for PhD studies from the German AcademicExchange (DAAD) for the period 1989 to 1992, he was then appointedmanager of the Communications and Networking Department and theCabinet Information and Decision Support Centre (IDSC/RITSEC).During this time he was also made Secretary of the Egyptian InternetSociety and a Professor of Computer Networks at the ElectronicsResearch Institute. In May 1999 he became Vice President of these twoorganisations, and three years later a Trustee of the Internet Society(ISOC), Virginia. Dr Kamel has served on the Board of Telecom Egyptsince 2000 where he has played a pivotal role for four years.
Now, as well as being Minister of Communications and InformationTechnology in Prime Minister Dr. Ahmed Nazif’s Cabinet, he is Chairmanof the National Telecom Regulatory Authority, and Chairman of theInformation Technology Industry Development Authority.
Dr. Tarek KamelMinister of Communications and Information Technology
As adviser to the minister of communications and information technologyon business development, Ms. Zeinab Zaki is involved in the international“branding” of Egypt, promoting awareness through marketing, exhibitions,conferences, the Internet and other activities with the aim of positioningEgypt as a regional ICT hub. Her formidable leadership, communicationand management skills have enabled her to build and maintain strongrelationships with multinational companies in Egypt, such as Microsoft,Intel, Oracle and IBM, and to secure their increasing investment in thecountry. The direct result has been an increase in technology transferto Egypt and the creation of new job opportunities.
Ms. Zaki develops and oversees the implementation of strategies andinitiatives supporting export-oriented ICT niches and strengthening thepresence and operations of ICT multinationals in Egypt. By formulatingopportunities, initiatives and incentives to attract international investorsto the country, she has succeeded in increasing ICT investment in thelocal market.
She was responsible, together with Microsoft Egypt, for the first visit ofMicrosoft CEO Mr. Bill Gates to Egypt and the Middle East, and has beeninvolved in directing a further visit for him to review ICT developmentin Egypt and the company’s role in the country. Ms. Zaki also played akey role in bringing other eminent heads of industry to Egypt, such asCraig Barrett (Intel), John Chambers (Cisco) and Carl-Henric Svanberg(Ericsson).
Her leadership skills were instrumental in Egypt’s participation in themeetings of the World Economic Forum in Davos 2005, Dead Sea 2005and Sharm Al Sheikh 2006. Ms. Zaki was also heavily involved in Egypt’srecent participation in the two phases of the World Summit on the
Zeinab ZakiAdviser to the Minister of Communications andInformation Technology on Business Development
Information Society, part of the country’s commitment to achieve itsobjectives towards the Millennium Declaration Goals. Her expertise isbehind the successful promotion of Egypt as a regional ICT hub atnumerous conferences and exhibitions, such as ITU World 2003, AfricaTelecom 2004, and CeBIT 2004, 2005 and 2006. She has also initiated“matchmaking” visits abroad to promote cooperation and open businessleads for Egyptian companies, particularly in the UK. Ms. Zaki’s profoundinput in the minister’s visits to the US, UK and France over the last fouryears has been invaluable.
Ms. Zaki began her professional life in 1990 as a dealer in the ForeignExchange Department of Alexandria Kuwait International Bank. In 1993,she became assistant to the executive manager at the Egyptian Cabinet’sInformation and Decision Support Center (IDSC), where, in 1996, shewas promoted to manuscripts project manager, a position she held fortwo years. During her time with the IDSC, Ms. Zaki played a major rolein the development of the Dar Al Kutub manuscripts library, was involvedin the inauguration of Zeinab Khatoun house by Mrs. Suzanne Mubarak,and prepared documentation for the Middle East and North Africasummits in 1994 and 1995. In the same period, she was also a projectmanager for UNESCO’s Memory of the World Program.
From October 1998 to February 2000, Ms Zaki worked as businessdevelopment unit manager for Legislation and Development InformationSystems (LADIS), before joining MCIT in 2000 as decision support unitmanager. The following year, she took the position of business developmentmanager for the ministry, where her professionalism, determination andin-depth knowledge of the ICT sector singled her out for promotionto her current position.
Ms. Zaki obtained an MBA in information technology and managementfrom the Maastricht School of Management in the Netherlands in 1995and a Bachelor’s degree in economics and political sciences from CairoUniversity in 1990.
Amr Hashem is the Minister’s Advisor for Communication Policies,
Egyptian Ministry of Communications & Information Technology. He
participated in formulating the Telecommunication Master Plan for the
development of the Egyptian telecommunications sector for the period
2000-2004. He also participated in setting up the framework for regulation
of new services and licensing information infrastructure providers in
Egypt. He is a member of the Egyptian National Committee for Trade
in Services and National Committee for Trade and Transport Facilitation.
Hashem headed the team that prepared for the negotiations with the
WTO for joining the Basic Telecom Agreement, Information Technology
Agreement and Computer Related Services. He represents Egypt in
conferences and forums dealing with telecommunications protocols and
standards, investment and trade policy, and regulatory and economical
aspect of telecommunications technologies
Amr Hashem has been appointed in August 2004 as a non-executive
board member o f the s ta te owned Te lecom Eg ypt
(www.telecomegypt.com.eg) representing the public capital as well as
a board member and a member of the Investment Committee of the
Technology Development Fund, a public private partnership to establish
the first venture capital fund in Egypt (www.techdevfund.com ). Amr
Hashem was a member of the team that coordinated the national and
international IPO of Telecom Egypt through Cairo and London Stock
Exchanges in December 2005.
Amr HashemAdvisor to the Minister for Communication Policies
Amr Hashem contributed to and participated in a number of seminars
and training workshops organized by the WB, EU, USAID, WTO and
other prestigious institutions in issues related to ICT technologies,
policies and regulation. He has authored and co-authored a number of
articles and papers about ICT developments in Egypt, Africa and the
Middle East.
Amr Hashem is a NFP fellow and holder of Masters of Business
Administration degree from the Maastricht School of Management,
Netherlands, with the focus of Strategy and Economic Policy. He is also
a holder of Bachelor of Science degree in Communications and Electro-
physics from Alexandria University, Egypt with Honors.
His research interests include strategic management of ICT, economics
of ICT, impact of new developments in ICT on policy and regulatory
frameworks, socio-economic impact of ICT and international trade in
ICT.
Dr. Amr Badawy is currently the executive president of Egypt’s National
Telecommunication Regulatory Authority, the regulatory body for the
telecom sector in Egypt, and a professor of electronics at Cairo University.
Dr. Badawy was previously senior adviser to the minister of
communications and information technology, responsible for promoting
development of the telecom sector through policy development and
provision of support to all telecom-related entities, including carriers,
ISPs, vendors, etc.
He joined MCIT after a nine-year tenure with GTE & General Dynamics,
where he held the positions of manager and director for various telecom
sector support and ICT programs in Egypt. Before this, he founded
Telecomp International in Egypt in 1990, lectured at Cairo University,
was a telecom consultant for several government and private entities
between 1987 and 1995, and worked as a development and system
engineer at Aydin Systems, California, from 1984 to 1987.
Dr. Badawy received his Ph.D. in electrical engineering from Stanford
University, California, in 1986 and holds B.Sc. and M.Sc. degrees in
electronics engineering from Cairo University.
Amr BadawyThe Executive President of Egypt’s NationalTelecommunication Regulatory Authority
Director of International Policies Department at the National
Telecommunications Regulatory Authority (NTRA)
Nermine El Saadany is currently the Director of International Policies
Department at the National Telecommunications Regulatory Authority
(NTRA).
She is coordinating the positioning of NTRA in the international arena,
and the cooperation between NTRA and other regulators and
international organisations. Ms. El Saadany started her career as
a researcher in economics, where she conducted extensive analysis of
national and international related events dealing with economic problems
and their impact on political bodies and decision-making
processes.
Throughout her position as editor of the economics section at Al Siyassa
Al Dawliya (International Politics Journal), which is one of the most
prestigious and reliable periodicals in the field of international relations
in the Middle East, she gained extensive experience in the area of research
and analysis.
Her experience at the journal was also broadened to website management
as Managing Internet Editor.
Nermine El SaadanyDirector of International Policies Department at the NationalTelecommunications Regulatory Authority(NTRA)
Her next position, at the Ministry of Communications and Information
Technology (MCIT), was as a Unit Manager in the International Relations
Department. This allowed her to gain experience in handling relationships
with specialised agencies, drafting strategic goals and objectives, and
assisting in achieving them. Her career has so far been diverse to include
the following:
Acting as the Master of ITU Telecom Africa in 2004 for all operations
within Cairo and outside Egypt, and also as liaison officer with ITU
headquarters in Geneva.
Acting as the ITU Telecom Department focal point in the World Telecom
in Geneva, October 2003.
Responsible for the ‘e-message’ sent by President Hosni Mubarak to
invite the world to ITU Telecom Africa in 2004, which was delivered
during the first phase of the World Summit for Information Society
(WSIS) in Geneva, December 2003.
Ms. El Saadany holds an MA in Economics, from the American University
in Cairo, and a BA in Business Administration from the Sadaat Academy
in Cairo.
Dr. Ahmed El-Sherbini is director of Egypt’s National TelecommunicationInstitute (NTI), affiliated to the Ministry of Communications andInformation Technology. He is also a professor in the Electrical andCommunication Engineering Department of Cairo University’s Facultyof Engineering and vice chairman of the International TelecommunicationUnion (ITU)’s Telecommunication Development Advisory Group. He haspreviously held the positions of cultural counselor and director of theEducational Bureau of the Egyptian Embassy in Canada and vice chairmanof Study Group 2 for the ITU’s Development Sector (ITU-D).
Dr. El-Sherbini is a board member of Egypt’s National TelecommunicationRegulatory Authority (NTRA), a member of the Senior TechnicalCommittee of the Engineers General Syndicate, a board member of theCommunication Engineers Scientific Society, a former board memberof the Egyptian High-Tech Association, a former chairman of studentactivities at the IEEE’s Egypt Section, a founding member and formerpresident of Cairo River Nile Rotary Club, and a founding member ofthe Egyptian Internet Society.
Dr. El-Sherbini has edited and co-authored 13 books on ICT-relatedtopics and published more than 80 scientific research papers in periodicalsand local, regional and international conferences. His honors include theFirst Degree Medal of Excellence from the President of Egypt in 1995,the Cairo University Appreciation Award in 1989 and the Egyptian StateAward in Engineering Science in 1987.
He obtained a Ph.D. in electrical and communication engineering fromCase Western University, USA, in 1983 and an M.Sc. in communicationengineering from Cairo University in 1980.
Ahmed M. El-Sherbinidirector of Egypt’s National Telecommunication Institute(NTI), affiliated to the Ministry of Communications andInformation Technology
Mr. Hatem Helmy is media consultant for Egypt’s Cabinet of Ministers.
In this position, which he has held since July 2004, he handles all media
activities for the prime minister and other senior staff and is responsible
for development of media relations with local, regional and international
publications and television.
He has previously worked as a senior media officer for Egypt’s Ministry
of Communications and Information Technology (November 2000 to
July 2004); Middle East regional press and communication manager for
Alcatel Egypt (April to December 2000); deputy managing director
marketing and advertising for October magazine (1994-2000); client
service director, October magazine (1992-94); marketing and advertising
sales manager for Computer magazine (1985-92); project manager,
Computer magazine (1984-85); and media sales representative, October
magazine (1980-84).
During his career, Mr. Helmy has contributed to the success of numerous
seminars, trade exhibitions and product launches. He has published
articles on a number of topics and in 1985 established Egypt’s first
computer magazine. In 1988, he organized the first computer exhibition
in Egypt, in cooperation with American Express and the Foreign
Commercial Service of the US Embassy in Cairo.
Mr. Helmy received his Bachelor of Commerce, accounting major, from
Ain Shams University, Cairo, in 1977.
Hatem HelmyMedia Consultant for Egypt’s Cabinet of Ministers
NTRANTRA
“To encourage national and international investment… within freecompetition rules is, by law, by outlook and by aptitude, the core missionof NTRA”
Dr. Amr BadawyNTRA Executive President
Regulatory Framework
With the ratification of Telecom Act 10/2003 the NationalTelecommunication Regulatory Authority (NTRA) was awarded a newmandate and a more empowered presence within Egypt’s telecom sector.Five years earlier, the NTRA had been born as a fledgling institutioneager to lead the sector along the path of regulatory reform. It is nowa robust and versatile institution with the maturity and aptness requiredto set and enforce the right policies at the right pace.
Mission Statement
The ideal commanding the activities of the NTRA is for it to becomean active pace-setter within the telecom sector, building the capacityand reputation that allows it to be an independent and prudent arbiteramong the different stakeholders: the industry, the state and the consumer.
National TelecommunicationRegulatory Authority - NTRA
Investment Opportunities
Liberalization
In 1991, the Egyptian government instituted an Economic Reform Program
that has successfully transformed Egypt into a prosperous emerging
market. The program was launched to achieve more deregulation in
various economic sectors, spearheaded by the telecom sector. Its
implementation brought about a set of economic policies targeting
growth and employment creation, at the same time decreasing
centralization and public sector domination of the economy. Today, there
is universal recognition that Egypt has become one of the most stable
emerging markets.
In 1998, Egypt took the first steps towards liberalizing its
telecommunication sector, restructuring the legal entity of Telecom Egypt
(TE) to a state-owned joint stock company and establishing an independent
regulatory authority by virtue of Law 19/1998 and Presidential Decree
10/1998.
In the same year, the Egyptian regulator granted two mobile licenses in
order to pave the way for more liberalization and enhance market forces.
In 1999, the Ministry of Communications and Information Technology
(MCIT) was established with the goal of developing and implementing
a complete strategy for the ICT sector in Egypt with strategic objectives
to establish an information-based society and turn the country into a
regional ICT hub.
To this end, MCIT sought to comply with international standards, enhance
development, promote liberalization and grasp investment opportunities.
This liberalization process became a national goal adopted in line with
the general strategy of liberalizing Egypt’s economy to sustain a significant
position within a global market economy streamlined through the
framework of World Trade Organization (WTO) regulations and
worldwide best market practices.
As one of the founding members of the WTO, Egypt was an early
signatory of GATS. In 2002, it voluntarily acceded to the Basic
Telecommunications Agreement (BTA), thereby committing itself to
dismantling the governmental monopoly on the provision of
telecommunication services.
Egypt’s international obligations have been reaffirmed through the
promulgation of the Telecom Act of 2003 (Law 10/2003), which further
empowered the independent NTRA and set definite timelines for
liberalizing basic telecom services. The act outlines the provisions by
which Egypt pledges to safeguard the publication of information, the
protection of free competition, the provision of universal service and
the protection of consumer rights. It also sets the rules for licensing
new service providers and allocating frequency spectrum bands.
The Telecom Act is a milestone in the course of the liberalization of
Egypt’s economy in general. Other important new laws include Investment
Law 13/2004, E-Signature Law 15/2004, and the Antitrust and Competition
Law passed by parliament in January 2005. The chief benefits of liberalizing
the market are:
• Improved access to information and communication infrastructure
and technologies
• Promotion of international and regional cooperation through the
encouragement of foreign direct investment
• Encouragement of the design and production of affordable and easily
accessible ICT equipment and services
• Support of research and development of new technology-based
services for the benefit of all stakeholders
• Promotion of the benefits of international trade and the use of e-
business models in developing countries and countries with economies
in transition
• Encouragement of the development of local content and software
specific to the needs of local communities
Competition in fixed line services
In 2005, in accordance with the Telecom Law, the NTRA eliminated the
monopoly in fixed telephony. Starting 2006, the provision of fixed line
services is open to new market entrants, and the resale of Telecom
Egypt’s domestic service is allowed.
At the end of 2005, TE sold 20% of its shares, and may continue the
privatization up to 49% of its shares in subsequent stages. Among the
conditions set by the NTRA is that all licensees must be companies
registered in Egypt, and all must train local human resources.
As for international voice services, the NTRA has initiated liberalization
of Egypt’s international gateways, and the resale of TE’s international
voice and data services has been allowed.
Competition in mobile services
Until 2006, the NTRA had granted two mobile licenses. In February
2006, the authority issued a request for proposals for a third mobile
network in Egypt, with the aim of eliminating the existing duopoly and
increasing market competition. Eleven consortia of international companies
with Egyptian partners applied for the third network, which is permitted
to employ both second- and third-generation technology.
The NTRA formed a high-level committee to conduct the technical
evaluation of bids, composed of experts from the NTRA, the Ministry
of Investment and Finance, administrative control agencies, academia
and the State Council.
For a consortium to advance to the financial bidding process, it had to
receive a minimum score of 700 out of 1,000 for its technical proposals,
and all scores had to be no less than 85% of the highest technical grade
awarded.
The process concluded with the licensing of the third mobile network
to the consortium led by Etisalat of the United Arab Emirates, with
Egypt Post, National Bank of Egypt and Commercial International Bank
(CIB), which offered the highest bid, EGP 16.7 bi l l ion.
The network is scheduled to start operating by the end of the first
quarter of 2007. National roaming and number portability will give the
third operator a fair chance within the market.
VoIP
The NTRA has already developed rules and procedures for the licensing
of Voice over Internet Protocol (VoIP) services following detailed
consultation and discussion over policies, regulations and technical issues.
With the liberalization of international gateways by the end of this year,
it is expected that many companies will be attracted to the prospects
of investing in international VoIP services within the Egyptian market.
Convergence
With 3G networks in mind, the NTRA and the Ministry of Information
are studying media-telecommunications convergence. It is expected in
the near future that the NTRA will establish licensing policies to enable
cable TV companies to offer converged services ranging from video on
demand to broadband access, and perhaps voice telephony at a later
stage.
Payphones
Payphone services were opened to competition in 1998, and there are
currently three providers in this market including Telecom Egypt. As
part of the NTRA’s national Universal Service Plan there are still more
opportunities for expansion in this market segment.
www.tra.gov.eg
TelecomTelecomEgypt
Telecom Egypt (TE) is the oldest and largest telecommunications serviceprovider in the Middle East and Africa region. For more than 150 years,TE has served the Egyptian market, during which time subscriber numbershave grown to over 10.5 million – the largest number of fixed linesubscribers in the Middle East.
In 1998, TE began a process of corporate restructuring to become aprivate company fully owned by the state. A very proud moment for thecompany took place in December 2005 when 20% of its shares weresold by the Egyptian government, represented by the Ministry ofCommunications and Information Technology, to retail and institutionalinvestors across Egypt, the Middle East and internationally.TE recently commenced a regional expansion strategy targeting diverseopportunities. It took its first small steps with moves into Algeria andJordan, and has since participated in multiple tenders in countries acrossthe region.
TE offers integrated solutions for residential and business customersemploying the latest technologies to satisfy the market’s expandingtelecommunication needs. Through a carefully planned investment strategy,TE has created a total communication network able to meet customers’needs now and in the future.
TE believes that the ultimate customer experience will only be deliverablewhen each and every customer is considered to be at the core of thecompany and the focus of each and every employee. By looking at allaspects of operations and service provision from the customer’sperspective, TE aims to put this into practice, ensuring customersatisfaction and loyalty by listening, anticipating and responding to marketneeds.
http://www.telecomegypt.com.eg
Telecom Egypt
Smart VillageSmart Village
Located on the outskirts of Cairo, only 20 minutes away from the centraldowntown district, Smart Village, a 450-acre high-tech business parkwith state-of-the-art infrastructure, demonstrates the vision for thedevelopment of the information and communications technology (ICT)sector in Egypt.
It is a perfect example of a successful public-private partnership, combiningthe commitment and support of government with the business flare ofprivate ventures.
Smart Village is a center of excellence, offering a dynamic, purpose-builtenvironment with state-of-the-art facilities – benefiting from the wealthof human resources available in Egypt – for government, ICT policymakers and regulators, civil society organizations dependent on ICT,Egyptian and multinational companies, and telecom operators. It alsoprovides incubation facilities to Egyptian SMEs and entrepreneurs.
The project is fast becoming the hub of Egypt’s first financial district andwill host the Capital Market Authority, the Cairo & Alexandria StockExchanges (CASE), the Arab Common Stock Exchange as well as anumber of Egyptian and multinational banks and finance and insurancecompanies.
Upon completion of the final phase, there 67 office plots, providing spacefor approximately 30,000 employees.
Smart Village offers all companies operating in the ICT sector theopportunity to rent, lease or buy office space. Firms can also buy landand build their own offices in accordance with the architectural standardsof the village.
Dr. Ali Hefnawyhttp : / /www.smar t -v i l l ages .com/
Smart Village
Project Strengths:
Public Infrastructure
• Conference and Exhibition Center• Business Center and Information Center• Press Center and Public Electronic Library• Business Hotel and Apartments• Commercial Center and Restaurants• Gymnasium, Sports and Heath Center• Recreational Facilities
Smart Investment Climate
New Urban Community Law:
• Unrestricted ownership of investment capital by local and foreign investors
• Right to freely transfer funds in and out of the country, including unlimited profit repatriation and invested capital re-exportation
• Right to operate on behalf of third parties• Foreigners’ right to acquire and own land and real estate• No price controls or profit ceilings• 10-year tax exemption on distributed profits• Guarantees for project assets and funds• Entitlement for immediate export and import
Smart Infrastructure
• High Speed, Broadband, Fiber Optic Data, Voice and Video Networks• Internet and Voice over IP Connectivity Readily Available• Cable TV and Video Conferencing System• International Standards Compliant• Uninterrupted power supplies
• Central Air Conditioning/Chiller plant• Firefighting Water Reservoir• Water and Sewage Facilities
Smart Business Services
• Administrative, Legal and Financial Services• Courier, Postal and Custom Clearance Services• Printing, Publishing and Translation Services• Security, Cleaning and Transportation Services
The Company
A fully Egyptian company incorporated under Investment Law 8 of 1997with a powerful shareholder base and highly competent managementto oversee the development and management of technology parks inan efficient and profitable manner.
Main Shareholders
• AA Technologies• Abd El Rahman El Sawy• Abd El Wahab Tawfik• Abdel Rahman El Husseini• Akram Farag• Al Ahram for Investment• Alaa El Shafei• Ali El Hefnawy• Amr Abou Allam• Arab Contractors for Utilities & Operation Maintenance
& Services Co.• Arab Contractors Insurance Fund• Ashraf Marawan• Banque Misr• Bayanat• Egyptian Housing Company
• Egyptian Networks Co.• Ehab Yousef• Engineering Consultants Group• Gamal Moharam• Green Valley for Investment & Development• Hassan Allam & Sons Co.• Hassan Salama• Ismail Mashour• IT Invest• Link Egypt• Magdy Bayoumy• MIC• Middle East News Agency• Ministry of Communications & Information Technology• Mohamed Nassar• Orascom Telecom• Projects & Advanced Systems Co.• Raya Holding• RSE• Samir Aly• Samir Hassan• Samira Al Maysawey• SODIC• Soficom• Suez Canal Insurance• Tammima United Co.• Tarek Abu Alam• Tarek Hemeily• Technoram Holding• TN Holding• United Communication• United Egyptian Bank• Walid Tawfik• Youssef El Far
www.smart-villages.com
General Authority for Investment and Free Zones
GAFIGAFIEgypt
GAFI is Egypt’s “One-Stop Shop” for investment, easing the way forinvestors worldwide to take advantage of the opportunities of thispromising emerging market.
Investment opportunities exist in various sectors of the Egyptian economy,particularly those oriented towards export. GAFI is the primarygovernmental authority concerned with regulating and facilitatinginvestment in the country, and stands ready to assist investors. ServicesGAFI provides range from company registration to site location topartner identification to contracts and licenses acquisition. These servicesare provided at no cost to the investor.
Egypt offers many important advantages to private investmentprojects, domestic and foreign, in all activities:
• Well-established and accessible ports on both the Mediterranean andRed seas, in addition to the Suez Canal and a network of airports,mean Egypt is fully integrated with the rest of the world
• Acknowledgement and praise of Egypt’s economic performance frominternational organizations has made the country one of the mostfavorable locations for long-term investment
• Availability of highly trained and skilled labor at competitive wagerates
• An efficient banking system and a dynamic and growing stock market
• Political and social stability
http://www.gafi.gov.eg/docs/profile.htm
General Authority for Investmentand Free Zones
• A thriving business environment and strong government support forprivate sector initiatives
• Developed infrastructure and utilities, including comprehensive andintegrated transportation and communication networksGAFI assists investors in a variety of ways, acting on their behalf indealings with related governmental agencies to provide the following:
• Procurement on behalf of investors of all licenses required for projectestablishment and operation, e.g. notarization of deeds and residenceand work permits
• Assistance for investors in site selection and land acquisition – whetherfor agricultural, industrial or tourism-related activities
• Certification of production commencement dates
• Assistance for investors seeking to take full advantage of tax holidaysgranted according to location
Incentives and Exemptions:
1- Capital assets are exempted from custom duties and all importprocedures (all articles, supplies, machinery and necessary means oftransport, except passenger cars)
2- Imports and exports are exempted from custom duties, salestaxes, other taxes and duties, and all import procedures prevailing inEgypt
3- Free zone projects and dividends earned are not subject toprovisions of tax and duty laws prevailing in Egypt throughout the lifetimeof the project
4- Domestic components exempt from custom duties for goodsexported to domestic and local markets
5- Trade in transit goods with fixed destinations exempted fromannual duties on the value of goods entering and leaving free zones
6- Local market imports exempt from sales tax
For more information, contact the Investor Services Sector:Tel/Fax : (20-2) 391-0290or the Current Awareness Unit:Tel/Fax : (20-2) 393-1955Tel : (20-2) 394-1134
E-mail : [email protected]
http://www.gafinet.org
World Telecom Exhibition Map
ITUITU
Egypt’s StandHall 8 - Stand 10126
Egypt’s Stand
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Egypt @ ITU World Telecom Forum
The ITU Youth Forum, just one of the activities in which Egypt is involvedat ITU Telecom World 2006 in Hong Kong, is a unique and successfulinitiative that focuses on information and communication technology(ICT) as a tool for social and economic development. Created by theITU in 2001, the Youth Forum has built itself an outstanding reputationfor knowledge sharing and has been a regular feature at ITU eventssince its launch at ITU Telecom Africa 2001.
The Youth Forum offers both a regional and global platform in which allITU member states can participate. It provides a space where ideas canbe developed, analyzed, evaluated and disseminated. Since 2001, youngpeople have discussed topics ranging from “enabling technologies andtheir applications” to “policy and regulation” and “finance and business”.
In addition, the Youth Forum enhances synergies between governments,the private sector, universities and higher institutions of learning for thegreater benefit of all.
At the Hong Kong forum, Egypt will be represented by two youth fellowswhose awareness of the challenges and opportunities of ICT qualifythem to present the status and achievements of Egypt in this sector toyouth from around the world. During discussions and workshops allparticipants will have the opportunity to express their own interests,hopes and ambitions as well as those of their countries.
At ITU World 2006, the Youth Forum will cover three major topics:Using ICTs to Bridge the Digital Divide, Using ICTs to FosterSocioeconomic Development, and Implications of the Digital Society.Participants will then attend two further sessions: one to prepare aYouth Declaration based on their aspirations and recommendations,and another offering the possibility to attend a workshop on developinga business plan.
Youth Forum
Culturama
Cultur
ama
Introduction:
Egypt’s unique heritage is of worldwide interest and importance due toits continuity over a period of more than 5,000 years. It encompassesvarious aspects of human civilization, has played a major role in thedevelopment of human heritage, and represents a cultural as well asnatural treasure of national and international value.
Given the significance of this heritage it was only fitting that a body beestablished to protect and promote it. This is precisely the goal of theEgyptian Center for Documentation of Cultural and Natural Heritage(CULTNAT), which is affiliated to Bibliotheca Alexandrina and supportedby the Ministry of Communications and Information Technology (MCIT).
The center’s mandate is to document the various aspects of Egypt'stangible and intangible cultural heritage as well as its natural heritage.This involves the implementation of a national plan of action for heritagedocumentation, making use of the most up-to-date information technologyin collaboration with specialized national and international organizations.
The center also aims to increase public awareness of Egypt’s culturaland natural heritage using all available media and to expand the capacitiesof professionals in the field of conservation and documentation ofcultural and natural heritage. CULTNAT’s current ongoing programs arethe Archeological Map of Egypt, Egyptian Architectural Heritage, NaturalHeritage, Arts, Photography, Scientific Islamic Manuscripts, and EternalEgypt on the web.
Egyptian Center for Documentationof Cultural and Natural Heritage(CULTNAT)
Recognition of CULTNAT’s success in applying information technologyto the field of cultural and natural heritage documentation came withits first international award, the Stockholm Challenge Award 2004 inthe field of culture, which was accepted by the center’s director, Dr.Fathi Saleh, for the “Archeological Map of Egypt” project.
Subsequent awards include:
• The World Summit Award (WSA) November 2005 for CULTNAT’sunique trilingual portal, Eternal Egypt – www.eternalegypt.org – whichprovides a host of multimedia means for people around the worldto learn more about Egypt. The portal was one of 40 winners selectedfrom 750 products from 168 countries competing for best e-contentin the culture category.
• Best Innovative or Experimental Application April 2005: Eternal Egyptwas also recognized in the Best Innovative or Experimental Applicationcategory at the Ninth Annual International Conference for Cultureand Heritage Online: Museums and the Web in Vancouver, Canada.
CULTURAMA
CULTURAMA, abbreviated from Cultural Panorama, is CULTNAT’s fullyinteractive multimedia program for presenting Egypt’s cultural and naturalheritage. CULTURAMA takes its audience on virtual journeys throughthe different eras of Egyptian civilization, starting with the Pharaonicperiod, passing through the Coptic and Islamic, and ending with themodern era.
Using a semicircular nine-screen panoramic display with resolution of7,200 x 600 pixels, CULTURAMA presents a wide range of informationthat would be difficult to deliver using a standard computer display with
resolution of 800 x 600 pixels. The low resolution was chosen byCULTNAT’s multimedia team to achieve the best utilization of memoryfor multimedia production.
A world-class immersive display system, CULTURAMA is ideal fordisplaying large scenes that are not served well by regular display systems,such as panoramic images for example. As multimedia applications fordisplay on multiple screens differ dramatically from those designed forsingle monitors, the CULTNAT team has developed special softwaretechniques to facilitate the development, testing and display of multi-screen applications.
CULTNAT currently has four CULTURAMA sets, three of which are atfixed locations – the center’s Smart Village premises, Bibliotheca Alexandrinaand the Ministry of Communications and Information Technology (MCIT)– while a fourth, portable set is used at local and international conferencesand exhibitions.
CULTURAMA, which is currently available in Arabic, English and French,has made a successful impression at numerous international events,including the Frankfurt International Book Fair in October 2004, anexhibition at the Arab World Institute in Paris in January 2005, and theWorld Summit on the Information Society (WSIS) in Tunisia in November2006.
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