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Etudes par pays volume 2, PDF, 346 p., 1,4 Mo - Femise

Etudes par pays volume 2, PDF, 346 p., 1,4 Mo - Femise

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11873_02 Study D2: Poverty, Informal Sector, Health and Labour<br />

versus the US$ fell from LE 4.62/ US$ to LE 6.2/US$ in September<br />

2003. A 35% drop in the value of the LE resulted in an increase in the<br />

CPI, which started to rise from 2% in April 2002 to 4.7% in April 2003 1 .<br />

- Investment: The government has taken various steps to ensure that the<br />

investment climate is as favorable as possible. The most important step to<br />

date is the Investment Law of 1997, which codifies and clarifies all<br />

provisions pertaining to investment in the country. The investment law of<br />

1997 allows foreign companies to have 100% ownership of Egyptian<br />

companies and provides for the repatriation of dividends. Another<br />

important feature of this law is the fact that it identifies 16 fields that<br />

benefit from investment incentives outlined in the law.<br />

- Trade: Historically, despite the volatility of the region in which Egypt is<br />

situated, trade has continued successfully. Egypt’s main trading <strong>par</strong>tners<br />

are the US, Italy, France, Greece, Germany, Britain and Japan. Major<br />

categories of goods imported are wheat, meat, flour, machinery and<br />

automobiles. Major categories of goods exported are petroleum, oil, gas,<br />

cotton and cotton textiles, metal products, chemicals (CBE, 2002). The<br />

share of exports of goods & services to GDP in current prices has<br />

declined from 29.5% in 1995 to 17.5% in 2001 (CBE, 2002). However,<br />

exports represented 45 percent of imports in 2002 com<strong>par</strong>ed to 32.7<br />

percent in 1996. Egypt is a member of several trade blocs (see<br />

Appendix).<br />

- Currency: Egyptian Pound (£E) consists of 100 piasters 2.<br />

1.3. Geography and territorial characteristics<br />

- Location: Egypt, a country in northeastern Africa, is located at the heart<br />

of the world, standing as a major trade and crossroads destination<br />

between Europe, the Middle East, Africa and west and south Asia. It<br />

occupies the north Eastern corner of Africa, bordered by Libya to the<br />

west, Sudan to the south, Palestine and Israel to the northeast. Its north<br />

1 CAPMAS, <strong>Mo</strong>nthly Bulletin for CPI, May 2003.<br />

2 1US$ = £E6.2 in 2003 (CBE).<br />

FONDAZIONE CENSIS<br />

5

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