Egypt

Egypt, located in North Africa, is bordered by the Mediterranean Sea to the north, the Gaza Strip and Israel to the northeast, the Red Sea to the east, Sudan to the south, and Libya to the west. Egypt is divided into 27 governorates, with Cairo as the capital. The official language of Egypt is Arabic, and the currency is the Egyptian pound (EGP).

The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided by deserts to the east and west, allowed for the development of one of the world's greatest civilisations. A unified kingdom arose about 3200 B.C., and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty fell in 341 B.C. The native dynasties were replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the Arabic language in the 7th century. A local military caste, the Mamluks took control about 1250 and continued to govern after the conquest by the Ottoman Turks in 1517. Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914. Partially independent from the United Kingdom in 1922, Egypt acquired full sovereignty in 1952.

The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time-honoured place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to affect the economy. Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralised under previous rulers but has opened up considerably under recent leaders.

From 2004 to 2008, Cairo aggressively pursued economic reforms to attract foreign investment and facilitate gross domestic product (GDP) growth. The global financial crisis has slowed, but not stopped, the reform efforts. Growth in domestic sectors, including energy, transportation, telecommunications, retail trade, and construction kept economic growth from falling further in 2009. The government announced three separate stimulus packages between the end of 2008 and the end of 2009 totalling 6.3 billion United States dollars (USD).

Following the January Revolution, Egypt has embarked on a political transition process. The Supreme Council of the Armed Forces (SCAF) took power during the transition (interim) period. The parliamentary elections were held in November 2011, and presidential elections were finalised in June 2012. On 30 June 2012, Dr. Mohamed Morsi was sworn in as Egypt's President. 

A number of rigorous changes have subsequently occurred in Egypt's political scene. President Mohamed Morsi was ousted from power, and the constitution was suspended after the demonstrations that took place in July 2013. Mr. Adly Mansour was appointed to act as Egypt's President during the transactional period until the presidential elections held in May 2014, which saw the election of Abdel Fattah El-Sisi, who is now the Egyptian president.

The real GDP growth is at 3.7% in Q1 of the fiscal year 2023/24.

The Egyptian government introduced a package of tax reform amendments (effective 16 June 2023) affecting both multinational corporations on the international tax front and local corporations on the domestic front through the newly amended tax law to eliminate tax loopholes.

The international tax amendments are designed to keep up with the constant flow of international tax developments worldwide, which are aligned with the international best practises and the OECD BEPS package.

PwC Egypt has over 350 partners and staff and is an integral part of PwC's growing network in the Middle East region. The firm combines in-depth knowledge of the Egyptian economy, tax regulations, local business standards, and customs with extensive coverage, breadth of resources, and quality assurance. Being part of a worldwide network enables us to combine a coherent global vision with a robust local identity.