Egypt takes pivotal role in industry development

Egypt is strengthening its position not only as one of the world''s leading outsourcing destinations but also as a successful business location. Reports published by the World Economic Forum and the World Bank revealed that Egypt is becoming an increasingly competitive and growing economy. It is also proving easier for local and multinational companies to set up business operations in the country. The recent reports seem to be consistent with the positive developments taking place in the Egyptian economy. In the IFC?World Bank Doing Business 2010 report, Egypt has risen sharply from 116th to 106th in the ranking on the ease of doing business, driven by regulatory reforms that have made it easier to start and operate a business in the country. The report highlights that governments in the Middle East and Africa are reforming at a rate similar to those in Eastern Europe and Central Asia and Egypt was highlighted as one of the region''s most active reformers. Over the past five years, Egypt has implemented at least 19 reforms covering the areas measured by the report. Some of the reforms implemented include a cut in the personal tax rate from 32% to 20%; the halving of corporate tax from 42% to 20% and the simplification of tariffs. Egypt has also jumped 11 places in the World Economic Forum''s Global Competitiveness Report 2009/2010 as a result of the recent liberalisation efforts in the country. Egypt is now 70th in the rankings, up from 81st in 2008/2009. The World Economic Forum attributed the improvement in Egypt''s ranking to the upgrading of its infrastructure across all categories and to positive developments related to labour market efficiency. Attracting investment The government has improved doing business in the country. Topping the list is a decree amending customs tariffs, revising the tax law, and launching the Great Free Arab Trade Zone. Since January 2005, Investment No. 13 was issued to facilitate the procedures of investment through establishing the unified services centre, establishing the public Association of Industrial Development that is in charge of the industrial developing policies and responsible for developing the industrial areas which is tasked to attract industrial investment. Adding perks to the list is a measure reducing the prices of land. Egypt has 90 industrial areas offering privileges and incentives to investors. The areas allocated to these cities reached about 657 sq. kilometres initially in 2005 spread all over the governorates. There are seven public free zones in Egypt equipped with utilities and infrastructure. Locators to these zones enjoy the best in terms of tax incentives, privileges and guarantees. The zones are strategically located near ports where 50% of their production must be exported. The One Thousand Factories Programe, to be implemented from 2006- 2011 aims to encourage strong partnership between the private sector and the financial sector to build one thousand big factories meeting international standards or expanding the working factories. When the programme was launched, major investments started to flow into 283 factories which included 169 new projects and 114 factories that embarked on expansion. These factories were engaged in the food sector, the weaving and textiles sector, chemical industry, building materials sector, among others. Another programme, the Business Market Program, aims to finance 2000 small and overage projects in the field of industry and productive services that have the ability of quick operation. Sustainable efforts exerted by industrial sector to support the Egyptian industrial base has pushed production and quality of products to meet the global markets. The productivity capacity of a number of basic industries has increased by 25% during the past 25 years. Modernised plastics industry Having a long hNIKE AIR FORCE