If you are eager to do business or to invest in a foreign company, you have to be aware of some things about how is the business environment in the country you choose and how is the reality. That information is mainly related to the economy, culture, legislative and political fronts. That means before going there you have to learn more about the habits in the country and about how handling business there.
We are going to talk about Egypt, because we think it is a very interesting country both because of its status of developing country and because of its culture which is different from what we are used to. The real question is how to do business and how to negotiate in Egypt?
First of all, we will learn more about Egypt with the ID of the country, then we will take a look closer at the business environment. After that, we will talk about what to do or not to do during a negotiation and we will end with a testimony of a businessman who negotiates with the Egyptian companies.
[...] The interview Very long preliminaries with social talks about the country, the history (Pharaons), the family etc . Never talk about Islamism, Al-Quaida, Bin Laden, terrorism . The Egyptian decides when the business will start. The use of Arabs words is an asset, it shows that you made an effort for them, and he will be pleased. The rules to respect: 1. be simple 2. speak clearly 3. if you don't understand, ask for the client to repeat again 4. [...]
[...] is corruption with the police, the politicians and even religious The foreign debt: people. The foreign debt is decreasing. It went from 38%of the GNP in 2003 to The public debt: 28% of the GNP in 2005. It still remains high. It represents 66% of the GNP. OPPORTUNITIES THREATS Unemployment rate: The opponents to the new model: It is of It is not good for There is a lively political debate the country but it shows that since 2005 regarding the there are people who need to work. [...]
[...] Negotiation with Egyptians When you are about to negotiate with someone who is coming from another country and culture, the first thing to do is to get informed about how things are going on, to avoid misunderstanding. If you negotiate with Egyptians, here are the things to do: Selection of the commercial The Arabs like to personalize his relationships. So, the commercial can't change during the negotiation. He has to be serious, young or old, it doesn't matter, but Arabs have respect for the age. [...]
[...] Unemployment rate: Growth rate: - From 2000 to 2005: an average of - In 2005: - In 2006: Political data Egypt is a Republic, with a semi presidential system, led by the Constitution of 1971. The executive power belongs to the president (elected with direct universal suffrage and who name a Prime minister, head of the government), and the legislative power remains with the citizen assembly with its 454 delegates. Some 20th's century History - From 1954 to 1970: Nasser Nasser was a powerful person. [...]
[...] Business environment To understand and to anticipate better the business environment in Egypt, we will do a SWOT matrix. First of all we will see the situation of Egypt, showing its strengths and weaknesses. And then, we will try to understand in what way it is a good thing or no to go to Egypt, with the opportunities and threats. STRENGHTS WEAKNESSES Geographical position Geographical position: Egypt is a link between Africa and It is also a weakness because Asia. [...]
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