Egypt is the second largest populated country in the Middle East with 75 million people. Even though Egypt experienced the global economic crisis like the United States, it did not strongly affect the economic growth. Egypt made significant growth, steady progress and exports even tripled from 9 billion to 25 billion.
Further more, Egypt’s foreign investments considerably increased from 4 billion to 11 billion and even unemployment fell.As a result of the global slowdown one of Egypt’s main resources came from tourists. The earnings from tourists fell and that caused a declined.
Other problems that existed in Egypt along side of economic problems were the political issues as well. The gap between the rich and poor is definitely apparent and causes plenty of issues. Another concern is inflation is higher than expected. Construction was also cut back in Egypt and it caused other problems as well.Even with all of the issues in Egypt there are a plethora of opportunities. The population continues to grow and it offers many opportunities to investors and people from all over looking to operate a business.
Also with the oil and gas contribution to the overall economy makes it even more appealing. Without considering the recent events in Cairo, overall Egypt is considerably an attractive market for international business.Multinational corporations play a huge role in globalization.
Some good advice to MNCs would definitely be to look at their budgets and organize how managing in the marketplace would be in Egypt. This would help predict total return. Another good idea would be for a MNC to consider, are the political and economic factors.
Lastly, being that Egypt’s population continues to rise there is always a need for employment and a MNC would be able to fulfill those jobs. Most importantly MNCs want to do a risk assessment because Egypt is a very competitive environment and because of the negative factors that could be involved.