Egypt Guide

Officially the Arab Republic of Egypt is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Thereby, Egypt is a transcontinental country, and is considered to be a major power in North Africa, Mediterranean Region, and African continent, Nile Basin, Islamic World and the Red Sea. Covering an area of about 1,010,000 square kilometers (390,000 sq mi), Egypt 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 one of the most populous countries in Africa and the Middle East. The great majority of its estimated 78.7 million live near the banks of the Nile River, in an area of about 40,000 square kilometers (15,000 sq mi), where the only arable agricultural land is found. The large areas of the Sahara Desert are sparsely inhabited. About half of Egypt's residents live in urban areas, with most spread across the densely populated centers of greater Cairo, Alexandria and other major cities in the Nile Delta.
Egypt is famous for its ancient civilization and some of the world's most famous monuments, including the Giza pyramid complex and its Great Sphinx. Its ancient ruins, such as those of Memphis, Thebes, Karnak and the Valley of the Kings, are a significant focus of archaeological study, and artifacts from these sites are now displayed in major museums around the world. Egypt is widely regarded as an important political and cultural nation of the Middle East.
Egypt possesses one of the most developed and diversified economies in the Middle East, with sectors such as tourism, agriculture, industry and service at almost equal rates in national production. Consequently, the Egyptian economy is rapidly developing, due in part to legislation aimed at luring investments, coupled with both internal and political stability, along with recent trade and market liberalization.
History of Egypt
Governance
Egypt has been a republic since 18 June 1953. President Mohamed Hosni Mubarak has been the President of the Republic since 14 October 1981, after the assassination of President Mohammed Anwar El-Sadat. Mubarak is currently serving his fifth term in office (28 years). He is the leader of the ruling National Democratic Party. Prime Minister Dr. Ahmed Nazif was sworn in as Prime Minister on 9 July 2004, following the resignation of Dr. Atef Ebeid from his office.
Although power is ostensibly organized under a multi-party semi-presidential system, whereby the executive power is theoretically divided between the President and the Prime Minister, in practice it rests almost solely with the President who traditionally has been elected in single-candidate elections for more than fifty years. Egypt also holds regular multi-party parliamentary elections. The last presidential election, in which Mubarak won a fifth consecutive term, was held in September 2005.
In late February 2005, President Mubarak announced in a surprise television broadcast that he had ordered the reform of the country's presidential election law, paving the way for multi-candidate polls in the upcoming presidential election. For the first time since the 1952 movement, the Egyptian people had an apparent chance to elect a leader from a list of various candidates. The President said his initiative came "out of my full conviction of the need to consolidate efforts for more freedom and democracy." However, the new law placed draconian restrictions on the filing for presidential candidacies, designed to prevent well-known candidates such as Ayman Nour from standing against Mubarak, and paved the road for his easy re-election victory.

Mohammad Hosni Mubarak

Concerns were again expressed after the 2005 presidential elections about Government interference in the election process through fraud and vote-rigging, along with police brutality and violence by pro-Mubarak supporters against opposition demonstrators. After the election, Mubarak imprisoned Ayman Nour, and the U.S. Government stated the "conviction of Mr. Nour, the runner-up in Egypt's 2005 presidential elections, calls into question Egypt's commitment to democracy, freedom, and the rule of law."
Most Egyptians are skeptical about the process of democratization and the role of such setup rules. Less than 25 percent of the country's 32 million registered voters (out of a population of more than 72 million) turned out for the 2005 elections. A proposed change to the constitution would limit the president to two seven-year terms in office.
Thirty-four constitutional changes voted on by parliament on 19 March 2007 prohibit parties from using religion as a basis for political activity; allow the drafting of a new anti-terrorism law to replace the emergency legislation in place since 1981, giving police wide powers of arrest and surveillance; give the president power to dissolve parliament; and end judicial monitoring of election. As opposition members of parliament withdrew from voting on the proposed changes, it was expected that the referendum would be boycotted by a great number of Egyptians in protest of what has been considered a breach of democratic practices.
Eventually it was reported that only 27% of the registered voters went to the polling stations under heavy police presence and tight political control of the ruling National Democratic Party. It was officially announced on 27 March 2007 that 75.9% of those who participated in the referendum approved of the constitutional amendments introduced by President Mubarak and was endorsed by opposition free parliament, thus allowing the introduction of laws that curb the activity of certain opposition elements, particularly Islamists.
The CIA World Factbook states that the legal system is based on Islamic and civil law (particularly Napoleonic codes); and that the judicial review takes place by a Supreme Court, which accepts compulsory ICJ jurisdiction only with reservations.
Foreign relations
Egypt's foreign policy operates along moderate lines. Factors such as population size, historical events, military strength, diplomatic expertise and a strategic geographical position give Egypt extensive political influence in Africa and the Middle East. Cairo has been a crossroads of regional commerce and culture for centuries, and its intellectual and Islamic institutions are at the center of the region's social and cultural development.
The permanent Headquarters of the Arab League are located in Cairo and the Secretary General of the Arab League has traditionally been an Egyptian. Former Egyptian Foreign Minister Amr Moussa is the current Secretary General. The Arab League briefly moved from Egypt to Tunis in 1978, as a protest to the signing by Egypt of a peace treaty with Israel, but returned in 1989.
Egypt was the first Arab state to establish diplomatic relations with Israel, with the signing of the Egypt-Israel Peace Treaty in 1979. Despite the peace treaty, Israel is still largely considered an enemy country within Egypt. Egypt has a major influence among other Arab states, and has historically played an important role as a mediator in resolving disputes between various Arab states, and in the Israeli-Palestinian dispute. Egypt is a Major non-NATO ally of the United States.
Former Egyptian Deputy Prime Minister Boutros Boutros-Ghali served as Secretary-General of the United Nations from 1991 to 1996.
In the twenty-first century, Egypt has had a major problem with immigration, as millions of Africans attempt to enter Egypt fleeing poverty and war. Border control methods can be "harsh, sometimes lethal."
Economy
Egypt's economy depends mainly on agriculture, media, petroleum exports, and tourism; there are also more than three million Egyptians working abroad, mainly in Saudi Arabia, the Persian Gulf and Europe. The completion of the Aswan High Dam in 1970 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population, limited arable land, and dependence on the Nile all continue to overtax resources and stress the economy.
The government has struggled to prepare the economy for the new millennium through economic reform and massive investments in communications and physical infrastructure. Egypt has received U.S. foreign aid (since 1979, an average of $2.2 billion per year) and is the third-largest recipient of such funds from the United States after the Iraq war. Its main revenues however come from tourism as well as traffic that goes through the Suez Canal.
Egypt has a developed energy market based on coal, oil, natural gas, and hydro power. Substantial coal deposits are in the north-east Sinai, and are mined at the rate of about 600,000 metric tons (590,000 LT; 660,000 ST) per year. Oil and gas are produced in the western desert regions, the Gulf of Suez, and the Nile Delta. Egypt has huge reserves of gas, estimated at 1,940 cubic kilometers, and LNG is exported to many countries.
Economic conditions have started to improve considerably after a period of stagnation from the adoption of more liberal economic policies by the Government, as well as increased revenues from tourism and a booming stock market. In its annual report, the IMF has rated Egypt as one of the top countries in the world undertaking economic reforms. Some major economic reforms taken by the new Government since 2003 include a dramatic slashing of customs and tariffs. A new taxation law implemented in 2005 decreased corporate taxes from 40% to the current 20%, resulting in a stated 100% increase in tax revenue by the year 2006.
FDI (Foreign Direct Investment) into Egypt has increased considerably in the past few years due to the recent economic liberalization measures taken by minister of investment Mahmoud Mohieddin, exceeding $6 billion in 2006.
Although one of the main obstacles still facing the Egyptian economy is the trickle down of the wealth to the average population, many Egyptians criticize their Government for higher prices of basic goods while their standards of living or purchasing power remains relatively stagnant. Often corruption is blamed by Egyptians as the main impediment to feeling the benefits of the newly attained wealth. The Government promises major reconstruction of the country's infrastructure, with a large part of the sum paid for the newly acquired third mobile license ($3 billion) by Etisalat.
The best known examples of Egyptian companies that have expanded regionally and globally are the Orascom Group and Raya. The IT sector has expanded rapidly in the past few years, with many new start-ups conducting outsourcing business to North America and Europe, operating with companies such as Microsoft, Oracle and other major corporations, as well as many SME's. Some of these companies are the Xceed Contact Center, Raya Contact Center, E Group Connections and C3 along with other start ups in that country. The sector has been stimulated by new Egyptian entrepreneurs trying to capitalize on their country's huge potential in the sector, as well as constant Government encouragement.
Media
Egyptian media are highly influential both in Egypt and the Arab World, attributed to large audiences and increasing freedom from government control. Freedom of the media is guaranteed in the constitution; however, many laws still restrict this right. After the Egyptian presidential election of 2005, Ahmed Selim, office director for Information Minister Anas al-Fiqi, declared an era of a "free, transparent and independent Egyptian media.
Today, the Egyptian media is experiencing more freedom that wasn't available in the near past. Several Egyptian Talk shows, like (90 Minutes) and (Al- Ashera Masa'an), which air on private channels, and even the state television programs such as (El-beit beitak) are criticizing the Government; this was banned before because the Government was controlling all television programs, but now the public is feeling the freedom that the Government allowed for media.
 

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