ssure. Egypt is now working closely with the World Bank and International Monetary Fund (IMF) to stabilize and then to improve the economic conditions in the nation. As a part of its stabilization program, the government of Egypt also freed interest and exchange rates, and it committed to reducing the budget deficit using disciplined monetary growth. This is an important signal to any company considering starting a new professional service company.
In 2003, Egyptian officials increased subsidies on basic foodstuffs helping to calm the poor but widening an already deep budget deficit. Egypt's balance-of-payments position has not been hurt by the war in Iraq thanks in art to the influx of tourists as well as revenue derived from the use of the Suez Canal.
The growth of the export market for natural gas extracted in Egypt is a bright spot for future growth prospects for the nation. However, improvement in this capital-intensive sector can do little reduce Egypt's high unemployment. GDP average per capita was about is about $4,000 in 2003. The population of Egypt is approaching 80 million, and the official unemployment rate stands at about 10 percent in a labor force of about 20 million people. In one sense, this is a tragedy. In another sense, it is an opportunity for a start-up such as a professional services company to be selective about the people they hire.
Egypt is a constitutional democracy based on the principle of separation of powers between the legislative, the executive and the judicial branches. The 1971 Constitution of Egypt, as amended in 1980. The Constitution guarantees respect for individual freedoms and for the rule of law (CIA World Factbook).
According to an article published online by Info-Prod Research (Middle East) Ltd., the principal forms for companies under Egyptian law are the joint stock company and the limited liability company. A joint stock company is one in which the capital is divided in...