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Was Exporteure wissen sollten

Hilfe für Exporteure jetzt als interaktives PDF

Wer Waren exportiert, muss sich oft mit einer anderen Rechtsprechung im Zielland auseinandersetzen. Die Industrie- und Handelskammer (IHK) Offenbach am Main hilft Unternehmern mit ihrer Publikation „Der Eigentumsvorbehalt bei Warenlieferungen in das Ausland“. Seit über 40 Jahren gibt die IHK Offenbach am Man das einzigartige Sammelwerk heraus.

Die 10. Auflage erscheint als interaktives PDF und gibt Auskunft über Regelungen zum Eigentumsvorbehalt in 79 Ländern – von Ägypten bis Weißrussland (Belaraus). Sie informiert, in wieweit Forderungen aus Warenlieferungen durch die Vereinbarung des Eigentumsvorbehalts geschützt werden. Da teilweise gravierende Unterschiede zum deutschen Recht bestehen, führt die Publikation Alternativen zum Eigentumsvorbehalt auf, die sich zur Sicherung von Ansprüchen aus Auslandsgeschäften eignen.

In der überarbeiteten Version der Publikation wurden alle Länderkapitel überarbeitet. Die Länderinformationen basieren auf Materialien, die von deutschen Auslandshandelskammern, deutschen Botschaften oder Rechtsanwälten zur Verfügung gestellt wurden.

Neben den Regelungen des Eigentumsvorbehaltes oder alternativer Sicherungsmöglichkeiten sind zu jedem einzelnen Land die Anschriften der deutschen Auslandshandelskammern, der deutschen Botschaft sowie die Anschriften einiger Rechtsanwälte aufgelistet.

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March, 2017 Dr. Michael Krämer
Meyer-Reumann & Partners, Dubai Office

Egypt after Mubarak – an Economic Outlook

Guiding Principle

This Article is discussing the status of the Egyptian economy after the 25th of January 2011 revolution, and its effects on business.

As president Obama said, “The people of Egypt have spoken, their voices have been heard, and Egypt will never be the same.” The past few dramatic weeks have witnessed major changes all over Egypt. We all agree with president Obama that Egypt will never be the same again, but the mystery here is the future of Egypt as a major market and a center of many businesses in the region. This is the foggy area for everyone now and the question here is “what will Egypt become?”

Bertil G. Peterson in his article “Looking Ahead” in Business Monthly Magazine March 2011 issue said that protesters were catalyzed not only by political demands, but by high unemployment, low wages and rising prices. To absorb the current unemployment and those entering the job market each year, 9.4 million new jobs will be needed by 2020, which the International Monetary Fund estimates would require GDP growth of 10 percent annually. What was a challenging economic environment on January 24, 2011 is all the more so today.

It is clear that Egypt’s economy paid a heavy price during the 18 days of protests. CAPMAS, the government’s statistics authority, said in a February 17, 2011 statement carrying on the official state news agency MENA, that the revolution had cost the tourism, construction and manufacturing industries a total of at least LE 10 billion. Between January 28, 2011 and February 5, 2011, production in key industrial zones dropped down by 60 percent and the construction sector alone lost LE 762 million.

The vast majority of private sector businesses from neighborhood shops to multinational corporations either closed or drastically curtailed operations. Banks were shuttered and ATMs empty, making it impossible to get cash for groceries or payrolls. Business as usual was simply not possible without funds or customers.

In addition, curfews curtailed foot and vehicle traffic, disrupting the supply chain for the fast-moving consumer goods sector. Dairy producers also took a hit. Hatem Saleh of the Federation of Industries says that companies may have lost 20 percent of their estimated profits for the entire year. Even though production of dairy products returned to full capacity relatively quickly, he expects sales to be down until stores and markets damaged by looters reopen. Nonetheless, “most dairy producers are honoring contracts with farmers despite the drop in sales,” Saleh says.

In the real estate sector, the biggest concern has been the change in the government. Many domestic and foreign companies are in a holding pattern until they see what changes come with the new government. Others are not waiting. Yasser Makram, Chairman of Global Development and Investment, says his firm has taken over stalled negotiations with respect to a LE 600 million deal to develop shopping malls because a Kuwaiti partner pulled out.

Supply logistics was also an issue for soft drink companies, which indirectly or directly account for 1 percent of Egyptian jobs, according to the International Tax and Investment Center. Coca-Cola Egypt President Curt Ferguson says that deliveries were limited at times, primarily to ensure employees’ safety. “Our manufacturing facilities resumed production very rapidly during the first week of February, and we are not making any changes to our 2011 business plans,” Ferguson says.

Indeed, many business leaders see revolution-related economic problems as little more than a temporary setback. According to Coca-Cola’s Chairman Ferguson, long-term plans mean that “you continue to invest despite the short-term challenges and disruptions.”

On January 17, 2011 only a week before the protests began, Nestlé unveiled plans to invest more than LE 1 billion in its existing factories and distribution centers in Egypt over the next three years, adding 500 jobs to its current workforce of 3,000. So far, the revolution has not altered those plans.

On February 21, 2011 German Makro Cash & Carry announced that its plans to expand in Egypt are on track, despite substantial damage and looting at its two existing outlets in Cairo.

Francois Oliver, Managing Director of Makro Egypt, stated that the company will establish 20 additional stores at a cost of LE 3.2 billion, according to Al Alam Al Youm.

All pharmaceutical production facilities are reported to be operating at full capacity. Mohamed El-Bahy, Vice President of the Chamber for Pharmaceutical Industries, told Al Ahram that plants were closed for a few days at the beginning of the protests and operating hours were reduced by the curfew, but there were no shortages, and prices have remained stable.

Finally, Procter & Gamble Co. announced on February 21, 2011 that it resumed normal operations at its Cairo offices and two plants outside the city. P&G Egypt employs about 1,500 people.

For its part, the transition government led by the Supreme Council of the Armed Forces has tried to mitigate the economic impact of the revolution and move forward. Finance Minister Samir Radwan pledged early, that subsidies would not be cut even if global prices for food and commodities rise, saying that public spending would be used as a tool to achieve “social justice.” After Mubarak stepped down, Radwan created an LE 5 billion fund to compensate people for property losses and damage due to the unrest and pay benefits to those who lost their jobs.

When banks reopened on February 6, 2011 the Central Bank pumped $ 854 million from its $36 billion in reserves. A feared run on the banks was absorbed and the Egyptian pound losses against the dollar, as some economists had predicted were averted.

Surprisingly, investors do not seem bothered either by recent events or the future course of the country. David J. Lynch of Bloomberg Business Week, notes that the Market Vectors Egypt Index, an exchange-traded fund of Egyptian assets – stocks, commodities, and bonds – has risen 7 percent since January 27, 2011 when the EGX was shut down.

According to arabicknowledge-@Wharton; an online resource for business insights at the University of Pennsylvania, regional investors and businesses believe that more democratic governments will pave the way for long-term stability and growth.

Mustafa Abdel Wadud, an Egyptian who is a Managing Director of the investment firm Abraaj Capital in Dubai, told the website that he is taking a long-term approach toward Egypt as the country’s fundamental economics are strong.

Analysts’ opinions on politics are divided, he says, but most believe the region is moving in a positive direction. “In the long-term there will be more stability in these investment destinations, which all have high growth but were considered high risk because of their political structures”. “The reality is that this was expected. No one knew protests in Egypt would be this extensive. But [Mubarak’s] succession was coming. It’s just been accelerated”.

April, 2011 Mansour Elaraby
  Meyer-Reumann & Partners – Alexandria Office

Investment progress in Egypt

Guiding Principles

This article is shading some light on the progress of investment in Egypt and the legal form of companies in Egypt.

A. General remarks
The Ministry of Investment published on the weekly report that within 5 days, between November 28 and December 02, 2010, 120 companies were established with capitals that had reached 223 million Egyptian pounds between foreign and domestic. In addition, the week before 135 companies were established with also a variety of legal forms with capitals that had reached 272 million Egyptian pounds. Those significant numbers clearly show that many companies tend to start business in Egypt nowadays.

B. Legal Forms
With regard to the legal forms of the companies being established in the 1st week according to this report, the Limited Liability Companies L.T.D.1 was the most popular legal form chosen by companies. In total 44 limited liability companies have been established. The Joint Stock Companies S.A.E.2 came on 2nd place with 32 registered joint stock companies in Egypt after the limited liability companies with no significant gap between them. On the 3rd place came the legal form of Individual Enterprises. 30 companies were formed as Individual Enterprises. Finally, 11 companies were formed as limited companies.

The Egyptian government had given to the investors in Egypt incentives which would explain generally this significant attraction in the past year. In the past the main problems that were facing investment in Egypt were 1-financing and provision of credit which the central bank of Egypt is working on solving this problem, 2-long litigation periods and dispute settlement that the establishment of the commercial courts have helped a lot with that, 3-bureacracy and corruption which were significantly limited by formation of GAFI (Governmental Agency for Investment), 4- the required lands for investment. One of the most effective incentive that were given to investors in the past year were supplying investors with land that would be in investment zones for rent or usage for a limited period of time that may reach 25 years which have solved the problem. This option has solved one of the biggest problems that usually face both foreign and domestic investments.

In addition to that, there is a project for a Consolidated Companies Law3 that will join together both laws no.159/1981 and no. 8/1997. This Law includes the establishment of companies and its regulations in general and the investment incentives. It will also address the issue of bankruptcy and liquidation of companies explicitly. Liquidation will be addressed in a separate chapter along with mergers and changing the legal formation of the company. This Consolidated Companies Law is not in action yet but will be discussed before the Egyptian parliament soon.

January, 2011 Mansour Elaraby
Meyer-Reumann & Partners, Alexandria Office
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