First: An Enabling Investment Climate: An enabling investment climate is generally marked with several features that directly contribute to activating and boosting investment by promoting investors capability to clearly predict and realize the project expected profit. Salient and most essential of the characteristics are:

    1- Democracy:

    A democratic political or economic decision-making system would re-assure investors that no law or decision would be passed without the involvement by those affected through discussion and expression of viewpoints. This would ensure consistency with the majority's interests and makes investors well-prepared to totally abide by the provisions of given law; thereby avoiding any attempt at evasion.

    2- Clear and Predictable Policies:

    Clear and predictable policies allow investors to accurately anticipate future circumstances. This can ensure that decisions made are sound and that results achieved are consistent with projections. This could also increase demand for long-term investments and achieve stability in business field.

    3- Justice:

    The guarantee of administering justice in society enshrines equal treatment of all involved in different fields. Funds invested in different activities will be treated equally regardless of its ownership and form of management. Private and public sectors and foreign and national investors are all equal before law. There is no discriminatory condition for acquiring raw material or intermediate production requirements. This would save investors seeking to maximize their profit, time and effort otherwise spent in selecting the most appropriate system or law.

    4- Flexibility:

     Flexibility saves time, effort and money spent in performing an activity or carrying out a procedure. It also avoids wastage of resources in trying to overcome real or fabricated obstacles to the performance of business.

    5- Discipline:

    Disciplined application of administrative procedures re-assures investors that they would be exposed to unpredictable impediments in the course of public or private behaviour as a result of negligence or willful act. So, investors will not waste their time and money trying to obtain a right secured by-law.

    Second: Investment-Attracting Factors :

    Egypt is so uniquely situated that it enhances trade links among Europe, the Middle East and Africa. It constitutes a land, air and space cross-over for the transit of goods, passengers and communications. This location enhances opportunities of successful investments projects in Egypt with access to Arab, African, Asian and European Markets.

    Since President Mubarak assumed office in 1981, Egypt has enjoyed democratic-based social and political stability. As social, economic and cultural prerequisites for such transition have been already fulfilled, wide strides towards democracy were possible. In addition to internal stability, Egypt adopts a rational and meaningful foreign policy. Guided by President Mubarak's wise policy, Egypt maintains strong relations with all world countries. Manifestations of such policy include President Mubarak's commitment to just and durable peace, his initiative to free the Middle East from mass destruction weapons, his call for an international conference on combating terrorism and boosting solidarity among peoples and states to establish peace especially in countries of interest to Egypt. Egyptian diplomatic efforts have been primarily employed to serve development objectives, to secure vital national interests, and to enhance Egypt's economic relations. It is Egypt's policy also to provide wider prospects for regional and international cooperation based on mutual interests. Hence arises Egypt's keenness to join the World Trade Organization and the COMESA, to conclude association agreements with the European Union and Mediterranean countries, to revive the Arab Common Market agreement, to establish the Arab Free-Trade Zone, and to activate the role of the G-15 developing countries and D-8 Islamic countries.

    A partnership agreement with the US and cooperation agreements with Japan, China, South Korea and India have been sought. Positive indicators of Egyptian economic performance reflect strengths of the economy and sustained implementation of development plans and building of modern Egypt. Salient of these strengths achieved over the past two decades of development under the leadership of President Mubarak are as follows:

     - A Wealth of Agricultural Resources:

    Egypt commands a wealth of 9 million feddans of productive arable land where modern technology is used. These lands have an estimated value of about LE 300 billion. Yield per feddan of field, fruit, and vegetable crops have shown some of the highest rates world-wide. Under the fifth 5-year plan (2002-2007), it is targeted to raise reclaimed cultivable area to 1.1 million feddans of which 83.8 percent will be carried out by the private sector. In addition, infrastructure works will be completed on an area of 935,500 feddans of which 436,500 feddans will be carried out by the private sector at a rate of 53.3 percent.

    - A Wealth of Industrial Resources:

    It includes 20,000 factories and thousands of workshops that produce finished goods including those requiring high technology such as special iron, iron sheets, petrochemicals, ready-made garments and components of main utility, network and stations. The industrial wealth could be increased to threefold if modernized and marketed.

    - A Wealth of Tourist Resources:

    In addition to the world-famous tourist resources, new tourist attractions have been created, thus boosting Egypt's position on the world tourist map. In 2001/02, the number of tourists to Egypt amounted to 4.3 million while tourist revenues showed US Dollar 3.4 billion.

     - A Wealth of Infrastructure and Reconstruction Capabilities:

    This wealth includes gas and power stations, roads, transport and telecommunication networks. It also entails the ability to carry out and upgrade major utility projects, including dams, bridges and new integrated urban schemes. In maritime transport, Egypt has several ports spread over its Mediterranean Red Sea shores. On the Mediterranean, it has six well-organized seaports that can serve as convenient distribution points for European trade to east and west Mediterranean, the Middle East and Africa. Until 2002, Egyptian seaport capacity reached 58.8 million tons with about 141 platforms with a length of 25 km. The Egyptian fleet comprises 126 ships. Suez Canal, Egypt's most important international trade artery, commands the state major attention as regards projects of revamping and performance improvements that have been implemented to raise it to international navigation technology. The canal draft is now 62 feet-deep, allowing transit of ship with a gross weight of 210,000 tons. In the air transport sector, Egypt has 17 airports and a fleet of 37 aircraft. Paved roads extend over 44,300 km served by 81 bridges in Cairo, 21 in Alexandria in addition to dozens all over Egypt. There is also a jumbo bridge across Suez Canal linking Asia and Africa. In communications, there are 9.6 million telephone lines and 7,169 telephone circuits in both Cairo and Alexandria international exchanges. Internet capacity shows 550 pulse/second and 140 investment companies work in the field of communications. Egypt launched two Egyptian satellites (Nilesat 101, Nilesat 102). There are five terrestrial stations. Egypt has a time-honoured postal service rated under the first category, within the international average letter delivery time between Egypt and the outside world.

    - A Wealth of Energy Resources:

    Oil is a mainstay of Egyptian economy. Egypt's oil wealth is steadily growing as a result of the state stable policy towards this vital sector of Egyptian economy. Its contribution during 2002 has been the highest in 50 years. Egypt's oil wealth is estimated at US Dollar 206 billion. Total added reserve of crude oil and condensates over the past 20 years have shown 5.7 billion barrels and natural gas 11 billion barrels. Egypt proven reserve of crude oil and derivatives reached 3FINDER DAT"-.

    - A Wealth of Human Resources:

    Egypt has a wealth of manpower estimated as at January 1, 2003 at 69.2 million. Workforce hits 19.6 million. The state exerts mammoth efforts to promote education as to graduate promising workforce capable of leading the development process, and coping up with international technological advances in production and communication. More emphasis is given to on-going practical training and education of workforce. Thanks to the government's economic policy and in spite of the negative impact of world economic slowdown, the above mentioned factors combined contribute to the positive indicators of Egyptian economic performance.

    In 2001/02, gross domestic product reached LE 382 billion at a growth rate of 3.2 percent and an inflation rate of 2.7 percent. Commodity exports rose to US Dollar 4.74 billion; an increase of US Dollar 294 million compared to the preceding year. Export-import gap decreased by about US Dollar 1.4 billion. Foreign exchange reserve amounted to US Dollar 14.1 billion and deposits with banks LE 345 billion.

    The state exerts unceasing efforts to provide an investment-friendly climate. To this end, a package of measures and policies covering all economic activities is required. In order to ensure sustained, improved and steady investments, the government sets the following priorities:

• Seek to streamline legislation that can encourage more investment inflows and further enhance the positive investment climate in Egypt by developing appropriate formats of amendments and overcoming application shortcomings.
  
  
• Regulate relationships between investment community, both existing and new, on the one hand and the state machinery on the other hand. The optimum formula for such relationship will be reached through joint action.
  
  
• Pay more attention to the role of local administration units in the investment function, defining specific roles and relationships on local and central levels. Weaknesses will be redressed, taking into consideration the successful performance of the boards of trustees of new cities and industrial communities.
  
  
• Providing efficient well-trained manpower in adequate numbers as may be required for various specialized and high-precision industry. Thus, more job opportunities can be provided.
  
  
• Reach the optimum form of a positive and stable legal labour-employer relationship governing both their rights and duties, based on consensus by all parties concerned.
  
  
• The government must be committed to stabilize financial, monetary, fiscal and credit policies as well as energy and transport prices. This also applies to policies governing the investment climate. Such stability will pave the way to more investment inflows, more job opportunities and more competitive export-oriented products. Commitment to such policies must be made for a posted period of time. Absolute transparency is required for any decision relevant to the public interest and affecting the investment community.