Egypt's economy underwent rapid growth during the 1970s with the swift expansion of the oil industry, tourism and the Suez Canal. During the 1990s, stern fiscal policies, agreed with the IMF and World Bank, and further market-oriented measures brought the Egyptian economy to its current condition. As of mid-2004, annual growth had fallen to 3 percent, inflation was about 14 per cent, while official unemployment was 10 per cent (although there was considerable under-employment).
World attention is now focused on Egypt as an emerging market with a strong economy that is expected to exceed a growth rate of 5 % this year and a foreign exchange reserve at 17 billion dollars. With a population of 65 million and a gross domestic product of 92,6 billion dollars, Egypt represents the second largest economy in the Middle East and North Africa.

Liberal commercial laws
Egyptian law concerning commercial agency agreements is among the most liberal in the Middle East. The law is neutral concerning exclusivity, compensation is not required to cancel an agency, and there is no minimum notification period for cancellation. There is no requirement that the agent authorize the import of the foreign principal's products into Egypt, nor that the importation takes place through the agent. Importers of any product must be separately registered, under another law. Commercial agents must register the existence of their agency with the Ministry of Industry and Foreign Trade's Commercial Registry Department, giving basic facts about the agreement, including the amount of commission to be received on sales.
The foreign firm itself faces no local registration requirement. The commercial agency law is also neutral about dispute settlement procedures leaving this to the parties to decide, preferably in writing at the time of appointment of the agent, and in advance of a dispute and on the amount of commission due an agent.
For major projects such as a complete civil engineering project, the commission is typically 1-3%. In tenders, the commission is calculated in the quoted bid. If a bidder reduces the bid price, the agent typically is asked to share in the reduction. Commission rates must be reported in bid packages for government tenders, with the government reserving the right to reduce any commission it deems extravagant. Commission rates must also be noted in the Ministry of Industry and Foreign Trade's Commercial Registry documents signed by the Egyptian agent. Agent exclusivity is not required by law.
Foreign firms can sell directly within Egypt if they are registered to make direct sales. Many do so as part of a manufacturing or assembly operation in Egypt. A few foreign firms use free zones or bonded warehouses to store goods. Most foreign firms, however, rely on Egyptian companies for wholesale and retail distribution, ensuring their effectiveness through staff training programs in Egypt and abroad, supplying short-term home office personnel to work with the Egyptian firm in Egypt, and making regular visits by marketing and technical support staff. Although the concept of "marketing", as compared to simply selling, or waiting for the customer to find and come to you, is new to Egypt and weakly practiced, there are a growing number of good Egyptian firms who know what they are doing and how to market the products in which they specialize.

Safety and security a major concern
Egypt is especially concerned with safety and security to ensure continuation of its strong tourism industry. The safety and security market is therefore doing well in Egypt and it is expected to increase steadily in the coming years. This market is very much dominated by the Ministry of Interior. One of the main goals of the Government of Egypt is to participate effectively in the National Program for Technological Development as it relates to Safety and Security. The government is looking now for specialized companies working in the field of security and other related business and it wants to become acquainted with the most up-to-date security technology available.
The Ministry of Interior is doing its best to create new horizons for investment in security technology within the Egyptian market to establish advanced industries in this field. Being abreast of the latest innovations in this market is a primary goal for the police agencies as well as the various companies and corporations working in the field. Companies with a reputation for cutting-edge technologies will have an advantage here.
As the country works to increase tourism over the next few years, airports and seaports are expected to upgrade security systems. Eight airports across Egypt will soon be getting a new security system as part of a major project being undertaken by the state-based Airports Holding Company. Police and customs authorities are expected to increase their demand as well.

Security exhibitions in Egypt
A reoccurring security exhibition is MEFSEC in Cairo. This is a biennial event which last time took place in April 2005. Another one is Cardex which was held in last time in May 2006.