2.

1: Country/Economy Profiles

Egypt 115
Key Indicators, 2015

th

Global Competitiveness Index

2016-2017 edition

/ 138

Source: International Monetary Fund; World Economic Outlook Database (April 2016)

88.4

Population (millions)

330.8

GDP (US$ billions)

3740.2

GDP per capita (US$)

0.92

GDP (PPP) % world GDP

Performance overview
Rank / 138 Score (1-7) Trend

Global Competitiveness Index

Subindex A: Basic requirements

1st pillar: Institutions

2nd pillar: Infrastructure

116 / 140

115 / 138

117

3.8

Score

3.7

3.6

3.6

3.7

3.7

87

3.6

96

3.4

89

5.5

100

3.7

5th pillar: Higher education and training

112

3.3

6th pillar: Goods market eciency

112

4.0

7th pillar: Labor market eciency

135

3.2

8th pillar: Financial market development

111

3.4

9th pillar: Technological readiness

99

3.3

10th pillar: Market size

25

5.0

111

3.2

85

3.7

122

2.7

1st pillar:
Institutions
12th pillar:
Innovation
11th pillar:
Business
sophistication

2nd pillar:
Infrastructure

7
6
5

3rd pillar:
Macroeconomic
environment

4
3
2

10th pillar:
Market size

4th pillar:
Health and primary
education

9th pillar:
Technological
readiness
8th pillar:
Financial market
development

Egypt

Egypt remains stable at 115th position this year. To create growth and
employment, Egypt could build on its large market size (25th); its business
sector, which by some accounts appears more sophisticated than those of
neighboring countries (85th); and its geographical proximity to the large
European market. To do so, Egypt needs to step up its reform eorts and
address the major rigidities that plague its goods, labor, and nancial
markets, on which the country ranks 112th, 135th, and 111th, respectively.

Most problematic factors for doing business

Policy instability
Government instability/coups
Access to nancing
Foreign currency regulations
Corruption
Inadequate supply of infrastructure
Poor work ethic in national labor force
Inadequately educated workforce
Crime and theft
Restrictive labor regulations
Tax rates
Ination
Tax regulations
Inefcient government bureaucracy
Insufcient capacity to innovate
Poor public health

2016-17

119 / 144

4th pillar: Health and primary education

12th pillar: Innovation

2015-16

118 / 148

2014-15

107 / 144

2.7

11th pillar: Business sophistication

2013-14

Rank

134

2012-13

3.7

3rd pillar: Macroeconomic environment

Subindex C: Innovation and sophistication factors

Edition

115

Subindex B: Eciency enhancers

Distance from best

5th pillar:
Higher education
and training

7th pillar:
Labor market
eciency

6th pillar:
Goods market
eciency

Middle East and North Africa

Other priorities include higher education and training (112th), which is below
the performance of peer economies, particularly in terms of quality (134th);
as well as the overall security situation (133rd), which remains fragile and
imposes signicant cost for business. Support for reform eorts comes from
the recent drop in oil prices that could open up the scal space to
consolidate the public budget by reducing energy subsidies, which make up
a signicant part of the public spending.
Source: World Economic Forum, Executive Opinion Survey 2015

21.0
12.5
10.2
8.4
7.7
5.5
5.4
5.4
4.3
4.1
3.9
3.2
3.1
2.7
1.7
0.9

score
0

12

18

24

Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the ve most problematic factors for doing business in their country and to
rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings.

The Global Competitiveness Index in detail

170 | The Global Competitiveness Report 20162017

2.1: Country/Economy Profiles

Egypt

The Global Competitiveness Index in detail

1st pillar: Institutions

1.01 Property rights

1.02 Intellectual property protection

1.03 Diversion of public funds
1.04 Public trust in politicians

1.05 Irregular payments and bribes

1.06 Judicial independence

1.07 Favoritism in decisions of government ocials

1.08 Wastefulness of government spending
1.09 Burden of government regulation

1.10 Eciency of legal framework in settling disputes

1.11 Eciency of legal framework in challenging regs
1.12 Transparency of government policymaking
1.13 Business costs of terrorism

1.14 Business costs of crime and violence

1.15 Organized crime

1.16 Reliability of police services

1.17 Ethical behavior of rms

1.18 Strength of auditing and reporting standards

1.19 Ecacy of corporate boards

1.20 Protection of minority shareholders interests

1.21 Strength of investor protection 0-10 (best)

2nd pillar: Infrastructure

2.01 Quality of overall infrastructure
2.02 Quality of roads

2.03 Quality of railroad infrastructure

2.04 Quality of port infrastructure

2.05 Quality of air transport infrastructure

2.06 Available airline seat kilometers millions/week

2.07 Quality of electricity supply

2.08 Mobile-cellular telephone subscriptions /100 pop.

2.09 Fixed-telephone lines /100 pop.

3rd pillar: Macroeconomic environment

3.01 Government budget balance % GDP

3.02 Gross national savings % GDP
3.03 Ination annual % change

3.04 Government debt % GDP

3.05 Country credit rating 0-100 (best)

4th pillar: Health and primary education

4.01 Malaria incidence cases/100,000 pop.

4.02 Business impact of malaria

4.03 Tuberculosis incidence cases/100,000 pop.

4.04 Business impact of tuberculosis
4.05 HIV prevalence % adult pop.

4.06 Business impact of HIV/AIDS

4.07 Infant mortality deaths/1,000 live births

4.08 Life expectancy years

4.09 Quality of primary education

4.10 Primary education enrollment rate net %

5th pillar: Higher education and training

5.01 Secondary education enrollment rate gross %

5.02 Tertiary education enrollment rate gross %
5.03 Quality of the education system

5.04 Quality of math and science education

5.05 Quality of management schools
5.06 Internet access in schools

5.07 Local availability of specialized training services

5.08 Extent of sta training

Rank / 138

Value

87

3.6

100
124
67
84
64
47
28
122
63
81
72
97
135
124
119
114
77
84
131
83
101

3.9
3.2
3.5
2.8
4.1
4.5
4.1
2.2
3.5
3.4
3.4
3.7
2.7
2.9
3.7
3.3
3.8
4.3
3.9
3.9
4.5

6.01 Intensity of local competition

96

3.4

108
107
73
58
52
41
102
82
95

3.1
3.0
2.6
4.3
4.8
590.1
3.5
111.0
7.4

7.05 Eect of taxation on incentives to work

134

2.7

132
121
130
117
98

-11.7
10.9
11.0
87.7

89

5.5

N/Appl.

1
38
16
1
1
91
93
134
28

P.R.
6.8
15.0
6.7
0.1
6.9
20.3
71.1
2.1
98.0

112

3.3

85
81
135
130
138
133
136
137

86.1
31.7
2.1
2.6
2.5
2.6
2.7
2.7

Trend

6th pillar: Goods market eciency

6.02 Extent of market dominance

6.03 Eectiveness of anti-monopoly policy

6.04 Eect of taxation on incentives to invest

6.05 Total tax rate % prots

6.06 No. of procedures to start a business

6.07 Time to start a business days
6.08 Agricultural policy costs

6.09 Prevalence of non-tari barriers

6.10 Trade taris % duty

6.11 Prevalence of foreign ownership

6.12 Business impact of rules on FDI
6.13 Burden of customs procedures
6.14 Imports % GDP

6.15 Degree of customer orientation

6.16 Buyer sophistication

7th pillar: Labor market eciency

7.01 Cooperation in labor-employer relations

7.02 Flexibility of wage determination
7.03 Hiring and ring practices

7.04 Redundancy costs weeks of salary

7.06 Pay and productivity

7.07 Reliance on professional management

7.08 Country capacity to retain talent

7.09 Country capacity to attract talent

7.10 Female participation in the labor force ratio to men

8th pillar: Financial market development

8.01 Financial services meeting business needs

8.02 Aordability of nancial services

8.03 Financing through local equity market

8.04 Ease of access to loans

8.05 Venture capital availability

8.06 Soundness of banks

8.07 Regulation of securities exchanges

8.08 Legal rights index 0-10 (best)

9th pillar: Technological readiness

9.01 Availability of latest technologies

9.02 Firm-level technology absorption

9.03 FDI and technology transfer
9.04 Internet users % pop.

9.05 Fixed-broadband Internet subscriptions /100 pop.

9.06 Internet bandwidth kb/s/user

9.07 Mobile-broadband subscriptions /100 pop.

10th pillar: Market size

10.01 Domestic market size index

10.02 Foreign market size index
10.03 GDP (PPP) PPP $ billions
10.04 Exports % GDP

11th pillar: Business sophistication

11.01 Local supplier quantity

11.02 Local supplier quality

11.03 State of cluster development

11.04 Nature of competitive advantage

11.05 Value chain breadth

11.06 Control of international distribution

11.07 Production process sophistication
11.08 Extent of marketing

11.09 Willingness to delegate authority

12th pillar: Innovation

12.01 Capacity for innovation

12.02 Quality of scientic research institutions

12.03 Company spending on R&D

12.04 University-industry collaboration in R&D

12.05 Gov't procurement of advanced tech. products

12.06 Availability of scientists and engineers

12.07 PCT patent applications applications/million pop.

Rank / 138

Value

112

4.0

127
103
78
84
96
76
48
130
100
126
125
114
80
120
55
116

4.2
3.3
3.6
3.4
45.0
7
8.0
2.9
4.0
13.6
3.4
3.8
3.8
24.7
4.9
2.8

135

3.2

96
72
61
129
104
125
133
104
103
133

4.1
5.0
3.9
36.9
3.4
3.2
3.1
2.9
2.7
0.31

111

3.4

54
72
58
136
98
70
105
108

4.5
3.8
3.8
1.9
2.5
4.8
3.7
2

99

3.3

117
121
71
96
87
105
72

3.9
3.8
4.4
35.9
4.5
11.3
50.7

25

5.0

19
49
23
132

5.1
5.0
1047.9
11.2

85

3.7

64
106
32
89
72
116
105
121
34

4.5
3.8
4.3
3.2
3.7
3.0
3.2
3.8
4.2

122

2.7

135
128
133
137
72
46
74

3.1
2.6
2.4
2.4
3.2
4.3
0.8

Trend

Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed denitions,
sources, and periods, consult the interactive Country/Economy Proles and Rankings at http://gcr.weforum.org/

The Global Competitiveness Report 20162017 | 171