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2007 Assessment

Egypt: Integrity Indicators Scorecard

Egypt: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators		Score
67	Are business licenses available to all citizens?	69
68	Are there transparent business regulatory requirements for basic health, environmental, and safety standards?	100
69	Does government effectively enforce basic health, environmental, and safety standards on businesses?	25

Indicator and sub-Indicator Details

Are business licenses available to all citizens?

67a: In law, anyone may apply for a business license.

Score:

YES

Comments: In law, all people can apply for a business license. Law no. 8/1997 offers exemptions, guarantees and advantages to all individuals and companies registered in the companies' department according to law no. 159/1981 organizing joint-stock companies. This last law was one of the most important laws that encouraged Egyptian Arab and foreign businessmen to make investments in the fields specified by law no. 43/1974.

References: Law no. 8/1997 concerning investment guarantees and incentives. Law no. 159/1981 organizing public access to the budgets of the joint-stock companies

67b: In law, a complaint mechanism exists if a business license request is denied.

Score:

YES

Comments: In law, there is a complaint mechanism if a business license request is denied. The government intends to establish economic courts to settle disputes in short time periods. The companies' unified law, which is under development, will entail establishing specialized economic courts instead of the ordinary judiciary.

References: The investment gate, the Egyptian government: www.investment.gov.org

67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.

Score:

100

Comments: In practice, there are obstacles that may hinder citizens in obtaining necessary business licenses and make this procedure take a longer time period. There still exists some interference between centralization and the general authority for stock market and investment. The authority is planning to apply the one-window system that is going to simplify the procedures necessary for obtaining necessary business licenses to just one office and at a short time period. At present, the general authority for investment is committed to issue a business license within 60 days.

References: Article 56 of law no. 8/1997 organizing investment guarantees and incentives.

67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.

Score:

100

Comments: In practice and according to the regulations of law no. 8/1997, a company that wants to obtain a license must present a document certifying that it has deposited a quarter of the company's monetary capital in one of the banks registered with the Central Bank of Egypt.

References: Law no. 8/1997 organizing investment guarantees and incentives. Article 8 of the internal bylaw no. 2108/1997.

Are there transparent business regulatory requirements for basic health, environmental, and safety standards?

68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available.

Score:

YES

Comments: Law no. 8/1997 organizing investment guarantees and incentives in all its 46 articles defines the basic business regulatory requirements for meeting public health standards. These requirements are transparent and publicly available, especially in the internal regulations of this same law.

References: Law no. 8/1997 organizing investment guarantees and incentives the internal bylaw no. 2108/1997.

68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.

Score:

YES

References: Law no. 8/1997 organizing investment guarantees and incentives the internal bylaw no. 2108/1997.

68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.

Score:

YES

References: Law no. 8/1997 organizing investment guarantees and incentives the internal bylaw no. 2108/1997.

Does government effectively enforce basic health, environmental, and safety standards on businesses?

69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: Although labor law in articles 208-216 stresses public health standards, in practice these standards are non-existent. Business inspections by government reveal severe insufficiency in basic health standards. In 2007 there have been a number of events that showed the extent to which these standards are not met: 58 the minister of Health was accused of causing damage to general money and public health through contracting with Hadlina medical requirement company to supply the Ministry of Health with 250,000 empty blood purses. After using 40,000 purses it was discovered these purses do not meet basic health standards. (Al-Masry Al-Youm newspaper, March 9, 2007) 59 the minister of Health announced that there are 180 regions infected with bird flu. (Al-wadf newspaper, Jan. 6, 2007) 60 stealing human body organs and the testimonies from physicians in the lawsuit of Al-Nozha international hospital (Al-wadf newspaper, March 14, 2007) 61 Land Center for Human Rights calls for stopping the building of mobile phones intensifying stations inside populated areas in contradiction with relevant law for the health dangers they impose on people. (Nahdit Masr newspaper, April 14, 2007) 62 The Egyptian center for housing rights uncovered that drinking water available in houses does not meet basic standards and that the Housing and Construction Committee in the legislature confessed that citizens in 11 governorates drink water that do not meet basic standards. (Al-Ahaly newspaper, March 7, 2007) 63 The Health Committee in the legislature accuses the government of neglect in banning from markets bad milk causing cancer diseases. (Al-Dostour newspaper, April 3, 2007)

References: Al-Masry Al-Youm newspaper, March 3, 2007; Al-wadf newspaper, Jan. 6, 2007; Al-wadf newspaper, March 14, 2007; Nahdit Masr newspaper, April 14, 2007; Al-Ahaly newspaper, March 7, 2007; Al-Dostour newspaper, March 4, 2007

69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: Although labor law in articles 208-220 stresses public environmental standards, in practice these standards are non-existent. Business inspections by government reveal severe insufficiency in basic environmental standards. In 2007 there have been a number of events that showed the extent to which these standards are not met: 64 factories of gas cylinders are real bombs that will explode soon. (Al-Dostour newspaper, April 3, 2007) 65 recurrent train accents that caused many deaths. (Al-Masry Al-Youm newspaper, April 12, 2007; Al-wadf newspaper, Feb 12, 2007) 66 exploded drainage pipelines destroy many houses in Alexandria and unplanned suburban areas. (Al-wadf newspaper, Feb. 12, 2007) 67 deaths caused by traffic accidents in Egypt are really more than deaths in wars because of the bad roads and cars. (Nahdit Masr newspaper, Dec 7-8, 2006) 68 fires in unplanned housing suburban areas deprived of all services are real bombs that kill many people everyday. 60 percent of the towns in Egypt are unplanned in addition to 1,105 unplanned suburban areas. (Al-Ahaly newspaper, Feb 8, 2007)

References: Al-Masry Al-Youm newspaper, April 12, 2007; Al-wadf newspaper, Feb 12, 2007; Al-wadf newspaper, March 13, 2007; Nahdit Masr newspaper, April 14, 2007; Al-Ahaly newspaper, Feb 8, 2007; Al-Dostour newspaper, April 3, 2007

69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: Although labor law in articles 208-220 stresses public safety standards, in practice these standards are non-existent. Business inspections by the government reveal severe insufficiency in basic safety standards. In 2007 there have been a number of events that showed the extent to which these standards are not met: 69 factories of gas cylinders are real bombs that will explode soon. (Al-Dostour newspaper, April 3, 2007) 70 the general prosecution is investigating a businessman for importing 14,900 gas organizers that do not meet standards and can cause explosions. (Al-wadf newspaper, March 13, 2007) 71 the Egyptian legislature discusses gas cylinders that do not meet standards and can cause explosions. (Al-wadf newspaper, Feb 12, 2007) 72 recurrent train accents that caused many deaths. (Al-Masry Al-Youm newspaper, April 12, 2007; Al-wadf newspaper, Feb. 12, 2007) 73 exploded drainage pipelines destroy many houses in Alexandria and unplanned suburban areas. (Al-wadf newspaper, Feb. 12, 2007) 74 deaths caused by traffic accidents in Egypt are really more than deaths in wars because of the bad roads and cars. (Nahdit Masr newspaper, Dec 7-8, 2006) 75 fires in unplanned housing suburban areas deprived of all services are real bombs that kill many people everyday. 60 percent of the towns in Egypt are unplanned in addition to 1,105 unplanned suburban areas. (Al-Ahaly newspaper, Feb 8, 2007)