IX. BUSINESS TRAVEL BUSINESS CUSTOMS Business in Egypt is personal. Egyptian and foreign business community members, who have broad experience in the market, give the following suggestions: 1. Have patience: Unfamiliar paper process, shortage of foreign currency, and bureaucratic procedures make business conduct somewhat slow in Egypt. Don't expect to breeze in for a week in Cairo and leave with a contract. It may take a year or more, but at the end, it is usually profitable. 2. Get Acquainted With Local Culture: Egyptians are a proud people who trace their civilization back 5,000 years. Take time to learn the culture, and especially the Islamic faith. All private business leaders and most high level government officials have a good command of English. Learn as much Arabic as possible- it pleases Egyptians if you know key phrases in Arabic .. Good Morning (Sabah El Kheir), Good Evening (Messaa El Kheir), etc. 3. Be Personable: When you visit with a business person, don't just walk in, shake hands and get down to business. If you have previously met with the person, chat about common friends, family, children, etc. 4. Do Your Homework: The Egyptian market is a complex and highly competitive one. A good Egyptian agent will help you a great deal in directing you to success. Find yourself a good local agent with the help of the U.S. Foreign Commercial Service of the American Embassy or other reliable business group. 5. Remain Flexible: The Egyptian market, like anywhere in the Middle East, is a changing one. Don't always expect the terms of a contract to remain the same during its length. Explore different markets - be flexible to change from partnership to technology transfer or royalty provisions. 6. Send Your best: Your top experienced executive with knowledge of the area will do a better job with the Egyptian business community. Your young, enthusiastic representative may not be as effective with the local partner, particularly in a culture which venerates age and experience. 7. Business Rules: When doing business in Egypt, be prepared to play it in the Egyptian tradition, or, you may waste your time. A few foreign firms come to Egypt, and give up after a short stay. But most foreign companies, once established with a base here, find the Egyptian market a worthwhile and profitable place to do business. TRAVEL ADVISORY AND VISAS Country Description: Egypt is a developing country with extensive facilities for tourists. Entry Requirements: A passport and visa are required. For travelers arriving by air, a renewable 30-day tourist visa can be obtained at airport points of entry. Those arriving overland and by sea, or those previously experiencing difficulty with their visa status in Egypt, must obtain a visa prior to arrival. Military personnel arriving on commercial flights are not exempt from passport and visa requirements. Tourists must register with local authorities (either through their hotels, at local police stations, or at the central passport office) within seven days of arrival. Proof of yellow fever and cholera immunizations is required if arriving from an infected area. Evidence of an AIDS test is required for everyone staying over 30 days. For additional entry information, U.S. citizens can contact the Embassy of the Arab Republic of Egypt, 2310 Decatur Place, N.W., Washington, D.C. 20008 (Telephone 202-234-3903), or the Egyptian consulates in San Francisco, Chicago, New York or Houston. Areas of Instability: Egyptian extremist groups seeking to overthrow the government have staged violent attacks against Egyptian police and security officials, Egyptian Christians, and moderate Muslim intellectuals. In several incidents, extremists have sought to hurt the Egyptian economy through attacks on tourists, tour buses, and sites frequented by tourists. Some attacks have occurred in Cairo, but the vast majority of the violent incidents have taken place in the southern provinces of Assiyut, Minya and Qena, which lie between Cairo and Luxor. All surface travel (bus, car, train, boat, etc.) through those provinces is considered dangerous. Many areas, including Sinai and Red Sea coastal resorts, have experienced no extremist attacks. Similarly, no major incidents have taken place in Alexandria or the Nile Delta. While there have been no specific credible threats singling out American citizens or businesses in Egypt, Islamic extremists have threatened to target foreign investors and tourists. A series of successful, police counter-terrorist operations since the beginning of 1994 has reduced terrorist capabilities and operations, particularly in the Cairo area. Sporadic incidents of extremist violence continue, however, and the threat of terrorist activity directed against tourist targets remains a concern. Restricted Areas: Those wishing to visit areas near Egypt's frontiers, including oases near the border with Libya and off-road areas in the Sinai, must obtain permission from the Travel Permits Department of the Ministry of the Interior, located at the corner of Sheikh Rihan and Nubar Streets in downtown Cairo. Information on Crime: The crime rate in Egypt is low. While incidents of violence are rare, purse snatching, pickpocketing and petty theft are not uncommon. Unescorted women are vulnerable to sexual harassment and verbal abuse. Travelers and foreign residents are subject to Egyptian laws. A U.S. citizen enjoys no special consideration simply because he or she is an American. The loss or theft of a U.S. passport abroad should be reported immediately to local police and the nearest U.S. embassy or consulate. Useful information on safeguarding valuables, protecting personal security, and other matters while traveling abroad is provided in the U.S. Department of State pamphlets, "A Safe Trip Abroad" and "Tips for Travelers to the Middle East and North Africa." They are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Drug Penalties: Travelers are subject to the laws and legal practices of the country in which they travel. Drug enforcement policies in Egypt are very strict. The death penalty may be imposed on anyone convicted of smuggling or selling marijuana, hashish, opium, LSD, or other narcotics. Law enforcement authorities prosecute and seek fines and imprisonment in cases of possession of even small quantities of drugs. Customs Requirements: Everyone entering Egypt must declare items such as jewelry, electronic equipment, and other valuables. This requirement is strictly enforced. Any valuables not accounted for may be confiscated. There are no currency exchange requirements. A maximum of 100 Egyptian pounds may be carried into or out of Egypt. Photography Requirements: There are strict duties on the importation of expensive photographic and video equipment. This includes most types of equipment typically carried by tourists to Egypt, including all video cameras, all autofocus cameras, etc. Travelers who wish to take such equipment with them on a temporary visit have three options with Customs authorities: (1) the Customs inspector may inventory the equipment and list it by model an serial number in their passports, so that the equipment can be crosschecked when they leave Egypt, in which case no duty will be collected; (2) the traveler may have the equipment placed in storage for the duration of the stay, in which case a storage fee may be collected; and (3) long-term visitors or residents will pay the standard duty fee for importing these items and be issued a receipt; at the time of departure, the fee would be refunded upon presentation of the receipt. There are restrictions on photographing military personnel and sites, bridges and canals. Dual Nationality: The Government of Egypt considers all children born to Egyptian fathers to be Egyptian citizens. Even if the children bear American passports, immigration officials may require proof that the father approves their departure before the children will be allowed to leave Egypt. Americans married to Egyptians do not need their spouse's permission to depart Egypt as long as they have a valid Egyptian visa. To renew a visa, or to leave the country after a visa has expired, an American woman married to an Egyptian must present proof of the husband's consent. Dual Egyptian-American nationals may enter and leave Egypt on their U.S. passports. If a dual national resides in Egypt for extended periods, proof of Egyptian citizenship, such as a family I.D. card, is required. Male dual nationals of military age who have not completed military service, are not generally required to enlist in the Armed Forces; however, before they can leave Egypt, they must obtain an exemption certificate through the Ministry of Defense draft office. Individuals who may be affected can inquire at an Egyptian Consular office abroad before traveling to Egypt. Persons with dual nationality who travel to Egypt on their Egyptian passports are normally treated as Egyptian citizens. U.S. consular assistance to such persons is extremely limited. Registration: U.S. citizens who register at the U.S. Embassy in Cairo can obtain updated information on travel and security within Egypt. Embassy Location: The U.S. Embassy in Cairo is located on Lazoghli Street, Garden City, near downtown Cairo. The mailing address from the U.S. is American Embassy Cairo, APO AE 09839-4900; from Egypt, it is 8 Kamal El-Din Salah Street, Cairo. The telephone number is (20-2) 355-7371. The Consular Section telephone is (20-2) 357-2201; the consular fax is (20-2) 357-2472. The Commercial Section address is 3 Latin America Street, Garden City, Cairo; the telephone number is (20-2) 357-2340; the fax number is (20-2) 355-8368. HOLIDAYS Following is list of commercial holidays that will close most Egyptian business and government offices during the period between Oct. 1, 1994 to Sept. 30, 1995: October 6 Armed Forces Day January 1 New Year's Day *March 13-15 Ramadan Bairam (End of Ramadan Fasting Month) April 25 Sinai Liberation Day May 1 Labor Day May 2 Sham El Nessim (Spring Day) *May 20-23 Kurban Bairam (Pilgrimage) *June 10 Islamic New Year July 23 National Day *August 19 Moulid El Nabi (Prophet's Birthday) * Depends on Lunar Calendar. A difference of a day may occur. BUSINESS INFRASTRUCTURE TRANSPORTATION Air and Sea Egypt is an important air terminus for the Middle East, and Cairo is served by many major airlines. Currently TWA is the only American airline serving Egypt, with Northwest involved under a code sharing program with KLM. Other major international airlines represented in Cairo include: Air France, Alitalia, British Airways, Egypt Air, Japan Airlines, Lufthansa, and Swissair. Shipping lines, serving Ports Said and Alexandria (the largest port on the Mediterranean) are Adriatica, Farrel, Lykes, Ogden, Prudential, and American President Lines. Egypt has its own merchant fleet, as well. Automobiles Bringing your personally owned vehicle (POV) may seem desirable and challenging, but many people also hire drivers to deal with finding places and parking when they get there. Driving in Cairo is fun for some, a nightmare for others. Some difficulties are non-existent signs or signs written only in Arabic, confusing traffic patterns and undisciplined driving techniques. Smaller cars are more maneuverable and air-conditioning is a must, not only for fending off the heat but for filtering noise and noxious street level air. Currently, vehicles no more than one year old at the time of their clearance into Egypt - i.e., manufacturer's date plus one year - can be imported on a "permanent" customs release, with duty free sale permitted after the prescribed period. The Egyptian Customs Office is increasingly reluctant to approve the importation of new "luxury" cars. Although there is no absolute dollar definition, $40,000 seems to be borderline. Vehicles not meeting the age test may be imported under a "temporary release" status waiver. Request for a waiver must be received well in advance. This allows for customs clearance but means the vehicle must be exported, sold to another of the same status, or the duty paid if sold locally. Importing four-wheel drive vehicles is currently severely restricted. Importing right-hand drive POVs is also prohibited, without exception or waivers. U.S. specification POVs need engine modifications, which can be done locally. But spare parts for specific models are hard to find and sending sealed beam headlights, spark plugs, air and oil filters and even a replacement water and fuel pump should be considered. If possible, have the catalytic converter removed before shipping your vehicle. Your car may be refueled with leaded gas when driven from the port of arrival. Eighty octane gas is the common grade and produces pinging in most U.S. engines. Ninety octane is becoming available. A gallon costs about $1.25. There is no lead-free gas and may not be for many years. An adapter for narrow filler necks is available, though a long screw driver and a patient gas station attendant also work. All car owners must carry third-party liability insurance in accordance with Egyptian law. Although additional coverage is not legally required, it is available. Premium reductions are given if your previous insurance company furnishes written proof of an accident-free driving record. The reduction percentage increases in proportion to the length of time you were without claims. As a resident, you may not drive in Egypt with only a U.S. license, but you may drive for as long as one year with an International driver's license issued outside Egypt. A copy of a valid driver's license and an eye examination certificate, two photos, a fee and a copy of one's Egyptian ID card are all required. Obtaining the ID card can take several weeks. Local Using Cairo's black-and-white taxis effectively requires some basic Arabic phrases and practice as well as a fatalistic attitude. If going to an area you do not know well, a map may help both you and the driver, who won't have one. During rush hours, a taxi may be shared, reducing an individual's fare. Negotiating the fare is best done before the trip. Although taxis have meters, the official rate is so low, the obligation to pay something realistic is clear. Other variables are your familiarity with the city, the driver's demeanor and the taxi's physical attributes. Its age and size count. While newer, larger taxis command higher fares, the cost is very reasonable, much less than in the U.S. Persons under 18 years of age are not allowed to drive cars or motorcycles. Accidents involving unlicensed motorcyclists have caused problems in the past and strained relations. Bicycles can be used in the suburbs and may be shipped with household effects. The most practical and safest is a heavy-duty model with a horn, light and reflectors. The Cairo Metro is a light rail system, partly underground. One line is now running from al-Marg in the north through the center of the city to Maadi and on to Helwan. Future lines will cross the Nile to Giza and Imbaba and connect Shubra al-Kheima in the north with Salah Salim in the east. Although the Metro may be used between Maadi and downtown and outside of rush hours is perhaps the most relaxing way to get north or south, it has done little to ease traffic congestion. And though the traffic police are becoming more stern with both pedestrians and drivers, the streets remain chaotic. Getting across or along one becomes a test of nerve, wit and patience. Flocks of sheep, donkey carts, broken-down vehicles and horn-blasting buses, trucks, taxis and private cars are just some of the usual obstacles facing drivers and pedestrians. Broken or missing sidewalks encourage most people to walk in the streets. Regional Alexandria and Cairo are connected by both the Western Desert Highway, a high-speed toll road and the busier Delta Road. Buses take 3-1/2 hours, with a rest stop. A non-stop Turbino train takes just over 2 hours but the required seat reservations can only be made for the outbound trip. The return trip must be booked at the destination. Travel by ship from Alexandria to Crete and Athens, Bari and Venice by Adriatica liners was suspended in spring 1994, when advance bookings failed to materialize. This luxury passenger and car ferry service is expected to resume in more prosperous times. Air Sinai, Egypt Air and ZAS Airlines serve these domestic destinations: Abu Simbel, Alexandria, Aswan, Hurghada, Luxor, the New Valley development at Kharga Oasis and Sharm el Sheikh. LANGUAGE/COMMUNICATIONS Arabic is the common language. Colloquial Cairene is expressive and rich in words of Coptic, European and Turkish origins. The written language differs from the spoken. Modern standard Arabic, based on the language of the Koran, is heard on radio and TV and in formal speeches. About 90% of Egyptians are Muslim and Islam is the state religion. Most others are Christian, either Greek Orthodox, Roman Catholic or Anglican Protestants. Indigenous minorities include four to six million Copts, Nubians, Bedouin and a small Jewish community. Coptic has remained the liturgical language of the Coptic Church. Dialects of Arabic include the Bedouin and some Sudanese-Hamitic, spoken in Upper Egypt, and a Berber language. HOUSING Representative costs (per month) for acceptable furnished housing in Cairo and Alexandria are indicated below: 2 bedroom apartment $1,200 3 bedroom apartment $1,800 4 bedroom apartment $2,400 5 bedroom apartment $3,000 Villa/house $5,000 Egyptian law allows a landlord to charge higher rents if apartments are "furnished;" therefore, almost all rental units are of this type. However, the amount and quality of furnishings vary greatly. Kitchen equipment and appliances provided often are inadequate. Landlords prefer to rent their premises "furnished" even if only minimally so, and may insist on keeping some items in the apartment or villa for legal reasons. Rent deposits of one month may be required for short-term leases (six months or under). Landlords often require an advance payment of one year's rent for leases of one year or more rather than a security deposit. Furnishings Because the climate is dry, a humidifier can be useful. People with respiratory problems should consider bringing a room-size air purifier to cope with the dust and pollution. Orthopedic mattresses, if required, should be shipped as part of household effects since such mattresses are not available locally. Utilities and Equipment The local power supply is 220 volts, 50 cycles. While almost all 110v appliances may be operated with power transformers, microwaves and toasters generally need more time while clocks will run fast. One can purchase 220v appliances through mail-order catalogs or locally, where they are highly taxed and therefore expensive. HEALTH There are many Western-trained medical professionals in Egypt. The U.S. Embassy in Cairo can provide a list of local hospitals and English-speaking physicians. Medical facilities are adequate for non-emergency matters, particularly in the areas where most tourists visit. Emergency and intensive care facilities are, however, limited. Facilities outside of Cairo fall short of U.S. standards. Most Nile cruise boats do not have a ship's doctor, but some employ a medical practitioner with the equivalent of a U.S. bachelor's degree. Hospital facilities are available in Luxor and Aswan, but are extremely limited at most other ports of call. U.S. medical insurance is not always valid outside the United States. Doctors and hospitals often expect immediate payment in cash for treatment. Supplemental health insurance which specifically covers overseas treatment has proven useful. Beaches on the Mediterranean and Red Sea coasts are generally unpolluted; however, there is a strong risk of exposure to the bilharzia parasite when swimming in the Nile or canals, walking barefoot along the river, or drinking untreated river water. Bilharzia can cause extensive tissue damage, kidney failure, and blindness. The risk of exposure to Rift Valley Fever (RVF) exists throughout Egypt. RVF is a disease of domestic animals that can infect humans and which flares up in parts of the country from time to time. Preventive measures include avoiding freshly slaughtered meat and known areas of infestation. Properly prepared, thoroughly cooked meat in tourist hotels, Nile cruise boats, and tourist restaurants is considered safe. Additional information on health problems can be obtained from the Centers for Disease Control's international travelers hotline at (404) 332-4559. FOOD Egyptian cuisine features vegetables, fruits, grains and pastas. Locally grown vegetables include potatoes, onions, garlic, lettuce, tomatoes, cucumbers, squash, celery, green beans, beets, carrots, green and red cabbage, spinach, okra, radishes, turnips, eggplant, parsley, dill and mint. Local fruits include bananas, apples, citrus, mangoes, melons, dates, figs, grapes, papayas, strawberries, pears, coconuts, persimmons and pomegranates. In the more traditional shops, poultry and seafood are sold every day of the week but red meats are sold only on Thursdays, Fridays and Saturdays. For religious reasons, pork and products containing pork are sold only in special shops. But these customs are not observed in the newer supermarkets and neighborhoods with large foreign populations. Popular beverages are hot tea, sweetened and often served in a glass, Turkish coffee and carbonated drinks. Local and imported bottled water, both still and sparkling, is available, as are locally produced wine and beer. APPENDICES