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Ease of Doing Business in

Egypt, Arab Rep

Egypt, Arab Rep Download Profile (1788.8KB, pdf)
Region Middle East & North Africa
Income Category Lower middle income
Population 91,508,084
GNI Per Capita (US$) 3,340
City covered Cairo

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 122 126 up
4
56.64 55.18 down
1.46
Starting a Business 39 70 up
31
92.43 87.48 up
4.95
Dealing with Construction Permits 64 63 down
1
72.46 72.25 up
0.21
Getting Electricity 88 129 up
41
70.33 57.74 up
12.59
Registering Property 109 105 down
4
58.30 58.19 up
0.11
Getting Credit 82 78 down
4
50.00 50.00
-
Protecting Minority Investors 114 129 up
15
48.33 43.33 up
5.00
Paying Taxes 162 162
-
51.96 51.42 up
0.54
Trading across Borders 168 157 down
11
42.23 51.01 down
8.78
Enforcing Contracts 162 162
-
40.90 40.90
-
Resolving Insolvency 109 105 down
4
39.51 39.49 up
0.02

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

64

DB 2016 Rank:

63

Change in Rank:

down1

DB 2017 DTF (% points):

72.46

DB 2016 DTF (% points):

72.25

Change in DTF (% points):

up0.21

STANDARDIZED WAREHOUSE
Estimated value of warehouse EGP 1,302,301
City Cairo
Indicator Egypt, Arab Rep Middle East & North Africa OECD high income
Procedures (number) info_outline 17 15.1 12.1
Time (days) info_outline 145 129.5 152.1
Cost (% of warehouse value) info_outline 1.6 3.3 1.6
Building quality control index (0-15) info_outline 12 10.0 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Apply for the site validity certificate

    Agency: Municipal Authority

    BuildCo applies at the Municipal Authority to obtain the site validity certificate, which proves that the site conforms to the planning and building requirements. The request identifies the site, the address and the borders of the land. A copy of the applicant's national ID and receipt of the payment must be attached to the request. Article 19 of Law 119/2008 sets a ceiling of EGP 200 for the fee related to the obtainment of the site validity certificate. This ceiling can be increased at no more than 3% every year.

    1 day EGP 200
    2

    Receive on-site inspection from the Municipality

    Agency: Municipality

    Before issuing the site validity certificate, an inspector from the Municipal Engineering Department inspects the construction site to verify that there are no pre-existing buildings or illegal demolition on the plot of land and to check the data to ensure there are no irregularities on the plot of land.

    1 day no charge
    3

    Obtain site validity certificate from the Municipality

    Agency: Municipality

    The site validity certificate is issued after the inspection. According to Article 110 of Law 144/2009, the certificate must be issued within 1 week after the submission of the application. If there are any hindrances in the site, the administrative body shall issue a statement indicating the hindrances that block the issuance of the site validity certificate.

    15 days no charge
    4

    Obtain approval of the execution supervision certificate from the Syndicate of Licensed Engineers

    Agency: Syndicate of Licensed Engineers

    BuildCo must obtain the approval of the Execution Supervision Certificate by the local branch of the Syndicate of Engineers. The approval certifies that the engineer is in fact licensed and that s/he is not supervising too many projects.

    1 day EGP 312
    5

    Request and obtain building permit from the Municipality

    Agency: Municipality

    To obtain a building permit from the Municipal Authority, the engineer of BuildCo must file the following documents, along with the clearances described in the previous procedures:
    a. The original ownership contract of the plot of land (only copy to be provided, the original is viewed by the officer, but returned to investor);
    b. A copy of the national ID of the engineer (who is submitting the file);
    c. The engineer's authorization to act on behalf of the owner;
    d. The construction value form, approved by the engineer;
    e. The site validity certificate;
    f. A receipt attesting the payment of fees for examination of the drawings and details;
    g. An overall drawing of the site (scale minimum 1:1,000) that indicates (a) the boundaries and dimensions of the land for which the permit is required, together with the total land area; and (b) the part on which construction is requested, as well as the facing roads and their widths.
    h. Three copies of the architectural drawings for the plans and elevations; a vertical section, indicating the building height and the road's zero level and the structural drawings of the foundations, columns, and the reinforced ceilings. All drawings must be signed by an accredited engineer.

    The Building Law establishes a 30-day statutory time limit for issuing building permits. This time limit can be extended in case the Municipal Authority considers the application incomplete. The engineer of the Municipal Authority reviews the building permit file in order to check its completeness and reviews the drawings to ensure that they comply with the site validity certificate.

    30 days EGP 2,638
    6

    Inform the Municipality before beginning construction

    Agency: Municipality

    BuildCo sends a letter to the Municipal Authority to inform them that construction works will commence. The letter must be sent at least 15 days prior to starting construction. BuildCo must attach the following documents to the letter: (i) the contractor's contract, approved by the Egyptian Federation for Construction and Building Contractors, if applicable; (ii) and the execution supervision certificate, approved by the Syndicate of Engineers.

    1 day no charge
    7

    Receive on-site inspection from the Municipality - I

    Agency: Municipality

    The Municipality will inspect the construction site on a regular basis. Each inspection takes a day at most.

    1 day no charge
    8

    Receive on-site inspection from the Municipality - II

    Agency: Municipality

    The Municipality will inspect the construction site on a regular basis. Each inspection takes a day at most.

    1 day no charge
    9

    Receive on-site inspection from the Municipality - III

    Agency: Municipality

    The Municipality will inspect the construction site on a regular basis. Each inspection takes a day at most.

    1 day no charge
    10

    Receive on-site inspection from the Municipality - IV

    Agency: Municipality

    The Municipality will inspect the construction site on a regular basis. Each inspection takes a day at most.

    1 day no charge
    11

    Receive on-site inspection from the Municipality - V

    Agency: Municipality

    The Municipality will inspect the construction site on a regular basis. Each inspection takes a day at most.

    1 day no charge
    12

    Obtain approval of the construction conformity certificate from the Syndicate of Licensed Engineers

    Agency: Syndicate of Licensed Engineers

    The supervising engineer has to submit a certificate stating that the building has been built in accordance with the relevant laws and regulations. This certificate must be signed by the supervising engineer and approved by the Syndicate of Licensed Engineers.

    1 day EGP 300
    13

    Receive on-site inspection from the Civil Defense and Firefighting Authority

    Agency: Civil Defense and Firefighting Authority

    After the construction has been completed, the Civil Defense and Firefighting Authority inspects the building to check if it complies with the fire safety regulations.

    15 days no charge
    14

    Submit the construction conformity certificate and receive final inspection from the Municipal Authority

    Agency: Municipality

    After receiving the certificate from the supervising engineer upon completion of work, the Municipality does a final inspection to certify that the warehouse conforms to the specifications outlined in the building permit.

    15 days no charge
    15

    Register the building with the Real Estate Registry

    Agency: Real Estate Registry

    BuildCo must submit a building registration form, the building permit for the warehouse, and the primary purchase contract of the land on which the warehouse had been built. Law 83 of 2006 amended Decree No. 70 (1964) to decrease registration fees which are now a flat fee of EGP 2,000.00 rather than a percentage of the building value.

    60 days EGP 2,000
    * 16

    Request and Obtain sewerage connection

    Agency: Greater Cairo Sanitary Drainage Company

    30 days EGP 5,000
    * 17

    Request and Obtain water connection

    Agency: Greater Cairo Water Authority

    To obtain water and sewage connection, BuildCo must submit the letters obtained from the Municipality certifying that the building was built according to plan. BuildCo then submits an application to the competent water authority, along with the original license and a copy of the building permit. Fees are about EPG 10,000.00 for the water connection and EPG 5,000.00 for the sewerage connection.

    30 days EGP 10,000

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by external engineer or firm; Unscheduled inspections; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, external engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 2.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) Professional in charge of the supervision; Construction company; Insurance is commonly taken in practice. 1.0
    Professional certifications index (0-4) 2.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) University degree in architecture or engineering; Being a registered architect or engineer. 1.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) University degree in engineering, construction or construction management; Being a registered architect or engineer. 1.0