EGY · snapshot 2026-08-09
Egypt, Arab Rep.
Very HighOverall risk score
61.2
Percentile of scored universe
79th
Data coverage
93%
vs Australia (16.1)
+45.1
Category breakdown
Political Stability & Governance
Very High6 indicators · 100% coverage
Economic Resilience
Very High7 indicators · 100% coverage
Financial & Currency Risk
Very High5 indicators · 100% coverage
Business Environment
High3 indicators · 75% coverage
Security & Crime
High3 indicators · 80% coverage
Climate & Social Compliance
High4 indicators · 100% coverage
Technology & Digital
High4 indicators · 100% coverage
Cultural Distance
Medium9 indicators · 100% coverage · not in overall score
Key risks and considerations
Egypt, Arab Rep. rates Very High for market entry — an overall risk score of 61.2, riskier than 79% of rated economies and 45 points riskier than Australia.
The main risk drivers are no double-tax agreement with Australia, unstable prices (CPI 14.1%), weak civic voice and accountability, political instability and elevated sovereign credit risk (OECD Category 6 / 7).
Relative strength: growth volatility sits in the least-risky quarter of rated economies.
Possible mitigations
- Political violence. Consider political-violence and political-risk insurance, keep asset footprints light, and maintain an exit/continuity plan with defined triggers.
- Corruption and legal recourse. Run a strong anti-bribery program (Australian foreign-bribery law follows you abroad), conduct third-party due diligence, and seat dispute resolution offshore — arbitration clauses (e.g. SIAC or HKIAC) beat local courts.
- Currency risk. Invoice in AUD or USD where the market allows, hedge unavoidable exposure, shorten receivable cycles, and build FX buffers into pricing.
- Payment security. Elevated sovereign/transfer risk: prefer confirmed letters of credit or export credit insurance over open account terms, and watch for import-payment restrictions.
- Price instability. Use indexation clauses, shorter pricing cycles, and local-cost pass-through mechanisms so inflation (or deflation) doesn't silently erode margins.
- Withholding tax. No double-tax agreement with Australia: model withholding tax on dividends, interest, and royalties into the business case — it can decide the entity-vs-export question.
Generated automatically from this snapshot’s indicator data — a starting point for analysis, not advice.
Indicators
| Indicator | Value | Risk score | Rating | Australia | Data source year | Source |
|---|---|---|---|---|---|---|
| Political Stability & Governance | ||||||
| Voice & accountability (WGI) | 28.8 | 92.0 | Very High | |||
| Government effectiveness (WGI) | 49.5 | 52.9 | High | |||
| Regulatory quality (WGI) | 47.0 | 65.6 | High | |||
| Rule of law (WGI) | 44.0 | 72.7 | High | |||
| Control of corruption (WGI) | 31.1 | 76.1 | Very High | |||
| Political stability & absence of violence/terrorism (WGI PV) | 49.2 | 84.3 | Very High | |||
| Economic Resilience | ||||||
| GDP growth (3-yr average, %) | 3.5% (3-yr avg) | 45.0 | Medium | |||
| Growth volatility (10-yr std dev, pp) | ±1.2 pp | 1.7 | Low | |||
| Government net debt (% of GDP) | 82.2 | 80.0 | Very High | |||
| Inflation (CPI %, vs income-group target) | 14.1 | 95.0 | Very High | |||
| Current account (3-yr average, % of GDP) | -4.2% (3-yr avg) | 40.0 | Medium | |||
| FX reserves (months of import cover) | 4.4 months | 30.0 | Medium | |||
| GDP per capita (PPP, current intl $) | $20,204 | 52.0 | High | |||
| Financial & Currency Risk | ||||||
| Capital-account openness (Chinn-Ito KAOPEN) | 0.42 | 60.0 | High | |||
| Currency stability (regime-aware classification) | Floating — high volatility (20–35%) | 75.0 | Very High | |||
| Sovereign credit risk (OECD country risk classification) | Category 6 / 7 | 82.0 | Very High | |||
| FATF listing (grey / black list status) | Not listed | 0.0 | Low | |||
| Double-tax agreement with Australia | None in force | 100.0 | Very High | |||
| Business Environment | ||||||
| FDI regulatory restrictiveness (OECD FDIRRI) | 0.25 | 67.0 | High | |||
| Logistics performance (World Bank LPI) | 3.1 | 41.3 | Medium | |||
| Business readiness (World Bank B-READY pillar average) | — | — | Insufficient data | |||
| Investment protection with Australia in force (BIT or FTA investment chapter) | In force | 0.0 | Low | |||
| Security & Crime | ||||||
| Armed-conflict intensity (battle deaths per 100k, 5-yr) | 0.1 | 75.3 | Very High | |||
| Intentional homicide rate (per 100k) | 1.3 | — | Insufficient data | |||
| Organised crime pervasiveness (GI-TOC criminality score) | 5.3 | 56.8 | High | |||
| DFAT Smartraveller advisory level | Level 2 — Exercise a high degree of caution | 40.0 | Medium | |||
| Climate & Social Compliance | ||||||
| Physical climate vulnerability (ND-GAIN vulnerability) | 0.469 | 57.6 | High | |||
| Disaster risk (INFORM Risk Index) | 4.3 | 63.4 | High | |||
| Modern-slavery prevalence (per 1,000) | 4.3 | 37.8 | Medium | |||
| Modern-slavery vulnerability score | 58.9 | 72.2 | High | |||
| Technology & Digital | ||||||
| E-government development (UN EGDI) | 0.7 | 49.0 | Medium | |||
| Internet users (% of population) | 74.6 | 61.6 | High | |||
| Cybercrime origination (World Cybercrime Index) | 0.1 | 30.0 | Medium | |||
| Secure internet servers (per million people) | 82.2 | 80.2 | Very High | |||
Per-indicator ratings are quartile bands of the 0–100 risk score. The Australia column shows the same indicator’s raw value for the Australian baseline in this snapshot.
Cultural distance
GLOBE 2004 societal practices · rated on distance from Australia · not in the overall score
Context — not scored
Unemployment
6.8%
Displayed, never scored: ambiguous for an entrant and unreliable where informal employment dominates. (2025, ILO modelled)
Trade agreement
No Australian FTA in force
Market access is decision-relevant but a benefit, not a risk — kept out of the rating.
Regional advisories
Higher levels apply in some areas (up to Level 4)
DFAT Smartraveller sub-national advice where it exceeds the overall level.
Compare with
A score means little on its own. These economies scored closest to Egypt, Arab Rep. in this snapshot, which is the fastest way to see whether the rating is telling you something specific or something regional.
16.1 · Baseline for every comparison
60.9 · 0.4 points lower than Egypt, Arab Rep.
60.9 · 0.4 points lower than Egypt, Arab Rep.
61.8 · 0.6 points higher than Egypt, Arab Rep.
60.6 · 0.6 points lower than Egypt, Arab Rep.