Pestle Analysis
Political Environment
Egypt is a country ruled by the democracy, with has the president as the head of the country. Each government has 4 years term of the agenda and no more than 2 consecutive agendas. In 1975, The country began building the relations with major powers such as the United States of America, United Kingdom, France and Italy. In January 2011, Egypt faced the biggest protest for the political revolutionaries. There were more than 2 millions people involve, including the libertarians and the Muslim brotherhoods. The reason behind this was due to political systems of the country, law, freedom of speech of the citizen, the corruptions, the increasing in the rate of unemployment and the rise in food in the low wages situation. These were happening during the president Hosni Mubarak. Then the elections took place, the muslim brotherhood won. The Egyptians were very happy and hope that the new government can deal with the problem in the past. Unfortunately, the situations became worst. These governments were more dictated that the last one but their have less power. At last, they adjusted the law and political systems which were mainly increasing their own power. At the time, the economics and tourism were dropped. Therefore, these government had cut down again.
Since 2014 until now, Mr. Abdel Fattah El Sisi is a president of country by won 95.3% of the election. These government have to face many problem such as the islamic issue and the ISIS attracted the country. Even though there are still some old problem remain but Political system is stronger and more stable with have the military system support. The economic of the country is now slowly developing. The present president has adjusted the personal tax income, which is increase 5% from 20% to 25% in 2014, which has a positive impacts on the country's economic. These will be decide the outcome of the future politics of Egypt. The unemployment rates of the country still be the major problem in order to develop even through it is slightly decreased by 0.7 from last year. The problem is mainly due to the overpopulation.
2However, the political situations of Egypt nowadays still unable to guarantee their instability. This is not only because the politics system by it own but also the dept of the country, which the government are trying to deal with by develop the economic.
Economic Situations
As the economic is the most important tool to recover the social and politics environments of Egypt. By recovers the economic can helps the government to prove that they can make the better growth rate and create more jobs opportunity, which will lead to the better standard of living. The government had been change the economics model by focusing on the ways to make the level of economic better. The policies of this system is aims for the big business and the foreign investment, especially the investors from United Kingdom, the USA and the Gulf Arabs. Meanwhile, the financial aid for the general citizen have been cut without any compensate. Last year, the economic of Egypt grew at excellent rate (6.8%) between August and October and it stared to slightly decrease after that time. The inflation rates was 8.38 on July, which is the lowest in the year and it also brings the positive impacts to the country in term of business and investment. In addition, the decreasing of interest rate also another tool to increase the number of investor. Besides, the tourism industry has been recover very fast. It made the economics of the country develop, helps the country to decrease the rate of unemployment and also attract the international investors. In term of GDP, it is increasing significantly along with the lower inflation rate and the unemployment due to the economic freedom which never had much in the past few year.The economics freedom of Egypt is rank on the 12th of the Middle East and North America region that consists of 15 country and the overall is about 2.3 higher than 2014. For the Egyptian stock market is usually relied on consumers behaviour, economics and other middle east stock market. After mid 2013, the stock market started to increase since it was dropped in 2008 but unfortunately the stock market in China dropped at the end of August 2015, which caused the stock market of Egypt also decrease because China is the huge consumers of the export raw material such as Marble from Egypt.
Anyhow, after a few months of the biggest crisis in the country, Egyptian economy generally getting better day by day. The higher GDP, lower inflations, decrease in the unemployment rate, increasing in the number of tourists arrivals and political more stable will help the country to develop fast and better in the future.
Socials Environment
Nowadays, Egypt is on the 15th ranks for the world population, more than 84 millions people. 90% of the population are Sunni Muslim and another 10% are mostly Christian. The major inhabitants of the country is near or along the Niles Rivers and half of them livings in the urban area such as Cairo, Alexandria and many other largest cities. The popular jobs around the area is related to agriculture. As the country is overpopulation and this leads to the high rate of unemployments. This is because shortage of skilled workers for the modern careers such as a languages, computer or financial skills, which is one of the most important to attract the visitors and develop the country especially for the tourism industry that had been recovering and the developing of modern world. The living conditions of Egypt still remain very bad. Most of the people including the foreigner are not feel secure even living in the big city or the crowded area, which is due to the very high crime rate 51.17% and rank on the 7th of the Africa regions . There are more than 500,000 of peoples are have to live in the mausoleums, as their home because unable to afford the house and the country is lack of buildings materials. The majority of the Egyptians are usually living in crowed apartments and some family are have to made their own houses on the roof top of the building by using wood, metal and the cupboard but it only few areas can do this kind of house. In term of education, it consider as one of the greatest national project. All the kids have to complete the first 9 years of education which are all free. Nowadays, Egyptian lifestyle became more freedom. People are allow to talk or suggest the ideas in the public and there is a sign for better human right, better opportunities for the women, which they always look down, freedom of speech and other. Egyptian people are friendly, very helpful and quite hard working. They loves to shared their knowledge about their country and the history.
Technology
The technology and internet in Egypt started to develop at almost the end of the 20 century and it just had been used mainly for keeping the business and economics development projects’ informations of the government and private or public organisations. In 1995, the country had established the Egyptian Informations Highways project, which is allowed peoples and businesses to access more to the internet which provided varieties of online services such education, culture, service informations and the entertainment. The aims of project is to introduce to country to the global economy. After a few years, Egypt established the Smart Village project. The Smart Village is the place where the government specially design to attract the IT companies to set up their offices by providing the high tech environment. On the other hand, this project was aiming for attract the international investment into the country. The Village is located in the urban area, which is very convenience to access by just 20 minutes from the Cairo’s downtown and it is easy to access from the international airport.
In 2008, the information technology (IT) became more well known to everyone in Egypt for all ages and it is the important tools to drive the country into developing country in term of economics. Egypt is considered as the country that provide the cheapest cost for the board band internet in the Arab region, which is around $8.20 per month, but it grown rapidly especially in Cairo and helps to generate the revenue. As the demand of internet users increase rapidly, Telecom Egypt’s TE Data had providing the USB modems that faster connect, convenience and in can get rid of slow internet access because of many people are using. Moreover, there are increasing in the number of internet cafe’s business in the big cities such as Cairo and Alexandria, which offer an internet access for about USD 2 per hour. Also the coffee shop chains such as Coffee Bean and the Starbucks also offer an hour of free wifi to their customers. However, as the internet and technology in Egypt is develop fast. The governments getting worried about the wrong information outsider that the government unable to control.
Law and Regulations
As Egypt is the country in the Arub World that have the most understandable in term of politics, trade and security by according to the popularity of the country with other neighbour country. The law and regal of the country was based on the French law’s foundation in 1883, which is same as the other country. The modern legal systems in Egypt was build up and support by the Government and it is also based on the forecast of trade and the freedom economic. The Egyptian law is not only implicated for their own but it is for all regions. Therefore, the law and regulation in Egypt is more stronger than other nearby country and some country in Arab also following and copy the Egyptian’s law.
In 2011, when the revolution had happened in Mubarak government. All the legal and the political system have to reconstruct over again from the bottom up. Before voting for the new government, the team that want to be a part of Egyptian’s government had asked to draft the new