Egypt to impose import rules to shore up reserves

CAIRO – Egypt plans to impose new regulations that appear to be aimed at reducing low-quality imports in order to shore up its foreign currency reserves and protect local industries.

The new regulations will require that foreign factories be registered in Egypt, providing documentation of their licenses and proof of inspection. The regulations say foreign manufacturers must accept inspection of their facilities by a "technical team," without providing further details.

The decision, published in the official gazette last week, would come into effect in late February.

Hany Farahat, a senior economist at CI Capital in Egypt, said Wednesday that the new rules would "mainly reduce smuggling and informal import activity."