UAE – Egypt

Payment

Discover secure payment methods, preferred currencies, and standard payment terms that facilitate trade between the UAE and Egypt.

Payment Methods

The UAE and Egypt employ various secure payment methods to ensure smooth and reliable financial transactions in trade dealings. Options include letters of credit, which are widely trusted for their security, wire transfers for quick and direct payments, and bank drafts as a more traditional method.

Currency

Trade between the UAE and Egypt primarily involves the UAE Dirham (AED) and the Egyptian Pound (EGP). While the AED is pegged to the US dollar, providing stability, the EGP floats more freely, which can lead to fluctuations in exchange rates.

Traders should stay informed about current exchange rates to manage costs effectively.

Payment Terms

Typical payment terms in trade between the UAE and Egypt range from 30-60 day credits, allowing businesses some leeway to manage cash flows effectively. Advance payments are sometimes requested for new or high-risk transactions, while established relationships might negotiate more favourable terms.

Frequently Asked Questions (FAQ)

What are the main ports of entry for cargo shipments between the UAE and Egypt?

The main ports of entry for cargo between the UAE and Egypt include the Port of Alexandria and Port Said East in Egypt, both critical for Mediterranean and Suez Canal transits. In the UAE, major ports like Jebel Ali in Dubai and Khalifa Port in Abu Dhabi serve as key hubs for shipments to and from Egypt.

What specific goods are restricted or require special permissions for trade between the UAE and Egypt?

Restricted or regulated goods include firearms and ammunition, which require special permissions from both countries' governments. Pharmaceutical products are also heavily regulated and require approval from health authorities. Additionally, the export of cultural artifacts and antiquities from Egypt is strictly controlled to protect national heritage.

What are the standard customs duties when importing goods into Egypt from the UAE?

Customs duties in Egypt vary widely depending on the product category but generally range from 0% to 40%. Essential goods often have lower tariffs, while luxury items may incur higher rates. The standard Value-Added Tax (VAT) rate in Egypt is 14% on goods and services.

Are there customs exemptions available for specific types of imports or exports in the UAE and Egypt?

Yes, both countries offer customs exemptions under certain conditions. In Egypt, raw materials for manufacturing and strategic commodities like wheat and pharmaceuticals may benefit from reduced or zero tariffs to support local industries. In the UAE, exemptions are typically available for re-exports, goods imported into free zones, and specific strategic sectors like aerospace and renewable energy.

What are the estimated shipping times for goods traveling by sea or air between the UAE and Egypt?

Sea transit times between the UAE and Egyptian ports such as Alexandria or Port Said typically range from 4 to 7 days, depending on the specific route and shipping conditions. Air freight from major UAE airports like Dubai to Cairo usually takes about 2 to 3 hours, making it a faster option for time-sensitive shipments.