RESTRICTED
WORLD TRADE GATS/SC/30/Suppl.1
28July1995
ORGANIZATION(95-2255)
Trade inServices
EGYPT
Schedule ofSpecific Commitments
Supplement 1
(This isauthentic inEnglish only)
____________
This textreplaces theFinancial Services section contained inpages 8to19of
document GATS/SC/30.EGYPT -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
FINANCIAL SERVICES
Measures ofspecific application:
Themain criteria onwhich theeconomic needs testsapply areasfollows:
A.Insurance Services:
1.Surplus demand totraditional classes ofinsurance gives newcompanies anopportunity ofworking without harmful competition tothemarket or
financial positions ofexisting companies andconsequently policy holders.
2.Exhausting of50percentofthecapacity oftheexisting companies, which iscalculated onthebases ofsolvency margin, there isasurplus
demand inexcess ofthecapacity which enables anewcompany toachieve itspurposes.
3.Setting upofanewcompany leads toanincrease oftotalretention inthemarket; taking intoaccount thetechnical considerations.
4.Thenewcompanies shallintroduce newinsurance covers.
B.Banking Services:
1.Ratio oftotalfinancial assets heldbythebanking sector tototalfinancial assets intheeconomy.
2.Banking density.
3.Ratio oftotalcredit tototaldeposits.
4.Ratio ofnumber offoreign branches andjoint venture banks tototalnumber ofbanks.
5.Stage ofthegeneral economic development oftheFinancial sector.
GATS/SC/30/Suppl.1
Page1EGYPT (continued) GATS/SC/30/Suppl.1
Page2
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
C.Other Financial Services
Commercial presence forconducting theactivities ofother Financial Services (Capital Market Services excluding trading insecurities) should be
incorporated inEgypt totaketheform ofajoint-stock company orapartnership limited byshares.
INSURANCE &INSURANCE RELATED SERVICES
1.Life, health, personal
accident(1)None
(2)None
(3)Foreign andjointventure companies
areallowed onlytocarry onbusiness
infreezones, provided thattheir
activities shallbeconfined tothe
transactions carried outinconvertible
currencies.
-Nomaximum limits required onthe
foreign shareholding infreezones.
-Economic needs testshallapply tothe
inland commercial presence (other
thaninfreezones) according tothe
criteria asstipulated inthehorizontal
section.(1)None
(2)None
(3)NoneEGYPT (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Foreign insurance companies
branches andagencies arenot
allowed.
-Foreign capital equity shallnotexceed
49percentofthetotalcapital
required forthecompany (other than
infreezones)
-Legal cessions ofthetotal
transactions must beceded to
Egyptian Reinsurance Co.according
tothepercentages tobedecided by
thesupervisory authority and5per
centoftheCompany 'streaties to
African Reinsurance Co.
(4)Themanaging directors should be
nationals(4)None
2.Non-life insurance (1)Unbound
(2)None(1)Unbound
(2)None
GATS/SC/30/Suppl.1
Page3EGYPT (continued) GATS/SC/30/Suppl.1
Page4
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)Foreign andjointventure companies
areallowed onlytocarry onbusiness
infreezones, provided thattheir
activities shallbeconfined tothe
transactions carried outinconvertible
currencies.
-Nomaximum limits required onthe
foreign shareholding infreezones.
-Inland commercial presence, other
thaninfreezones, willbeallowed
within three years from thedateof
entry intoforce oftheGATS.
Economic needs testshallapply then;
-Foreign capital equity shallnotexceed
49percentofthetotalcapital
required forthecompany (other than
infreezones).
-Foreign insurance Companies
branches andagencies arenot
allowed.(3)NoneEGYPT (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Legal cessions ofthetotaltransactions
must beceded toEgyptian
Reinsurance Co.according tothe
percentages tobedecided bythe
supervisory authority and5percent
oftheCompany 'streaties toAfrican
Reinsurance Co.
(4)Themanaging directors should be
nationals(4)None
3.Reinsurance and
retrocession(1)None
(2)None
(3)Foreign andjointventure companies
areallowed onlytocarry onbusiness
infreezones, provided thattheir
activities shallbeconfined tothe
transactions carried outinconvertible
currencies.
GATS/SC/30/Suppl.1
Page5EGYPT (continued) GATS/SC/30/Suppl.1
Page6
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Nomaximum limits required onthe
foreign shareholding infreezones or
inland.
-Foreign reinsurance companies
branches andagencies arenot
allowed.
-Insurance andreinsurance companies
arenotallowed todealwithreinsurers
notlisted inthesupervisory authority
list;
-Fivepercentofthecompany 's
treaties must beceded toAfrican
Reinsurance Co.
(4)None(1)None
(2)None
(3)None
(4)None
4.Auxiliary services
other than
intermediation:
a.Actuarial services (1)Unbound
(2)Unbound(1)Unbound
(2)UnboundEGYPT (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)Foreign service supplier must be
authorized toperform this
profession from acompetent
authority inhishome country and
registered attheEgyptian register
forthatpurpose.
(4)None(3)None
(4)None
b.Consultancy (risk
assessment andrisk
management only)(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
c.Lossassessment (1)Unbound
(2)Unbound
(3)Foreign service supplier must be
authorized toperform this
profession from acompetent
authority inhishome country and
registered attheEgyptian register
forthatpurpose.
(4)None(1)Unbound
(2)Unbound
(3)None
(4)None
GATS/SC/30/Suppl.1
Page7EGYPT (continued) GATS/SC/30/Suppl.1
Page8
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
d.Liaison offices (1)None
(2)None
(3)Commercial presence isbound only
forpublic relations andmarket
research.
(4)None(1)None
(2)None
(3)None
(4)None
5.Intermediation (1)Bound onlyforlifeinsurance and
reinsurance services.
(2)Bound onlyforlifeinsurance and
reinsurance services.
(3)Unbound
(4)Unbound(1)None
(2)None
(3)Unbound
(4)UnboundEGYPT (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
BANKING SERVICES
A.Joint-Venture Banks
(JVBs)
-Acceptance of
deposits andother
forms ofrepayable
funds.
-Alltypes oflending,
including consumer
credit, andfinancing
ofcommercial
transactions.
-Allpayment and
money transmission
services, including
credit, charge and
debit cards, traveller 's
cheques andbankers
draft.
-Guarantees and
commitments.(1)Unbound
(2)Unbound
(3)Foreign capital equity inJVBs
established after theenactment of
LawNo.37/1992 should notexceed
51percent.
(4)TheGeneral Manager should be
national(1)Unbound
(2)Unbound
(3)Foreign service suppliers, inthe
context ofJVBs arerequired tooffer
on-the-job training fornational
employees.
(4)None
GATS/SC/30/Suppl.1
Page9EGYPT (continued) GATS/SC/30/Suppl.1
Page10
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Trading forown
account orfor
account ofcustomers
in:
a.Money market
instruments
(cheques, bills
andcertificate of
deposits);
b.foreign
exchange;
c.securities.
-Participation inshare
issues andthe
provision ofservices
related tosuchissues.
-Money broking.
-Portfolio management
advice.
-Safekeeping of
securities.EGYPT (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Credit reference
services and
-Safecustody services
B.Foreign Bank
Branches
Same activities specified
under (A)above.(1)Unbound
(2)Unbound
(3)Economic needs testshallapply
according tocriteria asstipulated in
thehorizontal section.
(4)None(1)Unbound
(2)Unbound
(3)Branches offoreign banks established
after5June1992, (thedateof
enforcement ofLawNo.37of1992)
maybelicensed todealinlocal
currency inaddition toforeign
currency dealings, subject tothe
satisfaction ofminimum capital
requirement andother prudential
measures (Art. 13oftheexecutive
regulations ofthesaidLaw).
(4)None
C.Representative Offices
ofForeign Banks
(R.O.s)(1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
GATS/SC/30/Suppl.1
Page11EGYPT (continued) GATS/SC/30/Suppl.1
Page12
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)Foreign banks which desire tosetup
representative offices should nothave
branches inEgypt.
-Activities ofR.O.s should beconfined
toconducting studies andpotential
investments, acting asliaison with
theirheadoffices andcontributing to
solving problems anddifficulties that
mayencounter theirheadoffices '
correspondents inEgypt.
(4)None(3)Unbound*
(4)None
OTHER FINANCIAL SERVICES
A.SECURITIES
1.Underwriting (1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)NoneEGYPT (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2.Brokerage (1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
3.Trading insecurities
(Buy andSellby
individual or
institution onthe
stock exchange)(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
4.Clearing and
settlement(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
5.Marketing andmarket
promotion(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
GATS/SC/30/Suppl.1
Page13EGYPT (continued) GATS/SC/30/Suppl.1
Page14
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
6.Portfolio and
investment
management(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
7.Establishment of
collective investment
funds(1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)None
8.Venture capital (1)None
(2)None
(3)None
(4)None(1)None
(2)None
(3)None
(4)NoneEGYPT (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B.FINANCIAL
LEASING(1)Unbound*
(2)Unbound*
(3)Bound onlywhen rules and
regulations ofLawNo.95/1995 is
issued.
(4)None(1)Unbound*
(2)Unbound*
(3)Bound onlywhen rules and
regulations ofLawNo.95/1995 is
issued.
(4)None
GATS/SC/30/Suppl.1
Page15