Does Germany’s economy need more than a cup of coffee? Whilst the country avoided recession—thanks to a statistical quirk—most economists think Germany will be in that position when the numbers for the first part of this year are published. (BBC)

Netanyahu’s position becoming more uncertain as Israeli PM rejects Hamas deal to end war. The Israeli prime minister, Benjamin Netanyahu, has rejected a ceasefire plan put forward by Hamas, calling the terms “delusional.” (The Conversation)

Cybercriminals raked in record $1.1 billion in ransom payments in 2023. Cybercriminals extorted a record $1.1 billion in ransom payments from victim organizations around the world last year despite US government efforts to cut off their money flows. (CNN)

Banks' margin pain likely to linger given Fed caution. A resilient economy and continued strong employment gains could persuade the Federal Reserve to keep interest rates elevated for longer—stymieing hopes for cuts this spring and keeping pressure on banks' deposit costs and their collective ability to grow their loan portfolios. (American Banker)

Europe expands rules to crack down on tech mergers. The European Union this week tightened its antitrust screws on tech companies, announcing that it now will consider the impacts of free products and “digital ecosystems.” (Axios)

An unprecedented plan for Russia’s frozen assets to rebuild Ukraine. Belgium's government is shopping around an avant-garde solution to Ukraine's money problems, now that further direct aid to the country seems all but dead in the U.S. Congress. (Axios)

Pakistan votes amid polarization, militant attacks and economic crisis. Analysts say there may be no clear winner but Pakistan's powerful generals could play a role. Pakistan's military has dominated the nuclear-armed country either directly or indirectly in its 76 years of independence but for several years it has maintained it does not interfere in politics. (Reuters)

Japan’s stock market barely grew for decades. Now it’s booming. Japan’s Nikkei is at a 34-high as a cheap yen and corporate governance reforms lure international investors. (Al Jazeera)

Inflation is nearly back to 2%. So why isn’t the Federal Reserve ready to cut rates? From Wall Street traders to car dealers to home buyers, Americans are eager for the Federal Reserve to start cutting interest rates and lightening the heavy burden on borrowers. (AP)

Mexico’s economy ekes out 0.1% expansion in 4th quarter, posts growth of 3.1% for 2023. Mexico’s economy barely eked out a 0.1% increase in the fourth quarter, bringing estimated growth for 2023 to 3.1%, according to preliminary figures published Tuesday by Mexico’s National Statistics Institute. (AP)

Indonesian presidential vote highlights tradeoffs between fast growth and a healthy environment. A presidential election in Indonesia, the world’s third-largest democracy, is highlighting choices to be made as the country seeks to profit from its rich reserves of nickel and other resources that are vital to the global transition away from fossil fuels. (AP)

America’s underemployment problem. Despite record job growth, employees are not necessarily finding sustainable jobs that meet the cost-of-living surge. (Al Jazeera)

El Niño is starting to lose strength after fueling a hot, stormy year. That strong El Niño is now starting to weaken and will likely be gone by late spring 2024. So, what does that mean for the months ahead—and for the 2024 hurricane season? (The Conversation)

EU Directive on combatting late payment and its unintended consequences on the real economy. While the core purpose of the directive is commendable, closer examination reveals several unintended consequences that raise concerns about its efficacy and broader impacts on contractual freedom, negotiation flexibility, and the vitality of small- and medium-sized enterprises (SMEs). (ICC)

Mastering Business in Egypt

Jamilex Gotay, editorial associate

A key role of an international credit professional is to build and sustain customer relationships. This requires understanding their customers, as well as the customs, culture and business style of their countries.

Why it matters: Understanding the customs, culture and business style of different countries is crucial in fostering strong customer relationships and ensuring successful international credit transactions.

The site of some of the world’s most ancient civilizations, Egypt has long been a center of intellectual thought and cultural exchange. It is renowned for its art, literature and music as well as its megalithic architecture, including the Great Pyramid of Giza and the Sphinx.

Egypt is a cultural melting pot, richly influenced by its ancient history, as well as by various African, European and Arabic cultures. Most of Egypt's population are ethnic Egyptians, but it also includes Greeks, Turks and Abazas. The country hosts large immigrant communities from Europe, North America, Libya, Kuwait, Jordan and Saudi Arabia.

Top Export Partners

Egypt’s largest export partners are Italy, with 8% of exports; India and the U.S., with 7% each; Saudi Arabia, with 6% and Turkey and Libya, with 5% each.

Major Export Products and Services

Top export products include petroleum products and crude oil, cotton, textiles, metal products, chemicals and processed food. Egypt’s natural resources of various minerals, such as iron ore, phosphates and manganese, and petroleum and natural gas aid in the local production and export of products.

Top Import Partners

Egypt’s largest import partners are China, with 9% of imports; the U.S. and Germany, each with roughly 7% and Russia, Ukraine, Turkey and Italy, with approximately 5% each of imports.

Major Import Products and Services

Egypt primarily imports fuels, machinery and equipment, food, chemicals and wood products.

Relationship Building

Egyptians prioritize relationship-building, as they only conduct business with trusted and respected acquaintances. Hence, personal connections are crucial in Egypt's business environment. Negotiations typically begin once trust is established, making social interaction as vital as business discussions for long-term partnerships.

Renowned for their exemplary hospitality, Egyptians frequently showcase their generosity by providing their guests with plentiful offerings. Relationship-building often occurs over elaborate meals at restaurants. However, post the 2011 Egyptian revolution and subsequent unrest, Egyptian businesspeople may now prefer to host guests at home or their hotels for safety.

Yes, but: Keep in mind that an invitation to an Egyptian's home is a great honor, and to refuse will be taken as an insult to their hospitality, which could impede the relationship-building process.

To sustain your relationship, it is crucial to avoid displaying negative emotions or losing your composure; it is recommended to adopt a diplomatic approach and refrain from causing any form of embarrassment to your Egyptian counterparts. It is equally important to show respect for individuals of higher status, rank or age.

Islam, specifically Sunni, is the official religion of Egypt, with Literary Arabic as the official language. However, Egyptian Arabic is more spoken, along with English and French. Due to its large tourism sector, street signs are bilingual (Arabic and English), and many locals speak some English, French, Italian, German or Russian.

Negotiating

Egyptians are expressive and emotional in business, using passion as a negotiation strategy. Despite their experience in cross-cultural dealings, don't assume Egyptians are open-minded. They typically expect procedures to be conducted their way. Persistence and a readiness to compromise can earn you high regard from your Egyptian counterparts.

Because relationships are integral to successful business with Egyptians, negotiations—especially long-term business—will not begin until your Egyptian counterparts are satisfied that they know and like you.

Before entering negotiations and contracts with Egyptian businesses, learn whether the company is state-owned or privately owned and to what extent, if Islam influences business operations.

In Egypt, who you know is more valuable than what you know, so cultivate your networks and contacts. Expect a great deal of resources and time to be invested in developing key contacts. Developing strong bonds is essential to closing any deal, and you should therefore view social interactions as being of equal importance to the business itself.

Negotiations and agreement building will be a slow process that takes place between people and not companies. For this reason, it is crucial not to rush the process or change individuals on your negotiating team before a final decision is reached.

Business Etiquette

The customary greeting in Egypt is "As-salaam aleikum" ("Peace be upon you"), with the response being "Wa aleikum es-salaam," ("And upon you be peace").

Egyptian men will greet each other with a kiss on both cheeks, but foreign businessmen will only be expected to shake hands with their male Egyptian counterparts. However, they should only shake with the right hand, because the left hand is considered unclean.

When greeting an Egyptian woman, foreign businessmen should wait for her to initiate a handshake, otherwise a respectful nod will suffice. Men should maintain direct eye contact with other men as a sign of trust, but limit eye contact with women.

After greetings and introductions, it is common to exchange business cards, which should have one side printed in Egyptian Arabic.

• Present your card with your right hand, Arabic side up.
• It is courteous to study any business card that you receive before putting it away.

To avoid etiquette faux pas, grasp Egyptian body language. Egyptian men often stand close to each other while talking, which may feel intrusive to those from cultures that prefer more personal space. However, do not back away, as this will be seen as unfriendly and a sign of rejection. Also, be prepared to be touched a lot by people of your same gender while conversing; once again, even if this makes you uncomfortable, it is important to accept it in order not to be rude.

As in most predominantly Muslim countries, business dress should be modest and conservative while in Egypt. Visiting businessmen are expected to wear a classic Western business ensemble consisting of a dark-colored (black, blue or gray) business suit, white shirt, appropriate tie and dress shoes. Foreign businessmen should not wear visible jewelry or traditional Egyptian attire, as this can be considered offensive.

Businesswomen visiting for meetings or presentations should dress modestly. Dresses and skirts should reach the knees, and sleeves should extend to the wrists. When interacting with traditional Egyptians, foreign businesswomen should avoid formfitting, low cut or revealing attire. Open-toed shoes are also discouraged.

FCIB members can learn more about the culture and business etiquette of different countries in the World Trade Reference.

Week in Review Editorial Team:

Annacaroline Caruso, editor in chief

Jamilex Gotay, editorial associate

Kendall Payton, editorial associate