Barclays

Your guide to expatriate banking services in Egypt

Introduction

The Arab Republic of Egypt occupies the north-east corner of Africa.

Arabic is the official language of Egypt, and is the main language used in commerce. However, English and French are both widely spoken throughout Egypt. The currency unit is the Egyptian pound (EGP), divided into 100 piastres.

Banks

Central bank

• Central Bank of Egypt

Major Commercial banks in Egypt

• Bank of Alexandria
• Banque du Caire
• Banque Misr
• Cairo Amman Bank
• National Bank of Egypt

Bank opening times in Egypt

Banking hours are typically 8.30am to 2pm (Sunday to Thursday) in the major towns and cities, with smaller towns and villages operating a more varied timetable.

Banking services in Egypt

Egypt's banking system today is modern and regulated according to internationally accepted standards. Online and telephone banking are becoming increasingly popular, and the use of credit, debit and cash cards is widespread throughout Egypt. A number of Egyptian banks offer a range of retail, commercial and even Islamic banking services, which operate according to Sharia rules.

Bank branches are plentiful in Egyptian cities and towns, with new branches opening regularly. Banks offer multi-lingual services, such as counter services and internet banking, and customers of international and national banks have the option of receiving bank statements and bank correspondence in either Arabic or English.

The main types of bank account in Egypt

Egyptian banks offer a wide range of banking services and facilities, including direct debits, standing orders, cheque clearance and processing of credit card repayments. The main types of accounts include:

• Current accounts - mainly used for everyday banking and typically pay low interest rates on account balances. Many current accounts provide ATM/debit cards, and some offer cheque facilities, with the option for credit cards. Current accounts typically offer easy access to funds, and banks may offer accounts in a selection of major foreign currencies.
• Savings accounts - designed for short to mid-term savings, may offer a higher rate of interest than a current account, but may provide limited access to funds.
• Deposit accounts - specifically for longer-term savings, and are often opened for fixed time periods and fixed interest rates. Deposit accounts may offer a higher rate of interest, but may provide limited or no access to funds until account maturity.

Banks such as Banque Misr offer Islamic banking services to customers wishing to operate an account within the rules of Islamic Sharia.

Opening a bank account when you arrive in Egypt

To open a bank account in Egypt, you will be required to provide a range of official documentation, such as your passport, work visa and residence certificate. Whichever bank you're looking to open an account with, a letter from your home bank and some recent bank statements are likely to be helpful in the application process. You should also take several passport-size photographs with you.

Opening a bank account before you arrive in Egypt

International accounts can be opened before you move to Egypt, and provide a convenient way to manage your finances abroad.

An international account gives expats access to a range of savings accounts and a comprehensive range of international banking services, including online banking, international payments and online money transfer services.

ATM and currency facilities in Egypt

In hotels, restaurants and a number of shops, you will be able to use a credit card, but is likely that you will have to pay a surcharge. Paying by cheque can prove difficult, as it is not a widely accepted payment method - cash is the preferred method of payment for most services or purchases.

Most banks and building societies in Egypt allow customers a limited number of free cash withdrawals per month from cash machines (ATMs) belonging to their own network, but you may be charged for using an ATM belonging to another bank or network. Maximum daily cash withdrawals are approximately EGP £2,000 and EGP £4,000 (approximately £220 - £450 GBP) and you will find ATMs located throughout the main cities, towns and tourist areas. Cash withdrawals from ATMs using credit cards incur the highest fees.

Currency exchanges and banking facilities are available at the major airports and many are open 24 hours a day, but typically offer low exchange rates. Hotels can also change foreign currency, but hotel exchange rates are typically uncompetitive. To find the best exchange rates, look for city centre bureaux de change.

Credit and charge cards
In Egypt and throughout the Middle East, Visa and MasterCard are the most widely issued and accepted credit cards. You will also find American Express and Diners Club cards are accepted in Egypt, although to a lesser extent than the major credit cards.

Cheques
The use of cheques in Egypt is limited, due to a preference for electronic or cash payments. If you issue a cheque with incorrect details, and the cheque is 'misdirected', you will not be entitled to reimbursement.

In Egypt, going overdrawn on your current account without prior authorisation is taken very seriously, and unauthorised overdrafts attract substantial penalty charges and fees. Prosecution for account misuse and fraudulent activity is common, and punishments can include prison terms.

Buying on credit
In Egypt, banks may finance large purchases with a number of post-dated monthly cheques that are then passed to the vendor. Always keep detailed records and receipts, and ensure that the cheques are completed correctly.

Above all, ensure that there are sufficient funds in your account to meet the payments. There may be serious repercussions to issuing cheques that 'bounce', so always inform your bank immediately if there is any chance that you may not be able to honour a payment.

Money transfers to and from Egypt

As well as money transfer services offered by banks, there are a wide variety of specialist money transfer businesses. Currency specialists may allow you to transfer your money abroad completely free of charge, and may also allow you to lock into favourable exchange rates for up to two years.

Currently, you can import or export up to EGP £5,000 (approximately £580 GBP) and foreign currency up to US$10,000 (or equivalent). Amounts above these limits should be declared to Customs upon arrival or departure from Egypt.

Bank charges in Egypt

In Egypt, bank charges are incurred on a range of financial products and services, and can be exceptionally high. For this reason, it is advisable to research the marketplace thoroughly, and inform yourself of the level of charges that each service attracts.

Banking in Egypt - other information

Egypt ombudsman
If you have a complaint, you should contact the Central Bank, which can be found here: www.cbe.org.eg.

More information on banking with Barclays International

For further information regarding international banking from Barclays International, you can speak to a specialist adviser on +44 (0)1624 684316†.

For full details of the range of international accounts and services available to expats and international residents living and working in Egypt, visit Barclays International online.