Informal markets make a huge portion of the Egyptian economy. This is partly the case because of the soft legal structure on property registration, and partly because of the general mistrust between property holders and the government. As for the former, we deal with it in our property rights program, but the latter requires compelling socio-economic arguments for both the public and governmet officials. 

In 1997, Hernando de Soto estimated the total worth of the informal sector, or Dead Capital as he calls it, to be worth US$ 240 billion in Egypt, almost three times the country's GDP at the time. This estimation might be exaggerated, but no one can deny that informal markets and unregistered assets account for a huge part of the Egyptian economy. In addition to their effect, or lack thereof, on tax revenues and credit, informal markets undermine the rule of law and distort the market. Recent regulatory policies, such as law 196/186 on Real Estate Taxes, complicate the problem as they scare off individuals from registering their property.

Our informal markets program seeks to review the legal framework for business and property registration in Egypt and to allow for the incorporation of these sectors into the market. Furthermore, we will design a public campaign encouraging people to register their businesses and property, and a crucial play could be to partner up with financial institutions to promote registration in exchange for credit.