Egypt’s currency crisis often grabs the headlines, but a much deeper problem is bureaucracy stifling business activity.

Economists and investors will tell you currency problems are cyclical and can be overcome. The ease of doing business on the other hand is not. And if Cairo is to attract the level of investment it needs to rebuild, it must truly focus its efforts on a structural reform of its dogmatic business environment, which is plagued with a complex web of government bodies and endless disputes.

The CEO of the General Authority for Investment and Free Zones (GAFI) recently said Egypt is looking to attract $10bn in foreign direct investment (FDI) during the next financial year.

Foreign investors are attracted to large margins and proven track records, both of which Egypt boasts. But more importantly, foreign investors look for an uncomplicated business environment – something Egypt is not offering at the moment. The government has promised to modernise legislation and streamline the business environment, but the country ranks 131st out of 181 economies in terms of ease of doing business – down five places from its 126th ranking in 2015.

In 2016, it ranked 73rd for starting a business (its highest ranking) and 113th for obtaining construction contracts out of 189 measured economies. For enforcing contracts, it ranked 155th.

Egypt’s legal landscape has historically been described as a complex labyrinth that makes any form of investment extremely difficult for foreign companies.

Land, for example, is often locked between several government bodies, including the armed forces. Foreign companies tell MEED that to obtain a plot of land they must go through the housing ministry, other related bodies and the armed forces, a process that takes time and is a daunting task for those looking to enter the country.

These issues are also prevalent in other sectors where a lack of flexibility has let down the country’s ability to attract investors. The refusal to allow international arbitration for future disputes in the power and water sector has not only led to delays, but also to multilateral banks and developers withdrawing interest in major renewables schemes.

It is widely accepted that Egypt’s biggest problem is the ease of doing business and before it tackles these issues effectively, foreign investment is unlikely to reach the levels required.