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Egypt has a widening fiscal deficit owing to a surging subsidies bill and rising public wage costs. There Links of London relatively high levels of corruption and bureaucracy. Opportunities The Ahmad Nazif cabinet, introduced in July , has impressed investors with its policy activism so far. Recent tax and tariff cuts will stimulate economic activity. Threats The widening fiscal deficit is adding to the costs of servicing debt, most of which is held domestically. High unemployment may lead to political resistance to privatisation plans. The stock market has lost nearly half of its value and the recovery in global risk appetite Links of London Black And Orange Friendship Bracelet March may not last long. Militant attacks on tourist sites pose a downside risk to revenues from the key tourist sector, although increased security spending appears to have been successful in this regard. Piracy in the Gulf of Aden has resulted in large numbers of shipping companies opting for alternative routes which do not use the Suez canal. If the situation is not resolved, this key geostrategic advantage will be lost. Egypt Business Environment SWOT Strengths The geographical location is good for trade as Egypt has access to both the Mediterranean and the Red Sea, not to mention the key Links of London Red Valentine Bracelet canal route, which connects Europe with Asia. The legal system has issued adjudications in favour of foreign firms, although there are frequent procedural delays, and it is closely connected to the executive branch of government. Weaknesses Egypt ranks th out of states surveyed in Transparency International 's Corruption Perceptions Index , comparing unfavourably with regional peers. The labour market is relatively inflexible, with Egypt performing markedly worse than the Organisation for Economic Cooperation and Development OECD average, and also inferior to Links of London Bracelets regional average on the World Bank 's Hiring and Firing Workers index. Opportunities Efforts towards banking sector consolidation should bring down the cost of private sector credit and fuel small business growth. A free trade zone between all coastal Mediterranean states and the EU is expected to be in place by .