Informal system is a "structural defect" of Egypt's economy: Al-Diwani

The Egyptian economy suffers from “structural defects”, according to Sherif Al-Diwani, executive director at Egyptian Center for Economic Studies (ECES).

“92% of real estate assets are unregistered, and 60% of the economy is random and informal,” said Al-Diwani, arguing that an economy of this sort cannot continue and progress.

Such a large proportion of the economy working in the informal sector reflects a defect in the system of government laws and red tape, he said, pushing owners of economic activities to work outside the legal system.

“No one wants to work informally…but outdated laws are obstructing the efforts of citizens to establish projects…and conflicting regulations, along with the high cost of licensing and registration, have contributed to the growth of the informal sector,” said Al-Diwani.

In the wake of the presidential elections held last week, the economy has emerged as the primary challenge facing the incoming president. Media has focused on the ability of the government to reform the economy, which has deteriorated amid the security conditions the country endured since the 25 January Revolution.