A Tale of Two Brothers: Children of emigres return to invest in Egypt

DNE
DNE
11 Min Read

CAIRO: There are an estimated 2.7 million Egyptians currently living abroad, according to a 2010 report by the International Organization for Migration. Most of this diaspora is concentrated in other Arab states and about 30 percent of the Egyptian community abroad lives in Europe and North America.

The report estimated that, in the diaspora, “about one Egyptian out of three is an entrepreneur or self-employed worker.” According to the World Bank, remittances sent back to Egypt by those living abroad totaled around $7.8 billion and accounted for 5 percent of the national GDP. This figure was actually down from previous years, due to the global financial crisis.

Nevertheless, the country’s economy was not as deeply impacted by the crisis as that of many other states. “It seems that the more limited impact of the crisis on Egypt might have promoted some Egyptian entrepreneurs to consider returning to Egypt and establishing investments in their areas of origin,” states the report.

The Elemam brothers fall squarely into this group and have seen great success in their business venture so far.

Two years ago, Ahmed and Karim, 28 and 26 years of age, born in France and Kuwait respectively, came to Cairo to set up a business. After a sequence of chance encounters with Egypt enthusiasts and business experiences in tourism, they decided to explore the untapped opportunities of the land of their parents.

Tour Egypt has since become the most successful internet-based tour operator in the country. The company’s website is also a vast online encyclopedia with over 16,000 pages devoted to the sights and history of Egypt.

Their office in Nasr City is rather austere: computer desks, a couple of couches, and a conference table. But the brothers insist that the no-frills atmosphere helps the 30 employees communicate more freely and ideas to flow uninhibited from one department to another.

They have two goals: “We want to have extraordinary customer service and an extraordinary website,” said Ahmed, “So we try to find people who fit that.”

Having grown up in Canada, studied business administration, and experimented with some small company start-ups before, the Elemams brought with them a dedicated work ethic and high professional standards.

They have set up a talent system to rank the performance of employees and do not hesitate to fire those who do not meet expectations. “[The employees] are taught to treat the customers as if they are in their home, we’re here to give [the customers] a great experience,” he added. Ahmed and Karim regularly work from 7:00 to 20:00 and expect their employees to come in with a problem solving mindset and willingness to learn.

This seemingly simple idea has actually been “nothing but a challenge” to implement. Since arriving, they have been battling what they call the “Egyptian mentality” which stifles productivity and is a roadblock to business development.

“The victimization mentality is the biggest disease in Egyptian culture: That we are victims of conspiracy, that there is a big problem, that the economy is really bad, that the president is this, that the government is this. Yeah it’s tough working with [the government], but at the same time, we did it,” Ahmed insisted.

It cost LE 2.5 million and six months to obtain a license. The fact that only wealthy people can start businesses is not good for tourism said the Elemams.

“What Egypt really needs is a revival of the tourism sector by carefully selecting the people that are pushing the reputation of Egypt,” said Ahmed, “We could create a product every day. That’s how big Egypt is. It’s a landmine of opportunities.”

But, Karim added, “It’s almost like an untapped market. You see so many tourism companies but it almost feels like no one is doing it in the most efficient way.”

Tourism is one of the most important sectors of the country’s economy, employing 12 percent of the workforce, according to the Ministry of Tourism. But the brothers feel that “There’s no successful tourism model in Egypt, there’s no ‘Apple’ of tourism in Egypt. There’s no company that we can look up to. I think Egypt is waiting for the right mentality to come here.”

In order to be the change they want to see in business, the Elemams have hired mostly people under the age of 30, who have not been “polluted” by work experience in other tourism companies. Also, they have personally explored all of the tour destinations the country has to offer and used funds from operations services to provide more encyclopedic content to the website.

They want to improve Egypt’s reputation as a premier travel destination. As tour operators, they see themselves as ambassadors of Egypt to the global community.

Growing up abroad and traveling to 50 countries each has made the Elemams into self-proclaimed global citizens. “It’s very hard to say ‘I’m Egyptian’ or ‘I’m just Canadian’. We are Canadian, brought up Canadian style but we feel like an element of each country added to us. So in the end, our ark is not attached to one place,” said Ahmed.

“I’m not bothered by going around, I just would like to do what’s best for the company, what’s best for our website. That’s what matters the most for us: how to do it in the best way.”

The best way is not always apparent. The brothers may approach problems from different angles, but always end up agreeing in the end. “I think it helps a lot that we were raised together …We just find a way to fight together,” said Ahmed, laughing.

Ultimately a positive attitude and hard work has been the difference maker and the key to their success in the country. “If you’re not adaptable, Egypt is not for you,” they said.

Karim’s advice for those interested in starting a business here is: “Come with an open mind. Hard work eventually pays off in Egypt and the reason why is that not many people believe in it and not many people are doing it. You have to be really patient, some times one year, a year and a half, not even before you see results, before you see progress.”

The payoff? “When you fight the conditions and the environment around you, once you come out on the other side, you’re alone,” said Ahmed. “Working hard here and being patient through all the trouble means you’re alone. That is your advantage. There are way more opportunities here than in the West, but to get to those opportunities it’s a very rough path.”

The logistics of life in Cairo as well as Egyptian cultural specificities are not the least of these problems. According to the brothers, their own Egyptian family background could not have prepared them for life here. They say that those who venture into Egypt from outside have to be “very patient and thick-skinned, able to take the driving, the nagging of employees, the continuous complaining, everyone blaming you for everything.”

But despite their criticism of the Egyptian mentality and work ethic, they believe that the youth here is capable of changing the trends by adopting a more Western approach to business culture. They advise young Egyptians to “lose the question of fairness and consistency and equality and focus on the better question which is fairness to what God gave you. If God gave you some skills, learn, develop them. That is the biggest favor you can do yourself. Come with the right mentality, don’t argue a lot. It is tough because you have to be emotionally strong, but if you cave in it becomes self destructive.”

As an extension to their commitment of making the Egyptian business scene more competitive on the international level and more beneficial internally, the Elemams are even extending free consultation services to anyone willing to hear their ideas.

“I’m willing to meet with any young person if they’re unemployed, even if they’re not going to be hired by Tour Egypt,” Ahmed said enthusiastically. “If they need advice about how to max their career, or how to put a plan together for an unemployed year, I’m open to anybody that would email me for that. Even if it’s engineering, if they sell snakes, I don’t mind, even if it’s after work, during the weekend or during work.”

For the Elemam brothers, “At the end of the day, seeing the youth in Egypt maxing capabilities is more rewarding than Tour Egypt winning.”

For more on Tour Egypt, please visit www.touregypt.net or email Ahmed Elemam at [email protected] or Karim Elemam at [email protected]

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The Elemam brothers run Tour Egypt, which has become the most successful internet-based tour operator in the country.

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