Egypt’s integration in global value chains (GVCs) increased only slightly over time and remains low compared to other developing countries. The objective of this chapter is therefore to examine the evolution and composition of Egypt’s GVC-related trade flows and to compare these with a selected sample of developing countries. Several key challenges stemming from trade policy, the business environment, competition policy and the quality of institutions, as well as corruption and political connections may explain the relatively weak performance of Egypt in GVCs. We investigate Egypt’s participation in GVCs at the macro and at the firm-level, using data from multiple sources and resorting to several definitions of GVC participation. Overall, we find that Egypt’s trade policy became more restrictive over time. The gradual decline in tariff rates were accompanied by a rise in non-tariff measures (NTMs), the persistence of burdensome services and behind-the-border policies, and a deterioration of competition in the domestic market. Moreover, political connections and corruption create a privilege for some firms, allowing these to perform better and increases their likelihood to participate in GVCs.