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Insights on Egypt’s New Investment Law
The Egyptian Government understands that attracting Foreign Direct Investment (FDI) is the key to addressing many of its economic challenges and maintaining constant progress. A number of well know international reports stated that Egypt has become the leading destination for investors looking to invest outside Europe.
Egypt’s new investment law no. 72 was officially published on the 31st of May 2017, and on 28th of October 2017, the executive regulations of the Law were issued and entered into force. According to Egypt Foreign Direct Investment Data, the flow of foreign direct investment to Egypt represented $23.5 billion in 2021, with a 30% increase since 2016 when it was US$18 billion despite the coronavirus crisis.
On the last meeting for the cabinet of ministers that took place on March 15th 2022, and headed by the Egyptian Prime Minister “Mostafa Madbouly”, a number of issued decisions that include providing incentives for investment activities related to the green economy, artificial intelligence, innovation support, scientific research projects and industrial localization. Some of the activities that enjoy these incentives are green hydrogen production, green ammonia production, storage and export activities, and the activities of establishing schools, colleges, institutes and universities as well as activities to establish places for sports activities.
The General Authority for Free Zones and Investment (GAFI) acts as a “One-Stop-Shop” with the aim to focus on investment promotional, facilitation, and the implementation of investor-friendly policies. The law offers a set of incentives for companies that invest in certain areas, such as the free economic zone in the Suez Canal, The New Administrative Capital, and Upper Egypt, some of which are:
The cabinet of ministers also approved to reduce the time required for issuing approvals, licenses or permits necessary for investment projects, all competent authorities are obligated to receive and decide on investor requests within 20 working days by notifying the applicant of the outcome of the decision.
New Safeguards for Investors
A number of protections for international investors to encourage new developments in Egypt:
Egypt will remain with more advantages for a great investment environment based on transparency, legal protections, ease of access to arbitration mechanisms, investment competitiveness, low operating costs, ongoing government efforts, rational governance, political and economic stability as well as legal and regulatory clear system, are the main catalyst for stimulating the investment climate in Egypt. Get your guide at Coldwell Banker for any investment decisions in Egypt, with unbiased consultancy.