15 decisions to encourage investment in Egypt

The government continued efforts to enhance the business environment and stimulate the role of the private sector to lead the engine of economic growth through a modern management method for state-owned assets, exit from non-strategic activities, strengthening competitive neutrality, and shifting towards a green economy and mechanization with a focus on the development of the Egyptian citizen, and the involvement of youth and women in development opportunities.

Several decisions were taken to reduce the cost of establishing companies, reduce the restrictions imposed on incorporation and facilitate land ownership, expand the issuance of the golden license, facilitate the import of production requirements, reduce the financial and tax burdens on investors, and stimulate domestic and foreign investment. The most prominent investment support decisions were:

1- Company incorporation restrictions

Approval of a draft decision to study the amendment of some articles of the executive regulations of the investment law to allow licensing of industrial projects based on natural gas as one of the production inputs, to operate under the free zones system.

2- The multiplicity of approvals and the length of time to obtain them

The government set a time limit of 10 days for incorporation approvals, and the establishment of an electronic platform for the establishment, operation and liquidation of projects.

3- Permits to practice the activity

The state worked to expand the issuance of the golden licence, and not limit it to companies establishing strategic or national projects.

4- Reducing preferential treatment for state-owned companies

Parliament approved amendments to some legal articles that grant preferential treatment to state-owned companies and entities, with the aim of enhancing competitive neutrality in the Egyptian market.

5- Unifying work frameworks for all state-owned companies

Establishing a unit in the Council of Ministers that handles all data of state-owned companies, and its decisions are binding on restructuring, whether by selling or transferring dependency from one party to another, and submitting the results of its work every 3 months to the President and the Prime Minister.

6- Addressing the difficulty of importing production requirements

The government approved a project to allow foreign investors to be registered in the importers' register, even if they do not hold Egyptian citizenship, for a period of 10 years.

7- Reducing additional burdens on investors

The State has committed that no party may issue decisions that add financial or procedural burdens to the establishment and operation of projects, except after taking the opinion of the Board of Directors of the General Investment Authority and the approval of the Council of Ministers and the Supreme Investment Council.

8- Reducing the financial and tax burdens on investors

Approval of a draft regulatory decision binding with clear mechanisms and controls regarding cases of imposing improvement fees in accordance with the regulating laws, and the basis for calculating each case, and considering the work of classifications of the required values according to the purpose of investment, whether health, tourism, or hotels, and it shall be circulated to all administrative agencies.

9- Introducing a clearing system between investors' dues

A draft decision directing the Ministry of Finance to create a clearing system between investors' dues, with a time limit (45 days) to ensure speedy refunds of value-added tax and speed up procedures.

10- Studying amending laws to encourage the investment climate

The government instructed the Ministry of Justice to quickly finalize the amendments to the profit transfer law for holding companies and subsidiaries, in a way that guarantees an alleviation of tax burdens and avoidance of double taxation.

11- Allocation of lands

The Ministry of Justice has been tasked with making the necessary legislative amendments to overcome land ownership restrictions and facilitate foreign ownership of real estate.

12- Contracting with a global advisory office to enhance the investment climate in Egypt

Contracting with an international consulting office and IFC to develop a clear strategic vision to enhance the investment climate in Egypt and mechanisms to improve Egypt’s ranking in the ease of doing business index with the aim of raising investment rates to between 25 to 30%.

13- Economic zones of a special nature

Studying the amendment of the Economic Zones of a Special Nature Law No. 83 of 2005 to grant privileges and exemptions to the economic zone.

14- A permanent unit in the Council of Ministers for start-up companies

The government approved the establishment of a permanent unit in the Council of Ministers for startup companies to set policies, laws and regulations and receive complaints in coordination with the Investor Problems Solving Unit.

15- Incentives for the agricultural, industrial and energy sectors

Adopting a package of incentives for the agricultural, industrial and energy sectors, green hydrogen production, the housing sector and investment projects in new cities, the transport sector, standardization of pricing strategy, and transparency of export and customs duties.