6 new incentives to attract investment to Egypt

The government is trying, through the amendments it submits to the House of Representatives to the laws, especially the economic ones, to provide incentives and benefits that help attract more investments.

The amendments submitted by the government to Investment Law No. 72 of 2017 come in this context to contribute to resolving the economic crisis.

 The amendments came to grant 6 new advantages as an incentive to invest, as follows:

1- Allowing the establishment of special customs outlets for the investment project’s exports or imports, in agreement with the Minister of Finance.

2- The state bears the value of what the investor costs to connect the utilities to the real estate designated for the investment project or part thereof, after operating the project.

3- The state bears part of the cost of technical training for workers.

4- Refund half of the value of the land allocated for industrial projects in the event of starting production within two years from the date of handing over the land.

5- Allocating land free of charge for some strategic activities in accordance with the regulations prescribed by law in this regard.

6- Exemption from the charges for usufruct of the lands allocated for the establishment of the project for a maximum period of 10 years, starting from the start of operation, based on the proposal of the competent minister.

By a decision of the Prime Minister based on the proposal of the competent minister, the aforementioned projects may be exempted from contributing to the costs of establishing infrastructure, public services and utilities at a rate not exceeding 50% of them in accordance with the controls to be determined by a decision of the Supreme Council.

The public treasury may bear not more than 50% of the consideration for the project’s consumption of basic utilities for a maximum period of 10 years, in accordance with the controls to be determined by a decision of the Supreme Council.

It is permissible, by a decision of the Council of Ministers, based on the proposal of the competent minister, to introduce other non-tax incentives whenever the need arises. The Executive Regulations shall indicate the rules for granting the additional incentives stipulated in this Article, as well as its controls and conditions.

The Implementing Regulations shall indicate the rules for granting the additional incentives stipulated in this Article, as well as its controls and conditions.

 It came in the text of Article (14 - first paragraph) that the CEO of the Authority or whoever he authorizes is competent to issue the certificate necessary to enjoy the incentives stipulated in Articles (10 - 11 - 11 bis - 13) for companies and establishments subject to the provisions of this law.