New laws and regulations have significantly attracted numerous investment opportunities to Egypt. The Arab Republic of Egypt is now considered one of the most important countries in the Middle East and North Africa. It has revamped its institutional framework to align with market changes, encouraging and facilitating investment procedures.
investing in Egypt
Why invest in egypt?
Egyptian government has embraced an intensive three-dimensional promotional strategy aimed at attracting foreign direct investment and supporting investors as follows:
– Reducing the time required to register foreign representative offices from 40 days to 72 hours.
– Centralizing the payment of membership fees for the Chamber of Industry and the Federation of Egyptian Industries.
– Providing online company establishment services through the official website of the General Authority for Investment.
– Increasing the number of investment offices affiliated with the General Authority for Investment across all governorates.
– Eliminating the initial industrial license required for registration with the General Authority for Investment.
– Abolishing the security approval requirement for media companies.
– Reducing the value of guarantee letters required to obtain land in industrial zones.
– Amending Investment Law No. 8 of 1997 to allow reconciliation between investors and the government in proven fraud cases.
Key Advantages and Competitive Factors for Investing in Egypt
There are many attractive features and competitive advantages for investing in Egypt. Here are some:
– Modern infrastructure
– Large consumer market with a favorable population distribution
– Skilled labor with competitive average wages
– Leading economic sectors
– Multiple investment regimes
Investment Guarantees in Egypt
investing in egypt
The General Authority for Investment offers a range of guarantees for investment in Egypt, including:
– All investments established in Egypt enjoy fair and equitable treatment.
– The state ensures foreign investors are treated similarly to local investors.
– Invested funds are not subject to arbitrary measures or discriminatory decisions.
– The state grants non-Egyptian investors residency in Egypt for the duration of their project.
– The state is committed to respecting and enforcing contracts it enters into. Projects established based on fraud, deceit, or corruption do not enjoy the protections, guarantees, advantages, or exemptions provided under this law.
– All decisions related to investment projects must be justified and communicated to the concerned parties.
– Expropriation of investment projects is not allowed.
– Expropriation of property is only allowed for public benefit.
– Administrative authorities cannot impose guardianship on these projects.
– The assets of investment projects cannot be seized, confiscated, or frozen except by court order or final judgment.
– No administrative authority may issue general regulatory decisions imposing financial or procedural burdens related to the establishment or operation of projects subject to this law, nor can they impose fees or service charges on them or amend them.
– Administrative authorities cannot cancel licenses issued to investment projects or suspend them or withdraw the properties allocated to them except after notifying the investor of the alleged violations.
– Investors have the right to establish, expand, finance, own, manage, operate, and dispose of their projects and earn profits and transfer them abroad.
The state also allows the conversion of local currency into freely usable currency without delay.
– Foreign employees in the investment project have the right to transfer their financial dues.
Investment Services in Egypt
Investment services in Egypt are among the key attraction elements for local and foreign investors. These services are provided by the General Authority for Investment and Free Zones through Investor Service Centers, which number 14 centers across the country, aiming to simplify and ease the process for investors in various sectors. Generally, these services can be categorized as follows:
– Reception services
– Company establishment services
– Legal services
– Technical and tax exemption services
– Government services
Additionally, there are other electronic services, which can be categorized as follows:
– Investor agent accreditation services
– Golden license services
– Association services
– Company amendment services
– Non-confusion service
– Foreign direct investment reports
Investor Service Center
The establishment of Investor Service Centers has facilitated the provision of services to all investors in Egypt. This is in accordance with Investment Law No. 72 of 2017, which stipulates:
– Specified timeframes for completing licensing processes
– Service automation
– Implementation of electronic establishment procedures
– Commitment of competent authorities to accept electronic signatures
– Acceptance of electronic payments for all dues
How to Start Investing in Egypt
investing in egypt
If you wish to invest in Egypt for the first time, you must follow a set of important tips to start correctly:
– Seek advice from experts in the field for necessary guidance.
– Find a reliable legal advisor in the investment field or use the services of legal protectors and benefit from their extensive experience to help you develop an investment strategy that aligns with your goals and financial resources.
– Set realistic investment goals before you start investing.
– Diversify your investment portfolio to spread risks.
– Utilize investment funds provided by the General Authority for Investment if you need financial
Investment in Egypt for Foreigners
The Egyptian government has enacted various laws to attract foreign direct investment to Egypt. These laws include:
Law No. 159 of 1981
: This law has streamlined the establishment procedures, defined the rights of minority shareholders, improved merger regulations, and reduced taxes on foreign companies in Egypt.
Fields of Investment in Egypt
The General Authority for Investment and Free Zones has identified the key investment sectors in Egypt for both local and international investors as follows:
– Healthcare sector
– Electricity and renewable energy sector
– Information and communication technology sector
– Agriculture and land reclamation sector
– Transport and logistics sector
– Food industries sector
– Tourism sector
– Education sector
– Retail sector
– Textile sector
– Automotive industry sector
– Real estate sector
– Mining sector
– Pharmaceutical industries sector
– Financial services and insurance sector
– Gas and oil sector
How to Legally Ensure Investment in Egypt
If you are considering starting your investment in Egypt, contact the Legal Protectors team to guide you through the correct legal processes to ensure a successful and 100% safe investment.
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