Egypt’s new investment law to attract more foreign investment

CAIRO – 30 June 2017: Egypt’s long-awaited investment law, scheduled for implementation by the end of August, includes a variety of bureaucratic reforms, and outlines new fiscal incentives for potential investors.

The new law stipulates the establishment of an investors’ service centre that will act as a one-stop shop for issuing all required licenses, under supervision of the newly created General Authority for Investment (GAI), previously the General Authority for Investment and Free Zones.

The GAI will also develop an “e-incorporation” system to respond to all applications of investment entities.

Measures to ease investment include a “golden license” that will allow the prime minister to issue a single approval that includes all the required business establishment and operating licenses, land allocation and building permits for strategic and national projects deemed key to Egypt’s development.

These reforms should support investors which previously suffered in dealing with state agencies, raising Egypt’s rankings in the World Bank’s Doing Business report, currently occupying the 70th spot out of 190 markets.

The new law also incorporates tax incentives, such as a five year exemption from stamp duty on all incorporation contracts, as well as facility and mortgage contracts related to an investment project.