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Investment in Egypt

Since the end of Egypt’s last war in 1973, the state has adopted a new economic policy “The economic extroversion” to all countries of the world. This extroversion has been a fruit of peace treaties that Egypt concluded with its neighbor and the friendly relations that Egypt has with the majority of world countries under the wise political leadership which has encouraged investment and eliminated all obstacles that encounter investors. This is what President Mubarak has emphasized before the National Democratic economic conference on 17/01/1996 in which he said “Egypt is a country open to investments without any restrictions or obstacles”. This concept was earlier emphasized when the General Authority For Investment and free zones (GAFI) was established in 1971, which is considered the gate to investment in Egypt.

In order to compliment the investment system in Egypt, a lot of legislations were issued that ensured several guarantees and incentives for investors of which was law no. (8) of the year 1997 and its amendments and the law no. (13) of the year 2004. Of these guarantees which the law secured for investors:

1. Prohibition of business nationalization.
2. Prohibition of business confiscation.
3. Prohibition of business sequestration.
4. Prohibition of seizure of company’s funds or establishments established pursuant to this law.

Such legislations have given the investor total freedom to choose the system and method of investment, the type of business, the location, and determine the prices of business products and consequently determine its profits. He has also the right to transfer his business profits abroad and own the business location on starting production, and import and export without being registered in importers and exporters registers. In other words, the investor has been given the right to singly-handle the business without any interference of the state.

Of the fields that the Egyptian investment law provided for investment:

– Industrial fields.
– Technology and software.
– Basic structure.
– Reclamation and cultivation.
– Animal, poultry and fish production.
– Crops Preservation and shipping & unloading works.
– Developing new urban areas.
– Tourism.
– Transportation.
– Petroleum services.
– Medical and health services.
– Housing.
– Environment preservation.
– Finance.

In addition to the said guarantees, the law has given to investors in these fields, there are several incentives. Of these incentives, minimum 5 years tax exemption on profits since the start of business production which may be extended to the whole life time of the business.

These guarantees and incentives are granted to businesses established in both free and industrial zones.

Free zones:

There are seven free zones:

1- Nassr City free zone.
2- Amriya free zone (Alexandria).
3- Portsaid free zone.
4- Suez free zone.
5- Ismailia free zone.
6- Damietta free zone.
7- 6th of October free zone.

Each of these free zones has its own advantages in addition to the availability of substructure, roads and ports.

Industrial zones:

There are 47 industrial zones in Egypt in 22 governorates:

1- Cairo governorate (has three industrial zones).
2- Giza governorate (has three industrial zones).
3- Alexandria governorate (has three industrial zones).
4- Sharquia governorate (has one industrial zone).
5- Suez governorate (has one industrial zone).
6- Menia governorate (has one industrial zone).
7- Assiut (has six industrial zones).
8- El Wady El Gedeed (has two industrial zones).
9- Sohag governorate (has four industrial zones).
10- Qena governorate (has two industrial zones).
11- Aswan governorate (has one industrial zone).
12- Fayoum governorate (has two industrial zones).
13- Beni Suef governorate (has two industrial zones).
14- Kaliobiya governorate (has two industrial zones).
15- Menofiya governorate (has two industrial zones).
16- Behaira governorate (has three industrial zones).
17- Kafr El Sheikh governorate (has two industrial zones).
18- Dakahliya governorate (has two industrial zones).
19- Port Said governorate (has two industrial zones).
20- Ismailia governorate (has one industrial zone).
21- North of Sinai governorate (has one industrial zone).
22- Matrouh governorate (has one industrial zone).

This was a synopsis about investment system in Egypt. We are fully ready to answer any question related to investment in Egypt – we have a lot of information about this field