A new investment was issued under No. 72 of 2017 replaced the Incentives law no. 8 for 1977. It is called the “New investment Law”. It aims to bring Foreign Direct investment to Egypt. Based on Financial Times, Egypt is one of the top five global FDI in flows after India, China, United States, and Indonesia. The new investment law provides Egypt with several opportunities in areas of internal economic development while attracting stakeholders.
The new investment law provides guarantees and incentives such as fair treatment to both parties – foreign and Egyptian investors-. It also provides residence to foreign investors residing in Egypt through their period of investing a project in Egypt. It safeguards the rights of investors by providing them with a notice for the breaches and violations as well, giving them time to legitimize the breaches and violations, taking the consultation of the General Authority for Free Zones and Investments before issuing the termination, and receiving international finance without any restrictions.
The new investment law guarantees exemption from the stamp duty and notarization fee imposed on Articles of Incarnation for five years. It also has an application of a unified custom duty with a flat line of 2% for infrastructure and investment projects. Investments are encouraged because of a reduction up to 80% in any investing in Egypt for 7 years.
As for 2017, Investment in Egypt will mainly focus on projects that depend on manpower and will work to develop micro and small enterprises, projects that depend on renewal energy, national and tourism projects, electricity and power distribution projects, food and agriculture production, etc. These projects are made to develop the country internally. Other industries that will be affected are the pharmaceutical and engineering industry.
Principles that affect both the investor and the government in regard of investment, by promoting fair competition, supporting entrepreneurship, fellowship of interest without conflict of rules, stability of investment policies. Help to preserve the national security and public interest.
By: Nada Abdallah
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