INVESTMENT REGIMES IN EGYPT
1. Inland Investment
Inland investment is governed by the Investment Incentives and Guarantees Law No. 72 of 2017 and Companies Law No. 159 of 1981 and their executive regulations. The General Authority for Investment (GAFI) acts as the official regulator for all incorporations and licenses governed by both legislations. Some projects require prior approval from relevant ministries in addition to GAFI. Such projects include investments in the Sinai Peninsula, all military product manufacturing and related industries, and those involving tobacco and tobacco products.
2. Free Zones
Free Zones are one of the distinguished investment patterns where you can establish, set up and start your own project under the umbrella of this system according to the provisions Investment Law No. 72 of 2017and its executive regulations. This system is applied by General Authority for Investment and Free zones (GAFI). A free zone is a part of the state land that exists within its political boundaries and subjected to its administrative authority. The treatment aspects that are related to goods movement, either in and out, in relation to customs, import, monetary system and other aspects of dealing differs from the procedures applied inside the country with regard to the similar transactions.
In Egypt, there exist Alexandria Public Free Zone, Nasr City Public Free Zone, Port Said Public Free Zone, Suez Public Free Zone, Ismailia Public Free Zone, Damietta Public Free Zone, Media Public Free Zone, Shebin El- Kom Public Free Zone, Qeft Public Free Zone and Port Said East Port Public Free Zone.
3. Investment Zones
Subject to a decree issued by the Prime Minister, investment zones specialized in various investment fields may be established, including logistic, agricultural, and industrial zones. The decision incorporating the zone shall state the location and coordinates of the zone, the nature of activities to be practiced therein, the term for completing the procedures required for the establishment of the zone, and any general conditions related to conducting such activities.
Currently, there are (13) investment zones specialized in various fields and distributed among (7) Egyptian governorates.
4. Special Economic Zones
SEZONE is the first economic zone with a special nature to be established in Egypt by the law No. 83 of 2002. The SEZONE will develop an international recognition and reputation for being a competitive business location that provides Egyptian and foreign investors with top-class infrastructure, market access, and streamlined administrative procedures.
The development of SEZONE is intended to provide an attractive environment for medium and light industries as well as logistics services, thus enhancing economic activity in the region and creating new employment opportunities.
Location: SEZONE is located in the Suez Governorate in the Sokhna area and adjacent to the Sokhna Port near the southern entrance to the Suez Canal. The land area earmarked for the SEZONE 1st phase is approximately 20.4 km2.
5. Technological Zones
Upon a proposal by the GAFI’s Board of Directors and a request of the Minister of Communications and Information Technology, the Prime Minister may license the establishment of Technological Zones in the field of communications and information technology, including industrial activities, design and development of electronics, data centers, outsourcing activities, software development, technological education, and other associated or complementing activities.
6. Investment Industrial Zones
Qualifying Industrial Zones in Egypt are located in the Greater Cairo Zone, the Alexandria Zone, the Suez Canal Zone, the Central Delta region and Upper Egypt. These five regions cover multiple districts and governorates including:
- Greater Cairo Zone: Giza, Shoubra El Kheima, Nasr City, Tenth of Ramadan City, Fifteenth of May City, Badr City , Sixth of October City, El Obour City , Kalioub City and the industrial area in Gesr El Suez.
- Alexandria Zone: Borg El Arab and Dakahleyya governorate.
- Suez Canal Zone: Port Said, Ismailia and Suez.
- Central Delta region: Gharbeyya, Monofeya, and Damietta governorates.
- Upper Egypt: Minya and Beni Suef governorates.
As of February 2017, there were 961 registered QIZ companies, out of which the vast majority 765 companies (79.6%) produce textiles and clothing items. Of these, 196 produce ready-made garments. As the U.S. tariffs on textile and apparel goods are relatively high, production of these goods in QIZs is particularly attractive. In addition, 70 companies (7.3%) operate in the processed agricultural products sector. Alexandria has the highest concentration of companies, hosting 235 companies (24.5%), while Tenth of Ramadan has the next highest concentration with 166 companies