Egypt Investment Legal Frame – Egypt 2030
The issuance of the new Egypt Investment Legal Frame with Law no. 72 of the year 2017 (Investment Law) and its executive regulation mainly aims to attract foreign investments to the Egyptian Market through applying further incentives, terminating bureaucracy, simplifying and enhancing the procedural measures to achieve a more friendly environment the basis, facilities, privileges, and guarantees to achieve Egypt Vision 2030.
The new investment law works to encourage investment in Egypt and attract capital to develop the national economy and increase economic development in Egypt, as Egypt is considered the first in Africa in attracting investor capital. Egypt’s investment map displays more than 1,000 investment opportunities across the country.
Investment Controls
The new investment law and its executive regulations established several different principles for investment, including:
- Creating equal international investment map opportunities (public free zones) without discrimination regardless of the project’s different aspects such as size and location of the project and on any basis.
- Supporting newly established, emerging companies, business leadership, and micro, small, joint-stock companies, and medium enterprises.
- Compliance with the principles of corporate governance, transparency, prudent management, and absence of conflict of interests. Enhancing chances of competition and prevention of monopoly practices.
- Securing stability and consistency of the investment policies.
- Smoothing and hastening the transactions for investors in a manner to attain their lawful interests.
Investor Services Center:
Existed to function as a one-stop-shop for related investment services to facilitate the process and reduce bureaucracy.
The investor services center will provide automated services to the private sector.
License and Permitting offices:
Licensed to issue grant approvals, permits, and licenses, after examining the procedures and documents of the business activities investment projects.
An electronic unified system:
That provides all the necessary data, forms, and documents for the establishing of all kinds of companies in Egypt and establishments.
As well as after establishing services, through electronic and other technological means This system shall be available through the Internet and later on mobile.
Electronic Signatures and Payment:
Accredited by the competent authorities, as well documents and forms developed by technological means and accept electronic payments for all fees payable to it.
Law Regulations:
Protect the investment funds from any threat that arises earlier by arbitrary procedures, dispute resolution, or discriminating decisions. Grant foreign investors residency in Egypt throughout the term of the investment project.
Except for the tax debts and social insurance subscriptions due to the State which may collect through all types of seizure, without prejudice to the contracts concluded by the State or the public legal persons with the Investor.
All decisions related to the investment project shall be immediately communicated to the investor through any means of communication he deems appropriate as agreed upon.
The Investor shall have the right to set up, establish, expand, and fund the Investment Project from abroad in foreign currencies with no restrictions, in addition to transferring the Project profits abroad.
So, the investment projects shall have the right to import by themselves or through third parties all their needs for the establishment, expansion, or operation including raw materials, production input and requisites, machines, replacement and spare parts, and means of transport without the need to record in the Register of Importers.
In addition to having the right to export their own products by themselves or by third parties without the need of a license or recording in the Register of Importers.
State obligation
The State shall allow the availability of all cash transfers operations associated with the foreign investment freely and promptly to and from the State in a free transferable currency.
Shall also permit the exchange of the local currency into a freely usable currency without delay, by the State.
The State is under an obligation to honor and enforce the contracts it concludes with the investors.
However, the investment projects may not nationalize and may not sequestrate through administrative procedures, except under a final court ruling, and only in the cases stated by Egyptian laws.
Not Permitted by Law
The ownership of the Investment Projects may not commandeer except to the limit of public utility, in such case a fair and equivalent compensation shall be legally secured to be paid in advance without delay and may not be seized or confiscated, or frozen except under a court order or definitive judgment.
No Administrative Authority may issue general regulatory decisions that add financial or procedural encumbrances in relation to the establishment.
Or operation of the Investment Projects or impose or adjust the fees or consideration of services on the Investment Projects.
So except seeking the view of the Authority’s Board of Directors and the approval of the Council of Ministers or the Supreme Council.
Terminate any licenses issued to the investment project and any property allocated to the investment project shall not be withdrawn by any authority.
Unless a prior violation notice had been sent to the investor via registered mail identifying his violation.
In other words giving the investor a grace period to rectify his situation, in addition, the Investor shall also entitle to appeal such a decision before the Appeal Committee.