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Egypt Investment Legal Frame – Egypt 2030

Legal Frame
The New Investment Law no. 72/2017
The Executive Regulation no. 231 /2017

 

The issuance of new Egyptian Investment 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, eliminating bureaucracy, simplifying and enhancing the procedural measures to achieve a more investor friendly environment the basis, facilities, privileges and guarantees.

Creating equal investment opportunities without discrimination regardless the project different aspects such as size and location of the Project and on any basis Supporting newly established, emerging companies, entrepreneurship, and micro, small, and medium enterprises.
Compliance with the principles of 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. Facilitating and accelerating the transactions for investors in a manner to attain their lawful interests.

Investor Services Center existed to function as a one stop shop for investment related services to facilitate the process and reduce bureaucracy The  center will provide automated services.

Accreditation and Authorization offices licensed to issue grant approvals, permits and licenses, after examining the procedures and documents of the investment projects.

Electronic unified system which provides all the necessary data, forms and documents for the incorporation of all kinds of companies and establishments, as well as post incorporation services, through electronic and other technological means This system shall be available through the Internet and later on mobile.

Electronic Signatures & 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.

The investment funds are protected from any threat that arises earlier by arbitrary procedures or discriminatory decisions Foreign investors shall be granted residency in Egypt throughout the term of the investment project The State is under an obligation to honor and enforce the contracts it concludes with the investors The Investment Projects may not be nationalized and may not be sequestrated through administrative procedures, except under a final court ruling, and only in the cases stated by Law.

The ownership of the Investment Projects may not be expropriated 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 irrevocable judgment, except for the tax debts and social insurance subscriptions due to the State which may be collected through all types of seizure, without prejudice to the contracts concluded by the State or the public legal persons with the Investor 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, except after seeking the view of the Authority’s Board of Directors and the approval of the Cabinet of Ministers or the Supreme Council.

All decisions related to the investment project shall be immediately communicated to the investor through any mean of communication he deems appropriate as agreed upon.

Any licenses issued to the investment project shall not be terminated 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 and after giving the investor a grace period to rectify his situation In addition, the Investor shall also be entitled to appeal such decision before the Appeal Committee.

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 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 The State shall also permit the exchange of the local currency into a freely usable currency without delay.

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 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 need of a license or recording in the Register of Importers .