Investment Climate


The Government of Egypt (GOE) is undertaking a series of versatile amendments towards reforming and improving business and investment climate in Egypt. The government strategy is strongly committed to streamlining investment procedures, dismantling bureaucratic obstacles, and liberalizing business. Towards the realization of its goal, the GOE undertook a series of reforms regarding its policies as well as its institutional frameworks to pave the way for an improved investment climate and a more developed business environment in Egypt.

It is indispensable that attracting more Foreign Direct Investment FDI is becoming a highly developed profession that requires the existence of appropriate and integrated national as well as regional institutions and structures. Furthermore, FDI attraction unquestionably requires a supportive business environment and a community of qualified and professional people with the skills and knowledge to attract FDI flows within the highly competitive international context.

New set of government policies, investment laws, and guarantees have been introduced with the purpose of fortifying and revitalizing the investment environment in Egypt. On one hand, Egypt’s proximity to international markets and the rapidly growing demand for certain industries, locally as well as worldwide, play a vital role in encouraging exports and improving productivity. On the other hand, new investment laws and government regulations have recently eased international trade barriers and allowed for more competition through bringing foreign investment flows into Egypt, as well as increasing competitiveness of Egyptian businesses to meet international standards and compete in the global markets. As a result of international trade agreements, Egypt enjoys a wide range of market access to North America, China, Europe, North Africa and the Middle East, with its central location bridging the three continents, Europe, Asia, and Africa.

As part of the coherent and comprehensive framework set off by the new ministry of Investment, a number of exceptional incentives are being granted to companies in particular for their purchases of stakes in public sector enterprises, and their endeavor for administrative restructuring and financial modernization.

Advantages, exemptions and, guarantees Advantages

Advantages

  • Freedom of invested capital and projects profits transfer.
  • Freedom of investment field selection and project legal status.
  • Freedom of products pricing and profitability margin limit
  • Unlimited invested capital.
  • Unrestricted nationality of capital.
  • Freedom of employment for/ or to others
  • Freedom of importing from the local market through Simplified procedures.

Exemptions

  • Capital assets and production requisites necessary for the project
  • implementation (vehicles excluded) are exempted from custom duties, sales taxes or other taxes
  • Project's exports and imports to and from the country shall be exempted from custom duties or taxes (sale taxes or other taxes and duties) applied in the country.
  • The project and its profits may not be submitted to the tax and custom legislation applied in the country throughout its period of activity.
  • Project imports from the local market shall be exempted from sales taxes.
  • Transit merchandises of defined direction shall be exempted from any duties imposed on incoming and outgoing goods.
  • Local components of merchandise produced in the free zones shall be exempted from custom duties in case of sales in the local market (inland)
  • Establishment contracts, loans and gages are exempted 5 years from the date of the company's registration in the commercial register from stamp tax, notarization and registration duties.
  • Land registration contract of the private free zone is exempted from the stamp tax, notarization and registration duties.

Guarantees:

  • Projects, establishments and buildings may not be nationalized or confiscated.
  • Custody on the projects or its money sequestration, capturing or blocking may only be applied legally and through the administrative process.
  • Projects may not be subject to public legal proceedings in case of special breaches to custom, currency and tax laws, unless there is previous consultation with the Authority.

Protecting your ideas

  • Egypt has a legal framework protecting intellectual property rights under a law passed in 2002.
  • Law No. 82/2002 grants patents, the design and integration of circuits, undisclosed information, trademarks, industrial designs, copyright and varieties of plants.
  • Patents are issued to industrial inventions including modifications, improvements and additions to previously patented industrial processes for 20 years.
  • Electrical integrated circuit development is protected for 10 years from the time the development was commercially exploited.
  • Confidential information is protected for 10 years against disclosure and unfair commercial use from the date of its submission to the competent authorities until it is no longer confidential, or for a period not exceeding five years, which ever comes first. Trademarks covering products or services and geographical indications where a geographical origin has become descriptive of the quality, reputation or other characteristics of a certain product so as to be largely instrumental in its marketing are protected for 10 years.

Industrial designs, including 3-D forms, are protected for 10 years and may be extended for a further five years. Copyright protection is extended to authors of literary and artistic works, particularly:

  1. Books, articles, bulletins and any other written works
  2. Computer programs
  3. Lectures, speeches and any other oral works when recorded
  4. Musical works with or without words
  5. Audiovisual works
  6. Photographic and similar works
  7. Illustrations, maps, sketches and three-dimensional works relating to geography, topography or architectural designs
  8. Photographic and similar works
  9. Illustrations, maps, sketches and three-dimensional works relating to geography, topography or architectural designs

Protection shall not cover mere ideas, procedures, systems, systems, operational methods, concepts, principals, discoveries and data even when expressed, described, illustrated or included in a work.

Law 82/2002 grants protection to plant varieties, derived inside or outside Egypt, whether developed through biological or non-biological means, when registered in the special register of protected plant varieties.

The period of protection is 25 years for trees and vines and 20 years for other crops. The term of protection shall run form the date of the grant.