Egypt seeks to attract more domestic, regional, and international investments to achieve high growth rates. To reinforce this objective, specific laws governing investments have been enacted to attract foreign investors, including Investment Law No. 72 of 2017 and it is executive regulations. The General Authority for Investment and Free Zones is the official regulator responsible for all documentation related to company establishment, licensing, and authorization.

The Investment Law encompasses numerous incentives and guarantees aimed at protecting investors against expropriation, compulsory pricing, ensuring full profit entitlement, profit distribution, and the right to resort to dispute resolution panels managed by the General Authority for Investment.

According to Investment Law No. 72 of 2017, there are several forms of investment systems in Egypt, including:





  • (1) Domestic Investment System:

As per the Investment Law, the competent ministry proposes the investment plan, including implementing investment policies in line with the state's general policy and economic and social development plan. The General Authority for Investment, in coordination with relevant authorities, issues a guide containing conditions and procedures related to land allocation, real estate, permits, and licenses for activities falling under the provisions of this law. This guide undergoes periodic review and updates in light of current legislative amendments in the country.

  • (2) Free Zones System:

The Free Zones system in Egypt stands out among other investment forms as it aims to attract both domestic and foreign investments. It serves as a means to increase exports, boost Gross Domestic Product (GDP), and provide additional employment opportunities. Free Zones are established in distinct areas as one of the primary economic factors aiding in national economic development.

The Free Zone System facilitates the establishment of export-oriented industries, attracting cutting-edge technological systems, creating new job opportunities, and increasing foreign currency reserves.

Projects operating under the Free Zones system enjoy several incentives and exemptions under Investment Law No. 72 of 2017, including exemption from taxes on commercial and industrial activity revenues, profits from company stocks, as well as exemptions on imported and exported goods' taxes and customs fees.

Companies and institutions operating within Free Zone systems are exempt from taxes on revenues generated from commercial and industrial activities, as well as from taxes on company stock profits.

Assets and capital equipment owned by projects necessary for production are exempt from the Value-Added Tax imposed in Egypt.

Import and export taxes and customs fees are waived for companies operating under Free Zone systems.

Local components used in company products are exempt from customs duties when exported to the domestic market.

Projects within Free Zones, along with their distributed profits, are not subject to Egyptian tax and fee laws. However, these projects undergo specific transactions within general Free Zones, including a 2% Customs Duty for inbound goods (SIF) and a 1% Customs Duty for outbound goods (FOB) for manufacturing and assembly projects. Trading of designated transit goods is exempt from these fees.

The 1% fee on the total revenues is applied to projects whose primary activities do not involve importing or exporting goods, based on the financial statements certified by a certified legal accountant.

Projects in the specific Free Zones are subject to the following charges:

- A 1% fee is imposed on the total revenues generated from manufacturing and assembly projects upon exporting goods outside the country, in addition to a 2% fee on the total revenues of these projects upon entry of the goods into the country. However, transit trade fees for designated goods are exempt from application.

- A 2% fee is imposed on the total revenues generated from other projects mentioned in the preceding clause.

  • (3) Investment Zone System:

Investment Zones serve as a distinctive investment system for issuing licenses and approvals under Investment Law No. 72 of 2017, aiming to support economic and social development, attract foreign investments, encourage local investments, and provide job opportunities. Investment Zones are designated areas for developers to engage in investment activities, defined by a decree from the Prime Minister. The developer is responsible for constructing, developing, and implementing infrastructure within the zone, which can be a private company or a government agency.

  • (4) Technology Zones System:

Investment projects established within Technology Zones cover fields in communications, information technology, including industrial activities, electronics design and development, data centers, outsourcing activities, software development, and technological education. All necessary tools and machinery required for work within these projects are not subject to taxes and customs fees within the territories of the Arab Republic of Egypt. Additionally, these projects benefit from specific investment incentives provided by Investment Law No. 72 of 2017.

Prepared by/


RPLF Team



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