Egypt has passed a new investment law following two years of negotiations, in the hope of cutting red tape. Natasha Turak reports.

After more than two years of negotiation, Egypt has passed its much-touted investment law with the aim of streamlining business and reducing bureaucracy.

First approved as a draft law in March 2015 and called simply “new investment law”, it is hoped it will boost capital flows into the country and attract international investment following years of instability and economic downturn.

“For the first time in Egypt, the law requires government officers to ease investment measures as one of their key performance indicators,” says Ayman Nour, partner and head of Egypt office at law firm Al Tamimi. “The law provides a realistic approach to the one-stop shop concept setting deadlines for granting licences and reduces the approvals and licences procurement cycle from 36 months to three months. Further, it offers a temporary incentive programme in specific sectors and geographical zones permitting 50% redemption of the investment cost.”

Egypt’s 2011 uprising and subsequent terrorist attacks drove away many investors and tourists. But even excluding these factors, investors still complained of cumbersome bureaucracy, unpredictable regulations and staggeringly slow registration procedures.   

“The law, if enacted as proposed, will introduce numerous changes to the existing legal framework for doing business in Egypt,” says Laila Rizik, associate at international law firm Amereller. “By and large, the law has been welcomed by the business community. The effect the law will have on foreign investment, however, will, as always, depend on its implementation.” 

This article is sourced from fDi Magazine
fDi Magazine

Global greenfield investment trends

Crossborder investment monitor

fDi Markets is the only online database tracking crossborder greenfield investment covering all sectors and countries worldwide. It provides real-time monitoring of investment projects, capital investment and job creation with powerful tools to track and profile companies investing overseas.

Click here to find out more about fDi Markets

Corporate location benchmarking tool

fDi Benchmark is the only online tool to benchmark the competitiveness of countries and cities in over 50 sectors. Its comprehensive location data series covers the main cost and quality competitiveness indicators for over 300 locations around the world.

Click here to find out more about fDi Benchmark

Research report

fDi Intelligence provides customised reports and data research which deliver vital business intelligence to corporations, investment promotion agencies, economic development organisations, consulting firms and research institutions.

Find out more.