EGYPT Trends and Developments Contributed by: Mohamed Hashish, Heba El Abd, Mariam Rabie, Mohamed Selim and Abdelaziz Mohamed, Soliman, Hashish & Partners
Over the past few years, the Egyptian government has been significantly improving the business environment in the country, which has resulted in various changes to the legal framework governing the establishment and operation of businesses in Egypt. Egypt has attracted more foreign direct investment (FDI) across multiple industries, predominantly within the financial services, technology and infrastructure sectors. Egypt was ranked ninth in the top source and des - tination economies for FDI in 2025 by the UN Trade and Development in its World Investment Report. In 2025, Egypt was a principal driver in the growth of greenfield project value, recording a 30% increase in its value along with a 4% rise in number. Furthermore, the value of international project finance (IPF) deals in Africa increased as a result of construction megapro - jects in Egypt. It is also worth noting that Egypt was ranked just outside the top ten primary destinations for greenfield projects in the digital economy in 2025, leading in Africa. Further, in 2026, Egypt was ranked third out of 18 mar - kets in the Middle East and North Africa region, and has globally ranked 27th out of 202 markets for invest - ment openness, according to a Fitch Ratings report reviewed by the Cabinet’s Information and Decision Support Center (IDSC), as reported on Egypt’s state information service website. Despite international and local crises faced by the country over the years (including revolutions, COV - ID-19, the Russia-Ukraine war, the Palestinian con - flict, the Iran-Israel conflict, inflation, foreign currency shortages and the threat of potential recession), Egypt has continued to implement its best efforts to improve the legal environment to attract foreign investors and regulate certain activities under the current climate. Investment in Egypt According to Investment Law No 72 of 2017 (the “Investment Law”) and Prime Minister’s Decree No 56 of 2022, companies seeking to establish strategic or national projects that contribute to development, as well as partnership projects between the private sector and the State, the public sector, or the public business sector in the fields of public utilities, infra - structure, new and renewable energy, roads, trans -
portation, and ports, may apply for a single licence for the establishment, operation, and management of the relevant project (the “Golden Licence”). The Golden Licence is deemed sufficient for the oper - ation of the investment project, without the need to obtain any additional licences, permits, or approvals. The Golden Licence Committee at the General Author - ity for Investment and Free Zones (GAFI) is responsi - ble for co-ordinating with the relevant governmental authorities in Egypt to obtain all licences, permits, and approvals required by law for the establishment and operation of the investment project. According to Decree No 56 of 2022, the Golden Licence shall be granted by virtue of a decision of the Prime Minister for investment projects that satisfy at least two of the following required conditions: • The investment project shall contribute to the growth of exports through exporting no less than 50% of its products abroad annually, within three years from the commencement of its activity. • The investment project shall aim to reduce imports, industrial localisation, as well as increase the pro - portion of local components in its products, provid - ed that the percentage of local components in its products, including raw materials and production requirements, constitutes at least 50%, and further provided that the aforementioned percentage be calculated by subtracting the value of the imported components from the product cost. • The financing of the investment project shall be primarily dependent on the foreign currency trans - ferred from abroad through any bank registered with the Central Bank of Egypt (CBE). • The investment project shall be established in one of the undeveloped areas, including, inter alia, Southern Giza Governorate, the governorates of the Suez Canal Region: Port Said, Ismailia and Suez (east of the canal), border governorates, including the Red Sea Governorate to the south of Safaga, and Upper Egypt governorates. • The investment project shall contribute directly to fields of technology transfer and localisation in Egypt, innovation support, and scientific research development.
324 CHAMBERS.COM
Powered by FlippingBook