EGYPT Trends and Developments Contributed by: Inji Fathalla, Salma Nasreldine, Haya El Samra and Ismaël Sedky, Shahid Law Firm
Introduction Since 2024, Egypt has embarked on a bold new jour- ney in foreign direct investment (FDI), driven by a wave of transformative large-scale, cross-sector projects that are reshaping its economic and legal landscape. Foremost among these is the USD35 billion Ras El Hekma project, a record-breaking deal that has cata- pulted the country onto the global investment map as a key player. Yet Ras El Hekma is just one shining example in Egypt’s broader investment boom. In parallel, Egypt has supercharged its green energy ambitions with groundbreaking renewable projects, including a 1 GW solar plant and a 900 MW wind facility developed with Norway’s Scatec. The Egypt–Greece Electricity Inter- connection Project is particularly significant, as it will enable Egypt to export its surplus renewable energy to power European homes and industries, helping Europe reduce its dependence on fossil fuels. Meanwhile, industrial investments are thriving, with the Suez Canal Economic Zone (SCZone) attracting over USD8 billion in projects ranging from green hydrogen to automotive manufacturing (link). The SCZone has become a hub for international collaboration, with global giants such as France’s EDF Renewables, the UAE’s Zero Waste, and China’s Sailun Group partner- ing on transformative projects. Further, Egypt’s urban transformation is in full swing: the New Administrative Capital, inaugurated in 2024, showcases the country’s long-term vision for infra- structure-driven growth. It boasts integrated transport systems, state-of-the-art healthcare complexes, and advanced digital infrastructure to support Egypt’s transition into a smart, service-oriented economy. Among the stand-out projects is the Cairo Monorail, a USD4.5 billion investment led by Alstom. This futur- istic transport system is expected to create thousands of jobs during construction and operation, reduce traf- fic congestion, and cut greenhouse-gas emissions by offering a sustainable alternative to traditional trans- port. Together, these diverse investments underscore Egypt’s dynamic growth and strategic importance on the global stage. They also signal a shifting landscape
for investor―state arbitration, as new projects bring opportunities but also new risks. Sovereign-linked entities, land-use concessions, energy-purchase agreements and industrial-zone regulations are all fertile ground for potential disputes. Against this backdrop, this article explores (i) the legislative framework behind Egypt’s recent invest- ment boom; (ii) the enhancement of Egypt’s dispute resolution framework to strengthen investor’s rights and protections; and (iii) the recent settlement trend in investor―state arbitrations involving Egypt, facili- tated by institutional initiatives. The article concludes with (iv) the broader implications of these trends for investor―state arbitration involving Egypt. The Legislative Framework Behind Egypt’s Investment Boom In recent years, Egypt has undertaken significant leg- islative reforms to enhance its investment climate: • most notably through the promulgation of Invest- ment Law No 72 of 2017 (“EIL”); and • complementing the EIL, legislative initiatives such as the Special Economic Zones Law, the Export Subsidy Program, and the State Ownership Policy have played a pivotal role in driving Egypt’s invest- ment boom. Investment Law No 72 of 2017, a catalyst behind Egypt’s surge in investments The EIL sits at the heart of Egypt’s legislative overhaul, shaping the country’s booming investment climate. Among its key features, the EIL: • grants investors a wide range of general and spe- cial incentives; • envisages the establishment of Investment Free Zones; and • provides investors in strategic industries with a one-stop “golden licence” to invest in Egypt. Incentives regime under the EIL General incentives The EIL provides all investment projects (with the exception of those established under the Free Zone System) with a suite of general incentives. These include exemptions from stamp duty and notarisation/
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