EGYPT Law and Practice Contributed by: Mohamed Hashish, Farida Rezk, Omar Aboul-Ella and Mariam Rabie, Soliman, Hashish & Partners
2.4 Antitrust Regulations The Egyptian Antitrust Law No 3 of 2005 as amended in 2022 (the “Antitrust Law” ) requires the pre-approval of the ECA for any transaction that constitutes an “economic concentration” and meets the relevant criteria with respect to financial thresholds. Under the new amend - ments, an economic concentration is defined as any change of control or material influence as a result of a merger or acquisition or the establish - ment of a joint venture. The pre-closing clearance regime for the afore - mentioned transactions was newly introduced in 2024 and became effective as of 1 June 2024, replacing the post-notification regime. Furthermore, the notification and pre-approval of the FRA is required for any potential transac - tion that constitutes an “economic concentra- tion” and fulfils the financial thresholds, if the persons concerned with the economic concen - tration exercise one of the activities under the FRA’s supervision, namely securities and capi - tal markets activities, insurance, reinsurance or insurance brokerage activities, mortgage finance activities, financial leasing activities, securitisa - tion and factoring activities, or microfinance activities. The FRA and ECA co-operate before clearing an economic concentration, in accord - ance with certain prescribed timelines under the law. 2.5 Labour Law Regulations The Egyptian Labour Law No 12 of 2003 (the “Labour Law” ) sets out the general legal rules governing the employment relationship. Any condition or agreement that violates the pro - visions of the Labour Law and/or derogates from the employee’s rights and entitlements shall be considered invalid. However, in the event that a
• the FRA; • the MCDR; • the EGX; and
• the Egyptian Competition Authority (ECA). 2.3 Restrictions on Foreign Investments Generally, foreign investments are subject to screening in Egypt based on specific criteria, including the investor’s nationality and the com - pany’s activities, as the activities that can be carried out by non-Egyptian investors, as well as the investor’s nationality, may be restricted by relevant Egyptian laws and certain conditions may be required to be met. Therefore, screening must be performed to ensure satisfaction of these conditions and requirements. Foreign ownership restrictions are applicable in several sectors and locations such as: • importation activities for resale or trading purposes. These restrictions were recently relaxed, allowing majority foreign ownership for a period of ten years subject to renewal based on certain conditions; • ownership of agricultural lands; • commercial agencies or intermediary busi - nesses; and • carrying out business in the Sinai Peninsula. Furthermore, in certain circumstances, the regu - latory authorities may require foreign investors to fulfil certain conditions, such as: • a minimum capital for obtaining certain approvals and licences; • the creation of a minimum number of jobs for Egyptian nationals; and • the use of a minimum percentage of local resources in their products.
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