EGYPT Trends and Developments Contributed by: Mohamed Hashish, Farida Rezk, Omar Aboul-Ella and Mariam Rabie, Soliman, Hashish & Partners
Over the past few years, the Egyptian govern - ment has been significantly improving the busi - ness environment in the country, which has resulted in various changes to the legal frame - work 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. It was reported in a recent press release that net FDI in Egypt reached USD46.1 billion in 2024, a significant leap compared to USD10 billion in 2023, according to the Ministry of Investment and Foreign Trade. Furthermore, in 2023, Egypt was recognised as one of the top five countries with economies that account for 40% of projects in Africa by the United Nations Trade and Development (UNC - TAD) World Investment Report 2023. Egypt was ranked third in the top 17 African Tech Ecosys - tems of the Future for the year 2021/22, accord - ing to the fDi’s report African Tech Ecosystems of the Future 2021/22. Egypt was also recog - nised as one of the top five destinations glob - ally for greenfield FDI in 2016, with Cairo ranked among the top ten cities hosting start-ups in 2016. In 2023, greenfield projects in Egypt more than doubled in number, to 161. Egypt was also at the top of all ranked MENA countries by capi - tal investment in 2020, acquiring 12% capital investment with a total value of USD13.7 billion, where financial services were among the top five sectors in 2019. Despite international and local crises faced by the country over the years (including revolu - tions, COVID-19, the Russia-Ukraine war, infla - tion, foreign currency shortages, the Palestin - ian-Israeli conflict 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 ( “Investment Law” ) and Prime Minister’s Decree No 56 of 2022, companies seeking to establish strategic or national projects that contribute to the development of partnerships between the private sector and the state, the public sector or the public business sector in the areas of pub - lic utilities and infrastructure, new or renewable energy, or roads, transportation or ports, have the opportunity to apply for a single licence for the establishment, operation and management of the project ( “Golden Licence” ). Such Golden Licence shall be sufficient for the operation of an investment project with no need to apply for any further licences or approvals. The Golden Licence Committee at the General Authority for Investment and Free Zones (GAFI) shall be responsible for the co-ordination with all the rel - evant governmental authorities in Egypt in order to obtain all the licences and approvals required by law for the establishment of the investment project. According to Decree No 56 of 2022, the Golden Licence shall be granted by 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 and increase industrial domestica - tion, as well as deepening local components in its products, provided that the percentage of local components in its products, including
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