EGYPT Law and Practice Contributed by: Arig Ali and Lana Abd El-Rassoul, Zaki Hashem, Attorneys at Law
4. Government Inducements 4.1 Subsidy Programmes
platforms. This programme offers startups practical workshops, expert mentorship, and access to regional and international investment opportunities. Participants are also provided with office space at the Creativa Innovation Hub in Heliopolis. These efforts aim to accelerate the growth of Egyptian startups while connecting them to global markets. • MSMEDA and EPEAVC collaboration – in addition to the above, in February 2025, MSMEDA and the Egyptian Private Equity and Venture Capital Association (EPEAVC) signed a Memorandum of Understanding to bolster Egypt’s entrepreneurial ecosystem. This collaboration focuses on launching specialised support and training programmes aimed at enhancing the capabilities of inves - tors and investment managers in direct investment and venture capital. • MSMEDA and World Bank collaboration – partnerships with MSMEDA and the World Bank offer additional capacity-building and funding support for high-potential ventures. • Ministerial Group for Entrepreneurship – most importantly, keen to ameliorate the VC ecosystem, the Ministerial Group for Entre - preneurship is currently working on a Startup Charter. The objective of this policy frame - work is to offer clarity for both founders and investors, outlining key incentives, regulatory processes and protections. It plays a vital role in lowering entry barriers and improving transparency. 4.2 Tax Treatment As stated in 2.2 Fund Economics , at the level of VC funds or companies, unlike private equity activities, VC structures in Egypt benefit from tax treatment that avoids double taxation, meaning that investment income is taxed only once and not at the fund level and again at the level of the
Government support includes both financial and regulatory incentives. Under the SME Law, tax incentives are available to funds that invest in qualifying SMEs. The government actively supports the VC eco - system through a number of initiatives. These efforts, aimed at improving access to capital, streamlining regulatory approvals, and modern - ising the legal framework to make Egypt a more attractive destination for early-stage investment, include the following. • ITIDA initiatives – in collaboration with global accelerators, venture capital firms and local stakeholders, ITIDA plays a pivotal role in equipping Egyptian startups with the tools, mentorship and resources necessary to thrive in competitive markets. (a) Scale Up Program launched in partner- ship with 500 Global now approaching its third season, this seven-week pro - gramme is scheduled from 1 May to 10 July 2025, and targets Egyptian startups at the Pre-Series A and Series A stages. Participants benefit from tailored men - torship, proven growth frameworks and access to 500 Global’s extensive inves - tor network. Additionally, they receive a year of complimentary office space at the Creativa Innovation Hub in Giza, foster - ing collaboration and innovation. This partnership underscores ITIDA’s commit - ment to empowering entrepreneurs and positioning Egypt as a hub for scalable, tech-driven businesses. (b) Plug and Play Cairo Program similarly, ITIDA has joined forces with Plug and Play, one of the world’s largest innovation
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