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Establishing a project in a free zone enables the investor to be exempted from the applicable customs procedures, importation and exportation regulations, value added tax or customs tax.Moreover, any required materials, equipment, supplies and transportation means (except for passenger cars) for engaging in the activity of the investment project are exempted from customs tax, value added tax and other taxes and expenses.

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The Investment Law attempts to improve the climate for foreign direct investment.

It removes previous constraints such as those on the repatriation of dividends, wire-transfers of hard currency, purchases of imported goods and foreign exchange currency conversions, alleviating concerns that foreign investors would be unable to remove their funds from Egypt.

The Prime Minister may allocate a free zone for certain particular projects having an exportation objective.

Once an investor is granted with a license to establish its project in a free zone, the investor is enabled to enjoy incentives and benefits, without the need to be registered at the Egyptian Industrial Registry.

The Egyptian government responded with a variety of policies aimed in part at attracting foreign and domestic investment.

The government exerted remarkable efforts to have the new Investment Law (no.72 of 2017) promulgated.

The Executive Regulations may in future set the limits and conditions, if any, to this provision.

The concept of an investment map was first introduced in the former Investment Law (no.8 of 1997), but was removed afterwards.

In addition to such costs, the government will pay back half of the real property’s value to the investor, in case the latter commenced the production within 2 years from the date of handing-over of the said property.

In case the project has any strategic features, the allocation of the real property may be free of charge.

In order to assist areas in need, the Law has been keen to facilitate the procedures for procuring land/real property in order to establish investment projects that satisfy the needs of a particular community.

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