The egyptian cabinet approved the executive regulations of the new investment law and were referred to the state council, minister of investment sahar nasr said thursday. The investment law aims to attract foreign investors to egypt to revitalize the egyptian economy. Following a series of recent government announcements and much speculation in the market, a new foreign direct investment law fdi law has been published in the uae official gazette and is now in force. The draft of the new investment law the law is a cornerstone of egypts economic reform.
The executive regulations of this law shall determing the conditions for and limits of the above fields. This guide identifies the best resources for locating primary and secondary materials related to international investment law, with an emphasis on bilateral investment treaties bits and the arbitration of investorstate disputes. Egypts investment map offers opportunities in an array of sectors and across various geographies, covered by strong incentives under egypts investment law. New amendments were made to the egyptian companies law as circulated on january 16, 2018. Exhaustion of local remedies in international investment law. The new investment law 72 which came into effect on june 1, 2017 brings new features to the investment landscape and introduces targeted incentives with the objective of making egypt one of the top. Access both online and pdf versions of all ey global tax alerts. Summary arbitration is becoming an increasingly important means of settling investment and commercial disputes in egypt. Chinas outward foreign direct investment and international. Article i the provisions of the annexed law shall govern the investment within the arab republic of egypt. The financial rebates and tax breaks for factories included in the law are meant to provide significant incentives for companies to begin operations in egypt.
November 2015 in brief amendments to the egyptian investment law the law and executive regulations regulations. Egypts government services portal laws and constitution. Egypt reduces income tax rate and tax on dividend distributions executive summary a presidential decree was issued promulgating law no. All the investments established within the arab republic of egypt shall receive fair and just treatment. What you should know about the new investment law of 2017 in. Arab republic of egypt general authority for investment and free zones about us contact us. As with most, if not all, new legislation, the fdi law is open to interpretation and we expect further clarity in the coming weeks and months. The investment law provides fiscal incentives for investment projects established after 31 may in the form of a reduction of the net taxable profits. Executive regulations of new investment law ratified egypt.
Investment law chapter i general provisions article 1. The present law aims to promote investment and encourages the creation of enterprises and their development in accordance with economic national priorities, in particular through. Investment law the tahrir institute for middle east. The second group benefits from a 40% discount, and includes investment projects for the objects promoted by the law anywhere in egypt, excluding projects which fall within the first group. A natural or legal person, whether egyptian or foreigner, regardless of the legal system he is subject to, who invests within the arab republic of egypt in. English laws and regulations invest in egypt home laws and. Egypt enacts new investment law to promote foreign investments ey. The history and evolution of international investment law 4. Egypts new investment law ignites controversy economy. Prior to the tunisia 2020 conference on development and investment which will take place in tunis at the end of this month, the tunisian legislature adopted law n712016 dated 30 september 2016, loi sur linvestissement 2016 the investment law, aiming to promote investments and business in tunisia.
Egypts investment law allows companies incorporated under its umbrella to enjoy a set of incentives and prohibits nationalization, confiscation and freezing of. At the same time the new law aims at breaking down administrative. The law comes into effect the next day and it cancels and replaces the investment guarantees and incentives law no. The provisions of the law shall apply to local and foreign investment, regardless of its size, and investment shall be placed in accordance with the provisions of this law, either under the. Equality of investment opportunities government support for newly established or emerging companies 27 july 2017 global tax alert egypt enacts new investment law to promote foreign investments ey global tax alert library access both online and pdf versions of all ey global tax. Egypt enacts new investment law to promote foreign investments. Equality of investment opportunities and nondiscrimination. The provisions of the annexed law shall govern the investment within the arab republic of egypt. Moreover, foreign capital and expertise were sorely needed for sadats goal of establishing egypt as a major center of finance in the middle east. This year egypt ratified a landmark investment law that will modernize and reduce barriers to how international. The draft is yet to be signed by the president, enacted as law, and published as such in the official gazette. The draft is expected to be enacted as law in the coming days. Opening egypt for business investors can expect reduced bureaucracy and red tape, a clear investment policy and easier access to investment opportunitiesthe law offers greater transparency and accountability and compelling incentives.
These new amendments effectively introduce a new type of company in order to promote and ease investment in egypt. Amendments to the investment law provide reduced customs duties, low cost land and other incentives. At the core of this contribution is the new egyptian investment law no. Egypts plan to attract local and foreign direct investments in its core sectors is at the heart of such development program. Introduction international investment law research guide. Investors projects may include up to 10% foreign employees, and up to 20% for investment companies. Egypt investment law investment laws navigator unctad. Further, egypts ranking on setting up of companies, handled by gafi, achieved a record improvement to settle at position 39 from 73 in the previous year. Nolan abstract as chinas outward foreign direct investment fdi has grown, its approach to international investment agreements iias has changed.
A new investment law approved by egypts cabinet last week has stirred controversy among activists and businessmen as it includes a clause. Youssry saleh law firm corporate and business lawyers in egypt provide clients with best solutions during establishment of their business and investment projects in egypt as well as daytoday operations of their organizations. Egypt s plan to attract local and foreign direct investments in its core sectors is at the heart of such development program. With the new investment law in place, three main pillars are boosted when doing business in egypt. Investment insights from tax and legal services egypt. At a time when the world is witnessing critical changes at the national and international levels in a new generation of investment treaties, laws, policies and regulations, egypt contributed to this process through revamping its national and international legal frameworks regulating investment. The measure will expand economic growth, domestic production, exports and foreign investment, and is designed to boost employment opportunities and increase egypt s competitive edge across the region. The law reflects to what extent the egyptian government and legislative authorities are keen to avoid any misreading of local and foreign investors needs. Egypts ad campaign for investment law glosses over economic challenges timep commentary. Egypts new investment law by laila rizk this week, the egypt house of representatives general assembly passed the final draft of a new investment law. This week, the egypt house of representatives general assembly is discussing the final draft of a new investment law. A deduction equal to 50% of the investment costs is granted for investments made in geographic locations most urgently.
The provisions of this law shall apply to local and foreign investments, regardless of their size, and said investments shall be made in accordance with the provisions of this law, either under the inland investment, investment zone, technological zone, or free zone regimes. Aug 27, 2019 international investment law governs foreign direct investment and the resolution of disputes between foreign investors and sovereign states. Egypts new investment law 2017 the new investment law no. Development of foreign investment law in egypt and its effect. The investment principles set forth under the new law are. Investors have the right to transfer their profits abroad. Pages businesslawsinvestment%20law%20english%20ban.
Foreign investors are guaranteed residence in egypt during the term of a project. Risks in foreign investment required readings rudolf dolzer, principles of international investment law, pages 111, 1927. Opening egypt for business this year egypt ratified a landmark investment law that will modernize and reduce barriers to how international companies invest and operate in egypt. The deadline may be extended under a decree issued by the egyptian council of ministers, however. This year egypt ratified a landmark investment law that will modernize and reduce barriers to how international companies invest and operate in egypt. Egypts new investment law offers many advantages for international investments in.
Mar, 2018 additionally, the new investment law will only be applicable for projects that are incorporated within a time limit of three years since october 25th, 2017. Article i the provisions of the annexed law shall govern investments within the arab republic of egypt. On 12 march 2015, presidential decree 172015 was issued to introduce substantial amendments to the investment law 81997 investment law. Nasr added in a press conference that the law will support suez canal development zone sczone and focus on providing services for investors. Decision of the president of the arab republic of egypt to issue local government law, law no. Investment law provide reduced customs duties, low cost land. The new law also identifies eight principles that should govern investment and apply to both the state and investors. The nature of international investment law the shaping factors in international investment 1. Egypt reduces income tax rate and tax on dividend distributions.
Thereby the new investment law is designed to incentivize nearterm investments in egypt. As for the third group, it enjoys a 30% discount, and includes small and medium enterprises and aborintensive projects. Supporting emerging companies, entrepreneurship and micro, small and medium enterprises msmes. The law stipulates that participating in the economic activities should not prevent, restrict, or cause damage to free competition. Law of investment guarantees and incentives the egyptian law firm. International investment law understanding concepts and. Foreign investors will receive the same treatment under law as. Chinas outward foreign direct investment and international investment law karl p. Prior to the 1952 revolution, egypt was a constitutional monarchy.
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