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Tax breaks for innovation: President El-Sisi empowers egyptian startups

President Abdel Fattah El-Sisi has taken significant steps to support and boost startups in Egypt with a a 5-year tax exemption.
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President Abdel Fattah El-Sisi has taken significant steps to support and boost startups in Egypt. He announced a 5-year tax exemption for startups, providing them with a competitive advantage.

He emphasized that the government is committed to assisting and supporting startups as it allocates a substantial annual budget ranging between $24 billion to $30 billion to meet the production requirements of approximately 150 producers.

The President highlighted the importance of feasibility studies for various products to encourage local companies to operate in those sectors, reducing the need for imports. For instance, he mentioned the need for water pumps, stating that although there are five major companies in the field, they do not manufacture all the pumps required by the market. He expressed full support for startups working in this area to address the local market's needs, particularly in sectors like treatment plants and lifting stations related to irrigation, agriculture, and housing.

The directives also include establishing companies through digital notification and removing obstacles for startups and entrepreneurs. That means that the opening of virtual companies is now allowed without the requirement of a physical headquarters, reducing expenses and simplifying the establishment process for very small or single-person companies. He also emphasized the importance of creating free investment technology zones, expanding tax exemptions for startups, and facilitating the import of electronic components for specialized companies.

There are also initiatives like the "Digital Egypt Initiative," which targets top graduates of specialized universities, and the "Digital Egypt Cubs" initiative, which provides ICT sciences training to outstanding school students.