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Egypt eases licensing for private free zones in investment drive

The Egyptian government approved on Monday amendments to the investment law, which will simplify the conditions for issuing licenses for private free.
06.06.23 | Source: ahram online

Private free zones are designated for investment projects that require a specific location to be economically viable and enjoy the same benefits as public free zones, such as exemption from customs taxes, sales tax, and other fees.

The amendments now allow up to three years to fulfill the requirement of having a local component of at least 30 percent, instead of requiring it at the start of the project.

The new regulation eliminates conditions related to the project's capital, staff, and size.

However, the requirement to export at least 80 percent of the products remains in place.

The government's efforts to attract more private investment amidst a foreign exchange shortage have led to relaxed requirements for private free zone projects.

Egypt's new facilities for investors

In mid-May, the Supreme Council for Investment issued 22 decrees to boost FDI and private investments in Egypt.

The decrees include proposals for legislative amendments, which will be presented to parliament for voting soon.

Prime Minister Mostafa Madbouly has recently announced that foreigners can now own property in Egypt without restrictions, subject to specific regulations.