All state policies are integrated to achieve the national goals. On the economic level, fiscal and monetary policy represent the two main arms for managing economic life, and a number of other policies are integrated with them and linked by intertwined relationships to finally complete the features of the state’s economic policy.
Investment policies are one of the economic policies that aim to attract and encourage local and foreign private investments, through setting and adapting the institutional, regulatory, and legislative framework to create a competitive climate that is supportive of investment.
The participation of the private sector in economic activity is an important factor in achieving the economic goals of the state In terms of increasing employment opportunities, stimulating economic growth, increasing tax revenues, boosting exports, and increasing consumer welfare.
In this regard, the government has been stepping up efforts to boost investments in diverse sectors. For instance, The newly restructured Supreme Council for Investment recently approved decisions to encourage foreign direct investments (FDIs) and private investments in Egypt.
The 22 decisions seek to achieve a qualitative leap in the economy through a number of incentives in addition to some legal amendments.
All necessary requirements when establishing a company shall take only 10 days, which will help boost investor confidence and simplify the process of conducting business in the country.
Making best use of modern technologies, the General Authority for Investment and Free Zones (GAFI) is to create a single online platform for project establishment, operation, and settlement through collaboration with the authorities concerned. Such platform will make it easier for investors to obtain the necessary approvals and permits.
There are also certain amendments, allowing investors to use electronic signatures with the aim to further streamline the business process.
The Ministry of Justice is to draft legislative amendments to overcome restrictions related to land ownership and facilitate foreigners’ ownership of the real estate.
The Golden License is also another vital step to attract investments. Earlier in 2022, President Abdel-Fattah El-Sisi issued directives to grant a Golden License to all investors applicants for three months, to facilitate procedures for establishing priority projects for the state.
The golden license will grant investors permission to buy or rent land and operate and manage projects, without the need to gain approval from multiple government bodies.
The licensing window can be extended for an additional three months.
The supreme council for investment has also approved expanding the issuance of the golden license to companies that are not establishing strategic or national projects as well as to companies established before the Investment Law of 2017.
It is to be noted that the council approved a draft resolution to create a monitoring unit within the cabinet to oversee state-owned companies. The unit will collect data on these companies, make binding decisions on restructuring, and report to the president and the cabinet every three months.
Regarding foreign investors, there is an amendment that allows foreign investors to be registered as importers for 10 years even if they do not hold Egyptian citizenship. This also comes within the framework of the government’s efforts to facilitate import procedures for foreign investors.
Tax burdens and the multiple entities imposing improvement fees are also another challenge facing investors. That is why the council approved a draft resolution that creates classifications for the required fee values based on the purpose of investment if such investment is in health, tourism, or hospitality .it will be applied to all administrative authorities.
The government is also accelerate the announcement of the state’s tax policy document for the next five years, a matter that will help enhance the stability of the tax environment.
In cases of expropriation, there will be a specific timeframe to compensate investors– not exceeding three months to ensure transparency of compensation process.
In addition, the International Finance Corporation (IFC) is to contract with a global consulting firm to develop a clear shared vision for investment in Egypt. The strategy will focus on improving Egypt’s ranking in the Ease of Doing Business Index and achieving the national target of raising investment rates to between 25 per cent and 30 per cent.
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