Why Establishing a Company in Egypt is a Strategic Advantage
expand in the Middle East and Africa. The government has introduced modern investment laws, particularly Law No. 72 of 2017 (Investment Law), which provides a wide range of incentives, guarantees, and legal protections. This framework makes company formation in Egypt not only secure but also highly profitable.
LEGAL TOPICS
Egypt has become one of the most attractive destinations for foreign investors seeking to expand in the Middle East and Africa. The government has introduced modern investment laws, particularly Law No. 72 of 2017 (Investment Law), which provides a wide range of incentives, guarantees, and legal protections. This framework makes company formation in Egypt not only secure but also highly profitable.
1. Tax and Financial Incentives
Partial income tax exemptions up to 50% for projects operating in designated investment zones.
Customs and VAT reductions on imported machinery, equipment, and raw materials.
Free transfer of profits and capital abroad without restrictions.
No discrimination between Egyptian and foreign investors.
2. Legal Guarantees for Investors
Full protection against nationalization or arbitrary seizure of assets.
The right to repatriate profits in foreign currency.
Clear dispute resolution mechanisms, including access to international arbitration.
Facilitation in acquiring land and permits for projects.
3. Sectors Eligible for Investment under Law 72
Foreign investors are allowed to operate in diverse and profitable sectors, including:
Manufacturing industries (advanced technology, import substitution).
Agriculture and land reclamation (modern farming, desert land development).
Livestock, poultry, and fish farming (large-scale production, aquaculture).
Transport and logistics (shipping, land, river, and air transport, supply chain services, ports).
Energy projects (conventional and renewable: solar, wind, hydro, energy efficiency).
Mining and quarrying (extraction and processing of mineral resources).
Tourism projects (hotels, resorts, entertainment facilities).
ICT and technology (data centers, software development, electronics, telecommunications).
Healthcare (hospitals, specialized medical centers, pharmaceuticals, medical supplies).
Education and training (international schools, universities, vocational training centers).
Free zones and investment zones (industrial and service-based projects in special zones).
Infrastructure (water projects, sanitation, roads, bridges, tunnels).
4. Strategic Benefits for Foreign Investors
Geographic location: Egypt serves as a gateway to Africa, the Middle East, and Europe.
Large domestic market: Over 110 million consumers with increasing purchasing power.
Free trade agreements with Africa, Europe, and Arab countries.
Competitive labor costs with a highly skilled workforce.
Conclusion
Establishing a company in Egypt under Law 72/2017 is not only a safe legal choice but also a highly rewarding strategic investment. With its robust legal framework, generous tax incentives, and access to diverse sectors, Egypt offers a fertile ground for sustainable growth and global expansion.