The Resolutions Approved by the Supreme Council for Investment held under the President Chairmanship

The resolutions approved by the Supreme Council for Investment held under the Chairmanship of the President of the Republic, President Abdel Fattah El-Sisi, on May 16, 2023.

-With regard to restrictions on incorporation of companies, a draft resolution was approved to study the amendment to some articles of the Executive Regulations of Investment Law No. 72 of 2017, as well as a draft resolution on the amendment to Article (34) of Investment Law No. 72 of 2017, to allow the licensing of natural gas-based industries projects as one of the production inputs, in order to operate under the Free Zones system.

-With regard to the multiplicity of approvals and the long duration for obtaining them, it was approved to issue a resolution, to be circulated to all authorities, to set a specific time limit for all approvals, that is 10 working days for one time upon incorporation. This shall add more confidence in the investment climate in Egypt. In addition, the General Authority for Investment and Free Zones “GAFI”, in cooperation with all relevant authorities, was directed to establish a unified electronic platform for incorporating, operating and filtering projects, and for endorsing amendments to the E-Signature Law (Law No. 15 of 2004), and referring it to parliament in order to reduce bureaucratic barriers and streamline procedures.

-With regard to land allocation, the Ministry of Justice has been mandated to prepare a set of legislative amendments necessary to overcome restrictions related to land ownership, and facilitate ownership of real estate for foreigners. With regard to permits to carry out activity, it was agreed to expand the issuance of the Golden License and consider not limiting it to companies incorporated for setting up strategic or national projects. In addition, Articles No. (40), (41) and (42) regulating the Golden License, shall be amended to ensure that companies established prior to Investment Law of 2017 may be granted Golden License.

- Assigning the Council of Ministers to assess transferring the affiliation of the regulatory bodies of the utility sectors, in a manner that guarantees their independence. This aims to strengthen the principle of separation between ownership and management in a number of the state’s sectors. In addition, a draft resolution was approved on the amendment to some legal articles that grant preferential treatment to the state-owned companies and entities, with the aim of enhancing competitive neutrality in the Egyptian market.

- In order to standardize the work frameworks of all state-owned companies, a draft resolution was approved to enact a law establishing a unit in the Council of Ministers to be responsible for collecting data of state-owned companies, in order to unify the frameworks for all state-owned companies.  The decrees of such units will be binding on restructuring, whether by selling or transferring affiliation from one party to another, provided that the result of its work is submitted every 3 months to the President of the Republic and the Council of Ministers. Moreover, a draft resolution was approved to enhance governance and transparency.

- To address the difficulty of importing production requirements, a draft resolution was approved to amend the text of Law No.7 of 2017, to allow the foreign investor to be registered in the Register of Importers, even if he does not hold the Egyptian nationality, for a period of 10 years. The aforementioned comes within the framework of efforts exerted to streamline import procedures for foreign investors.

-A draft resolution was approved to address the additional burdens imposed on investors. It stipulates that no entity may issue general regulatory decisions that add financial or procedural burdens related to the establishment or operation of projects subject to the provisions of the investment law, or impose fees on such projects, or amend them, except after taking the opinion of the board of directors of the General Authority for Investment and Free Zones, and the approval of the Council of Ministers and Supreme Investment Council.

-On the same issue, and within the framework of efforts to alleviate the financial and tax burdens on investors, a draft regulatory resolution was approved that is binding on clear mechanisms and regulations for cases of imposing improvement fees in accordance with the regulating laws, the principles of calculating each case, and considering making classifications of the required values according to the purpose of investment, whether health, tourism, or hotel. This resolution shall be circulated to all administrative authorities. This aims to eliminate the multiplicity of entities that impose improvement fees on investors, as the investor pays the same fees to several entities.

-A draft decree was also approved, directing the Ministry of Finance to create a clearing system between investors’ dues, taxes or other burdens for the benefit of government entities, while setting a time limit (45 days) to ensure the speedy refund of the value-added tax and speed-up the procedures.

-Within the framework of efforts exerted to create a stable tax legislative environment, a draft resolution was approved to expedite the announcement of the state's tax policy document over the next five years. This seeks to eliminate the instability of tax legislation, the multiplicity of entities entrusted to it, and the imposition of additional fees by various entities.

-A draft decree to mandate the Ministry of Justice to promptly finalize the amendments to the transfer of dividends law for holding companies and subsidiaries, in order to ensure the reduction of tax burdens and the avoidance of double taxation. This comes within the framework of efforts to stimulate domestic and foreign investment.

-A draft decree to mandate the Ministry of Justice to amend the Civil and Commercial Proceedings Act 13/1968, which allows increasing the pecuniary jurisdiction of economic and partial courts, and expanding their subject-matter jurisdiction to include settling commercial and trade disputes. Moreover, the quorum required for appealing the judgments will be more restricted so as to make the mechanisms for settling trade disputes more effective, and thus, expedite contracts enforcement.

-A draft resolution to mandate the Ministry of Justice to issue a binding regulatory decree with clear controls to set a specific time limit for disbursing compensation to investors in cases of expropriation, not exceeding 3 months, while obligating the administrative authorities to intensify negotiations with investors on appropriate compensations; which gives more confidence in the investment climate in Egypt.

-A draft resolution to benefit from the International Finance Corporation (IFC), to conclude a contract with a global consulting office to develop a participatory vision and a clear strategy for investment in Egypt, as well as mechanisms to improve Egypt’s ranking in The Ease of Doing Business (EODB) Index in the coming years, in order to achieve the national target of raising investment rates to 25% - 30%.

- Studying the amendment of 9 articles of the Economic Zones of a Special Nature Law No. 83 of 2005, with the introduction of a number of additional articles to the text of the law, which grants advantages and exemptions to the economic zone.

-Establishing a permanent unit in the Council of Ministers headed by GAFI CEO, specialized in setting appropriate policies, laws and regulations for the growth and prosperity of start-ups in Egypt. This is in addition to receiving complaints from start-ups in coordination with the Investors’ Problem Solving Unit and developing appropriate solutions for each of them in coordination with the competent authorities.

-Adopting a package of incentives in support of a number of sectors and projects, including those related to supporting the sectors of agriculture, industry, and energy for green hydrogen production. This is, in addition to the housing sector with regard to real estate developers and investment projects in new cities, as well as the transportation sector with regard to export fees and customs duties, and the standardization of the pricing strategy.