The new law has been designed to help boost badly needed investment by cutting red tape - in particular assisting start up projects. It also aims to provide more incentives for potential investors in the country and clarify grey areas such as the cost of starting a project and incentives for land.
The new investment law includes a raft of new incentives, such as a 50 per cent tax discount on investments made in underdeveloped areas and government support for the cost of connecting utilities to new projects. Investors will get back half of what they pay to acquire land for industrial projects if production begins within two years. The law also sees the return of private sector free zones — areas exempt from taxes and customs.
FDI on the rise
Foreign direct investment in Egypt iS on the rise jumping 39 per cent in the first half of the current fiscal year ending in June to reach $4.3 billion.