Egypt investment minister sees new investment law passed in days

Egyptian Investment Minister Sahar Nasr expects the country will issue the new investment law, aimed at attracting foreign investors to help the economic recover after a 2011 uprising, in a few days.

The long-awaited law aims to cut bureaucracy, especially for starting projects, and provide more incentives to investors looking to put money into Egypt.

Prime Minister Sherif Ismail said Wednesday that the executive regulations of the investment law will be issued next week.

The Cabinet received the executive regulations of the investment law on Wednesday, he said, adding that it was carefully reviewed and suggestions of the various ministries and bodies concerned were taken into account.

Egypt’s economy has been struggling since the 2011 uprising drove tourists and foreign investors away, drying up foreign currency. Egypt signed a $12 billion International Monetary Fund programme last year aimed at reviving the economy.

New incentives under the investment law include a 50 percent tax discount on investments made in underdeveloped areas, and government support for the cost of connecting utilities to new projects.

Under the law, investors can recoup half of what they pay to acquire land for industrial projects if production begins within two years.

It also restores private-sector free zones – areas exempt from taxes and customs – a policy that had held up the law’s passage because of objections to forfeiting tax revenues at a time of austerity.

In June, President Abdel Fattah al-Sisi ratified the investment law.