Egypt sets up fast-track unit for investor issues, labour approvals

Egypt’s investment and labour ministries agreed on Wednesday to establish a joint mechanism to resolve issues facing major investors and streamline labour-related approvals, as part of efforts to improve the business environment and attract investment.

The initiative includes the creation of a dedicated unit within the Ministry of Labour, in coordination with the Ministry of Investment and Foreign Trade, to handle urgent issues faced by large companies.

The decision followed a meeting between Investment and Foreign Trade Minister Mohamed Farid and Labour Minister Hassan El-Raddad, attended by senior officials from South Korea’s LG, which operates in Egypt.

The new unit will expedite the resolution of labour disputes and accelerate approvals for occupational health and safety, operating licences, and other regulatory procedures affecting investors.

The officials said the mechanism will provide a single channel for large investors, improve response times, and strengthen coordination between government agencies, particularly in cases involving workforce issues and production disruptions.

They also agreed to strengthen direct engagement with major companies by holding regular meetings to identify and resolve operational challenges more swiftly.

Saleh said the government is adopting a more flexible approach in its relationship with investors, based on faster decision-making and reduced administrative delays.

He proposed a two-track system, including a central contact point to streamline procedures and a specialised unit within the labour ministry to resolve issues in coordination with the investment ministry.

El-Raddad said the initiative reflects support for improving the investment climate, adding that labour market development is a key pillar of investment policy.

He said the ministry will begin implementing the new unit immediately and will strengthen mechanisms for social dialogue between employers and workers to help prevent and resolve disputes.

The meeting also addressed issues raised by LG, including delays in issuing long-term residency permits for foreign executives and the need for clearer administrative timelines.

The two ministers said the government will also classify major companies to establish a structured framework for engagement based on size and activity, as part of broader efforts to attract investment, boost exports, and support industrial expansion.

Attribution: Amwal Al Ghad English