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Establishment Laws in Egypt: A Comprehensive Overview

Establishment Laws in Egypt: A Comprehensive Overview

Egypt’s investment climate has seen remarkable progress, driven by a series of legislative reforms aimed at creating a more conducive environment for both domestic and foreign investors. This blog explores the key establishment laws that have shaped this transformation, highlighting their provisions, benefits, and impacts on the business landscape in Egypt.

Investment Law No. 72 of 2017 and its Executive Regulations

Investment Law No. 72 of 2017 is a cornerstone of Egypt’s efforts to promote and encourage investment. This law sets out principles to ensure equitable treatment of investors, regardless of project size or nationality. It fosters entrepreneurship, supports the development of small and medium enterprises, ensures fair competition, and applies corporate governance principles. Additionally, the law simplifies investment procedures to mitigate associated risks.

One of the significant features of this law is the introduction of the one-stop-shop concept, which streamlines the investment process by allowing investors to obtain necessary approvals from a single point of contact. This initiative saves time and costs, making it easier to do business in Egypt.

The Executive Regulations of Investment Law No. 72 of 2017, issued by Prime Minister Decree No. 2310 of 2017, consist of 133 articles divided into five parts: General Provisions; Facilitations and Incentives Relating to Investors; Investor Service Center; Investment, Technological, and Free Zones; and Regulation of the Investment Environment.

Key stipulations include:

  • Fair and equitable treatment for all investments.
  • Guarantees against arbitrary measures and discriminatory decisions.
  • Residency rights for foreign investors during the investment project term.
  • Protection against nationalization and unfair confiscation of assets.
  • Streamlined procedures for business commencement and licensing.

Prominent Advantages of Investment Law No. 72 of 2017:

  • Access to Finance:Promotes financial inclusion, particularly for SMEs.
  • Ease of Business Commencement:Simplifies registration and licensing procedures.
  • One-Stop-Shop Activation:Facilitates decentralization and streamlines approval processes.
  • Investor Protection:Ensures non-nationalization of property and protection against arbitrary decisions.
  • Enhanced Competitiveness:Encourages transparency and reduces bureaucracy.
  • Governance:Clarifies the roles and powers of GAFI and the Supreme Council of Investment.
  • Incentives:Offers general, special, and additional incentives, including tax discounts and customs exemptions.

Law No. 159 of 1981 on Joint-Stock Companies, Partnerships Limited by Shares, Limited Liability Companies, and Single Member Companies

Law No. 159 of 1981 governs the formation, incorporation, and operation of various types of corporations in Egypt. It regulates capital distribution, profit and loss management, corporate governance, and decision-making processes.

Key Advantages of Law No. 159 of 1981:

  • Protection:Ensures shareholder protection through enhanced transparency and governance measures.
  • Ease of Operation:Streamlines registration and incorporation processes to align with international standards.
  • Governance:Incorporates additional transparency and disclosure requirements.
  • Access to Finance:Provides diverse financial options, including preference shares and convertible bonds.
  • Transparency:Supports cumulative voting and prevents the misuse of confidential information.

Economic Zones Law No. 83 of 2002

The Economic Zones Law No. 83 of 2002 facilitates the establishment of special economic zones focused on industrial, agricultural, and service activities, primarily for export markets. Companies in these zones benefit from customs exemptions, lower corporate taxes, and more flexible labor regulations.

Benefits of Economic Zones Law No. 83 of 2002:

  • Customs Exemptions:Allows importation of capital equipment, raw materials, and intermediary goods without customs duties.
  • Tax Incentives:Provides exemptions from sales and excise taxes.
  • Flexible Operations:Ensures more flexible labor procedures and additional incentives.


Egypt’s legislative reforms, encapsulated in these key establishment laws, have significantly enhanced the investment climate. By providing robust frameworks for governance, transparency, and investor protection, these laws make Egypt an attractive destination for both domestic and international investors. The continuous efforts to streamline procedures and offer incentives underscore the country’s commitment to fostering a dynamic and competitive business environment.

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