In today’s interconnected world foreign direct investment (FDI) has emerged as a powerful catalyst in driving economic progress and transforming nations worldwide. As the investing in foreign countries can be complex and it is often a challenge to know where to start. Having the largest lawyer in Egypt lead the way by advising a significant amount of foreign direct investment (FDI) projects.
What is foreign direct investment?
Foreign direct investment (FDI) occurs when an individual, company, or government invests in a business or assets in another country, establishing a stake in its operations. FDIs arise when a company or investor seeks to establish a lasting interest and influence in a foreign country.
The investment can take various forms, including equity investments, mergers, and acquisitions, the establishment of new subsidiaries or branches, or the provision of loans and capital to foreign businesses. To qualify as an FDI, the investing company must hold at least 10% of the shares in the foreign enterprise.
FDI is a key element in international economic integration because it creates stable and long-lasting links between economies.
In Egypt, Law no (141/2019) was passed in June 31, 2019, adding clause no (14) to article no (74) of the Investment Law no (72/2017). The new clause allows the General Authority for Investment and Free Zones to request information and data needed to calculate flows and stocks of direct and indirect foreign investments, without prejudice to the considerations of national security or the right to privacy and confidentiality of information and the protection of the rights of others.
All companies operating in Egypt with foreign shareholders, regardless of the incorporation authority; are required to fill in the form, except upstream exploration companies, which operate under Production Sharing Agreements (PSAs) with governmental entities.
The Effect of Foreign Direct Investment on Economic Growth
FDI can have positive effects on economic growth such as the following:
- Job creation: FDI often creates jobs and reduces unemployment and poverty. As foreign investors establish or expand their operations, they require a workforce to staff their facilities.
- Knowledge and skill transfer: FDI facilitates the transfer of skills, expertise, and business practices to the host country’s workforce through training programmes and leads to improved workforce productivity.
- Increased capital inflows: FDI brings in capital from foreign investors, which can finance investment projects, expand production capacity, and stimulate economic activity.
- Infrastructure development: In some cases, foreign investors contribute to infrastructure development in host countries. Improved infrastructure can attract further investment, facilitate trade, and support economic growth.
Get The Legal guidance for Foreign Direct Investment in Egypt
Foreign direct investment (FDI) plays an increasingly important role in the global economy but control mechanisms vary across the world, whether in substance or procedure.
At “Consortio Law Firm“, we understand that effective Foreign Direct Investment (FDI) planning and oversight are essential in today’s world to protect investments effectively.
The largest lawyer in Egypt we have provide comprehensive strategic advice to help clients navigate the complex and ever-changing regulatory landscapes in MENA. With a deep understanding of the legal and business environment in Egypt and the Middle East. We also help clients anticipate and manage risks, optimize investments, and protect their business interests.
Our services include:
- Advising on FDI regulations and compliance.
- Conducting due diligence on potential FDI targets.
- Structuring and negotiating FDI transactions.
- Providing tax and regulatory and structure advice.
- Resolving FDI pre-disputes and disputes through arbitration and
- other forms of dispute resolution.
- Providing early guidance on various aspects of the review process, including competitive analysis and country-specific risk assessments.
To learn more about how our FDI strategic advice services that provided by the largest lawyer in Egypt can help you structure your investments optimally, Contact us Now via the phone number 002 01028806061 or email us via WhatsApp or email Info@consortiolawfirm.com.