The Investor’s Guide to Egyptian Investment Law (Law 72/2017): Guarantees and General BenefitsThe Egyptian Investment Law (Law No. 72 of 2017) serves as the foundational legal framework governing both local and foreign investment in the Arab Republic of Egypt, regardless of the size of the venture. This legislation is key for investors seeking clarity on the guarantees, protections, and general incentives available when entering the market.

Investment projects defined under the law span a wide range of sectors, including industry, agriculture, commerce, education, health, transport, tourism, housing, construction, sports, electricity, energy, natural resources, water, communications, and technology. The Minister competent for investment affairs may also add other sectors based on the national development plan.

I. Core Guarantees and Investor Protection Law 72/2017 establishes several non-negotiable protections designed to ensure stability and security for investors:

A) Non-Discrimination and Contract Enforcement: The law ensures that invested capital and projects are not subject to any arbitrary measures or decisions characterized by discrimination. Furthermore, the State explicitly commits to respecting and enforcing the contracts it concludes. However, investment projects established through fraud, deception, or corruption are not entitled to the guarantees, protection, advantages, or exemptions stipulated by the law.

B) Protection Against Administrative Seizure: The law offers strong protection against the interference of administrative authorities. Investment projects cannot be placed under receivership (Harasah) through administrative means; such action is only permitted via a final judicial ruling. Similarly, the seizure, confiscation, or freezing of the project’s funds is forbidden except under a judicial order or final ruling.
◦ Exception: The only exception to the rule against seizure applies to tax debts and Social Insurance contributions owed to the State, which may be collected by all types of seizure, provided this does not violate the terms agreed upon in contracts concluded by the State or public entities with the investor.

C) Regulatory Stability: No administrative body is permitted to issue general regulatory decisions that impose new financial burdens or procedural requirements related to the establishment or operation of projects falling under this law, unless the GAFI Board of Directors is consulted and the Council of Ministers approves the measures.

D) Financial Repatriation and Residency: Non-Egyptian investors are granted residency in Egypt for the entire duration of the project. Foreign employees working within the investment project have the right to transfer all or part of their financial entitlements abroad.

II. General Fiscal Benefits (Waivers)
A critical attraction of Law 72/2017 is the provision of immediate, general fiscal exemptions that reduce the initial cost of setup:
• Five-Year Exemption: Contracts for the incorporation and establishment of companies and enterprises, along with contracts for credit facilities and mortgages related to their activities, are exempt from stamp duty and documentation/registration fees for a period of five years from the date they are registered in the Commercial Register.

• Land Registration: Contracts for the registration of land necessary for the establishment of the companies and enterprises are also exempt from the aforementioned taxes and fees.

• Certification Fees Cap: The fee for authenticating the signatures of partners or their representatives on incorporation contracts for companies (regardless of the investment system they follow) is fixed at one-quarter percent (0.25%) of the paid-in capital, capped at a maximum of EGP 10,000 (or its equivalent in foreign currency).

III. Flexibility in Capital Structure and Currency
The law provides key flexibility regarding currency management:

• Foreign Currency Capital: Companies subject to this law may determine their capital in any convertible currency and are permitted to prepare and publish their financial statements in that currency. This is contingent upon the subscription to the capital having been made in the same foreign currency.

• Currency Conversion: It is permitted to change the currency denomination of a company’s capital from the Egyptian Pound to any convertible currency, based on the exchange rate announced by the Central Bank of Egypt on the date of conversion.

IV. Simplified Regulatory Interface: The Role of GAFI
The General Authority for Investment and Free Zones (GAFI), designated as the competent administrative authority, manages the regulatory relationship with investors, primarily through the Investor Service Center (ISC).

  • Streamlined Services: The ISC is responsible for receiving all investor applications for the issuance of required licenses, approvals, land allocation, and permits for establishing or managing investment projects, and ruling on them according to the legally stipulated deadlines.
  • Delegated Authority: Representatives of specialized governmental bodies located within the ISC possess the authority to issue the necessary approvals, permits, and licenses, transferring that power from their original administrative body to the ISC platform to expedite the investor journey.

For more details about company incorporation in Egypt, check our full guide here: The Ultimate Guide to Egypt Company Incorporation with Consortio.

To learn more about company liquidation procedures, visit our detailed guide: Consortio helps you liquidate a company within Egypt.

For an international perspective on Egypt’s economy and investment climate, see the World Bank – Egypt Overview.

For detailed assessments of Egypt’s investment policies, check the OECD Investment Policy Review – Egypt.

For intellectual property protections relevant to investors, visit the WIPO Egypt Page.

If you’re looking to start your company in Egypt with confidence, Contact us Today to find more details via the phone number 002 01028806061 or via WhatsApp or email Info@consortiolawfirm.com.