By Yasmine Fouda – Rania Imam
In its weekly meeting today Wednesday, December 14th, Cabinet chaired by Prime Minister Eng. Sherif Ismail reviews the final draft for the new investment law, in preparation for passing it to the State Council, after its referral to the Parliament.
The newly-drafted investment law includes incentives programme to attract targeted investments by offering specific projects according to the state’s priorities in supporting some industries, strategic activities and export industries, as well as providing guarantees for investors as consistent with international standards in this regard, in order to increase confidence in the investment climate in Egypt.
The draft law also includes extraction’s facilitations, especially the extraction of licenses, in addition to setting rules to settle overlapping jurisdiction, establishing a single window system, exercising stronger enforcement effectiveness of dispute resolution, strengthening the mechanism of incorporation procedure and promoting the availability of investment opportunities.
The draft law is to promote business competition, consumer protection, and prevent monopolistic practices and harmful environmental standards, application of governance principles, transparency and rational management, in addition to taking into account the quality and efficiency standards, health and safety conditions, as well as speeding the implementation and make it easier for investors to achieve their legitimate interests. It is to be noted that the draft law gives special importance to the investment incentives, especially for small and medium projects (SMEs), in addition to the provisions of tax exemptions, as well as local investment regime and investment window for receiving investors’ requests, examining and finalizing the processes of the allocation of the concerned properties. In addition to the regulation of performance fees for investment services and other procedures related to the establishment of integrated development projects, investment in national projects, as well as investment system in the free zones and areas of investments.
From his part, Prime minister said in a previous statement that the government is determined to make the best use of all the current opportunities, and create an economic climate that attracts more local and foreign investment to contribute in increasing production rates and economic growth and creating job opportunities. He noted that the amendment of the legislative environment is not the only guarantee to attract investment, unless accompanied by an application for a clear framework to facilitate procedures and licenses and constant communication with investors, which is being implemented by the government, in order to benefit from opportunities and promising possibilities, that Egypt has in various sectors.
