Egypt Approves New Investment Regulations to Bolster FDI

Egypt Approves New Investment Regulations to Bolster FDI

Egypt’s cabinet finalized and issued regulations for the country’s new investment law on August 17th, Egypt Oil & Gas reports.

The new investment law, signed by President Abdel Fattah El Sisi in June, provides for a simpler bureaucratic process for investors and tax breaks for investments in under-developed regions and select industries, such as food, agriculture, tourism, and renewable energy. It also stipulates that foreign investors receive the same treatment and protections as domestic investors and lowers customs duties, according to Zawya.

The government hopes to attract additional foreign direct investment (FDI), according to Reuters. The new investment law seeks to limit bureaucratic red tape and incentivize investment.

In the second quarter of fiscal year (FY) 2016/2017, Egypt’s energy sector was the recipient of more than half of the foreign investments in Egypt, according to CPI Financial.

Investments in Egypt’s Zohr natural gas field have reached $3.8 billion alone, according to Al Mal News, which could rise to $4 billion by the end of 2017.

Egypt’s petroleum sector has also recently experience a boom in FDI, according to Minister of Petroleum and Natural Resources, Tarek El Molla.

The regulations must still be approved by Egypt’s administrative court before going into effect, according to sources quoted by Reuters.

In addition to investment reforms, the government has also recently approved a regulatory overhaul of Egypt’s domestic gas market.

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