investment in egypt

Why invest in Egypt?

First: Egypt singed free trade agreement with most of the Africa countries so when you manufacture your product you can Export your products to these countries free of the custom duties, like COMESA Agreement which includes 21 African countries and AFCFTA which includes 49 African countries with 1.3 Billion consumer.

Second: The Egyptian workers are clever and strong, the legal minimum salary is 127 EUR per month for every worker to work 6 days per week, 8 working hours per day, and no medical insurance required and the new Egyptian labor law is qualified with the EU labor rules, so you will understand the labor rights and obligations easily, so you can mange your Egyptian workers by easy way.

Third: Egypt has Unique raw materials:

  • The Egyptian cotton which is valuable in all over the world, so when you manufacture the Egyptian cotton you can export your product with special prices to all over the world.
  • The Egyptian Strawberry has special test and the Egyptian dates has special test, both agriculture require hand workers to collect it from the trees, these workers are available in Egypt for 127 EUR salary per month.
  • The Egyptian desert are full of the Phosphates, manganese and unique marble all of it can be manufactured on its cheapest land.

Fourth: Suzie Canal: Egypt own Suzie canal so 12% of the world trade cross this canal, so all the international ships come through the Egyptian ports which are in Mediterranean sea  and red sea, so you will find a lot of shipping lines In the Egyptian ports, and the cheapest transportation cost to all over the world.

Fifth: Agriculture:  Egypt going to land reclamation in the north coast for new 3.5 million Acre, all of it need tools and machines.

Sixth: you can own land for your factory from the government for your factory for price around 100 EUR for every square meter.

Seventh: you can own 100% of your project in Egypt.

Eighth: Investment protection:

  • Egyptian Law say that the government can't take your money , also Egypt signed a lot of international investment protection agreements which give you the right to solve all your disputes in Egypt through private arbitration and international arbitration. You can transfer your money out of Egypt anytime without any limit or Condition.

Ninth: The corporate income tax rate in Egypt is 22.5%, if you will manufacture in new city in Egypt you can get 50% discount on your tax cost. 

Tenth: you have the exclusively right to set your products or services prices.

Eleventh: you can start your business in Egypt with Virtual headquarter address which can cost you 130 EUR per year, and you can rent actually headquarter office in administration building for 1000 EUR for 50 Square meters. 

Twelfths: the Egyptian weather is very nice all the year you will enjoy warm time in your working time in Egypt. And if you are using heating or freezing in your production you wouldn’t use a lot of energy so you will safe your cost.

How invest in Egypt?

First: the Egyptian Government introduce the most important investment opportunities on its online window by English language:www.investinegypt.gov.eg

Second: you can establish your company and get your business license online  on the website of the General authority for investment GAFI:www.gafi.gov.eg

  • But this services sometimes not stable so we recommend you use professional lawyer to establish your company in GAFI headquarter.

Third: the Egyptian law includes all the corporate kinds like JSC, LLC, LLC for one person, etc

Fourth: establishing company by GAFI and getting your business licenses, this mission takes around 15 working days, some special kinds of the business will require another license from another Egyptian Authorities.

Fifth: establishing company LLC or JSC by registered capital 200 thousand EUR will cost you 2000 USD as government fees for GAFI.

Seventh: GAFI doesn’t require you transfer any money for your new LLC capital when you establish it, you can transfer the company capital in the future step by step to use it in the company.

How investment in The Suez Canal Economic Zone?

  • You can establish you business Through only one online window. SCzone
  •  Incentives and Guarantees
  • Incentives
  • Yes, all kinds of companies can be fully owned by foreigners 100% without any Egyptian Shareholders.
  • 2-Taxs:
  • 0% Customs Tax
  • All project required material and tools (Construction – Operation) are imported from abroad.
  • Re-exports.  
  • In the case of exporting to the local market: Customs tax will be paid only on foreign components.
  • 0% VAT
  • It is applied within the economic zone, when importing from the local market or abroad into the Economic Zone, including all procurement needs for manufacturing, production and operation (Raw Materials, Components, Spare Parts, etc.)
  • Investment Incentives on INCOME TAX
  • The corporate tax rate is 22.5%.
  • Investment projects are granted an investment incentive as a deduction from the net taxable profits at a rate of 50% of the total investment costs, so that the investment incentive does not exceed 80% of the paid capital and the discount period does not exceed seven years from the date of practicing the activity.
  • 5% Salaries Tax
  • A unified tax rate of 5% shall apply to wages, salaries, bonuses, incentives, lifetime incomes and the like to which the employees of the Zone or those performing work in the Zone are entitled.
  • 0% Loans Tax
  • Revenue from bonds, loans and credit facilities extended to the Authority to the Main Development Company or to the companies, establishments and branches licensed to work in the Zone shall be exempted from all taxes and duties.
  • 0% Tax Profits resulting from the merger,
  • Division or change in the legal form of companies free of taxes and duties due for such a merger, division or change of the legal form. This provision shall apply only to those companies established within the Zone.
  • The Zone shall not be subject to the Laws related to sales tax, fiscal stamps and fees to increase State resources, nor to any other duties or direct / indirect taxes.
  • Guarantees
  • The companies, establishments and branches working in the Zone shall not be nationalized.
  • The companies, establishments and branches working in the Zone shall not be subject to sequestration. Their funds shall not be seized, confiscated, frozen or put into custody without a court ruling.
  • The companies, establishments and branches working in the Zone shall exclusively set their prices for their products and services.
  • The companies and establishments shall acquire lands and buildings necessary to operate and expand their business within the Zone by way of allocation by the Authority in return for an annual usufruct fee for a renewable period of fifty years.
  • The companies, establishments and branches working in the Zone may import directly or through others their needs of production supplies, material, tools, equipment, spare parts, raw material and means of transportation suitable for their activities, which are necessary for their establishment, operation or expansion, without having to be registered in the Importer’s Register, and without obtaining prior authorization. These companies, establishments and branches may export directly or through intermediaries without having to obtain a license or prior permit and without being listed in the Exporter’s Register.
  • Upon approval of the Prime Minister or his delegate, the founding shares and shares of the Joint Stock Companies established in the Zone may be traded upon establishment of the companies without being restricted by the par value of the shares.
  • The investor has the right to use International Arbitration in all of dispute’s investment, civil, commercial.

How investment in The Egyptian Free zone?

  • The free zone is a part of the state’s territory, within its geographic borders and subject to its administrative authorities; the free zone’s transactions are subject to special taxation, customs and monetary regulations.
  • Incentives and Guaranties:
  • Incentives
  • Capital assets and production requisites necessary for practicing the project’s activity (except passenger cars) are exempted from any customs duties and the value added taxes or any other taxes, as long as the project is practicing its activity, even if the nature of the project’s activity required their temporary existence outside the free zone.
  • All imports and exports of the project from/to foreign markets are exempted from any customs duties and taxes whether value added taxes or any other taxes or the duties applied in the country.
  • The project and its profits are not subject to laws and regulations of taxes and customs applied in the country during the period of practicing the activity.
  • Imports and exports of the project from/to foreign markets are not subject to any customs procedures or regular import rules applied in the country.
  • The project’s imports from the domestic market are not subject to the value added taxes
  • Transit goods with determined destination are exempted from any duties applied on goods’ entry and exit under the following conditions:
  • The project must exist in the customs area.
  • The goods should have a determined final destination, with the invoice and the freight policy.
  • All the domestic components of goods produced inside the free zones projects are exempted from the customs duties in case these goods are sold inside the domestic market (inside the country).
  • Guarantees
  • The projects operating under the free zones system may not be subject to legal proceeding, before the consultation of the Authority.
  • The projects and establishments shall not be neither nationalized nor confiscated.
  • Projects shall not be seized, retained in protective custody, or blocked, nor shall be subject to administrative attachment or expropriation without due process.

Public Free Zones

  • There are currently 9 public free zones spread all over the country, in the cities of (Alexandria “Al Amerya” – Cairo ’Nasr City” – Port Said – Suez “3 sites: Port Tawfiq, El Adabeya and Attaqa – El Ismailia – Damietta – Shebin el Kom- The Egyptian Media Production City – Qena “Qeft city”), these free zones are equipped with utilities and infrastructure needed for operations and receiving the new projects (roads- electricity sewage treatment stations- water networks – telephone lines) in addition to an integrated customs unit, port security department and a security unit inside each zone, working round the clock; the establishment of the free zones observed their existence in the big cities, distinguished with: unique locations; availability of qualified workers to support the zones’ needs; proximity to sea and air ports, as areas are allocated for investment with an annual usufruct system / meter square depending on the project’s activity.
  • Also in Egypt you can establish new private free zone for your project where you chose.

How to study the Egyptian market?

The trade fairs and exhibitions In Egypt 2025:

Egypt hosted several major trade exhibitions in 2025, covering a wide range of industries. The Cairo Fashion & Tex Expo 2025, held at the Cairo International Convention Centre, focused on textiles, garments, and fashion. The WATREX Expo 2025, organized at the Egypt International Exhibition Centre (EIEC) in Cairo, specialized in water treatment, wastewater technologies, and environmental solutions. The construction sector was represented by The Big 5 Construct Egypt 2025, also held in Cairo, showcasing building materials and infrastructure technologies. In the defense sector, Egypt hosted EDEX 2025 at EIEC, a major exhibition for defense, security, and military technologies. Industrial sectors participated in Metal & Steel Middle East 2025, held at EIEC and dedicated to steel, metals, fabrication, and industrial machinery. The paper and packaging industries were highlighted in Paper Middle East 2025 / PRINT 2 PACK Egypt, also at EIEC, focusing on paper, pulp, packaging, and printing technologies. The food and agriculture sector was represented by Food Africa 2025, held at EIEC and considered one of the leading exhibitions for food, agriculture, and the F&B industry in the region.

Please remember: to take samples of your products because the Egyptian customer prefer to test any product before purchase it.

How Chose Egyptian partner?

First: you can get the Egyptian companies contact from the Egyptian commercial chamber: www.fedcoc.org.eg

Second: you should investigate about this partner financial situation and credibility by The Egyptian Credit Bureau iscore:www.iscore.com.eg

Third: you should request copy of the criminal record certificate of the natural persons.

Fourth: you should request copy of the company commercial registration certificate to be sure of the company legal representative.

Fifth: you should investigate in the commercial registration authority if this company under bankruptcy or liquidated.

Sixth: you should visit the company headquarter in two deferent times without appointment.

Seventh: you should ask the company clients and competitors about the company reputation.  

How can manage Egyptian partnership trade relation?

  • First: don’t give agent agreement without testing the Egyptian partner as general distributor for one year minimum to inspect his qualifications and experience, because according to the Egyptian trade law you can cancel the distribution agreement anytime you want but the agent contract couldn’t be canceled before its period or if you cancel you will pay compensation to the Egyptian agent.
  • Second: please include your agreements private arbitration condition as dispute resolution way because the Egyptian court take long time, we recommend you using The Cairo Regional Centre for International Commercial Arbitration:www.crcica.org

This arbitration center is international independent organization, the Egyptian Court approve to executive this arbitration center Awards. This arbitration center finish the case within 6 months.