Business entities in Egypt that have been incorporated after the enactment of the Law 8 of enjoy further guarantees and incentives. The main areas that are affected by the above mentioned benefits consist of land retrieval, manufacturing and mining, all aspects of touristic business, trade and shipping of agricultural and industrial products, air and maritime transportation, services for the field of oil and gas, accommodation and infrastructure projects, medical centers that apply a policy of granting 10 per cent of their facilities for the purpose of free treatment, computer programs and systems. Exemption from nationalization or expropriation Exemption from administrative attachment or asset freezing The right to purchase lands and buildings necessary to proceed with the operations of the business The right to import tools, vehicles and raw material required for operations The right to export the production Discharge from specific provisions of the Egyptian Company's Law Exemption from stamp taxes Exemption for 5 years from the date of registration with the Commercial Registry from the payment of charges related to legalization and registration.
FDI Foreign direct investment in egypt Foreign investments in Africa have traditionally been focussed on a small number of target jurisdictions, with South Africa and Nigeria being the top destinations.
This is likely to be further impacted due to the fall in the crude oil price and uncertainty around the national elections. Key sectors Although investors have typically favoured natural resource assets, there has been a substantial shift away from the extractive industries and the continent is seeing growing investment in other sectors.
The same period also saw retail and consumer products overtake financial services to become the second most attractive sector in Africa.
FDI projects in real estate, hospitality and construction have increased whilst the mining and metal industries fell outside the top ten sectors when measured by FDI project numbers.
In terms of future trends, investors highlighted the agricultural sector as having the greatest potential for growth in the next two years. Infrastructure is also viewed as another growth sector in addition to the consumer-facing services, consumer products and telecommunications sectors.
The key sectors being invested into from the UK are business services, financial services and telecommunications.
Due to its cultural and historic ties with Africa, France has been a key investor in the continent and the country was the third most active investor by projects from up towith projects.
China has signed agreements with several African governments in order to facilitate investment co-operation and fast-track the inflow of FDI into the continent.
For example, in MayChina and Nigeria signed a memorandum of understanding which aimed at encouraging and supporting Chinese enterprises to invest in Nigeria through investment promotion events and introducing clients of China-Africa Development Fund to opportunities in Nigeria.
Such agreements have already led to major FDI projects in Africa. Chinese FDI in the country has also been focussed on infrastructure and mining. As a result of this investment, Tanzania aims to become a net exporter of liquefied natural gas LNGagricultural produce, minerals and industrial manufactured products.
As potentially the trigger for further significant US interest in Africa, in Augusttwo of the largest private equity firms in the US, The Blackstone Group and The Carlyle Group, separately formed strategic partnerships with Dangote Industries, the African industrial conglomerate, to invest in sub-Saharan Africa.
Legal and regulatory highlights As Africa continues to develop as an investment destination, greater emphasis will be placed on domestic and international regulation seeking to facilitate greater FDI levels whilst at the same time protecting national interests where required.
The context of foreign investment in Egypt: Egyptian market's assets and inconvenients, foreign direct investments (FDI) Inward Flow, main investing countries and privileged sectors for investing. Foreign direct investment (FDI) flows to Africa slumped to $42 billion in , a 21% decline from , according to UNCTAD’s World Investment Report Weak oil prices and harmful ongoing macroeconomic effects from the commodity bust saw flows contract in major host African economies. This paper compares the political economy of foreign direct investment (FDI) in relation to economic development strategies and legal framework for foreign firms in Egypt and Turkey.
In Zimbabwe, there is the indigenisation and domestic empowerment legislation in place, particularly for mining and financial services businesses, which has been widely criticised as creating uncertainty for investors.
This is most evident in Nigeria with the passing of the Local Content Act infavouring domestic investors or partners by restricting new investment by foreigners to existing joint ventures or new PSCs. Notwithstanding local content legislation, across the continent, legislation is in place to award the national oil company a stake in exploration assets to seek to ensure that the state benefits from exploitation of its natural resources.
Under the Kenyan Energy Bill being proposed, there are also proposals for State and local interests and royalty sharing. The Nigerian Petroleum Industry Bill is set to have wide-ranging changes but this has not been implemented for a number of years while national debate and infighting on the split of revenues and power sharing continues.
Under the legislation, investments can be made in foreign currency or using imported capital, however information on transactions must be filed with the Central Bank of Nigeria by an authorised dealer within 24 hours who will then issue the investor with a certificate of capital importation.
Equally, there is also legislation in place across the continent to encourage foreign investment, whether by way of tax breaks or specific legislation to address investor concerns.
In Nigeria, a new regime is in place to encourage investment into the infrastructure sector through new fund structures under wider powers of the Nigerian SEC.
Nigeria also has the Nigerian Investment Promotion Commission Act and other measures such as Export Free Zones to encourage international investors, but these are not without their shortcomings.Egypt plans to attract $11 billion in foreign direct investment in the current fiscal year, up from $ billion the year before, Planning Minister Hala al-Saeed said on Wednesday.
Foreign direct investment (FDI) refers to cross-border investments made by residents and businesses from one country into another, with the aim of establishing a lasting interest in the country receiving investment 1.
Egypt is among the top 10 signatories of Bilateral Investment Treaties (“BITs”) worldwide, with a total number of over BITs. It is also ranked second, after Angola, in the list of top African countries with foreign direct investment (“FDI”) growth with an increase of % of FDI inflow going from $ billion in to $ in (UNCTAD World Investment Report ()).
Egypt’s net foreign direct investment (FDI) fell by per cent to reach $ billion in the first quarter of this fiscal year, according to data from the Ministry of Investment and. Egypt has devised several schemes intended to attract foreign direct investment into special economic and trade zones.
The General Authority for Investment (GAFI) implements Egypt’s policies and procedures to facilitate doing business, including maintaining Egypt’s one-stop shop for investors.
foreign direct investment to the host country can be classified into three kinds: investor who looks for markets, investor who looks for raw materials and natural resources, investor who looks for efficiency.