In a statement issued on Monday, head of the Egyptian parliament's industrial committee Farag Amer said that the decision of the Board of the General Investment Authority this week to impose greater fees on investors operating in free zone areas represents a negative development for the investment climate in Egypt.
"The decision states that investment projects operating from the free zone areas will be forced to pay more service fees starting 2020," said Amer, adding that "this is a very negative decision which will be a setback for Egypt's investment climate which began to recover in the last few months."
"The investment climate has begun to recover a little, not to mention that the number of investors wishing to invest in Egypt has also begun to increase," said Amer, indicating that "100 decrees were issued between the first of July 2018 and the end of June 2019, and all led to improving the climate of direct investments and free zones in Egypt and settling disputes raised by investors."
"While investors are welcoming these measures, they were taken aback this week by the decision aimed at imposing greater fees on their projects operating from the free zone areas," said Amer, adding that "the decision comes at a very bad time and without careful study."
"The decision aims to impose greater fees without offering any real services in return and for no justifiable reasons," said Amer, adding that "the government should give greater incentives to investors rather than force them to pay greater fees."