Egypt's cabinet on Wednesday passed final regulations for a new investment law aimed at drawing foreign investment to the economy.
The final draft of the legislation was approved by the cabinet in August and was sent to Egypt’s State Council for a final legal review.
The law was later sent to the investment ministry to make necessary amendments required by the State Council. Wednesday's approval of the regulations will bring the long-awaited legislation into force.
The law is expected to reduce red tape, especially for new projects, and provides a raft of incentives to investors, including tax breaks.
It brings back private sector free zones, which are exempt from taxes and customs and will offer a 50 percent rebate to investors on the costs of purchasing land for industrial projects if production begins within two years.
Egypt’s net foreign direct investment rose to $7.9 billion in the 2016-2017 fiscal year that ended on June 30, the central bank said last month.
The figure was well below Egypt’s target of $10 billion, as the country continued to struggle to lure back investors after several years of instability.
Last year, Egypt signed a deal for a $12 billion International Monetary Fund (IMF)loan aimed at reviving the country's economy.
Egypt's Central Bank received in July the final instalment of the first $4 billion tranche of the loan from the IMF.