It creates jobs, boosts production and propels growth. Current efforts by the government to draw in investments by removing red tape or reminding investors of what Egypt has to offer hold much promise.
One move in the right direction was President Abdel-Fattah Al-Sisi’s directives to the relevant ministries this week to make investors’ lives easier. He said the fees currently charged by various entities and authorities will be replaced with a single unified tax on net profits. In a meeting on Sunday with the prime minister, the deputy prime minister for industrial development, the minister of transport and industry, the minister of finance and the minister of investment and foreign trade, Al-Sisi emphasised the need to create a more competitive environment where investors experience tangible, quick improvement in business operations through simplified procedures and reduced financial burdens.
Experts believe standardised fees and deductions from profits instead of sales represent a qualitative positive change for investors; it is a fair measure, and eliminates the possibility of corruption. These steps fall within the framework of Egypt’s comprehensive reforms to improve its business environment. Al-Sisi also stressed the necessity of granting the private sector a central role in driving economic growth and increasing exports.
The meeting addressed the new export support programme, which aims to strengthen national industry and boost the competitiveness of Egyptian exports. Al-Sisi stressed the importance of aligning the programme’s components with the state’s targets through 2030, by which time Egypt aims to attract $60 billion in foreign direct investment and increase its annual exports to $145 billion. These reforms underscore a clear strategic direction towards empowering the private sector as a central driver of economic growth and facilitating smoother trade and investment activities within Egypt.
Increasing the private sector’s contribution to the economy is a cornerstone of Egypt’s reform programme. To that end, the government is inviting foreign investors to tap into the huge potential available to them. Egypt will now offer a Golden Licence to all new Saudi investment projects, the prime minister announced last week. The move is aimed at removing administrative bottlenecks for projects. The Golden Licence serves as a single comprehensive permit for investment projects, enabling businesses to bypass multiple approval stages from various government agencies. With this policy shift, new Saudi ventures in Egypt will be automatically eligible for the licence without hassle.
The decision comes on the heels of an Egypt-Saudi business forum held in Cairo last week. It is part of a wider plan to expand economic ties between the two countries. In March, Egypt’s House of Representatives approved an Egypt-Saudi agreement on the promotion and mutual protection of investments.
Al-Sisi’s visit to Qatar and Kuwait last week underlined his understanding of the importance of investments. In both Gulf states he spoke of the many opportunities on offer. As a result of the visit the Kuwaitis have expressed an interest in the fields of energy, agriculture, industry, information technology, real estate development, the banking sector, and pharmaceuticals. In a joint statement the two countries agreed to take the necessary steps to advance economic, investment, and trade relations. For its part, Qatar said $7.5 billion in investments are in the works for Egypt in the coming phase.
Later this year, Cairo plans on hosting a Gulf-Egyptian forum that works as a platform for investors to explore promising opportunities and address the challenges they face in Egypt. All these moves are to be commended.
* A version of this article appears in print in the 24 April, 2025 edition of Al-Ahram Weekly
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