Guarantees That Protect Your Investments
Investment Guarantees
The Investment Law provides fair treatment for both domestic and foreign investors. It protects the invested capital and projects from any arbitrary measures, as investment projects may not be nationalized, nor may they be placed under sequestration, have their assets seized, or be frozen except pursuant to a court judgement. The Law also guarantees foreign investors the freedom to transfer profits in foreign currency without restrictions. In case of liquidation, the competent authorities must notify the company under liquidation of all outstanding financial obligations within 120 days, which shall also ensure the safe exit of investors at the appropriate time.
The main guarantees provided under the Law are as follows
The law provides various guarantees to boost domestic & foreign investment
Fair Treatment
All investments get fair, equal treatment; foreign investors may, by Cabinet decree and reciprocity, receive preferential treatment
Capital Protection
Invested Assets may neither be subject to any arbitrary measures nor discriminatory decisions
Investor residency granted
The State grants non-Egyptian investors residency in Egypt for the duration of their projects, without prejudice to applicable laws regulating residency
Respect Contracts
The State honors and enforces its contracts; investments founded on fraud or corruption are excluded from privileges under this Law
Nationalization is banned
It is not permissible to nationalize projects
Expropriation is Prohibited
Investment project assets may be expropriated only for public benefit and with fair, transferable compensation guaranteed by the State
Guardianship is Prohibited
Investment projects are not subject to guardianship or seizure except by a final judicial ruling or order ensuring full legal protection for investors
Sequestration is Prohibited
Assets of investment projects may not be seized, confiscated, or frozen except by judicial ruling, excluding cases related to tax debts and social insurance dues
General Regulations
No regulations adding financial or procedural burdens may be issued without GAFI BoD’s opinion and approval of the Cabinet and Supreme Council for Investment
Investment Project Licenses
Project licenses cannot be revoked or suspended unless violations are notified to the investor and adequate time is given to correct them in accordance with law
Free Profits Transfer
Investors may establish, expand, and finance projects with foreign capital freely, collect profits, and transfer returns abroad without restrictions
Project`s Liquidation
Competent authorities must notify GAFI and the company under liquidation of obligations within 120 days from the liquidator’s submission of the liquidation request
Import Project Supplies
Investment projects may import directly or through third parties all supplies needed for establishment, expansion, or operation without importer register listing
Employing Foreign Workers
An Investment Project shall have the right to employ foreign workers up to 10-20 % of the total number of Investment Project workforce
Free transfer of funds
Foreign workers in Investment Project shall have the right to transfer all or part of their financial dues abroad
Register of Exports
Investment Projects governed by the provisions of this Law shall have the right to export their products without the need to be registered in the Register of Exporters.