Advanced Legislative Environment
Commercial Laws:
Commercial laws in Egypt serve as the legal framework regulating business and investment activities, as they provide a balanced legislative environment that supports corporate growth and protects the rights of all parties. The state is keen to develop these laws in line with domestic and international economic developments, ensuring transparency and stability in commercial transactions, enhancing the investment climate, and strengthening trust among investors.
1) Restructuring, Preventive Composition & Bankruptcy Law:
Law No. 11 of 2018 sets out the mechanisms and regulations governing the restructuring of companies, aiming to rescue them from bankruptcy, preserve jobs, and better protect creditors’ rights. Restructuring is intended to provide a plan for reorganizing a trader’s financial and administrative affairs, outlining how to overcome financial and managerial distress and repay debts, along with identifying proposed sources of funding. This can be achieved through various methods, including assets revaluation, debt restructuring (including debts owed to the State), capital increases, enhancing internal cash flows, and reducing outflows.
2) Commercial Registry Law:
Law No. 198 of 2020, amending certain provisions of Law No. 34 of 1976 concerning the Commercial Registry, is one of the key legislations passed by the House of Representatives to support workers in the industrial sector by granting them the right to be registered in the Commercial Register .This law is considered a comprehensive framework regulating the work of traders, encouraging investment, protecting the rights of traders, creditors, and customers, while also enhancing transparency in commercial transactions and providing a reliable database on traders. Registration in the Commercial Register requires that the applicant be of Egyptian nationality and hold approval to conduct commercial activity from the relevant Chamber of Commerce in the case of individuals and companies established for commercial purposes, or approval to conduct industrial activity from the competent chamber of industry in the case of companies established for industrial purposes.
3) Real Estate Registration Law & Its Amendments:
Law No. 9 of 2022 amending some provisions of the Real Estate Registration Law. The new draft law on Real Estate Registration presented by the government aims to amend some provisions of Law No. 114 of 1946 on the Regulation of Real Estate Registration. The draft law submitted by the government included the possibility of limiting registration to the extent stipulated by a final verdict that establishes the original real estate property right or part of it. Furthermore, it provided for the option of submitting the registration application by electronic means, with the aim of reducing administrative fees, while authorizing the Minister of Justice to regulate this matter by decree without the necessity of an express reference in the article. The Law, as amended, limits the documents required for registration to the minimum necessary, introduces specific time limits for verifying ownership requirements, and replaces the proportional fee with a fixed application fee.
4) Customs Law:
The Customs Law promulgated under Law No. 207 of 2020 rectifies deficiencies identified in the application of the former legislation. Its principal objectives include simplifying procedures to strengthen governance, support the business community, and facilitate domestic and international trade in accordance with Egypt Vision 2030. The Law further seeks to enhance Egypt’s position in international indices concerning global trade facilitation, investment promotion, ease of doing business, along with encouraging national economic projects and supporting gobal trade facilitation. One of the key features of the Law is the adoption of electronic transactions in lieu of paper-based processes, with the purpose of streamlining procedures, reducing the burden on stakeholders, and shortening the time required for customs release.
5) Protection of Competition & Prohibition of Monopolistic Practices Law:
In light of the State's orientation toward reinforcing the principles of a free-market economy and fostering a fair and growth-oriented competitive environment, the Arab Republic of Egypt enacted Law No. 3 of 2005 on the Protection of Competition and the Prohibition of Monopolistic Practices. This legislation represents a significant step toward supporting the national economy and regulating market relations. The primary objective of the Law is to combat harmful monopolistic practices that adversely affect economic efficiency and consumer rights. It seeks to ensure the availability of goods and services of high quality at fair prices by prohibiting the abuse of dominant market positions and anti-competitive agreements. Additionally, the Law aims to encourage producers and manufacturers to enhance their competitiveness, enabling them to access global markets. It further contributes to fostering an investment climate based on transparency and equal opportunity.
6) Export Development Law:
Law No. 155 of 2002 on Export Development constitutes one of the fundamental pillars for supporting the Egyptian economy and enhancing the competitiveness of domestic products in global markets. The Law entitles the Minister of Foreign Trade and Industry to issue rules and procedures aimed at developing the export framework and opening new markets for Egyptian goods and services. This contributes to increasing the State's foreign currency revenues and achieving balance in the trade deficit. The Law reflects the State’s strategic vision to support exports as a key driver of economic growth by improving product quality, offering incentives to exporters, and expanding the export base to include diverse sectors capable of competing internationally.