Investment Incentives
Investment Incentives
Law No. 72 of 2017 on Investment, as amended by Law No. 160 of 2023, provides for investment incentives, including general, special, and additional incentives
General Incentives
According to Article (9), all investment projects governed by the provisions of the Investment Law, whether incorporated before or after its entry into force, regardless of the legal framework governing them, will enjoy the following general incentives, with the exception of projects set up under the Free Zones Framework:
2% Customs Duty for Imports
Unified customs duty at a flat rate of 2% applies to all imports of equipment, machinery, and devices necessary for establishing companies and establishments.
Stamp Duty & Fees Exempted
Articles and related credit and mortgage agreements for the companies are exempt from stamp duty and registration fees for five years from the Commercial Register date.
Land Registration Exempt
Contracts of registration of lands required for the formation such companies and establishments are also exempted from the above-mentioned duty and fees.
Special Incentives
According to Article 11 of Investment Law No. 72 of 2017 and its amendments, investment projects established after the enforcement of this law in accordance with the investment map shall be granted a deduction from the net taxable profits. In all cases, the investment incentive must not exceed 80% of the paid-in capital as of the date the activity begins.
A fifty-percent (50%)
A fifty-percent (50%) discount off the investment cost of Sector (A). This sector comprises the most underdeveloped geographical areas.
A thirty-percent (30%)
A thirty-percent (30%) discount off the investment costs of Sector (B), This sector covers the remaining geographic areas of the Republic.
(35% - %55)
Investment projects engaged in any of the industrial activities shall be granted a cash investment incentive of no less than 35% and no more than 55% of the tax paid.
Additional Incentives
According to Article (13), Investment Projects specified in Article (11) and Article (11 bis.) of the Investment Law are granted additional incentives as follows:
Customs ports incentive
Special customs ports of entry may, subject to Minister of Finance’s consent, be established to handle the importations or exportations of such Investment Projects.
State bears utility expense
The State covers all or part of the utility connection costs once the Investment Project becomes operational.
Cost of technical training
The State will pay a part of the expense incurred in course of providing personnel technical training related to the Investment Project.
Land value return incentive
Industrial Investment Projects will receive a 50% refund of land value if production begins within two years from the land handover date.
Free land incentive
Certain strategic business activities will be allocated lands free of charge in accordance with the statutory rules in this respect.
Golden License
Pursuant to the provisions of Article (20) of Investment Law No. 72 of 2017, without prejudice to the provisions of Article (23) of this Law, it is permissible by a decree of the Cabinet to grant incorporations, regardless of their legal structure, a comprehensive approval to establish, operate and manage a project, including construction permits and property allocation. Investments eligible for the comprehensive approval may include both existing corporates and newly incorporated companies formed for the purpose of implementing new investment projects, strategic or national projects. These projects must contribute to development within specific sectors, in accordance with the criteria set forth by a decree issued by the Cabinet.
E-Portal for Applying for the Golden License:
GAFI has launched a dedicated bilingual (Arabic/English) website for the Golden License. The website provides information on the application steps, eligibility requirements, terms and conditions, and the sectors and activities eligible for the Golden License. For more details, please visit the following link: Golden License Guide