Reforms the free zones regime

On 21 August 2022, the Prime Minister issued General Authority for Investment Decree No. 159 for the year 2022, which provides the following, among others:

• Allowing free zone projects to sell up to 50% of their products in the local market for six months, except in prohibited areas.
• Permitting free zone projects to sell their stocks (raw materials, production requirements, and accessories) to the local market at a rate of 20%, with the approval of the head of the zone, and more with the approval of the head of the free zones sector, for six months.
• Extending the deadline for free zone projects to request financial guarantees for six months in all cases.
• Granting free zone projects a six-month period to renew insurance policies on their assets, provided that the legal representative of the project submits an undertaking to bear all criminal and civil responsibilities for any resulting efforts.
• Requiring the administrations of the free zones to take necessary measures to ensure 24/7 access for devices, machines, equipment, and all goods needed to carry out projects' activities.
• Extending the expiration deadlines granted to free zone projects to adjust their conditions for a period of six months.
• Continuing to deal with free zone projects whose licenses to practice activity have expired (exported - imported), provided that they submit a request to renew the licenses period.
• Allowing industrial projects in the free zones to carry out operations for third parties (total or partial) from the free zones and the local market without being bound by the condition that production starts for the benefit of the project itself first, as stipulated in the applicable general principles, for a period of six months.

• Type:

  • Promotion and facilitation (Investment facilitation , Special economic zones)

• Industry:

  • Not industry specific

• Sources:

  • Government, Decree of the General Authority for Investment No. 159 the year 2022, ..., 21 Aug 2022